During Chinese President Xi Jinping’s visit to Serbia, media speculation arose that President Aleksandar Vučić had urged Chinese companies to acquire the Lece mine near Medveđa. Mining and Energy Minister Dubravka Đedović denied these claims, clarifying that Vučić had previously attempted to involve Chinese entities in resolving the fate of the mine’s workers. Since 2008, the mine has been privately owned by Farmakom MB Concern, which filed for bankruptcy exactly ten years ago.
Bankruptcy proceedings for the Lece mine began in May 2017, and recent reports indicate preparations for its sale may commence this summer. Ljiljana Jovanović, the bankruptcy administrator, confirmed ongoing preparations to fulfill legal requirements for the mine’s sale through public bidding, pending approval from the Board of Creditors.
Under the ownership of Miroslav Bogićević’s Farmakom, acquired in 2008 during state privatization efforts, Lece Mine is renowned for its mineral reserves, including lead, zinc, silver, and gold. Despite its bankruptcy status, the mine has continued operations, showing improved financial results annually. The delay in publishing its 2023 financial report by the Agency for Business Registers has raised speculation regarding the mine’s profitability and potential undervaluation upon sale.
With interests from global investors, including China, Great Britain, Canada, Australia, India, and local Serbian entities, the mine’s estimated value of at least 100 million euros contrasts with anticipated sale figures. While specifics on the mine’s assets and creditors remain undisclosed, creditors’ claims exceed 18.1 billion dinars. The ongoing bankruptcy proceedings continue to impact the mine’s future, which employed 417 workers as of late 2022.
