Montenegro's concession contract with Novi Boksiti holds promise of excavation for 30 years

Montenegro has consented to a concession contract with Novi Boksiti, a metal ore mining company in Niksic, over intricate geological probes and exploitation of red bauxite in the western municipality of Niksic. Montenegro's Minister of Mining, Oil and Gas, Admir Sahmanovic, worked out and signed the details of the contracts with Novi Boksti's executive head, Zeljko Markus, over the weekends.

During the session, Novi presented their strategies and deadlines to Minister Sahmanovic and State Secretary Dino Tutundzic.

The company officials disclosed that they will initially disperse 25 workers to carry out preparatory works and geological exploration, starting from project design, drilling, and test pit excavation.

Boksiti has already spent 1 million Euros (approx USD 1.1 million) on equipment for preparatory and exploration works and is currently in the process of procuring additional equipment worth 2 million Euros. The statement read that the firm plans to invest a further 7 million Euros to purchase additional required tools.

As anticipated, as and when the exploration affirms the commercial resources of red bauxite, Novi Boksiti intends to commence excavation work with day-to-day volumes of 2,000 cubic metres, operating between 220 and 280 days annually, depending on the weather conditions. The company will employ another 50 staff members in this phase, including mining machine operators, drillers, drivers, warehouse workers, and guards. The average net salary for workers is hinted to exceed 1,000 Euros.

Aligning with local community representatives, the company also intends to introduce a scholarship programme for young professionals with secondary and higher education qualifications to encourage youth employment in the mining sector further.

Government officials have confirmed that this project will prove crucial for the economic development of the Nikšić region through worthwhile mining projects that will improve the residents' quality of life.

The official statement did not specify the concession period. However, when the concession tender was projected in April, the authorities declared the concession period would not exceed 30 years and would depend on the assessed reserves of red bauxite.

Red bauxite, along with coal, is the most critical metallic raw material in Montenegro for its congruent development at present and in the future.