Veto for RTB "Bor" - Greek "Mitilineos" submitted proposal for introduction of temporary measures in Bor-based combine because of debt worth 65m USD

Greek company "Mitilineos" has submitted a proposal to the Trade Court in Zaječar for introduction of temporary measures in Mining Smelter Basin "Bor" because of the debt of 65m USD. Greeks ask for the sale of Bor-based copper combine to be disabled until the debt is returned to this company from Athens.

This step was taken after "Militineos" lodged complaint with the Arbitration court in Zurich against Serbia because of the debt worth 17m USD and 4,000 tons of copper. In the meantime, the debt with the interests reached amount of 65m USD.

The Management of RTB signed the contract on strategic partnership with "Mitilineos" in 1998. According to that document, the Greeks invested 17m USD in purchase of spare parts and capital funds, and construction of new smelter worth 130m USD was in the pipeline.

In addition, "Mitilineos" was also supplying copper concentrate to the metal-processing units of Bor-based company. However, about 4,000 tons of red metal, obtained through melting of that raw material, was used, instead of being returned to the Greeks, for salaries for the workers of the Basin in 2000.

In mid-2003, Greeks suggested to take over Smelter in order to have the debt settled and they were supposed to have five and RTB was supposed to have four members in the Administrative Board. That was accepted, but later, without some decent explanation, they gave up that.

By the way, registered obligations of the Mining-Smelter Basin prior to 2007 amount to - 408m EUR, 76% of which is the Bor company's debt to the state. The major foreign creditor of the Basin is Greek company "Mitilineos", which claims for 17m USD and 4,000 tons of copper. London's Standard bank, which purchased the debt of RTB to Swiss "Glenkor", claims 26m USD from the Bor company, as well as additional 11m USD for the interest.