December 17 (SeeNews) - Montenegro's government said it urged state-run power utility EPCG [BEL:EPCG] and local company Uniprom, owner of troubled aluminium smelter KAP, to reach an agreement on the minimum electricity prices needed to keep the plant running.
Uniprom and EPCG should agree on the best solution for reducing production at KAP in order to maintain the technological process and define the minimum possible energy price until June 2022, the government said in a statement.
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The government also called on the relevant institutions to probe the privatisation process at KAP, which entered bankruptcy proceedings in 2013 and was sold to Uniprom in 2014.
Earlier this week, deputy prime minister Dritan Abazovic said the government may go towards the takeover of primary aluminium production at KAP if this is the only solution for keeping the smelter operational.
"In order to be socially responsible, which is the practice of other private companies in Montenegro, the owner should provide paid leave to all workers who are not involved in the production process," the government said on Thursday.
Uniprom ordered workers at the smelter on Tuesday to begin a phased shutdown of cells in the electrolysis plant on December 15 - a move which will lead to a halt in the production of primary aluminium due to an unfavourable electricity price that EPCG had proposed to come into force at the beginning of next year.
Last week, Uniprom proposed to EPCG to take over the production of primary aluminium at KAP free of charge for a year, starting January 1 in order to avoid the plant's closure. However, EPCG responded that its majority shareholder, the government, has the responsibility of deciding whether to accept the proposal, as the utility company is not registered for aluminium production.
KAP holds a share of about 20% in Montenegro's exports.