Canadian bid for RTB Bor sent back to be corrected

The Working Group, in charge of the privatization of Smelting and Mining Basin Bor (RTB Bor), has approved an additional deadline for the Canadian company Diamond Field to change and submit its bid – the Politika daily has learned from unofficial sources.

Considering that the company had an operating income of only USD 1 million at the end of 2017, Diamond Field has been officially required to prove that the income of its related parties reaches at least USD 500 million, which is one of the terms and conditions of the tender.

The 2017 financial report of Diamond Field shows that the company doesn’t meet all the terms of the tender, due to its inadequate business income.

The Politika’s sources say that the new deadline has been set for Monday, 27th August. After that, an official announcement will be made about the bids that meet the terms and conditions of the tender, following which the financial part of the package will be opened. 

Want to open a company in Serbia? Click here!

Diamond Fields operates under the complex network of companies, which are mainly engaged in mining business. The company is listed on the Toronto Stock Exchange in Toronto, with their largest shareholder (with a 68.9% stake) being Spirit Resources SARL, founded by Jean-Raymond Boulle.

This company operates under the Boulle Mining Group, which is based in Luxembourg. The group, which operates several mining companies, is listed on the stock exchanges in Luxembourg and Toronto. It deals with mining and exploration of gold, copper, nickel, zinc and diamonds and other precious and semi-precious stones in South Africa, Namibia, Liberia, Madagascar, the Democratic Republic of the Congo, Zambia, Finland, Canada and Brazil.

Otherwise, two other companies submitted their bids for forging a strategic partnership with RTB Bor – the Chinese company Zijin and Russia’s Ugold Limited.

Despite numerous announcements, many companies have given on participating in the tender for the mining giant from Bor. For instance, the Red Metal company, which was thought to be one of the interested companies, did not submit their bid before the prescribed deadline. Allegedly, this is a company managed by the Serbian businessman Milan Popovic. Also, the Russian Copper Company (RCC), owned by Igor Altushkin, has failed to submit a binding offer. Despite the announcements, the companies from Turkey and Ukraine also decided against bidding.

The tender envisages that the strategic partner of RTB must invest at least $ 350 million after forging the partnership. The public call does not strictly define how big of a share in RTB will the winning company get. So, in this case, the winner will be the company which offers most money for the smallest share in RTB.  Companies that can participate in the tender can be a domestic or foreign, and they have to be engaged in the exploitation or production of copper or other precious metals for at least 10 years.

The good news is that the price of copper at the London Stock Exchange is growing and it currently stands at $6,000 per tonne.

(Politika, 25.08.2018)


This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published.

scroll to top