Serbia has selected China’s Zijin Mining Group to become strategic partner in copper smelting and mining complex Rudarsko Topionicarski Basen Bor (RTB Bor), Serbian Minister of Mining and Energy Aleksandar Antic announced on August 31.
On July 18, the Ministry of Economy issued a public invitation for a strategic investor for RTB Bor. RTB Bor remains one of the biggest burdens on Serbia’s budget since the government’s efforts to find a solution to make the company sustainable are taking longer than planned. RTB Bor is the main employer in eastern Serbia and its closure could sharply increase poverty in the region.
The Chinese company will invest $1.26bn in RTB. In addition, Zijin Mining is obliged to recapitalise the miner with $350mn.
Zijin Mining Group, which will have a 63% stake in the Serbian company, has also pledged to save all the 5,000 jobs and to invest $200mn in the settlement of the historical debt. The partnership will enable the opening of a mine, the modernisation of the smelter and the increase of its capacity.
The government hopes the new investment will double the share of RTB Bor in the country’s GDP which currently stands at 0.8%.
The contract is expected to be completed in the first half of September, while the transaction should be finalised by the end of the year.
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