Chinese close to taking over RTB Bor – State repaying debts, possible leaving of 2,500 workers

The Chinese are close to making the decision of taking over Rudarsko Topionicarski Basen (RTB) Bor, but they have also prepared a list of conditions to be submitted to the Government of Serbia.

– One of the biggest mining companies from China is supposed to enter RTB Bor, by agreement with the country's state administration. The name of the company is treated as a top secret – Blic writes and adds that it is known that this is one of the most powerful Chinese companies, belonging to the top five when it comes to this industry in China.

– The Chinese have clearly demonstrated that they are not concerned with RTB's debts, which measure in billions... All things considered, the Government of Serbia will have to reach the decision to write-off all RTB's debts towards state companies, above all those arising from electricity bills – the Blic source said.

Another option is to apply the model used in Zelezara Smederevo, with the debts remaining on paper and being treated as a separate business entity which will not have any connections with the company to be taken over and run by the Chinese.

– Which model the state will opt for is a technical issue. In any case, RTB Bor is to be transferred to the Chinese without the burden of the past debts – the Blic source points out.

The article says that the Chinese insist on having their management take over complete control over RTB and that they are requiring a large number of employees to be let go and for the state to pay for the social program.

– Although willing to help, they are aware that our side doesn't have any options, as Bor “is increasingly more like a noose around the neck of reforms that Serbia has ambitiously started carrying out” – the source says and adds that the final estimate of the number of surplus workers has not yet been completed, but that it wouldn't be a surprise for them to require as many as 2,500 people to leave the company.

The Government of Serbia opened a public invitation for professional management and management consulting in running RTB Bor in December 2016.

Serbia Zijin Copper doo Bor

Vlada Republike Srbije

Železara Smederevo d.o.o.

HBIS GROUP Iron & Steel d.o.o. Beograd

Rudarsko Topionicarski Basen Bor

RTB Bor

Government of Serbia

sale of RTB Bor

privatization of RTB Bor

RTB Bor debt write off

Zelezara Smederevo

Hesteel