Chinese interested in MSC Bor – Leaving of Blagoje Spaskovski and letting go 1,800 workers as requirements

The leaving of the general manager of MSC Bor, Blagoje Spaskovski, and letting go 1,800 workers are the two requirements for the Chinese to take over MSC Bor.

Srdjan Markovic, secretary of the Trade Union of Miners of Serbia, says that Prime Minister Aleksandar Vucic has entrusted the Serbian ambassador to China with direct negotiations about the acquisition of MSC Bor.

As the Union says, aside from Spaskovski's leaving the position of the general manager, 1,200 workers are supposed to leave MSC Bor and 600 workers are to leave Majdanpek.

The Union also says that the workers have already started being sent on compulsory leaves, but also that the layoff lists have been announced. However, as they say, there is always a shortage of workers in the production, whereas the administration is full and there are 600-700 of them according to some estimates.

The Chinese party might find this purchase interesting, primarily because copper is a strategic raw material, and China is the largest consumer of raw materials in the world, but also because Chinese companies are supported by the state and are provided with help when needed.

On the other hand, MSC Bor is in a very bad state economically. It's losses amount to EUR 1.2 billion, it produces less than before and needs at least USD 50 million of fresh capital as working assets. Bor allegedly owes a lot for electricity as well and has also incurred a debt of EUR 250 million for the new smelter, the funds for which were provided by the state's taking out a loan from the EBRD.

There have been three attempts to privatize MSC Bor, each one without success. In the first two, a Romanian and an Austrian company failed to pay the money for the purchase, despite winning, whereas, in the third one, there were no bidders.

MSC Bor currently has 5,027 workers, of which 1,000 in Majdanpek.

Serbia Zijin Copper doo Bor

MSC Bor

Blagoje Spaskovski

Srdjan Markovic

Trade Union of Miners of Serbia

Aleksandar Vucic

Majdanpek mine

Bor mine

production of copper

copper smelter