Kosovo's Ferronikeli – a successful privatisation

Prishtinë, 6 April 2007 – Media in Kosovo reported on the visit of Acting DSRSG and Head of KTA Board Paul Acda, Minister of Trade and Industry of Kosovo Bujar Dugolli and Head of BSPK Haxhi Arifi to the privatised company “Ferronikeli” in Gllogovc/Drenas.

They were led through the future production and processing units to look at the progress made. Following the visit, Acda showed his contentment with the ongoing reparation works at Ferronikeli: “I am impressed with the efforts that the management of Ferronikeli has undertaken to revive the plant,” stated Acda, noting that the management of Ferronikeli had invested more money than required under the Special Spin-Off conditions in the first year.

The buyer of Ferronikeli, IMR/Alferon, which expects to begin production within next weeks, paid 33 million euro ($38.76 million) for the plant. The company had to invest at least 20 million euro in the first three years and to employ 1,000 at the end of the first year.

Ferronikeli ore mining and metallurgical complex was set up in 1984 to produce ferro-nickel for exports. It produced and exported 6,800 tonnes a year of nickel, in ferro-nickel ingots, before the 1990s but since 1998 it has been idle.

Ferronikeli has three open pit mines: the Dushkaja mine with estimated reserves of 6.2 million tones; the Suka mine – 0.8 million tonnes and the Gllavica with 6.8 million tones.

All the mines in the complex were covered last year with exploration and exploitation licence by the Ministry of Energy and Mining of Kosovo.