Bulgaria To Revoke Gorubso Madan’s Mining Concession

Bulgaria To Revoke Gorubso Madan’s Mining Concession

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.


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