Montenegro-based company Novi Boksiti is set to initiate bauxite exports to China, while simultaneously gearing up for underground mining operations at three deposits located near Nikšić. This strategic move aims to enhance production and diversify its customer base beyond the existing regional markets.
The firm currently produces approximately 20,000-25,000 tonnes of bauxite each month through open-pit mining, with aspirations to increase this output to around 30,000 tonnes monthly, according to Chief Executive Željko Markuš. The majority of the current production is supplied to Nova Alumina in Bosnia and Herzegovina, a former affiliate of the Birač alumina complex.
Markuš indicated that the company does not encounter challenges in marketing its production and could secure buyers even if monthly output escalates to 50,000 tonnes. The inclusion of China in its export strategy will broaden its market reach and reduce reliance on individual customers.
The planned exports to China signify a pivotal development for Montenegro’s bauxite sector, connecting local production from the Nikšić mining basin with the world’s leading aluminium-producing nation. China plays a dominant role in global primary aluminium output, making it a significant consumer of bauxite and alumina. However, for Novi Boksiti, the appeal of the Chinese market will hinge on factors such as ore quality, pricing, and logistics costs associated with longer transport routes compared to regional buyers.
In addition to expanding its export markets, Novi Boksiti is advancing towards underground mining, which could represent a new era in the exploitation of Montenegro’s red bauxite reserves. The company holds a concession for detailed geological exploration and potential extraction of red bauxite deposits in Block 4 in the Nikšić municipality.
Exploration drilling commenced in November 2024, with over 13,000 metres of drilling completed thus far to ascertain the size and characteristics of the deposits. Markuš noted that exploration efforts have identified two smaller deposits and one larger deposit within the concession area.
The preparations for underground mining are progressing alongside exploration activities. The company anticipates that underground production could start in approximately six months, projecting a potential launch by early 2027. This transition represents a more substantial technical and financial undertaking than merely expanding surface extraction.
Underground mining generally entails higher investment requirements for mine development, ventilation, drainage, ground support, safety systems, and specialized equipment; however, it also allows access to deposits that may not be economically or environmentally viable through surface methods.
If successful in developing the three identified deposits, Novi Boksiti could significantly enhance its production capacity for both regional clients and new international markets. Established in 2023, the company secured the Block 4 concession after winning a government tender in 2024, signing an agreement for geological exploration and exploitation of potential red bauxite reserves in October of that year.
The initial focus was on investing in drilling equipment and preparing trial mining areas prior to full commercial operations. Since then, the company has experienced rapid growth.
Currently employing nearly 100 individuals, further recruitment is expected as mining activities expand. This growth is notably significant for Nikšić, where bauxite mining has historically been integral to the local industrial economy.
The original Bauxite Mines began operations in 1948, providing resources for the aluminium industry while employing up to 1,500 workers at its peak. However, following the decline of the previous industrial framework during Montenegro’s economic transition, mining employment drastically decreased, weakening one of Nikšić’s traditional industrial sectors.
Novi Boksiti’s emergence marks an effort to revitalize commercial mining based on mineral reserves that remain substantial despite the downturn of state-owned enterprises. Nevertheless, challenges persist within Montenegro’s broader mining sector.
Official statistics have indicated considerable fluctuations in mineral production, including a notable drop in red bauxite output in 2025. The government continues to seek renewed investment across various mineral resources such as bauxite, lead and zinc, construction materials, and other deposits.
If Novi Boksiti can elevate its monthly output from the current range of 20,000-25,000 tonnes towards 30,000 tonnes, it would result in an annualized production estimate of roughly 360,000 tonnes. Should production reach 50,000 tonnes monthly, as management suggests is feasible for foreign customers, this would imply an annualized figure around 600,000 tonnes.
Achieving these volumes will depend on mine development progress, permitting processes, equipment availability, and outcomes from ongoing geological surveys. The anticipated entry into the Chinese market may also impact operational economics.
Selling to regional alumina producers like Nova Alumina benefits from shorter transport distances; however, shipments to China necessitate a more intricate export framework involving inland transport and maritime freight. Thus, profitability will depend on how Montenegrin bauxite prices compare with those from larger producers.
This additional market access provides Novi Boksiti with enhanced flexibility as it scales production while potentially mitigating risks tied to demand fluctuations from singular regional customers—an essential consideration for a mine aiming to boost both surface and underground output.
The forthcoming phase will focus on validating whether the identified deposits from the company’s extensive exploration drilling can sustain commercially viable underground extraction. If underground operations commence by early 2027 as planned and exports to China are established successfully, Novi Boksiti could transition from being primarily a regional open-pit producer to a diversified operation catering to both European and Asian markets.
This development stands to contribute positively towards rejuvenating Montenegro’s mining sector that once held significant importance within Nikšić’s economy while assessing whether the country’s substantial red bauxite resources can support a new wave of competitive production.
