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NewsTotal annual revenue projected up to EUR 120 million - Three possible...

Total annual revenue projected up to EUR 120 million – Three possible scenarios for the location of the Brskovo mine

The Brskovo mine started operating in 1966. From the start until the end of production in 1991, ore was mined in the “Žuta prla” and “Brskovo” deposits. Exploitation was done by means of pits and open pits. From 1978 to 1991, about 1,530,000 tons of ore were mined in the “Žuta Prla” deposit, so that about 860,000 tons of ore remained in the “Žuta Prla” deposit. Current ore reserves in the Brskovo deposit amount to about 2,967,000 tons with an average of 2.79% Pb and 3.1% Zn.

In other deposits there was no exploitation, so the ore reserves stayed unchanged. The potential reserves are more than the established ones, and in the “Breskovo” deposit are estimated at 1,500,000 tons, 5,000,00 in the “Zuta perla” deposit, “Visnjica” 1,000,000 tons, and “Razvrsje”3,200,000 tons, while for the deposit “Igrista” they haven’t been assessed, stayed in the Detailed Spatial Plan for the aria of the former Brskovo mine.

We reminds that in December 2010, the Government of Montenegro signed the contract for detail geological research and exploitation of sulfide polymetallic ore (Pb, Zn, Cu, FeS2) and other metal sulfides) in the exploration and exploitation area of former Brskovo mine near Mojkovac with North Mining. Since then, six annex contracts have been concluded, which content was related to the extension of the time-contractual obligations. The total defined area of the exploitation and exploration is 4,6 km2. The contract states that concession is granted for a period of 30 years, which starts from the date of signing the contract.

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According to the proposed DPP tree possible scenarios are defined:

The first scenario considers the development of the area in accordance with the uses that are in the function of tourism, agriculture and preservation of biodiversity, archaeological sites and cultural monuments. This scenario does not consider the mine because it conflicts with the contents defined by purposes.

The second scenario considers the development and opening of the mines at the locations of Zuta Prla and Breskovo on surface mines with the application of conventional flotation tailings, which requires an additional 90 ha od surface, which was not previously affected by mining operations.

The Third scenario considers the development and opening of mines in the locations of Zuta Prla and Brskovo on surface mines with disposal and treatment of mining waste by introducing a new approach through an integrated waste management facility. This scenario plans to relocate the Rudnica River in the part that is susceptible to contamination, while taking care of sustainable development and reducing negative environmental impacts.

In the financial projection of the mine’s operation, the following parameters stand out in particular:

The total annual revenue of the mine is projected to be from 60 to even 120 million EUR, which would place the company in question among the top three companies in terms of revenue;

The annual net profit of the company in the period from 4 to 9 years would be from 22 to 42 million EUR, which would place it in the first place in the country in relation to the data from the project 100 largest in Montenegro for 2018;

The direct income of the state, based on profit tax, during the exploitation period, amounted to 3 to 7 million euros (4.4 million euros on average at the annual level), according to the previously cited project, would place this company in the first place in Montenegro;

The company will also pay a concession fee of EUR 4 million, on average on an annual basis.
Due to problems in exploitation in the Brskovo Lead and Zinc Mine, production was interrupted in November 1991. In the wider vicinity of the “Brskovo”Mine, there is the “Gradina”lead -zinc ore deposit.

In 1976, in the “Brskovo” zinc and lead mine, a factory (flotation) for the processing of lead and zinc ore to the level of semi-products, concentrates of base metals, began operating. The concentrate was marketed as such on the market of the former SFRY, which were later used for the production of finished products. The mines together with the processing were shut down in 1991, after which all facilities with complete infrastructure were removed. Geological research is currently being completed on the deposits of this mine, after which it is expected to start production and processing of ore to the level of semi-finished products.

Geological exploration intensified after the transfer of shares, by which the Government of Montenegro gave its consent to transfer the ownership share of the concessionaire North Mining – Podgorica (later renamed to Brskovo Mine) to Fusion Fund I AG (later renamed to Tara Resources AG) – Wollerau, Swiss Confederation Canton of Switzerland.

The planning and implementation of the Brskovo mine represents a huge intervention in the area, with significant impacts both on the change of natural characteristics and on life and development in the area. In order to assess the overall problem of the impact of the construction of the mine, appropriate analyzes should be carried out through which answers will be given to solve problems in the field of environmental protection, ecology, sociology, economy and spatial development of the area covered by the planned construction – it is stated in the draft DPP Brskovo.

Possible further exploitation of metallic raw materials (lead, zinc, copper, silver, gold and others) will be possible only on the basis of the planned use of reserves in accordance with the justification of exploitation activities and in relation to environmental protection requirements, and on the basis of detailed investigation and other appropriate documentation. which the concessionaires should comply with in order for the exploitation and processing of the ore to be carried out according to environmentally acceptable criteria and on the surfaces that can provide it. It is also necessary to look at and foresee the possible arrangement and cultivation of abandoned mining pits and areas that were engaged for the purpose of exploitation in the Brskov area.

The Draft Detailed Spatial Plan for the concession area for the exploitation of mineral raw materials – Brskovo and the Draft Report on Strategic Environmental Impact Assessment will be organized by the Ministry of Ecology, Spatial Planning and Urbanism, in the period from April 25 to May 18.

Proposals, suggestions and comments can be submitted to the archives of the Ministry of Ecology, Spatial Planning and Urbanism, IV Proletarian Brigade No. 19, Podgorica by May 18, 2023.

The Ministry, in cooperation with the Municipality of Mojkovac, will organize a public presentation of the Draft Detailed Spatial Plan for the concession area for the exploitation of mineral resources – Brskovo on May 9, starting at 10 a.m., in the hall of the Mojkovac Municipality Assembly.

 

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