mining
mining
mining
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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still not profitable due to massive overstaffing, outdated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