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Bosnia's RiTE Ugljevik gets shareholders' nod to form JV with China's BNBM

Bosnia's RiTE Ugljevik gets shareholders' nod to form JV with China's BNBM Photo: All Rights Reserved

SARAJEVO (Bosnia and Herzegovina), November 18 (SeeNews) - Bosnian coal miner and energy producer RiTE Ugljevik [BANJ:RTEU-R-A] said that its shareholders gave the green light to the company to form a joint venture with China's Beijing New Building Materials (BNBM).

RiTE Ugljevik's shareholders approved the company's proposal to sign an agreement with BNBM for the creation of the joint venture at an extraordinary meeting held on November 16, RiTE Ugljevik said in a bourse filing on Wednesday.

RiTE Ugljevik said in June it was in advanced talks with BNBM for the construction of a 50 million euro ($56.7 million) plasterboard production plant. RiTE Ugljevik would hold a 10% ownership stake in the future factory.

Under the plan, the factory will be built on an area of 12.5 hectares at a mine dump adjacent to the company's coal mine and power plant in Ugljevik and will employ about 100 staff. The plasterboard plant will use gypsum derived as a by-product at RiTE Ugljevik's recently built flue gas desulphurisation unit. The plant is expected to start operations in 2022.

($ = 0.8823 euro)

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