Serbia, Bosnia mining – Excellent business results of Mineco mines in the region in 2015, in spite of crisis

17. March 2016. / Mining

The British company Mineco Limited, member of the Mineco Group, that represents one of the largest investors in the region in the field of mining and energy, has achieved excellent business results through the mines it manages in 2015, despite the global crisis on the stock exchange of non-ferrous metals, and announced opening of the new lead and zinc mine in Serbia, near Bosilegrad.

With its partners, Mineco has been exploring lead and zinc on the territory of the Municipality of Bosilegrad since 2010. godine. The initial explorations indicated that there is enough ore to open the Bosil – Metal mine.

„The Study we performed was certified for about 1,700,000 tons of the proven ore, and as we continued with exploratory works, we discovered that this area is rich with lead and zinc ore with the presence of copper. We plan to make a supplement to the existing Study this year, as we subsequently discovered that the balance reserves are about 3 million tons of ore“ said Bojan Popović, Director of Mineco Limited, adding that, when the supplemented Study is certified, Bosil-Metal will be one of the leading lead and zinc mines in Serbia.

If everything goes according to the plan, mine opening is planned for 2018. Mineco has invested about USD 11 million in Bosil-Metal so far, and an additional investment of about USD 12 to 15 million is required for completion of all buildings, facilities and infrastructure, depending on the selection and implementation of the final technological solutions. The investment of about USD 1,5 million is planned for this year only.

Besides opening the mine near Bosilegrad, this British Company and its partners already manage the operating lead and zinc mines in Serbia – Veliki Majdan near Ljubovija and ROC Rudnik near Gornji Milanovac, and the Sase mine in Srebrenica, the Republic of Srpska. At the same time, it is preparing the cerussite (oxide type of lead) mine near Olovo for opening and it is conducting the exploratory works on the lead and zinc deposit near Foče in Bosnia and Herzegovina. Mineco employs about 800 people in Serbia and about 1,400 people in the region, whereas the opening of new mines in Olovo and Bosilegrad, Serbia, will create jobs for another 400-500 people.

In spite of global crisis on the market of non-ferrous metals, that has led to closing of some of the largest mines in the world, Mineco mines have been reporting constant growth in production and the number of staff year after year. The past year was the year of many records: the annual plan for production of lead and zinc concentrates was exceeded for about 25 percent in Veliki Majdan mine, in ROC Rudnik there was the record of 26,543 meters of exploratory drilling, salaries increased for about 13 percent, whereas Srebrenica mine Sase increased production for 7.2 percent compared to 2014, and employed 47 new staff members. Besides that, Mineco tends to apply the latest solutions and knowledge in the area of mining and geology, and that is why last May, Sase mine organized the first Mining and Geology Forum in Bosnia and Herzegovina after the breakup of Yugoslavia, gathering the most eminent experts from the region.

Mr. Popović states that excellent business results are the consequence of years of optimal investments in all aspects of the production process, success of management that has been constantly working on improving the quality of production and good relations with the local communities. According to his words, with the support of business partners, they pay a lot of attention to staff, who are regarded as their most important resource, trying to provide appropriate training and constant improvement of working conditions for them.

Although uncertainty and global crisis are still present in the mining sector, Mineco announces long-term plans for operations in Serbia and the region.

„The crisis on the market of non-ferrous metals has not passed us by. However, we provided not only the survival of our mines, but the record production last year because of rationalization of costs and our policy to reinvest our profit back in the mines in order to enable smooth operations. We expect the global market of non-ferrous metals to consolidate in the coming period and that we will keep achieving excellent business results for many years to come” – said Popović.

All the mines operating within the Mineco Group meet all the legal obligations they have to the state and to staff. Salaries are regular and paid on time, reduced service retirement benefits are paid for staff. Mineco mines paid more than USD 1,800,000 for mineral rent to the state budgets in the region last year only. The mines regularly participate in the projects aimed at promotion of local communities, and they grant significant contributions to individuals, organizations and institutions of the communities they operate in.

Apart from mining, Mineco is investing in the area of renewable energy sources and construction of small and mini hydropower plants.

Download as PDF :

Download PDF