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20/07/2024
Mining News

Bulgarian Firm Minstroy acquires majority stake in Macedonian lead and zinc mines for 3.5 million euros

Bulgarian mining and construction company Minstroy has successfully acquired a majority stake in the dormant lead and zinc mines, Zletovo and Toranica, located in Macedonia, for 3.5 million euros ($3.9 million). This acquisition marks a significant step towards revitalizing operations at the mines, according to Dragi Jovanovski, an official from Macedonia’s energy and mining industry trade union, who confirmed the development to SeeNews.

Following the acquisition, Minstroy plans to reinstate approximately 1,000 miners who had been affected by the mine’s closure. Jovanovski anticipates that workers will return to their roles within the next month or two, with wages soon to follow.

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Local media reports indicate that Minstroy’s purchase includes the mines’ essential assets such as flotation facilities, equipment, and management offices, which were valued at around 7 million euros, as reported by news agency Meta.

In April, Minstroy secured a concession contract to operate the Zletovo and Toranica mines, committing to an initial payment of 2 million euros for the concession rights. The company had pledged an additional 10 million euros for further investments in the mines. However, some of the mines’ assets had been subject to bankruptcy proceedings initiated in November, delaying the commencement of operations under the new concession.

Jovanovski also highlighted that several Macedonian banks, which had extended mortgages to the mines, currently hold minority stakes in them.

Minstroy’s acquisition and planned investment signal a renewed hope for the economic revitalization of the Zletovo and Toranica mines, potentially restoring them to full operational capacity in the near future.

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