Balfin Group is proud to announce that it has successfully signed an agreement to acquire 100% of the shares of Newco Ferronikelli, the integrated ferro nickel mine and smelter based in Drenas, Kosovo. Balfin will hold the shares of Newco Ferronikelli via the UK based company, NKL Limited.
Newco Ferronikelli has been affected by the low nickel prices in the last few years and has not operated at full capacity in the last 18 months, and not at all for the past 4 months.
Balfin will immediately inject sufficient funds to restart the plant and bring it back to full production within August, as well on agreeing to repay the existing supplier debts of the company as soon as possible as well as paying outstanding salaries.
Newco Ferronikelli, with over 800 employees represents a major employer in Kosovo and is responsible for at least an additional 1500 other jobs related to supplying the plant with raw material and logistics in both Kosovo and Albania. In acquiring Newco Ferronikelli, Balfin has a similar experience in acquiring Albchrome in 2013 and revitalizing the chrome ore and smelting industry in Albania. Albchrome is completing a $ 70 mln investment plan that has a new shaft being extended in the mine to increase the ore reserve life of the company by 20 years, restarting and investing in new furnace in Burrel and making significant improvements in the Elbasan smelting facility. With 2 smelters operating a total of 4 furnaces, and the mine in Bulqize, Albchrome has over 1100 employees and represents a significant player in the Albanian mining sector.
The ferronickel complex in Drenas includes a nickel ore production plant, while the surrounding area is rich in mineral deposits, the facility in question was built in 1984, using the Soviet-era technology of the time. Balfin plans to make additional investments in Newco Ferronikelli to be able to realize the full potential of the mining sectors in Albania and Kosovo and increase the production of nickel in from the current levels of 7200 MT per annum to over 10 000 MT.
Balfin Group is the largest privately held Group of investment in South East Europe, with activities in Albania, Kosovo Macedonia and Bosnia, Netherlnads, and activities in real estate construction and development, such as shopping malls in Albania and Macedonia, retail activities through its major brands such as Neptun, Jumbo, Spar, rela estate development in resort properties such as Green Coast Resort and Vala Mar Residences, and the mining sector with Albchrome.
Balfin is proud to welcome Newco Ferronikelli to the Balfin Group. www.balfin.al