Eight mines in Serbia to be privatizer prior to mid-2007 – selection of privatization councilor in progress

The Government of Serbia has announced tender for selection of privatization councilor that should make the concept for restructuring and sale of eight Serbian coal mines with underground exploitation.

The market will be offered Zaječar-based mines "Lubnica", "Vrška čuka" and "Bogovina", the Ibar mines, "Jasenovac" near Krepoljin, Sjenica-based "Štavalj", "Rembas-Resavica" near Despotovac and Sokobanja's "Soko".

According to the words of the assistent of the Minister of Mining and Energy of Serbia, Dejan Rajković, the privatization is the only way out for these coal mines, because they annually make losses that exceed amount of 1 billion CSD.

- By the end of the year 2006, the first coal mines will be sold, whereas, as it is expected, the privatization process will be ended prior to the mid-2007, at the latest - Radojković explains.

He points out that Czech-based company "Moravia Energo", which is having the heating plant-steam power plant worth 70m EUR built in Zaječar, is interested in procurement of "Lubnica".

The aforementioned eight mines used to employ total of 5,500 workers, whereas, today, they have somewhat less than 4,000 employees.