The Brskovo mine in Mojkovac will remain inactive, as the necessary conditions for terminating the concession agreement for detailed geological surveys and the extraction of lead and zinc ores in this area have been met, announced Saša Mujović, the Minister of Energy and Mining.
“We have met the necessary conditions, and consequently, the concession agreement for detailed geological surveys and the extraction of polymetallic sulfide ore within the former Brskovo mine area will be terminated. In essence, there will be no mining operations in Mojkovac,” stated Mujović during a press briefing.
The deadline for Tara Resources, the company involved, to submit a revised feasibility study expired on May 25. As they failed to meet this requirement, the conditions for terminating the concession agreement have been fulfilled.
“We identified certain breaches of the contract by the concessionaire. We provided them with notice and granted them a 30-day window to rectify these shortcomings,” explained Mujović.
With no response received by the stipulated deadline, the conditions for unilaterally terminating the agreement have been met, without further extensions.
This decision marks the end of a lengthy process initiated in 2010, finally alleviating the concerns of the Mojkovac residents.
“As a government, we’ve upheld a responsible stance, prioritizing the welfare and health of our citizens. Nevertheless, we also afforded the company fair opportunities to address our concerns,” emphasized Mujović.
While Montenegro welcomes investments and investors, adherence to the country’s laws is non-negotiable.
“Our role is to ensure favorable conditions, uphold the rule of law, and maintain transparency throughout the process. Tara Resources’ feasibility study, submitted twice, failed to comply with Montenegro’s legislation,” reiterated Mujović.
Regarding the concessionaire’s future actions, Mujović outlined that the company could opt to appeal to the Commercial Court or initiate arbitration.
“Ultimately, the decision rests with them, but we remain prepared for all eventualities, confident in the righteousness of our cause,” concluded Mujović.
As for the potential ramifications of losing an arbitration, Mujović refrained from providing an estimate, expressing a desire to avoid such a scenario.
