Bulgaria's economy ministry said it has taken steps to terminate local company Gorubso Madan's mining concession over unpaid workers' salaries.
Gorubso Madan, a subsidiary of local metals group Intertrust which owns Sofia-listed lead and zinc smelter OTZK, holds a concession for lead and zinc ore mining in Petrovitsa and Kushev Dol prospects in southeast Bulgaria.
The concession can be terminated within a month after notifying the concessionaire in case of systematic violation of the terms of the contract, the ministry said in a statement.
Last week, following a meeting between Traikov and Gorubso Madan's management, the ministry said that the company promised to pay on Monday about 60% of the 1.1 million levs ($735,000/562,400 euro) it owes its employees in back wages. It, however, failed to do so.
"We did not receive a wage payment schedule, nor did the company make a partial payment on Monday. The state will seek another solution for the mine, and we are heading to a revocation of the concession," the statement quoted economy minister Traicho Traikov as saying.