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From mining to finished metals Mineco
FROM MINING TO FINISHED METALS
Mineco is an international group of companies specialising in the production of non-ferrous metals, mining and metallurgy. Philip Yorke reports on the unstoppable growth of a dynamic, eco-friendly company.
Following the success of its investments in a major mining venture in Serbia, Mineco has embarked on another ambitious investment programme. On this occasion the focus has been centred on a major lead and zinc mine in Bosnia-Herzegovina where its local mining company, ‘Gross’, has exceeded all expectations.
Mineco was founded in Switzerland in 2003 and is today comprised of an international group of companies with shared ambitions and goals. Although at its core Mineco remains a physical trading enterprise specialising in nonferrous metals, over the years it has evolved vertically into other areas such as geological exploration, mining and more recently, metallurgy. This has enabled it to enjoy both longterm stability and greater substance. Today Mineco operates three modern lead and zinc mines, as well as a secondary lead smelting and refining facility close to Moscow.
Mineco is continuing to make major investments in four other mining projects in South East Europe, which are in various stages of development. These represent new and very productive lead, zinc, copper, silver and antimony projects. In addition, directly or through its holdings, Mineco has minority stakes in more than ten other mining and metallurgy companies with assets in Turkey, Canada, Peru, Congo, Taiwan and China. Currently Mineco employs more than 2000 people worldwide and plans to create a further 1500 jobs over the next five years.
Diversity driving dynamic growth
Mineco’s mission is to become one of the largest vertically integrated metals groups in Europe and one that is capable of controlling the entire value chain. This strategy embraces the mining of raw materials, as well as the production and supply of finished metals and their by-products.
The company began its operations with the acquisition of the Rudnik mine in Serbia in 2004, which was the first mine to be privatised during the post World War Two period in the region. The mine operates mainly as an underground facility but also has an open pit operation for the extraction of copper ore. Following the replacement of key mining equipment and the upgrading of overall production standards, the company installed the latest mining technology and employed over 250 people to run the facility. Health and safety targets were also tightened and after ten years of operations and certification to ISO 9001, 14001 and 18001, Rudnik represents the ‘gold standard’ in Serbia’s mining industry. In 2013 the Rudnik mine reached an annual ore production of more than 280 WMT and this is expected to increase to over
GROSS
Lead & Zinc mine
GROSS d.o.o. Sase bb 75340 Srebrenica Republika Srpska Bosnia-Herzegovina Phone: +387 56 410 694 Fax: +387 56 411 039 Email: info@gross-doo.com Web: www.gross-doo.com
For more than a decade, the Ocean Partners’ team has applied technical, commercial, financial and political insight to deliver successful trading services to miners, smelters and refiners. We bring expertise in every aspect of the business, from our backgrounds as mining engineers, geologists, mettalurgists and financiers.
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320,000 WMT this fiscal year, while currently employing more than 450 workers.
Following the success of the investment in the Rudnik mine, Mineco worked to acquire another zinc and lead mine in Bosnia-Herzegovina, this time with different partners. Mineco’s subsidiary ‘Gross’ succeeded in obtaining the mining licence for the mine in 2006 and the company restarted production one year later.
With an initial workforce of 250 trained personnel and considerable investments in new technology, Gross achieved production of over 188,000 WMT in 2010. By 2013 this had risen to more than 280,000 WMT with a workforce of over 550 people. Further capital expenditure is planned that will take capacity to around 400,000WMT in the near future.
A third ‘inactive’ mine known as ‘Veliki Majdan’ was purchased by Mineco in Serbia in 2006. This became a model in the industry for the successful recovery of a derelict mine, thanks to the tenacity, conviction and commitment of Mineco to invest in the considerable refurbishment needed. In 2009, after two and a half years, production commenced once again at the mine and quickly reached a level of around 50,000 WMT per year of lead and zinc ore, which also demonstrated a relatively high silver content.
In addition to these extensive facilities, Mineco owns and operates ‘Fregat’, one of Europe’s biggest secondary lead recycling smelter and refinery plants which was purchased in 2011. The company spent many millions of dollars to improve the efficiency and output of the facility and has increased the site’s initial output from 6000MT annually to more than 30,000MT of lead in 2013. In the longer term this site is designed to achieve production levels of around 90,000MT per year.
New horizons
Mineco is committed to expansion via organic growth, acquisition and a move into new markets. The company’s principal markets are located in South East Europe and the CIS, although through its strategic partners it has access to ore markets worldwide.
In addition to its core mining activities, Mineco is currently developing a new business division that will focus on the growing energy sector. This will involve the design, construction and operation of mini hydroelectric power plants. The initial locations are planned in several European countries and the company’s initial target is to reach an aggregate 50MW of installed capacity in the short term. In other areas of operation, Mineco is also involved in the supply of byproducts of its smelting processes. Among its many investment activities, the company lists equity portfolio, distressed debt and real estate. n
For further details of Mineco’s innovative products and investment services visit: www.mineco.ch
