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$130 million for new copper foundry in Bor
Belgrade,
4 February 2009
Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic said today in Zajecar that the government has decided to invest in the construction of a new copper foundry in Bor, which will cost around $130 million.
According to a statement by the Ministry of Economy Dinkic announced in Zajecar that equipment for this purpose will be obtained as a commodity loan from producers.
He said that since the equipment is of a specialized type there are not many producers and all producers will be asked to submit offers, adding that this is the only way to solve the problem of pollution in Bor and to reduce expenses so that the Bor mining and metallurgical complex (RTB Bor) begins to function efficiently.
He stressed that the government does not intend to keep RTB Bor in state ownership for ever, rather the aim is to safeguard the health of the citizens of Bor and to create conditions for RTB Bor to emerge as a profitable business when the financial crisis passes and the price of copper goes up.
Dinkic said that tender conditions will be altered for a strategic partner and potential investors will be invited to invest according to a new model which envisages that investors will get an ownership percentage in proportion to their investment.
He said that theoretically speaking investors could become majority owners if their investments become large enough to make their share over 51%.
We will link foundry and mining activities. The state will build the foundry but it is necessary to invest a further $120 million in mining and we are looking for an investor through tender, said Dinkic, adding that investors who invest in mining will get shares not only in the mines but the entire RTB Bor.
He said that since the equipment is of a specialized type there are not many producers and all producers will be asked to submit offers, adding that this is the only way to solve the problem of pollution in Bor and to reduce expenses so that the Bor mining and metallurgical complex (RTB Bor) begins to function efficiently.
He stressed that the government does not intend to keep RTB Bor in state ownership for ever, rather the aim is to safeguard the health of the citizens of Bor and to create conditions for RTB Bor to emerge as a profitable business when the financial crisis passes and the price of copper goes up.
Dinkic said that tender conditions will be altered for a strategic partner and potential investors will be invited to invest according to a new model which envisages that investors will get an ownership percentage in proportion to their investment.
He said that theoretically speaking investors could become majority owners if their investments become large enough to make their share over 51%.
We will link foundry and mining activities. The state will build the foundry but it is necessary to invest a further $120 million in mining and we are looking for an investor through tender, said Dinkic, adding that investors who invest in mining will get shares not only in the mines but the entire RTB Bor.
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