Estimate of value of "Lece" mine in progress

The value estimate procedure is in progress in Lead and Zinc Mine “Lece" in Municipality of Medveđa. It is expected that this procedure will be finished within next 10 days and that the privatization process will follow.

The Mine has just come out from the bankruptcy, which was introduced in May 2006 due to low price of metal on the market and impossibility of the company to obtain loan to start production. This mine is still in sustainable condition thanks to the local self-government because, in the past few years, the salaries for the workers, before the bankruptcy was introduced, had been provided by the Municipality.

Mine “Lece" currently has 25 workers who work on the maintnance of the mine and public premises.

In its best years, “Lece" had between 500 and 600 workers, but the production was stopped in 2001 and the mine has only been maintained ever since.

Maintenance workers, who have not received salaries since May 2007, went on strike few days ago, demanding the payment of the late salaries. The strike was discontinued after the promise that the late salaries for eight months would be paid in two installments.