UNMIK/PR/313
PRISTINA--UNMIK officials have signed an agreement with a group of major mining companies, ITT Kosovo Consortium Ltd, to begin rehabilitation of the Trepca mining and metallurgical complex in northern Kosovo.
The agreement marks the start of the second phase of UNMIK's strategy to restore the huge mining complex to economic viability and environmental acceptability for the benefit of the people of Kosovo.
"Now we can get to work to bring Trepca back to life, and back to the people of Kosovo," said Dr. Kouchner.
By employing a work force of about 2,000 workers from all communities, Dr. Kouchner said, a revived Trepca could alleviate tensions and promote peaceful co-existence.
"If we can stimulate the economy and get people back to work, perhaps we can replace disappointment and despair with hope in the future," he said.
ITT Kosovo is a joint venture of TEC-Ingénierie of France, Boliden Contech of Sweden and Morrison Knudsen International, Inc. of the U.S.
The consortium will produce a technical audit, financial viability study and asset preservation plan in addition to an environmental assessment and mitigation plan for the Trepca complex. The consortium will take remedial actions, including repairing or replacing safety and production equipment.
During the first phase, which began last year, studies showed that parts of the complex could be profitable if significant investments were made. Emergency repairs using Italian funding secured assets and provided maintenance for Stari Trg mine.
Most of the required $16 million for the coming phase--including workers' salaries, equipment and payments to the consortium-- has been raised from the EU, US, France and Italy with negotiations pending with Sweden and Holland.
More massive investments will be needed for Phase III, when UNMIK will prepare to resume production in those parts of the complex which prove economically sound and to continue environmental clean-up.
Trepca will employ up to 2,000 workers to fulfil the tasks set out by the consortium in Phase II, in consultation with workers and management representatives. The jobs will be welcome in the economically deprived northern Kosovo, however they are a fraction of the former work force which was at one time the largest of any industry in Yugoslavia.
Trepca, once the driving force of most of Kosovo's economy, deteriorated over the past decade under poor management with little investment and no benefit to Kosovo and its communities. With the recent conflict, most operations stopped. Several of the eight underground mines were left flooded and hazardous. The three concentrators are idle as well as the zinc and chemical fertilizer plant.
The Zvecan lead smelter resumed production in June, but without air pollution controls, it spewed lead into the environment threatening a health crisis. UNMIK assumed responsibility of the smelter today, in order to install environmental controls.
As part of its mandate under Security Council Resolution 1244, UNMIK has the obligation to manage Trecpa as a public enterprise, for the good of the people of Kosovo. Revenues will go into the Kosovo Consolidated Budget. Any private claims of ownership will be forwarded to courts to adjudicate.