The Ministry of Energy and Mining in Montenegro has announced MIH Metal Development as the preferred bidder for a concession in the Šuplja Stijena zinc and lead mining district, located near Pljevlja. This decision comes after the rejection of two competing bids due to administrative and eligibility issues.
MIH Metal Development, which scored 100 points for its technical proposal, was ranked first on August 7. The consortium includes MIH GmbH from Germany, BH Holding and Kamena Dolina from Sarajevo, and Duemo Ltd from Nicosia. The selection process puts MIH in line to take over from Gradir Montenegro, whose current concession is set to expire on January 1, 2027. However, this selection does not yet finalize a concession contract, as competing bidders have a 15-day window to appeal the decision.
The ministry must also confirm that all members of the winning consortium meet statutory eligibility requirements before proceeding. With less than five months remaining before the current concession expires, the timeline is tight, especially considering any potential legal challenges that may arise from the appeal process.
Among the three bids submitted by the July 31 deadline, only MIH Metal Development passed both the initial documentation and eligibility review. The rejected bid from a Turkish-led consortium, which included IC İçtaş İnşaat Sanayi ve Ticaret and others, was disqualified due to missing municipal tax confirmations and improper documentation binding. Gradir Montenegro’s bid was also rejected for failing to provide necessary criminal conviction certificates for its board chairman.
The tender covers geological exploration and extraction across four deposits: Šuplja Stijena, Đurđeve Vode, Paljevine, and Ribnik. The area encompasses approximately 610 hectares, with estimated geological reserves of around 17.14 million tonnes. Notably, Šuplja Stijena and Đurđeve Vode are expected to contribute significantly to these reserves.
Mining operations at Šuplja Stijena have historical significance, having begun in 1954 and ceasing in 1987 after processing about 3.95 million tonnes of ore. Gradir Montenegro has operated since acquiring the mine in 2006 and restarting production in 2010. Since then, it has extracted approximately 7.25 million tonnes of ore.
The transition to a new operator presents challenges as MIH Metal Development will need access to operational records and geological data from Gradir Montenegro. The successful transfer of responsibilities will also hinge on negotiations regarding existing labor agreements and environmental liabilities.
The environmental history of Šuplja Stijena is likely to play a crucial role in future negotiations. In July 2025, operations were temporarily suspended due to contamination incidents affecting local waterways. The new concession will need to clearly delineate responsibility for historical liabilities versus those arising during MIH’s tenure.
The consortium’s financial commitments regarding capital expenditure and environmental investments have not yet been disclosed but will be critical for determining the viability of the project moving forward. As part of its operational plans, MIH Metal Development must decide on production levels and investment strategies while navigating potential market fluctuations in zinc and lead prices.
The unsuccessful bidders now have a 15-day appeal period, during which they can contest the ministry’s decision. If no appeals are filed or if they are rejected, MIH Metal Development will undergo a final eligibility review before negotiating the concession agreement with the ministry.
This selection marks only the beginning of what could be a complex transition period as MIH Metal Development aims to establish itself as a credible operator while addressing ongoing operational and environmental concerns at Šuplja Stijena.
