Cuprom to recoup Serbian investment in 10 years

Newsroom 14/09/2007 | 16:34

Simu added that he hopes to recoup the investment made in the Serbian company in about 10 years, which is the usual period for this type of business.
Part of a consortium with Energomineral and Pronef, Cuprom was selected by the Ministry of Economy (MEC) to sign cooperation contracts with two local mining companies: Cuprumin Abriud and Moldomin Moldova Noua. Further details of these contracts will be settled during the negotiations that are currently taking place. The activity of these companies has currently stopped due to financial difficulties.
The Romanian company offered $400 million for the Serbian producer, which is also one of the biggest makers of copper products in Europe. Cuprom's offer bettered that of the other participant, East Point, by $80 million. Third was Amalco group, which offered $288 million. The Serbian government had set a minimum price of $266.65 million for the three divisions of RTB Bor, which include several mines and a smeltry.
The Romanian producer's bid was opposed by the Serbian company's management, Serbian politicians and recently even by the inhabitants of the Serbian Bor area.
Cuprom announced it would retain the firm's employees and further invest between EUR 150 and 200 million in Bor in the next five years.
RTB Bor has EUR 500 million in debt and uses old, environmentally harmful technologies.

Roxana Mihul

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