Montenegrin element

The structure of "Basel" won the tender for the purchase of the Pljevlja thermal power plant

The newly created structural division of Basic Element, the En+ company, which manages the holding’s assets in the aluminum, energy and oil businesses, as it became known yesterday, won the competition for the purchase of the Pljevlja thermal power plant in Montenegro (208 MW of installed capacity), offering for an asset of 45 million euros and 31.1% of the shares of the nearby coal mine “Rudnik Ugol” for 5 million euros. As you know, Basel last year bought a 65.4% stake in the aluminum smelter in Podgorica, and most likely the purchase of a power plant and a fuel producer for it was necessary to build a vertically integrated structure in Montenegro and ensure the energy independence of the company in a republic where electricity for industrial enterprises on average three times more expensive than in Russia.

Basic Element announced yesterday that it plans to invest more than 274 million euros in the development of a thermal power plant and a coal mine over the next seven years. By purchasing Kombinat Aluminjuma Podgorica (the transaction amount was not disclosed, according to local media, it was just under $50 million), Basel promised to invest more than $55 million in the development of production in the near future. In particular, Basel received a stake in bauxite mines Rudnici Boxita Niksic, but what it was and how much was paid for it was not reported. By the way, at the end of last year, the Montenegrin assets of Basel produced 107 thousand tons of primary aluminum and 395 thousand tons of alumina.

Earlier, Montenegrin media reported about Basic Element's interest in energy development in Kosovo. In particular, information appeared that the company was considering the possibility of building two power units at the Kosova B power plant. However, the company limited itself to only general comments about the need to “search for energy alternatives” and to consider various options for ensuring its own energy independence in the region. Indeed, under the terms of the agreement with the government of the republic, after 2009, the aluminum smelter in Podgorica will no longer be able to buy electricity in Montenegro at the current price.

It was not possible to get a comment from Basel regarding plans for energy development in Montenegro.

Anna LANDER