September 26 (SeeNews) - Kosovo's privatisation agency has hired a consortium made of global consultancy Ernst&Young and German consultancy HPC to conduct a feasibility study at the ailing Trepca lead and zinc mining and smelting complex.
Under the contract worth of 598,920 euro ($675,100), the consortium has to explore the options for the future development of the mining complex, taking into consideration the latest market developments, the agency said in a statement published on its Facebook profile on Friday.
According to local newspaper Telegrafi, Kosovo's privatisation agency received seven offers from candidates to conduct the feasibility study, as the one placed by HPC and Ernst&Young was the most favourable in terms of price.
Thе daily recalls that under a court ruling Trepca, one of the biggest companies in former Yugoslavia, will be liquidated and its assets sold to repay debtors unless parliament passes special legislation in an attempt to resolve the issue.
The situation is further aggravated by the fact that Serbia, which does not recognise Kosovo's independence, claims ownership of the complex.
According to media reports, most of Trebca's creditors are based in Serbia. The total sum of its debts is not clear as much of the relevant documentation is missing.
In its heyday in the 1970s, the mining and smelting complex employed some 25,000 miners. Today it employs only 2,400.
$=0.8872 euro