“LECE” MINE PAID 27 MILLION DINARS FOR MINING RENT

29. February 2016.

Medvedja – The “Lece” lead, zinc and gold mine near Medvedja paid out, in the name of mining rent, 27 million dinars, which is the mine’s first payment for compensation for using mineral resources since 2009, said the Lifestone Capital (LC) Company, which has been managing the mine since last year.

The LC Company, headquartered in Dubai, took over the management and financing of the “Lece” mine from the bankruptcy trustee last April and had invested more than six million euros since then.

The job was assigned to the LC Company because it was the only company that had offered to pay seven wages in arrears to all 400 workers, totaling 1.3 million euros, which was done.

According to the company, the mine was in a "poor condition” when it was taken over, the pits were covered with water, the machinery was unusable, the people were exhausted and without adequate equipment, while the environmental problems required immediate response. The total debt for the mining rent borne by the “Farmakom” Company, which is in bankruptcy, is 422 million dinars.

Nebojsa Arsic, the Mayor of Medvedja, said that the fate of the municipality was "directly tied to the fate of the Lece mine” and that it was immediately felt in the region when the company that operated the mine had paid all the salaries in arrears to the miners.

He confirmed that the LC Lece Company had paid the mining rent to the municipality of Medvedja.

“The fate of the municipality of Medvedja is directly related to the fate of the mine. Since 400 miners work at the mine, it would be disastrous if the mine didn’t operate. It is important to us that the mine operates and that the mining rent is paid to the municipality of Medvedja. In underdeveloped area as this, where the economy is weak, it is felt immediately,” said Mr. Arsic.

Source: “Beta” news agency and Coordination Body