UNMIK/PR/519
PRISTINA---UNMIK on 2 March presented preliminary findings of the ITT study on the Trepca mining complex and key elements of an action plan intended to create the conditions for restarting parts of it. UNMIK was represented by the DSRSG for Reconstruction and Development, Andy Bearpark, and the Trepca experts Tim O’Neill (Co-Head of DTI), Dana Eyre and Charles Carron Brown.
The ITT Study
Bearpark presented the results of the Study of the expertise company ITT, emphasising that the financial and geological assessment of Trepca is far from being complete. The available data however show that parts of Trepca can be profitable, in particular some of the mines and concentrators. 5 of 8 mines have ore bodies justifying restart of production, with an estimated profitable mine life of at least 10 years: Belo Brdo and Crnac in the North, Stari Trg near Mitrovica and Ajivalia and Novo Brdo in the South. In contrast, the metallurgical plants appear to be considerably less profitable. At least 200 million Dollar private investment are needed to restart the commercially more promising parts.
UNMIK’s Action Plan
UNMIK’s Action plan comprises the following key elements:
- UNMIK will prepare for the handover of Trepca to a private entity, in its functions as peacekeeper, trustee and government.
- UNMIK will in this phase preserve the assets of Trepca.
- UNMIK will address the critical and very complex questions of the debts and ownership, in close co-operation with all the parties interested in that matter.
- The environmental problems will have to be addressed as soon as possible, beginning with the clean-up of the core facilities.
- UNMIK will aim at establishing a legal framework for commercial activity and mining that brings law and practices in line with those elsewhere in Europe.
- Training and retraining of the workforce are expected to provide a lasting support to the future development of Trepca.
Working Together
DSRSG Bearpark emphasised that all the stakeholders will in common decide about Trepca’s future. Progress will only be made if the parties involved are realistic in their assessment of the situation and willing to co-operate.