8B sole bidder for Montenegro's EPCG Zeljezara assets - report

8B Capital S.A. is the only company that has applied for individual negotiations on the lease with the steel maker's owner, state-controlled power utility EPCG, EPCG officials told daily Vijesti.

All details of the negotiation process will be forwarded to the board of directors and the energy ministry, EPCG officials said, adding that no assessment on 8B Capital's proposal can be given currently, according to Vijesti.

Last month, EPCG said it was inviting all interested parties for individual negotiations on leasing the production capacities of EPCG Zeljezara, after two unsuccessful attempts to find a partner to the troubled steel mill.

According to Vijesti, in its letter of intent sent to EPCG, 8B Capital noted it has long-term partnerships with many global companies, adding it relies on the financial support of an unnamed investment fund from the United Arab Emirates.

8B Capital, owned by Russian businessman Igor Shamis, was the sole qualified bidder in the two failed tenders for EPCG Zeljezara's lease. However, its offers were turned down by EPCG both due to a failure to provide bank guarantees and pay the required deposit.

EPCG acquired Zeljezara Niksic from Turkey's Toscelik for 20 million euro ($21.7 million) in December 2022.

Located in the western city of Niksic, EPCG Zeljezara has two 60-tonne electric arc furnaces that can produce an estimated 300,000 metric tonnes of crude steel per year.

($ = 0.922 euro)