Construction of new smelter, sulphur factory in Bor

Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic attended the signing of a contract between representatives of the RTB Bor mining and metallurgical complex and the Canadian company SNC Lavalin concerning the designing and construction of a new smelting facility and sulphur factory in Bor yesterday.

The agreement was signed by CEO of RTB Bor Blagoje Spaskovski and Lavalin representative Walter Mutler.

Speaking after the signing, Dinkic said that the project will cost €175 million, of which €135 million will come from a loan from Canada’s export credit agency Export Development Canada and €40 million will be provided by the Serbian government.

The loan is to be paid over 10 years, with a grace period of three years and an annual interest rate of 2.9%, he specified.

The deadline for finishing the project is 36 months and work will begin on 1 July, he stated, adding that the project will lead to cost effective production and ecological benefits.

This investment is a turning point in the development of RTB Bor and Serbia, considering that the construction of the new smelter and factory will create a large number of jobs, observed Dinkic.

The project will help increase the utilisation level of raw materials – gold, silver and sulphur dioxide – from 9% to 98% and it is estimated that RTB Bor will increase its annual profit by $26.2 million, he stressed.

Mutler emphasised that the entire region will benefit from this project, the first positive effects becoming visible over the next few months.

Bor will receive the best in technology and its people will be able to breathe cleaner air, Mutler declared, adding that hundreds, even thousands of new jobs will also become available.

The signing of the agreement was also attended by Canadian Ambassador to Serbia John Morrison.