Serbia: Analysis of mining industry in Serbia, breakdown of old concept of mining

24. June 2013. / Mining

Privatization has bad influence on the mining industry. Anti investment policy has brought Serbia into a bad position. There is no serious investment in mining

With the  bad and age-long policy, mining fell to the lowest level – it is the conclusion of “Breakdown of neocommunism concept of mining in Serbia” by Branislav Radošević and Darko Vukobratović, presented at the Fourth International Symposium on “Mining 2013″, held at Silver Lake in late may. As reasons experts give a number of privatizations by whom the mines were “wasting” without any criteria, except the one simplest, discounted. Thus, the mines became the property of companies that do not have the necessary expert potential or financial resources to invest the initiation of production, in modernization of production process, which would certainly be a condition for the further development of the mine. As a consequence of this principle, most of mines does not work anymore or does not work in the way that it should. The mining industry operates worse than before privatization, worse than the classical communist economy. The authors of this study, as the only two bright examples of privatization indicate “Rudnik” and “Veliki Majdan” that work better than before the privatization.

The bad fiscal policy basically buried, and in non-metal part totally disfigured, the mining industry. It is well known that investment by themselves develop the mining industry, and therefore it is necessary to create the appropriate fiscal ambience, because otherwise it does not come to the desired objective.

Anti investment policy has brought Serbia to very low branches. Basically, because of the worse and worse policy and absence of structural changes with every government, this country goes down and currently is at 105. place on the investment ranking list. It is in the company of some of the world’s poorest countries such as Zambia.

Corruption is, according to the experts, a standard phenomenon in the countries with a typical centrally planned system and state intervention in the economy. The authors cite survey of the famous Fraser Institute, according to which Serbia is at the very bottom of the processed countries, which talks about its prospects. For many years backwards, it was insisted on the procedures and processes that have been attracted on corruption. This situation discourages investors and it is clear that in the near future will not be serious investment in mining.

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