Identifying opportunities Rudnik

Advanced heating technology Riello

IDENTIFYING OPPORTUNITIES

Rudnik, Serbia’s first privatised underground mine, produces zinc, lead, copper and silver. In an interview with Vanja Švačko, Darko Vukobratović, general manager and co-owner of Rudnik’s holding company Contango along with the company Mineco, talks about the company’s strategies in seeking opportunities to expand its operations.

The name Rudnik signifies three different aspects in one common concept: it is the mountain in which the polymetalic deposit mine is located, a small mining town built upon it and the company engaged in production and processing of metals and their concentrates. The mine covers an area of 3x1.5 km, with over 90 ore bodies of various sizes, volumes and spatial positions, mined by frontal excavation.

There is evidence that mineral exploitations in this archeologically rich region dates back to the Neolithic period. In the Middle Ages the mine was the basis of the country’s wealth and power, symbolising prosperity through the centuries, not least in its production of silver for coins. In the 19th century iron and lead were used for military purposes and the operation in the mine started to take the shape of an organised industry.

Throughout its turbulent history the mine survived several wars. It was in 1952 that the current company Rudnik was founded. Despite the flotation plant being burnt

down entirely in the great fire of 1987, the company managed to build a new state-ofthe-art plant in no time. Today the mine is of no less importance for the economy since mining is still a key industry in Serbia.

Successful revival

When in 2004 Contango Ltd, an enterprise engaged in the metal industry and metal trading, decided to buy Rudnik it was a fresh beginning for the mine. Fast forward ten years and the business is bucking the economic trend, demonstrating stable growth and excellent potential.

“Today the mine produces three concentrates: lead, zinc and copper. We are developing production of the oxide concentrates, researching tungsten reserves and the possibilities of its pre-concentrate or concentrates,” says Mr Vukobratović. Tungsten is found in existing metal ore bodies and represents a new potential revenue stream.

Estimation of current zinc, lead, copper and silver reserves indicates ten years of operation at current production levels. The company exports lead and zinc concentrates to Bulgaria and copper concentrates to China.

Successful privatisation brought about significant changes. In the last decade the number of employees has increased to 420, with 350 new openings pending and more young people joining the industry. Positive trends are the result of investing more than $8.5 million in infrastructure, equipment and machinery. The production scope has also been doubled, with all parameters significantly improving.

Mr Vukobratović stresses the importance of getting the certificates ISO 9001, 14001 and 18001. “Being the first one in Serbia to obtain these documents from WRG Certification Company (Chicago) and to implement them into the Integrated Management System indicates the high standards of our business. They are proofs of our corporate social responsibility and activities that comply with legislation on domestic and international levels. We are working seriously on environmental protection and strictly comply with all legal parameters.”

POBJEDA-RUDET d.d. is a company with well-known industrial tradition in manufacturing of initiating means for several commercial purposes, which has great technological and manufacturing abilities.

POBJEDA-RUDET is capable to lead projects concerning transfer of technology by system turnkey, individually or in cooperation with other reputable manufacturers.

To keep up the competition on the market and maintain the quality of the product, we work constantly on the improvement of the current and at the same time conquering of new technologies.

Quality management with the Environment Management politics became a part of the strategic policy of the Company POBJEDA-RUDET d.d. with the introducion of the standard BAS EN ISO 9001:2000 i BAS EN 14001:2005.

Our production program - electric detonators - plain detonators N 6 and N 8 0 0 - delay elements (connectors) - non-electric detonators - non-electric connectors - non-electric system BIHNEL-DUAL - shock tube

POBJEDA –RUDET d.d., has obtained the EC certificate according to Directive 93/15/EC for the following products; plain detonator DK-8, TED, TMED, 30-MSED, 30-MMSED, BIHNEL tube, non electric detonator BIHNEL MS, BIHNEL LP and BIHNEL UNIDET, non-electric connector BIHNEL SL and nonelectric system BIHNEL DUAL.

One of the priorities set by the management is to ensure a safe working environment and culture. “Throughout the training and education of staff and various proactive and strategic measures,” adds Mr Vukobratović, “the company is making the working environment as safe as possible and significantly reducing the number of injuries at work. We assume that because of our exceptional corporate policy, which is unfortunately not too common in Serbia, we have managed to stand out among those who are going through the similar privatisation process in the country. What makes us the best in our business are appropriate development strategies and proper selection of priorities.”

In recognition of its high quality operations in the year when the company celebrates a decade of its continuous success, the Ministry of Mining and Energy of the Republic of Serbia decided to entrust hosting the central celebration of the Serbian Miners’ Day to Rudnik, as one of the most representative mines in Serbia.

Long-term investments

The company is investing annually in exploring and discovering new reserves in the mine. The last major investment was in superelevation and upgrades of the tailings dam and a more effective notification and alerting system. There are plans for buying new highly productive manufacturing equipment and reconstructing parts of the processing plant.

“The emphasis on the mine development and increase of ore reserves rather than on short term profits, and thus on prolonging the life of the mine, enables us to make maximum usage of the otherwise scarce resources at our disposal,” explains Mr Vukobratović. “We believe that our research area has the potential for new mineral reserves and further increase of production.

“We have also obtained the rights to explore locations geographically separate from the existing capacities and if our expectations are confirmed, we intend to open new production facilities (mine and processing plant) at these locations. At the same time, with our partners from Mineco Group we are considering the possibility of taking over some existing mines in Serbia and connecting them to our system. If there is a significant discovery of ore reserves or if production of oxide of lead and/or tungsten concentrate proves to be technologically feasible and economically viable, we will be investing in increasing the processing capacity of the mine.”

The company hopes to continue keeping track of innovations in the mining industry and to capitalise on its strategic position. So far it remains confident of the market outlook. n

Visit: www.contangorudnik.co.rs