Serbia: Farmakom zinc and copper mines to be sold to Japanese and Australian investors, financial crisis of Farmakom holding urges the quick sales

3. July 2013. / Mining

“Farmakom MB” holding company hasn’t confirmed arranged sale to foreign investor still. Japanese investors were also interested in takeover of “Lece” excavations in Medvedja.

“Farmakom MB” Concern hasn’t confirmed or denied the rumors that negotiations about its sale are close to end. Public speculates that buyer from Australia is ready to pay 1,2 billion EUR for the company that contains 10 more dependent companies in Serbia and also 5 companies abroad. Investors are interested in buying the mines “Zajaca”, “Suva ruda” and “Lece”. One Japanese company wanted to take over the copper and zinc mine which is 10 km from Medvedja.

While sale of this concern is being discussed, majority of the companies are having serious financial problems. Even 8 of 10 corporations were blocked on Tuesday. The total amount of the blockage is higher than 8 billion dinnars. The biggest burden is their main corporation, Koncern from Sabac. They owe even 2,4 billion dinars during the last 70 days.

406,9 million dinars is being purchased from the mine “Lece” at the moment, and 188 million dinars from PIK “7.Jul”. “Zorka standard” is at 93,8 million dinars worth blockage.

Credits or corporations that do business within “Farmakom” are not negligible. Informed people have been warning during last couple of days that concern is full of credits. According to the financial reports from 2012, they have a loan of 50 billion dinars in total. The biggest debt is in the name of main company- 23 billion dinars. Credit loans of “Zajace” amount 4,86 billion dinars, 10,5 billion for accumulator factory and around 1,3 billion dinars for “Sabac” Dairy. These are “Guca” credit also while loan of “Lece” Mine is little lower than a billion. Foundry “Pozega” has credit obligations of around 672 million dinars.

Foreign countries

“Farmakom” has registered companies abroad also. Business with EU is done over companies registered in Moscow, Skopje, Milano and Munich. “Farmakom has its company in Brcko also.

Source;Serbia Energy

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