- Capitalism and Alternatives -

Yet more info on the mines. (pass it on)

Posted by: bill on May 14, 1999 at 13:57:44:

In Reply to: Now about those mines in Kosovo... posted by bill on May 13, 1999 at 18:16:30:

Furthur info & Site from another board:

"Last May, Mytilinaios SA [a Greek mining company] signed a five-year
contract worth $519 BILLION with the state-owned RMHK Trepca [located
in Kosovo] and the Serbian agency of foreign trade, in which
Mytilinaios will forward one third of the mineral production in the
international market and also upgrade mining equipment and facilities.
Trepca mines are on the list of companies soon to be privatised, thus
allowing the Greek company to buy stock."

Reference: http://www.ana.gr/hermes/1998/feb/mining.htm

The state-owned Trepca mining complex (Stari Trg) is worth about
$5 billion as a piece of real estate. Earning potential, however, is a
different matter. The mine has not been sold.

The referenced $519 billion contract with Greece obligates the
state-owned mining facility to deliver one third of the minerals it
produces over five years to Mytilinaios SA, the Greek mining company.
This suggests that the remaining two thirds of minerals produced over
five years could be sold at a comparable price to other mining
companies. The grand total would be $1.56 TRILLION - paid to the owner
of the mining complex - for minerals produced over five years.

Keep in mind that $1.56 TRILLION would be wholesale cost. We
haven't even discussed mark-up yet.

Mining companies like Mytilinaios SA will sell minerals produced
from the mine - lead, zinc, cadmium, gold, silver - to the
international market at a marked-up price. If the mark-up is 200
percent, the net profit would be $1.56 TRILLION."

Not bad for an investment of US $10 billion and a few dead civilians."

The site contains interesting accounts of the miners - their story has been kept in the darkness of 1000 meters underground!

Follow Ups:


The Debating Room Post a Followup