Montenegro's EPCG again rejects 8B's bid for Zeljezara's lease - report

The offer of 8B Capital, owned by Russian businessman Igor Shamis, was turned down because the investor failed to provide bank guarantees or pay the 150,000 euro deposit, state broadcaster RTCG quoted EPCG's representative in the tender commission, Miro Vracar, as telling a news conference on Wednesday.

"After this, all interested parties can now apply for negotiations where we will most likely offer them a draft lease contract," Vracar said.

The draft contract will define all lease details, he added.

EPCG launched the second tender for EPCG Zeljezara's lease at the end of March. It pronounced the first tender unsuccessful earlier in March after 8B Capital again failed to provide 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, inviting 8B Capital only for further negotiations.

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. To participate in the tender, interested investors had to submit a 5-year business plan worth at least 25 million euro ($26.6 million).

According to the tender invitation, EPCG pledged to favour those companies that base their production agenda on the so-called "green steel" production.

EPCG acquired Zeljezara Niksic from Turkey's Toscelik for 20 million euro 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.

($ = 0.940 euro)