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30<br />

BALKAN VITAL GRAPHICS<br />

The dark and the light side of the moon<br />

The Bor region is one of the poorest parts of Serbia. In<br />

2004, the average wage at Bor was only 43 per cent<br />

of the national average and 33 per cent at Majdanpek.<br />

Unemployment stands at about 50 per cent. But things<br />

were not always this difficult. The regional economy depended<br />

largely on <strong>mining</strong>, which started in 1903 with<br />

the discovery of copper ore. After the Second World<br />

War, the publicly owned <strong>mining</strong> and processing complex<br />

“Rudarsko-Topionicarski Basen Bor” (RTB Bor)<br />

became one of Europe’s top producers of copper and<br />

a flagship of former Yugoslav industry.<br />

However, over the past 15 years, with political change<br />

and insufficient investment, the company has declined.<br />

Even with today’s high copper prices, operations are<br />

still not profitable due to massive overstaffing, outdated<br />

technology and low ore grades. The crisis in the<br />

<strong>mining</strong> industry had a disastrous impact on the regional<br />

economy. Moreover the combination of obsolete technology<br />

and poor maintenance has made RTB Bor’s<br />

operations, especially the smelter, extremely harmful to<br />

the environment and public health.<br />

Foreign investors have expressed considerable interest<br />

as the area covered by the publicly-owned complex still<br />

has rich mineral resources. An initial tender for RTB Bor<br />

was announced in September 2006. It was awarded to<br />

the Romanian <strong>mining</strong> company Cuprom in early 2007.<br />

The offer amounted to US$400 million for the core<br />

operations of RTB Bor: the copper mines at Bor and<br />

Majdanpek, the smelter and the refinery. However the<br />

Romanian neighbours failed to provide financial guarantees<br />

by the set deadline, so the Serbian Privatization<br />

Agency terminated the contract in April 2007 citing the<br />

“obvious inability to meet the contract obligations”.<br />

Whoever the future owner of the Bor <strong>mining</strong> complex<br />

may be, they will have to develop operations in an environmentally<br />

sound and socially sustainable manner.<br />

However, remedying the legacy of the past, such as

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