Board for restructuring and privatization of RTB "Bor" suggests breaking of contract with "A-Tec" - opportunity for Deripaska

The Board for restructuring and privatization of RTB "Bor" has decided to suggest breaking of contract with Austrian company "A-Tec" on procurement of that mining basin.

The Board has made the unanimous decision about breaking the contract with that company, which asked for extension of deadline for payment of the whole amount of 466m USD, and the Government should confirm that decision at the meeting on April 10.

According to the words of Minister of Economy, Mlađan Dinkić, it was agreed on commencement of negotiations with the second-ranked bidder on the tender, Russian company SMR, which is a part of "Basic Element" owned by Oleg Deripaska. Dinkić said that, in spite of the fact that Government of Austria backed "A-Tec", the representatives of the trade union and RTB did not want to enter risky business.

"A-Tec" has, so far, paid part of the price in amount of 150m USD and that money will be returned to it, says Dinkić and adds that the rules allowed extension of deadline for payment of the contracted price, but that the decision on breaking of the contract was made because there were no guarantees that that company would pay the remaining part of the price and fulfill the investment plan.

- The closest deadline that "A-Tec" offered to pay the price was the end of April - said Dinkić and added that the decision of the Board would have been different if the buyer of RTB had offered to pay the price the next day.

Dinkić added that SMR would be sent the invitation to negotiations about procurement of RTB and he added that he hoped that that company would give better offer.

- The offer is not acceptable, but I expect that it will be improved during the negotiations, as well as that SMR will extend the expiration period of the auction guarantee - Dinkić pointed out.

The deadline for signing of the contract on sale of RTB with the second-ranked bidder would be 30 days from the day the negotiations started, and it can be prolonged for maximum 30 days.

- If the negotiations with SMR fail, there is possibility of the announcement of the third tender for RTB - Dinkić added. SMR offered the price of 370m USD for RTB Bor and investment program worth 414m USD

The meeting of the Board for restructuring and privatization of RTB "Bor" was attended by the ministers and the CEO of the Privatization Agency, Vesna Džinić, as well as the representatives of the management of RTB "Bor" and representatives of all representative trade unions of that company.

Serbia Zijin Copper doo Bor

Vlada Republike Srbije

A-TEC Industries AG Vienna

Ministarstvo privrede Republike Srbije

Agencija za privatizaciju Republike Srbije Beograd prestala sa radom 29.01.2016.

Board for restructuring and privatization of RTB Bor

Mlađan Dinkić

SMR

Basic Element

Oleg Deripaska

Vesna Džinić