Serbia to earn US$450 million from mining royalties and taxes?

Canadian company Nevsun, surveying copper and gold deposit of “Cukaru Peki” near Bor, has announced today that it is estimated that Serbia and Bor will have a direct benefit of US$450 million from mining royalties and taxes.

Officials of that company, which does business in Serbia via firm Rakita Exploration have stated with Beta Agency that “Cukaru Peki” project is fully in line with long-term plan and strategy of the Serbian government to increase stake of mining sector in gross domestic product (GDP) to five percent.

Chinese company Zijin Mining, which recently bought “Rudarsko-topionicarski basen Bor” (RTB), has announced that it is negotiating the takeover of Nevsun for US$1.4 billion, and experts consider it to be a strategic move by the Chinese, as it could speed up the opening of copper and gold mines at the location of “Cukaru Peki.”

Asked how much Nevsun would invest in exploration of “Cukaru Peki” deposit and whether those plans would be disturbed by an offer from Zijin Mining, they have stated that the company Rakita continues to work on construction of an exploratory low pit (underground pits)

“If ownership structure changes, the new owner will decide on eventual modification of existing plans,” announced at Nevsun.

Rakita, as they emphasize, “continues with realization of activities according to plan, and in accordance with the agreed dynamics of work.”

“It is estimated that reserves in the Upper Zone of the “Cukaru Peki” deposit are about 46.15 million tons of ore, with a copper content of 2.71 percent and gold content of 1.70 percent,” announced at Nevsun.

It is pointed out that planned capital investments of Nevsun in development of the “Cukaru Peki” project and beginning of exploitation in 2022 amount to approximately US$590 million, and mine will be operational for around 17 years.

Izvor: Beta

Foto: Pixabay

Piše: B.M.