The President of Serbia, Aleksandar Vučić, held a meeting with representatives of Zijin, Nevsun and Rakita, to review all aspects of potential investments in the mining sector in eastern Serbia. The initial basis for these investments is the signed strategic partnership agreement with the Mining-Smelting Basin Bor (RTB Bor). The response of Nevsun shareholders to the offer of the Zijin Corporation is expected during the forthcoming period.
Representatives of Zijin have informed President Vučić on their capability, noting that Zijin has a strong portfolio in gold ore and heavy metals worldwide. Zijin is the third largest company listed on global stock exchanges trading in gold ore, with an exceptionally capable management and an excellent track record in international transactions. It was particularly noted that Zijin wishes to become the leading international company in the mining sector, and thus expresses its dedication to the goal of standing shoulder to shoulder with the largest global companies in regards to compliance with best practices in sustainable development. The purchase of Nevsun would represent the largest transaction to date for the Chinese company, and thus the successful implementation of the transitional process will represent a priority for Zijin. The representatives of the company explained to President Vučić that the Zijin team has the expertise and resources to successfully continue the development of all Nevsun projects.
On the other hand, representatives of Nevsun relayed to President Vučić the views of their Board of Directors of this company, unanimously recommending that shareholders accept the current offer by Zijin. At this time Rakita is continuing the implementation of activities on the Čukaru Peki project in accordance with current plans and in accordance with the agreed-upon schedule.
Nevsun representatives noted that Čukaru Peki is one of the largest greenfield invest-ments in Serbia, representing a significant economic boost for the local and national economy. The planned capital investment by Nevsun in the Čukaru Peki project from 2018 to 2022 is USD 590 million, with the expected employment of 600 workers within Rakita and an additional 300 to be hired by contractors on the project.