South-East European Industrial Market 2/2018
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INDUSTRIAL MARKET

8

SEE BUSINESS

Nevsun to invest 590 million dollars in a new

copper-gold mine in Serbia

The Canadian company Nevsun Resources held a ground breaking ceremony in the

Cukaru Peki zone of the Timok project in Bor, Serbia, commemorating the start of a new

copper-gold mine. The ceremony was attended by a number of Serbian and internation-

al dignitaries including the Prime Minister of the Republic of Serbia, Ana Brnabic, the

Minister of Mining and Energy, Aleksandar Antic; the President of Bor Municipality, Ale-

ksandar Milikic; and the Ambassador of Canada to Serbia, H.E. Kati Csaba; as well as

many members of Nevsun’s Board of Directors and Senior Management.

According to the Serbian government the company Rakita Exploration, which operates

within the Canadian Nevsun, has already begun exploration mining works on the con-

struction of a low bridge in Bor, preceding the opening of the mines.

The company’s planned investment amounts to 590 million dollars for the construction

of a low pit and mines from 2018 to 2022. During that period the contractors expect to

hire about 1000 employees, while Rakita will have more than 150 workers. After the

mine is opened and exploitation has begun, Nevsun plans to make a capital investment

of an additional 457 million dollars between the years 2022 and 2038. The initial produc-

tion of the mine will start at 1,6 million tonnes per annum and ramp up to 3,2 million

tonnes per annum, which is an option that could save up to $100 million in up-front

project capital, Nevsun believes.

“The Ministry of Mining and Energy confirms its continued support to Nevsun and the

Cukaru Peki project. We are committed to supporting Nevsun as it rapidly advances the

project toward production,” stated Serbia’s Minister of Mining and Energy Aleksandar

Antic during the ground breaking ceremony.

“Commencing construction of the exploration decline on one of the world’s best unde-

veloped copper projects is a significant milestone for the company. Support from all

levels of the Serbian government as well as local stakeholders have been instrumental

in helping achieve this historic event on this world-leading project. We look forward to

unlocking significantly more value for our shareholders and stakeholders as we advance

toward construction of the Timok Upper Zone, a much-anticipated initial resource for the

Lower Zone, and ongoing regional exploration on our highly prospective land package,”

said Nevsun’s CEO, Peter Kukielski.

The Serbian Prime Minister Ana Brnabic expressed her gratitude to the Canadian

company for believing in Serbia and investing significant funds in research and stressed

that mining has the potential to contribute to the country’s economic and GDP growth up

to 5%.

The Timok Project is located in eastern Serbia near the Bor mining and smelting

complex. The Timok Project is focussed on the Cukaru Peki (“Timok”) deposit which

includes the high grade Upper Zone (characterized by HSE-style massive and semi-

massive sulphide mineralization) and the Lower Zone (characterized by porphyry-style

mineralization). One hundred percent of the land required for the development of the

exploration decline and 63% of the private land required for construction of the project

has been acquired, Nevsun revealed back in its Q1 2018 results. A feasibility study on

the Upper Zone will be completed in mid-2019.

The logistics park CTPark, situated on the A1 Buchar-

est-Pitesti motorway 2 km away from the Romanian cap-

ital Bucharest, will receive a financing package of 96

million euro from the European Bank for Reconstruction

and Development (EBRD) and ING Romania bank. The

park spans over 52-hectares and is operated by the Ro-

manian unit of the real estate developer CTP, which

owns the largest portfolio of premium business parks in

central Europe. It has over 3 million sq. m of gross leas-

able area, class-A properties, in more than 60 strategic

locations, the EBRD revealed.

The EBRD will be providing 43,8 million euro and ING

– 52,2 million euro. The loans will support the operation

of several resource-efficient warehouses, currently host-

ing tenants like the telecommunications operator Or-

ange, global logistics company XPO Logistics and infor-

mation management firm Iron Mountain. Part of the

EBRD loan will go to the construction of a warehouse,

which will be certified as Very Good according to BREE-

AM, the world’s leading sustainability assessment meth-

od for buildings. BREEAM-rated developments enhance

the well-being of the people who live and work in them,

help protect natural resources and make for more attrac-

tive property investments. CTPark is also currently work-

ing to receive green certifications for its other logistics

area, CTPark Bucharest West, situated 20 km away from

the Romanian capital. The EBRD underline that Roma-

nia remains among of the most energy- and carbon-in-

tense economies in the European Union, with more than

double the average intensity, underline the EBRD, and

building stock is a significant energy consumer which

accounts for about 40 per cent of the total energy con-

Romanian logistics park receives European

funding for expansion

sumption of the country. Currently only three industrial

parks in Romania operate in line with green standards.

“Resource efficiency remains an important task for Ro-

mania. Given that the industrial sector is growing fast, it

is crucial to set standards for logistics developers and

operators. The EBRD’s first such effort was made last

year through our financing to CTPark Bucharest West.

We are pleased to further support the company’s drive

for greater sustainability with new financing,” stated

EBRD’s Regional Director for Romania and Bulgaria

Matteo Patrone.

“CTP being a benchmark company in the logistics sec-

tor, its endeavour to implement green qualities in its in-

vestments is expected to bring a strong demonstration ef-

fect and replication potential into the market,” commented

Vlaho Kojakovic, EBRD Property & Tourism Head.

“At ING, sustainability is one of our core values and a

main pillar of our group strategy. We strongly believe

that companies who address climate change and re-

source scarcity will be the winners of tomorrow’s econo-

my. CTP Group is one of these future winners and ING

has been a reliable supporter of its development in other

locations. This financing marks the start of our real es-

tate financing activities in Romania,” finally added Mi-

haela Bitu, ING Executive Director and Head of Whole-

sale Banking Romania.

Source: Nevsun

Source: CTP