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The Government of the Republic of Serbia

In the service of citizens

RTB Bor exploitation, sale contracts signed

Belgrade, 7 February 2008

The contract on the transfer of exploitation rights and the contract on the sale of assets of the mining and metallurgical complex RTB Bor has been signed today at the Serbian government with representatives of the Austrian consortium A-Tec–Brixlegg.

Mirko Kovac, left, and Mladjan Dinkic

The consortium has purchased the RTB Bor group, which includes the Copper Mine Bor, Copper Mine Majdanpek and Copper Smeltery and Refinery, worth around $700 million, of which $466 million is the estimated value of RTB Bor assets, and $230 million are investments.

The buyer is under obligation not to dismiss any of the current 4,691 employees in the next three years.

Serbian Minister of Economy and Regional Development Mladjan Dinkic told the press conference following the signing that the government session was held via conference call with only one item on the agenda – the sale of RTB Bor assets.

He explained that out of the $466 million from the sale of RTB Bor, around €25 million will be distributed among RTB Bor employees, who will thus receive €200 per every year of service.

Dinkic said that he will present an initiative to the Serbian government to make these payments from the sale price of $466 million. When asked if pensioners and former employees will also be paid he said that this is a question which the trade union must settle, but the total sum from which payments will be made will remain €25 million.

Explaining the structure of the investment programme, the Minister said that some $131 million will be invested in the construction of a new copper smelter and refinery, $67.5 million in the copper mine, and $31.5 million in the Majdenpek copper mine.

He added that according to the contract, the Austrian buyer must invest in environmental protection equipment to reduce pollution caused by the refinery. He said that A-Tec-Brixlegg must meet ecological standards within four years from the moment of concluding the transaction.

Dinkic said that according to the contract, financial transactions will be made at the latest within 25 days of signing the contract.

Following the session of the Serbian government at which the decision was taken to approve the contract on the transfer of exploitation rights between Serbia, the Serbian Privatisation Agency and the mining and metallurgical complex RTB Bor on the one side and Austrian company A-Tech Minerals and Metals Holding, A-Tec Industries and Montanwerke Brixlegg on the other, the contract was signed by Mirko Kovac and Bernhardt Rippel on behalf of the buyer, and Dragan Bojovic, Vitomir Miladinovic, Blazo Lekovski and Miodrag Conic on behalf of RTB Bor.