Hungarian Aluminum acquires 10-year concession to in Montenegro

Analysis

MAL Hungarian Aluminum has acquired 10-year concession rights for an undisclosed price to conduct bauxite exploration and extraction operations in a 17.4-square-kilometer area of western Montenegro.

MAL Chairman Lajos Tolnay told the business daily Vilaggazdaság that the concession will enable the company to supply its aluminum-oxide plant in Ajka (W Hungary) with bauxite extracted exclusively from MAL mines.

Világgazdaság reported that MAL expects to extract 150,000 tons of bauxite annually from the concession beginning in 2010. There are 350,000 tons of known bauxite reserves at the concession, while MAL will begin exploration for up to 2 million – 4 million more tons of bauxite in the area, the newspaper wrote. MAL will invest €2 million at the Montenegro concession for its extraction operations, while the concession contract stipulates that the company spend €15.6 million on bauxite exploration in the region, according to Világgazdaság.

MAL has been present in Montenegro since 2004, while other major Hungarian companies such as OTP Bank, Magyar Telekom and Hunguest Hotels are currently operate in the country. Hungary was the biggest foreign investor in Montenegro in both 2005 and 2006. (MTI – Econews)

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