Area served Worldwide Revenue 253.2 million EUR (2013) Net income 790,000 EUR (2013) Total equity 0 EUR (2013) | Headquarters Bor, Serbia Founded 1988 Total assets 703.4 million EUR (2013) | |
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Native name Rudarsko-topioničarski basen Bor Type Government-owned corporation Industry Copper mining and smelting Key people Blagoje Spaskovski (General director) Products Copper wires, Copper bars Profiles | ||
RTB Bor (Rudarsko-topioničarski basen Bor) is a copper mining and smelting complex located in Bor, Serbia.
Contents
History
Since the mid-1990s and during the time of sanctions on the Federal Republic of Yugoslavia, production in the RTB Bor dropped significantly from the very prosperous 1970s and 1980s. This has been due to both diminishing reserves and the inability to obtain new equipment that would most efficiently gather the remaining ore no longer of high grade. Copper mining is the key basis of Bor's economy and the effects of decreased production could be seen all over the town.
Cuprom's failed purchase
The Serbian Government has decided to place a tender on the privatization of RTB Bor to allow for better development and investment for the company in the recent years. After the first tender, on March 6, 2007, RTB Bor was sold to the Romanian Cuprom for the bidding price of US$400 million. Cuprom has pledged to modernize the production facilities in RTB Bor and Majdanpek mines, in order to improve the productivity levels. This was seen as the breakthrough deal that the town of Bor needed, in order to speed up its much needed economic reforms. However, due to Cuprom's failure to meet a deadline regarding the financing, the Serbian government had cut the deal and the complex was put up for privatization once again.
A-TEC's failed purchase
A second tender was called soon after, the highest bidders being the Austrian A-TEC for $466 million plus $180.4 million in investment to follow in the next two years and the second ranked bidder Russian SMR offered $370 million plus $413 million in investment. A-TEC was awarded the contract for the highest bid which received some criticism from some stressing that SMR made a better offer with its larger investment pledge. On February 7, 2008, the Austrian consortium A-TEC officially acquired the eastern Serbia based copper mining and smelting complex. The buyer was also obliged not to lay off any of the company's 4,691 employees which is seen as a major breakthrough in the revitalization of the Bor's economy.
After the signing of the contract was made, the first $150 million was delivered by A-TEC. However, the problems arose after A-TEC missed its deadline for the second payment at $230 million. The Serbian Minister of Economy, Mlađan Dinkić moved to have the contract canceled stressing that A-TEC did not honor their contract. A-TEC made several attempts to rectify the problem by increasing their offer slightly for an extended deadline. The company announced it was having trouble securing bank guarantees due to the global recession. It announced that it had secured the next payment with the help of the Austrian government. A-TEC was not permitted to see the $150 million it had already paid fore returned. The Serbian government at that time had however voted to scrap the contract and offer Russian SMR the second ranked bidder a chance to purchase RTB Bor. SMR was contacted by the privatization agency and entered negotiations about the previous offer made. Over all interest was lost by SMR as they decided not to change their first offer and stated they would not do so in the future. As such the second tender had officially failed.
Organization
RTB Bor Group is composed of the following subsidies: