RTB Bor tender by end of August

RTB Bor tender by end of August

Three of the company’s units will be offered for sale: Ironworks and refinery, Copper mine Bor and Copper mine Majdanpek.  

Ironworks and refinery has a minimum investment tag of 30 million dollars attached to it, the condition that applies to the Copper mine Bor is at 17 million dollars, while the minimum required investment in the Copper mine Makdanpek must be 10 million dollars.

Bubalo said that Mining and ironworks basin (RTB) privatization money will be used to pay the company’s foreign debt, and added that the total debt exceeded 600 million euros. It was announced earlier that foreign debt constituted 34 per cent of the total, while the state announced it will be taking over RTB’s domestic debt.

Bubalo also said that the sale will not jeopardize the status of the workers, since, in his words, “the new owner will sign a contract on securing 4 690 jobs”.

Currently, RTB employs 7 000 workers, while those made redundant will receive 200 euros per year of service in indemnities.

The minister said RTB’s privatization took much longer than expected, as there were certain suggestions by consultants and advisors to “close RTB Bor for business altogether”. Obsolete equipment represented the principal obstacle, followed by the large number of workers and huge debt, while copper’s high price in the metal markets was considered a favorable circumstance. Copper sold at 7 900 dollars per ton at the London Metal Exchange.

The privatization advisor for RTB, CAIB’s Vladimir Poznanić, said last week Romania’s Cuprum and St Nevis’ Quatro Investment showed interest in buying the whole of the RTB system. 19 additional companies expressed interest in buying separate units of the company.