Official: Balfin gets 90% of Ferronikel shares in Drenas

Balfin will own the shares of Newco Ferronikli through the UK-based company, NKL Limited, Klen Kosova reports.

Newco Ferronikli was affected by the decline in niel prices in recent years and had not operated at full capacity over the past 18 months, while having completely interrupted the event over the past four months.

According to the official communiqué, which has arrived at the address of Klan Kosovo, Balfin will immediately invest enough funds to re-enter the plant and restore production with full capacity within August, and has agreed to pay the company's existing debts to suppliers as soon as possible, and will pay the workers' unremarked salaries.

Newco Ferronikli, with over 800 employees representing the largest employer in Kosovo, is responsible for at least 1,500 other jobs dealing with the supply of the raw and logistics plant, both in Kosovo and Albania.

With the purchase of Newco Ferronikli, Balfin repeats a similar experience like that with Albchrome in 2012, which brought revival of the mining industry to Albania. Albchrome is implementing a $70 million investment plan that affects the Bulqiza mine to increase the life expectancy of chromium by over 20 years, as well as rerun and invest in new Burrel furnaces and making significant improvements to the foundry in Elbasan. With 2 plants operating four furnaces, and the Bulqiza mine, Albchrome has over 11,000 employees and constitutes a key actor in the mining sector
Albanian.

The Ferro-nikel complex in Drenas includes an niel manufacturing plant, while the surrounding area is rich in mineral deposits. The actual facility was built in 1984, using Soviet time technology, the Klan Kosova reports.

The Balfin Group is scheduled to carry out additional investments in Newco Ferrnikelli so that the potential of the mining sector in Albania and Kosovo can be fully used and increased ninikel production from 7,200 tonnes annually to over 10,000 tonnes per year.

The Balfin Group is the largest private investment group in Eastern Europe, with activities in Albania, Kosovo, Macedonia, Bosnia, Austria, and Holland, as well as activities in the real estate development sector, such as shopping centres in Albania and Macedonia, retail activities through its major brands such as Neptun, Jumbo, Spas etc, in development of resorts such as Green Coast and Vala Mar, as well as in the AlbCare mining sector.

Balfin Group is pleased to welcome Newco Ferronikli into its bosom, said the official announcement.