$600mln to be invested in copper and gold mine

The works on the construction of an exploitation incline in the Cukaru Peki mine near Bor, which is the first step towards the opening of a new copper and gold mine in Serbia, officially began today. The investor is a Canadian company, Nevsun, which, by 2022, has pledged to invest almost 600 million dollars in this business.

“As Prime Minister, I am delighted that in this region, after years of research, I am attending the opening of an incline, in which almost $600 million will be invested. A total of 1,150 workers will be engaged here, and our plan for mining to have an over 5% share in the total GDP in the coming period”, said Prime Minister Ana Brnabic at the opening of the incline.

According to the Prime Minister, this will provide required funds for the development of agriculture, information technologies, digitization … On the other hand, the Mining Minister, Aleksandar Antić pointed out that he expected that many new mines would be opened in the coming years in Serbia.

Want to open a company in Serbia? Click here!

“Currently, we have 127 mining sites in Serbia, with the ongoing exploration. Last year, about 60 million euros were invested in these projects. Nevertheless, the opening of the Nevsun exploration base, in addition to being the final phase of geological exploration, is undoubtedly the first step towards the opening of a new copper and gold mine”, Antic added.

Peter Kukielski, president of Canada’s Nevsun, added that he expected the company’s investments to exceed USD 1.5 billion.

Nevsun`s capital investments in Cukaru Peki project during the exploration decline and mine construction period from 2018 to 2022 is planned to be USD 590 million. During this time, Rakita`s contractors will employ around 1,000 workers, while Rakita Exploration, a subsidiary through which Nevsun operates in Serbia, will have around 150 employees.

As Rakita Exploration, a subsidiary through which Nevsun operates in Serbia, announced, after the mine opening, and during the exploitation phase which will last from late 2022 until 2038, it is expected that Nevsun`s capital investment will be additional USD 457 million, plus the earlier allocated USD 590 million. During this period, Rakita plans to hire around 600 workers, plus there will be close to 300 workers that will be engaged by Rakita`s contractors.

In addition to the greenfield investment of Nevsun, Serbia and Bor will directly benefit from Cukaru Peki project through approximately USD450 million in taxes and royalties.

In addition to the direct investments, Rakita`s contribution to Serbia and Bor will also involve development of local services sector and supply chain. Rakita`s Procurement & Contracting Policy will support and encourage the selection of Serbian suppliers and contractors through the company`s competitive tendering and award process, where Serbian companies compete both commercially and technically and where there is adherence to the company`s corporate standards.

(Vecernje Novosti, eKapija, 04.06.2018)


This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top