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UK’s Mineco Group lead zinc Gros mine in Bosnia 2016 business results

Lead and zinc mine “Gross” PJ Srebrenica has improved production and overall business operation in 2016, it has produced a record amount of ore and achieved about 20 percent more revenue than the previous year.

333,000 tons of ore has been produced in Gross mine during 2016, and the total income amounted to about EUR 22.1 million, according to annual reports.

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During the previous year, the policy of continuous improvement of the mine was followed by investment of about EUR 2.5 million, primarily in improving the quality of production, revitalization of pit facilities, implementation of security measures at work, and the repair and preparation of the second excavation line has been initiated. In addition, a lot of work has been done on rehabilitation and installation of a new rail on all active excavation lines, as well as on rehabilitation and development of transport corridors. These activities have contributed to the increase of production.

Purchased drilling equipment type MUKI FF, worth about half a million euro has brought the innovation in production in 2016. This equipment should contribute to increasing productivity and significantly reduce the physical effort of workers during construction of mining pits, as well as to contribute to increasing the number and quality of drill holes. In addition, two underground loaders have been purchased and the construction and equipping of the experiment laboratory has been completed.

Gross mine will continue to invest in improving production in 2017 and it expects even better business results. According to the plan, about EUR 2.7 million will be invested this year in order to increase the production and processing of ore at optimal level, and to reduce cost per ton of ore or concentrate. The plan is to invest in further increase of the level of safety at work and environmental protection.

Gross mine currently employs 530 people, and all of their salaries, taxes, contributions and reduced service years for retirement are entirely paid on time as well as in all previous years.

Since 2007, when the concession agreement was signed, more than EUR 5.1 million has been paid for the mineral royalties, which is paid per ton of excavated ore. The amount of compensation is determined on a quarterly basis, depending on the movement of metal prices on the London Metal Exchange. Accordingly, in 2016 around EUR 685,000 has been paid for the mineral royalties to the bank account of the budget of the Republika Srpska, with code Srebrenica Municipality.

In the previous year, the Gross mine as the largest economic entity in the region of Srebrenica, continued to provide substantial assistance and support to the local community. So far, with more than EUR 250,000 mine has supported the construction of sport facilities and playgrounds, maintenance of local roads and other infrastructure. The mine also supports the work of sports clubs and associations, and it joins organizations and individuals in humanitarian actions.

In the previous period, the company “Gross ltd.”, which is majority owned by the British company Mineco, has put great efforts to improve the environmental image of the area in which it operates.

Since the “Gross” Ltd. signed a concession agreement in late 2007, there are great efforts to do reclamation of floatation landfill. There are large amounts of earth fill of soil and special fertilizers, grass has been planted, as well as trees and plants and flowers. Access roads, paths, and summer houses have been arranged. More than EUR 1.5 million have been invested in these activities and now this area is safe and provides a completely new picture of the mine and its environment. The Mine will continue to act responsibly towards the environment in future and to invest necessary resources for this purpose.

Recent letter of appreciation obtained by the Municipality of Srebrenica for outstanding economic development and environmental protection is another evidence of the intensive work on improving environmental protection.

Lead and Zinc mine PJ Srebrenica operates within the company “Gross” Ltd. whose majority owner is the British company Mineco Limited. In addition to this mine, Mineco has been conducting exploratory activities in Bosnia and Herzegovina, in the old antimony mine near Novo Gorazde, and this year it starts production at the cerussite ore mine near Olovo. Furthermore, with its partners, Mineco operates lead and zinc mines in Serbia – Rudnik, near Gornji Milanovac and Veliki Majdan near Ljubovija and is preparing to open Bosil-Metal.Mine near Bosilegrad.

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