Republika Srpska: Mining concessionaires in RS do not pay fees

29. May 2013. / Mining

A certain number of concessionaires in Serb Republic do not respect contractual obligations, do not pay or pay a concession fee occasionally, and some companies are in the insolvent position, according to the report of the Commission for Concessions RS for 2012. year.

The Commission report states that the payment of concession fees is not at the required level and that the financial discipline of concessionaires should be strengthened.

During the 2012th a total of 23.5 million was paid in one-time concession fee for the purpose of use concession fees for natural resources or to supply of services. Compared to the 2011. year, the total payment of concession fees in the 2012th was higher for 5.3 million KM.

A number of companies pay concession fees regularly and on time, but it has been found that there are companies that do not pay or pay a concession fee occasionally. The Commission has noted that some concessionaires keep smaller part of the business activities, related to the use of the concession’s subject, in the concession company, while other tasks do in the main or associated companies.

– Such is the case with companies “Vitinka exploitation” from Kozluka and “Bentonit” from Šipovo. This has a direct impact on the reduction of the base for concession fee account, and also for the amount of the concession fee – said in a statement.

A number of concessionaires are insolvent for a long time, because of that the Tax Administration has blocked their account.

– State of insolvency of the concessionaires for more than six months, according to the concession agreement, is one of the conditions for contract termination – the report added.

When it comes to the realization of the concession contract for small hydro power plants, the report notes that 14 contracts terminated with agreement last year and that for the nine contracts one sided termination has been started this year.

– It is necessary to analyze all the remaining concession contracts for the construction of small hydro power plants, than to initiate proceedings of termination of all concession contract whose have been missed contract activities, or where it is certain that it will not come to the realization – it is noticed in the report, adding that the problem of illegal exploitation of mineral resources still exists. It is emphasized that the concession company, in which slowdown of the job is evident, have one employee or any employee, which creates serious doubt about the ability of such concessionaires concerning the realization of the concession work.

– It is necessary to realize an analysis and  to determine whether is  meaningful existence of these contracts, and if not, to access their termination, which is primarily related to contracts with concessionaires BRC “Šeher” from Banja Luka, “Kaolin” from Bratunac, “Bauxite” from Gacko, “Anić” from Pelagićevo, “Alas stone” from Doboj, “B.S.D. company” from Bijeljina and others – the report says.

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