What lies behind the alleged privatization of Ljubija Mine

These days, 850 workers of the Ljubija Iron Mine, owned by ArcelorMittal, are worried about their fate. According to ownership papers, the Mine is owned by ArcelorMittal in a 51 to 49 percent ratio with the entity, writes Patria.

The anonymous company “Izraeli Investment Group” is allegedly set to take over the state-owned part of the Ljubija Mine for 53 million marks. This concerns 65 percent of the capital share out of the 49 percent owned by Republika Srpska. Therefore, the problematic aspect of this ownership are the iron ore mines.

The mine is divided into three parts: Tomašica, Ljubija, and Omarska, the mine currently exploited by Arcelor Mittal. Tomašica and Ljubija are considered old mines and are owned by the entity.

According to preliminary estimates, the Ljubija Mine holds about 30 million tons of iron ore in total.

Allegedly, the Omarska mine has enough ore for another seven years of exploitation.               

The Government of Republika Srpska wants to privatize this mineral wealth and sell it to Izraeli Investment Group, a company that until two years ago had no money in its account.

The SNSD government was already prepared to hand over this immense mineral wealth to a practically fictitious company, but that sale has been halted for now.

It is rumored that Dodik will offer the ore from Ljubija to the Chinese, the new owners of Željezara Smederevo. Workers in the mine exploited by ArcelorMittal have regular income and all privileges. The annual profit of the mine has so far ranged from 900,000 to two and a half million KM. Mittal also pays 22 workers at two adjacent old mines. That is why the concern is real.

If the Ljubija and Tomašica mines were revitalized, there would be work for another 300 people. But, only if the Mine goes into the right hands. Arcelor Mittal offered money to buy the remaining ownership of the mine, but at a slightly lower figure than Izraeli Investment Group. According to many, this is a game played by Milorad Dodik and his advisor Ari Livne, who is also the head of the Republika Srpska representation in Israel. The alleged offer was intended to raise the price of the Ljubija mine and force Mittal to offer a higher figure, writes Patria.