Russians and Chinese interested in RTB Bor – Potential settlement in dispute with Mytilineos

President Aleksandar Vucic stated on September 1 that Russian and Chinese companies were interested in the privatization of RTB Bor, but that there was no rush to sell the company which was producing good business results thanks to a high price of copper in the world market.

– We are talking to the Chinese on a daily basis. We are also working on bringing other investors, primarily to Zrenjanin, which would be the biggest investment in Serbia – Vucic said while visiting the surface cut of the Juzni Revir copper mine, a part of RTB Bor.

He said that it paid off at the moment to produce copper and have copper mines, as the price was USD 6,750 per ton, whereas, three years before, it had been USD 4,600, and added that RTB Bor would not be able to pay its electricity bills, taxes or meet any other obligations if the price of copper were not so favorable.

– We need to prepare for the moment when the prices of copper are not so good, that is, when they are incomparably lower than now. For this reason, we are in favor of an essential transformation and an increase in production. The state will certainly provide aid, but the money needs to be spent wisely – he said and added that RTB Bor was the most important company of eastern Serbia and that there was a plan to invest in the Cerovo mine.

Vucic emphasizes that it is important for the country to have its own ore for the GDP, so as to not lose, but earn large amounts of money.

– The high price of copper opens the possibilities of stepping up our own reforms and investments in Cerovo, which is the most important thing for us – he said and emphasized that there was an opportunity at the moment to invest money in what the country was earning from.

– RTB Bor would not be able to meet any of its obligations if the price of copper was different. We need to prepare for the moment when the price is incomparable lower, which is why I am in favor of an essential transformation. The state will certainly provide aid, but the money needs to be spent wisely – he explained.

Potential settlement in dispute with Mytilineos

Vucic also said that the dispute with the Greek company Mytilineos, which has sued the Republic of Serbia over RTB Bor's debt, might be solved through a settlement, but that it had not been done as it had been estimated that such a move would not be welcomed by the public.

– We have been aware of the problem from the start. We could have settled and paid out EUR 35 million, instead of EUR 40 million, the amount the state of Serbia now has to pay to Mylitineos, but there would always be those who would ask why the settlement hadn't amounted to EUR 30 million – Vucic said and added that “a lot of stupid stuff” had been done at the time RTB Bor's debt towards Mytilineos was incurred.

Serbia Zijin Copper doo Bor

RTB Bor

privatization of RTB Bor

Aleksandar Vucic

copper ore

production of copper

Juzni Revir copper mine

copper mine

price of copper

Cerovo cut

Mytilineos Greece