The Serbian Bankruptcy Supervisory Agency has announced the auction of Farmakom MB, the company that owns the Lece gold-lead-zinc mine, located in the southern town of Medvedja. The auction will be held with a base price of 4 billion dinars(approximately $34 million). This sale process will take place on August 26, according to the statement issued by the agency last Friday.
The great auction for the Lece mine
To participate in the auction, interested parties must make a deposit of 500 million dinars by August 23 and submit the required documentation by August 26. Assets to be auctioned include buildings, land and equipment related to mineral production and processing.
The Farmakom MB mining company, valued at 8.1 billion dinars, filed for bankruptcy in 2017. Miroslav Bogicevic, the company’s former owner, stated in 2010 that chemical analyses performed on lead concentrate from the Lece mine, indicated the possibility of this mine becoming the largest in Europe in gold production. According to Bogicevic, the mine’s lead concentrate contained up to 160 grams of gold per ton.
Last 2019, Serbian President Aleksandar Vucic mentioned that the Serbian government was considering negotiating with China’s Zijin Mining Group to take over the operation of the Lece mine. Zijin Mining Group had established a strategic alliance with Serbia in 2018, when it became a partner in the RTB Bor copper complex, committing to invest €1.16 billion in exchange for a 63% stake.
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Source: SeeNews
Photo: Shutterstock
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