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Yesterday, a working meeting was held on the premises of the Municipality of Radovish with the Deputy General Director of Bucim, Nikolajcho Nikolov, General Manager of Borov Dol, Pavel Krivinsky, the mayor of Radovish, Gerasim Konzulov, President of the Council of Radovish, Kole Charakchiev, and representatives of the Association of Architects and Construction Workers “Gardikon” – Radovish.

The opening of the Borov Dol mine will allow for copper ore mining to continue until at least 2030. It will provide for continued operation of existing facilities at the Bucim mine, the preservation of jobs for most Bucim employees, and the possibility of new jobs – instead of simply closing the 40-year-old Bucim mine, which is currently in the process of shutting down its mining operations.

The company’s strategy is to ensure a smooth and sustainable transition to mining at Borov Dol, preserving the jobs of most of the employees currently engaged in Bucim’s operations, and also creating new job opportunities for the residents of the neighboring municipalities.

At the working meeting, cooperation between the local construction companies from Radovish and Borov Dol was discussed. The new mine will continue the work of the Bucim mine, a socially and ecologically responsible enterprise that contributes to the sustainable development of its local communities. The Borov Dol and Bucim mines are fully supported by their international parent company, Solway Investment Group, which is committed to having a strong positive impact on the communities in which it operates.

“Our role as a socially responsible enterprise applies to all aspects of our business behavior. We understand and integrate social factors into our decision-making process at all stages of our activities. Bucim has a strong focus on local community relations and sustainable development,” added Nikolajcho Nikolov, Deputy General Director of Bucim.

“Sustainable and socially responsible operations, involvement of the local community, and care for the environment and occupational safety and health are all key to our operations. We recognize the needs of the local communities. Our responsibility to society is at the same time also a responsibility to the company in the long run,” commented Pavel Krivinsky, General Manager of Borov Dol.

Financial assistance in the amount of €5,000 was donated to the Red Cross of Radovish. These funds will use used to support socially disadvantaged families from the municipalities of Radovish and Konce in order to help them better cope with the new reality caused by the COVID-19 outbreak.

The donated funds will be used to prepare packages with basic products: including food products, personal hygiene products, and disinfectants. The Red Cross of Radovish will deliver these packages to the most socially disadvantaged families living in Radovish and Konce.

“We at Bucim are continuing our socially responsible activities that are a very important part of our work. It is our obligation, during this difficult period for everyone, to behave responsibly towards the society in which we work and to help those most in need. Bucim strives to make its own contribution towards addressing the impact of the coronavirus,” commented Nikolajcho Nikolov, Deputy General Manager of Bucim.

Radovish, North Macedonia, April 29, 2020 The total amount of ore processed at Bucim in 2019 amounted to 4.248 million tonnes (101% of 2018 volume), with copper content of 0.184% (94% compared to the quality of ore processed in 2018), gold content of 0.247 g/t (81% compared to the quality of ore processed in 2018), and silver content of 0.62 g/t (121% compared to the quality of ore processed in 2018). This corresponded to 31,226 tonnes of dry copper concentrate from ore raw materials (92% of 2018 volume), containing 6,512 tonnes of copper (94% of 2018 volume), 593 kg of gold (77% of 2018 volume), and 937 kg of silver (92% of 2018 volume). In 2019, Bucim’s SX/EW plant produced 719 tonnes of cathode copper of 99.99% quality (94% of 2018 volume).

The main reason for the decrease in production volumes in 2019 in comparison to 2018 was the lower metal content in the ore. In 2019, exploitation of the Bunardzik ore body was completed. In total, 12.719 million tons of ore were extracted from Bunardzik, equal to 102% of the projected reserves.

The Bucim mine excavates ore which has very low copper content, but nevertheless, according to its 2019 results, the company was able to achieve a positive financial result, a pre-tax profit of €16.106 million (83% compared to 2018).

In 2019, in order to secure operational efficiency and extend the life of the company’s performance to at least 2030, Bucim DOO Radovish started developing the new Borov Dol project. The Borov Dol project is replacing the 40 year-old Bucim mine which is currently in the process of closing. The company’s strategy is to ensure a smooth and sustainable transition to the new mine while minimizing the environmental impact, preserving the jobs of most of the employees currently engaged in Bucim’s operations, and also creating new job opportunities for the residents of the neighboring municipalities.

During the reporting period, Bucim paid taxes to the budget of North Macedonia in the amount of €1,661 thousand (84% compared to 2018).  The company paid concession fees of €1,222 thousand for the use of the mineral resources for 2019, 78% of which were paid into the budget of the municipality of Radovish and 22% into the national state budget.

Social contributions from salaries paid in 2019 were equal to €1,657 thousand (99% compared to 2018), while the collection rate of pension and disability insurance contributions was 0.4% higher than in 2018. Health insurance contributions rose by 0.1% compared to the same period in 2018.

The average monthly wage in 2019 amounted to €534 (98% compared to 2018). In 2019, employees were paid a recourse for the use of annual leave in the amount of €106,000 (99% compared to the previous year). In 2019, a one-time compensation was paid in the form of severance pay to employees who had acquired the right to a pension in the amount of €14,000. In January 2020, the enterprise introduced a system of monetary rewards for those employees who have been continuously employed by the company for 15 years. 210 of Bucim’s loyal employees are expected to receive this monetary reward by the end of 2020. 

In 2019, the company invested €110,000 in social development. This includes support for athletic clubs, young creative talents and educational programs, providing material assistance to the city hospital, schools and kindergartens, providing a pallet heating system for a kindergarten, carrying out repairs of buildings, purchasing necessary equipment and inventories, and assistance in the development of cultural programs in the local community. 

Bucim’s 2019 annual health and safety operational investments reached €130,000 including the cost of employee PPE, hygiene products, certification of technical equipment, technical inspection of equipment, fire prevention measures, employee medical examinations, purchasing of current safety materials, and staff training.

Facility maintenance and repair expenses totaled €4.035 million in 2019. The forecast cost of maintenance and repairs of the main technological equipment, buildings and structures in 2020 is € 2.673 million (59% compared to 2018).

In 2019, investments in support of production capacity (purchases of equipment, machinery, construction, etc.) amounted to €670,000. €106,000 was invested in environmental programs. This included re-cultivation of the dam of the tailing dump in the required area, environmental monitoring services – including both surface and groundwater, atmospheric air, environmental noise, industrial emissions and discharges, and waste management services, as well as environmental third party audits and assessments.

In 2019 Bucim was recertified according to ISO 9001:2015 and ISO 14001:2015. In May 2019, Bucim was successfully certified according to the latest international standard requirements – ISO: 45001:2018.

Starting from March 10, 2020, the enterprise, in order to better manage and prevent the spread of COVID-19, as well as in accordance with the measures issued by the responsible authorities, exempted from work employees with children under the age of 10 and employees with chronic diseases, introduced restricted entry for external associates and visitors, cancelled all events and meetings in order to avoid gatherings of large numbers of people in one place at one time, and changed the schedule of the canteen. All necessary preventive measures such as disinfection of the cabins of the technological vehicles, equipment, workrooms, and employees are provided for with the necessary number of antiseptics and facial protective masks. In accordance with the prohibition and special regime for movement on the territory of the Republic of North Macedonia due to the necessity of maintaining the continuity of operations, the enterprise received a government-issued permit for the movement of 310 employees to perform shift and night work. The permit shall be a confirmation of right of movement of the employees while under curfew.

Bucim donated €50,000 in support of North Macedonia’s fight against COVID-19 virus. €40,000 were transferred to the special donor account the Ministry of Health of the Republic of North Macedonia and an additional donation of €10,000 was given to the local health centers in the municipalities of Radovish, Shtip and Strumica. The enterprise has also donated protective equipment (PPE) for the protection of the health of the employees in the institutions in the municipalities of Radovish and Shtip. 450 medical face masks were donated to local institutions fighting coronavirus and 150 protective suits for the Regional Clinical Hospital in Shtip.

The planned production for 2020 is forecast to be 31,126 tonnes of copper concentrate and 675 tonnes of cathode copper of 99.99% quality. The production process at the Bucim plant in 2020 will be carried out according to two schemes: production of copper concentrate from the ore concession Bucim and from the ore body Borov Dol. The forecast volume of processed ore for 2020 from the Bucim concession area is 2.3 million tonnes. The company forecasts 2020 production of copper concentrate at 15,935 tonnes, containing 3,346 tonnes of copper and 195 kg of gold. From Borov Dol ore body, the forecast volume of processed ore is 1.476 million tonnes, and 15,191 tonnes of copper concentrate, containing 2,938 tonnes of copper.

Borov Dol project development update

In 2019, approximately 99.3% of the yearly plan for earth works on the open pit was completed. The construction of the main technological facilities began in the first half of 2019, of which works were completed in the following volumes: road – 100%; conveyor line and power lines of 20kV, earthworks – 83%, reinforced concrete work – 40%; a site of primary crushing and a closed ore warehouse, earthworks – 90%, reinforced concrete work – 95%.

Total investment in 2019 in the Borov Dol project was €33.6 million.

In 2019, Borov Dol began earth excavation work. 12.8 million tonnes of rock material were excavated. Total investment in excavation in 2019 was €11.7 million.

In 2019, Borov Dol spent €474,000 to design the project’s buildings and prepare for construction. The project includes installation of an ore transport system from the Borov Dol open pit to the Bucim flotation unit which was already purchased in 2019 from Sarl Techni France, and its expected to be finished in September 2020. Installation of the primary crushing equipment is expected to be finished in July 2020 by Metso Minerals. In 2019, contracts for the procurement of movable equipment from Komatsu, Caterpillar, Epiroc, Sandviks were entered into. Total investment in equipment in 2019 reached €14.1 million.

During the second half of 2019, after obtaining a permit for construction of a transport system route and power lines from the municipality of Radovish, the construction of a route connecting Borov Dol and Bucim began as the primary crushing building where primary crushing equipment will be installed. The road connecting Borov Dol to the regional road was constructed at the end 2019. Total investments in construction in 2019 were €6.3 million.

In 2019, paperwork began to be submitted for applications for permission to build the mine infrastructure: concession land was reassigned for construction purposes, permission was received from the Ministry of Environmental Protection to change river channels in order to protect surface waters, the urban design plans were adopted by Ministry of Transportation and Communication of North Macedonia, as the Architectonic Urbanistic Design.

In March 2019, Borov Dol and Komercijalna Banka AD Skopje concluded an agreement for granting a long-term loan in amount of €25 million, of which €14.8 million was used for the financing of the Metso and Techmi agreements as well the excavation works.

The average monthly net salary paid by Borov Dol in 2019 was €893, compared to the €585 average paid net salary in the mining industry in North Macedonia in 2019, and the country’s overall average net salary paid in 2019 of €410.

During the first quarter of 2020, the company continued working to advance its extension plans for the Borov Dol project, which is planned to extend the life of the existing Bucim DOO. At the beginning of the second quarter of 2020, Borov Dol received a construction permit. The Ministry of Transport and Communications of the Republic of North Macedonia issued a permit for the construction of the Borov Dol mining complex. The Borov Dol project will start operating by the end of third quarter of 2020.

In 2020, Borov Dol plans to excavate 12.728 million tonnes of material, including 1.729 million tonnes of ore, with average content of 0.303% of Cu and 0.268 g/t of Au. In 2020, Borov Dol plans to produce 2,938 tonnes of Cu in concentrate and 184 kg of Au in concentrate.

Total investments in 2020 are expected to be € 35,757,000, of which:

• Designing and administration procedures – € 667,000;
• Construction – €12.1 million;
• Equipment – €15 million;
• Excavation of material – €8 million.  

About Bucim DOO Radovish and Borov Dol

Bucim DOO Radovish is the only operating cooper mine in North Macedonia. The mine is the largest local employer in the region and is fully committed to its social and environmental responsibilities.

Borov Dol is the only newly developed ore body in North Macedonia to have been developed in the past 40 years. It will prolong the operations of the existing Bucim mine, thereby preserving jobs and contributing to the regional and state economies.

Since 2005, the Bucim mine has been a part of Solway Investment Group, which has enabled Bucim to pursue a new path and secured the mine’s long-term prospects. Solway Investment Group acquired the mine after having won the government’s international tender. 

The Ministry of Transport and Communications of Republic of North Macedonia has issued a permit to build the Borov Dol mining complex. After obtaining the building permit, the mine will begin construction of the facilities and will start operating in September this year.

Borov Dol will extend the life of the currently operating DOO Bucim to at least 2030. The Borov Dol mine will be beneficial for the local communities in three municipalities: Konche, Shtip and Radovish. These three municipalities will have a share in the exploitation and processing of ore; thereby each municipality will benefit financially on a concession basis.

The new project preserves the jobs of most of the employees currently engaged in Bucim’s operations, and also creates new job opportunities for the residents of the neighboring municipalities. A total of 307 miners are expected to be employed at the new extraction site. The projected life expectancy of the mine is currently estimated at 10 years, with the possibility of further extending the life of the mine.

To minimize the potential environmental impact, the infrastructure development plan uses most of the Bucim’s existing processing and storage facilities, while transporting the extracted ore via a 7 km long covered conveyer belt. To the new ore body, in cooperation with the Macedonian construction company DG Beton AD Skopje, will be built overflow pool from the surface pit, treatment plant, dam and accumulation, administrative building with a canteen and a medical center, a gas station, and road infrastructure will all be built in cooperation with Beton Skopje. The total cost of the Borov Dol project is estimated at €60 million.

“By getting the building permit, we can practically start realizing the construction of the necessary facilities. In this time of economic slowdown, however, we believe we will be able to secure the project’s timing and the Borov Dol mine will start operating as planned in September 2020,” commented Pavel Krivinsky, General Manager of the Borov Dol mine.

Bucim DOO Radovish is donating €50,000 of financial assistance in support of the Republic of North Macedonia’s health system in its fight against COVID-19. Bucim, as a socially responsible enterprise, feels strongly about providing financial support to public health services at this time.

A donation of €40,000 was transferred to the special donor account the Ministry of Health of the Republic of North Macedonia. An additional donation of €10,000 was given to the local health centers in the municipalities of Radovish, Shtip and Strumica.

Bucim has also donated protective equipment (PPE) to health institutions in the municipalities of Radovish and Shtip. Medical protective masks were donated for the protection of the employees at Radovish’s municipal police station, health center and fire service. Equipment was also provided to the employees of JP Plavaja in Radovish, the municipal organization, Red Cross – Radovish, and to healthcare workers at PZU Adora Medik Radovish. 450 medical face masks were donated to local institutions fighting coronavirus and 150 protective suits for the Regional Clinical Hospital in Shtip.

“In this extremely difficult period for all of us and the challenges we face, it is necessary to provide assistance where help is needed with a financial contribution that is extremely important for dealing with and overcoming the crisis quickly. In the Bucim mine, all preventive measures ordered by the competent authorities are being implemented and monitored. As always, the safety and health of our employees is our top priority and the essence of everything we do,” explained Nikolajco Nikolov, Deputy General Director of Bucim.

The Bucim and Borov Dol mines, as socially responsible companies, respond to the needs of society and contribute to the development of the local communities.

As part of its sustainability policy and cultural heritage preservation program, Bucim and Borov Dol helped fund the reconstruction of the St. Prophet Elijah church in Radovish which dates back to the early 19th century. At a donor meeting, organized by the MOC-OA Diocese of Bregalnica, the Bucim and Borov Dol mines donated €7,000 for renovation of the 200 year old church of cultural and historical significance to the region.

“We recognize the importance of contributing to the development of the local community and with our work, we strive to help the community in parallel. Restoration of the church is a long-term, sustainable benefit to the region which preserves a cultural heritage for future generations,” said Nikolajcho Nikolov, Deputy General Manager of Bucim.

Pavel Krivinsky, Manager of Borov Dol commented, “Investing in the community is an integral part of every segment of our business. We are pleased to have joined in supporting this project to preserve the oldest church in Radovish which will benefit the residents of the municipality.”

In celebration of the 98th anniversary of the Economic Chamber of Macedonia, awards and recognitions were presented on February 19, 2020 to the Chamber’s member companies, recognizing their business activities in 2019 as well as their continued contribution to the development of North Macedonia‘s economy.

In honor of the Chamber’s 98th year of operations, Bucim DOO Radovish was awarded the “Award for a Longtime Active Member of the Economic Chamber of Macedonia”. The award, an official recognition of the business community of Bucim mine’s valuable contribution to the development North Macedonia’s economy, was presented to Bucim DOO Radovish Deputy General Manager, Mr. Nikolajcho Nikolov.

“Bucim Mine is constantly striving to contribute to the development of North Macedonia’s economy through its investments and activities. The affirmation of our operations and the mine’s contributions by the business community gives us even greater impetus to continue our work towards investing in and improving North Macedonia’s economy,” commented Nikolajcho Nikolov, Deputy General Manager of Bucim DOO Radovish.

Bucim, as a long-standing member of the Economic Chamber of Macedonia, is actively involved in the work of the Macedonian Mining Association, MAR, as well as that of the Chamber’s working groups.

The event was held on the premises of the Economic Chamber of Macedonia in Skopje, in the presence of representatives of the economy, state institutions and diplomats.

The 2020 Salzburg Festival marks the first season in which Bucim and Solway’s Creative Fellowship project has been integrated into the festival’s Jung&jede*r youth program. This partnership has already been recognized for the benefits which it offers, as Jung&jede*r was shortlisted for the FEDORA Education Prize last week.

Bucim first participated in the Solway Creative Fellowship program in 2016 when its parent company, Solway Investment Group, entered into a partnership with the Salzburg Festival and became the official sponsor of the Salzburg opera camps for children and youth.

Beginning in 2016, Bucim announces a call for applications each fall for young creatives living in Radovish and Konce who would like to further develop their talents, learn English and have the experience of attending an international camp where together with youngsters from all over the world they will stage an opera performance. The program is aimed at broadening the future perspectives of young Macedonians by integrating their national cultural experiences in an international context. Over 60 young talents have participated in the Creative Fellowship program since it first was introduced in North Macedonia.

Last week, the European cultural and philanthropic network, FEDORA, announced that the Salzburg Festival’s Jung&jede*r program has been shortlisted for the Educational Award. FEDORA recognizes innovative projects which encourage the involvement of new and broader audiences while fostering social integration amongst the participants.

“We were thrilled to hear that the program in which Bucim is indirectly involved was shortlisted for its achievements in social integration among the participants. Supporting a project which has been recognized on a pan-European level proves that Bucim is on the right track in its efforts to positively influence sustainable development of the local communities in which the company operates.“commented Nikoljacho Nikolov, Deputy General Manager of Bucim DOO Radovish.

About FEDORA

FEDORA is a European cultural and philanthropic network and initiative that was selected by the European Commission to benefit from its Creative Europe funding program. This funding has allowed the initiative to launch its European Platform in support of artistic innovations in opera and ballet through privately-funded prizes. All FEDORA prizes lead the way in celebrating new talents and ideas in opera and ballet which will shape the future of these art forms.

As a part of the Music Camp Fellowship program for young talents introduced by Bucim’s parent company, Solway Investment Group, in the countries of its operations in cooperation with the world renowned Salzburg Festival, Bucim continues to support creative youth residing in Radovish and Konce.

One of our main goals is to invest in our local communities and their citizens. Bucim’s socially responsible initiatives are aimed at improving the lives of those living in these communities. We help across many different areas of life, including youth education and development, culture, art and sports. Another important aim of Bucim’s social activities is to nurture the next generation of creative talent. We do this by forging links between new talents and established international cultural institutions, as well as by encouraging and sponsoring participation in Solway’s international Music Camp Fellowship program.

Radovish resident Jana Jovanova is ten years old and therefore still too young to audition for the fellowship. Despite her young age, Jana is a well-established participant in music contests and has won numerous awards, first prizes, special awards and laureate titles at national and international competitions, including the Antonio Vivaldi International Competition in Vienna. Jana has received over 20 first prizes and is the youngest ever artist to win the “6th of November Award” for special achievements in culture and art awarded by the Radovish municipality.

Since the start of Jana’s journey to stardom three years ago, Bucim has been supporting her participation in international competitions in which the young pianist has displayed her musical talents. This year, Bucim provided Jana with a digital piano so that she could continue practicing and move forward on her musical journey.

“By supporting young and ambitious talents in our local communities, we stimulate their ability to dream bigger and serve as role models for others. Jana is certainly the best example of a musically gifted young person with huge potential to become a renowned artist. We are pleased to have the opportunity to provide her with a suitable instrument and play at least a small part in an exceptional young individual pursuing her dreams.”- added Nikolajcho Nikolov, Deputy General Manager of Bucim DOO Radovish.

On the eve of the New Year’s and Christmas holidays, Bucim mine presented the youngest members of its local communities with New Year’s/Christmas gifts.

The company has always had a special focus on taking care of the local community. Bucim has been actively implementing a number of socially responsible practices and donations throughout the year, but the year always ends with the particular pleasure of handing out over one thousand carefully-selected Christmas presents.

During the last week of the calendar year, Bucim Mine traditionally celebrates by presenting Christmas gifts to the children of the Aco Karamanov kindergarten, to the daughters and sons of Bucim mine’s employees, to the children living in the Emanuel orphanage, and to those in the Poraka day care center for people with disabilities. The Bucim mine also presented New Year’s presents to the Red Cross Branch Radovish and to the Kudret Jasham Derneghi Turkish Association for humanitarian cultural activities to be distributed to children from socially disadvantaged families from the municipalities of Radovish and Konce.

“The holidays are a great opportunity to create more joy and memorable moments for each of us. This is our traditional New Year’s activity which we gladly continue, and we hope that we’ll continue to contribute to putting smiles on children’s faces at this time of year. ” said Nikolajcho Nikolov, Deputy General Manager of Bucim.