"I am pleased to say that Duferco is still interested and that we are analysing one potential type of strategic partnership and very soon we will have more information about it," Luka Prodanovic, state secretary at the energy ministry, told local broadcaster RTCG on Sunday. A video file with his statement was uploaded on RTCG's website.
Earlier this month, state-controlled power utility EPCG said it is inviting all interested parties for negotiations for leasing the production capacities of EPCG Zeljezara, after two unsuccessful attempts to find a partner to the troubled steel mill.
Duferco operates in steel production and distribution, energy trading, shipping and logistics, and engineering. It is the majority owner of steel mill Makstil in neighbouring North Macedonia.
In January, Montenegrin media reported that Duferco as well as Switzerland's Trasteel had shown interest in leasing the production assets of EPCG Zeljezara Niksic. Also in January, the energy ministry said that Austria-based steel supplier Safin Group was also interested in leasing the steel mill's production assets.
In March, EPCG pronounced the first tender for EPCG Zeljezara's lease unsuccessful after Swiss-registered 8B Capital failed to provide the required bank guarantees. Prior to that, EPCG had rejected the preliminary proposals of a consortium made up of local company Neksan, China’s Universal Energy and Czech Energy & Industrial Management Advisory Services, and a Swedish tie-up comprising Kvalitetsbygg Gruppen and Uber Nordic, which also participated in the first tender.
The second tender failed in April after the sole bidder 8B Capital, owned by Russian businessman Igor Shamis, failed again to provide bank guarantees or pay the 150,000 euro (161,000) deposit. In the second tender, EPCG offered EPCG Zeljezara's manufacturing facilities, including the melt shop and forge shop, under a lease for a period of at least five years and up to 10 years.
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.
