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The Government of the Republic of Serbia

In the service of citizens

Serbia-Montenegro will obtain positive feasibility study

Belgrade/Bor, 7 March 2005

Serbian Deputy Prime Minister Miroljub Labus said today that Serbia-Montenegro will obtain a favourable assessment of the Feasibility Study, thus allowing for negotiations on concluding the agreement on stabilisation and association to the EU to begin soon.

Labus, who heads the negotiating team of the Serbian government, announced that preparations for the negotiations will begin in several weeks.

"We want to say to the people of Bor what the EU membership will bring to Bor and to this region", Labus said at a meeting with leadership of the Bor municipality, which was also attended by British Ambassador to Serbia-Montenegro David Gowen.

Labus said that the goal of their visit to Bor is to learn about problems of this region, which are far-reaching and serious in nature. He pointed out that the Serbian government is interested in helping the people and city of Bor and that it is doing everything in its power, although its financial possibilities are insufficient.

He said that solutions can be found and that the government's task is to ensure normal life for the people of Bor so that this city and the entire region can cease to be "a black spot". Labus reiterated the importance of cooperation between the government and local authorities.

At the meeting, held at the offices of the Bor municipal assembly, the British government’s contributions to Serbia were also presented, focusing mainly on those to Bor and the Bor municipality.

Ambassador Gowen said that there are many centres such as Bor in which industry plays an important role. The British government will use its experience to help the economy of this city.

Labus and Gowen held a lecture at the Bora Stankovic high school in Bor themed "Serbia and the European Integration".

Following a meeting with representatives of the Bor mining and metallurgical complex (RTB Bor), Labus said that the Serbian government does not agree with a report put out by the World Bank that stipulates an impending closure of the copper smelting plant and existing mines.

According to Labus, the government supports the survival of RTB Bor, but it also expects the firm's management to modernise production.

According to the World Bank’s report, in which their experts examined the possibilities for restructuring and further existence of RTB Bor, it is suggested that the copper smelting plant and the mines be closed next year as a result of ecological problems, unprofitable work and a low level of copper in the ore.

Labus said that the government will continue talks with World Bank experts in order to find a solution so that RTB Bor can have stable production.

He recalled that RTB Bor has a debt load of $500 million and that the government will do everything they can to reduce it or write it off.

Director of RTB Bor Borivoje Stojadinovic said that production of around 45,000 tonnes of copper is planned for this year and added that the Australian firm YU Resources has expressed a high level of interest in the purchase of the copper mine in Majdanpek.