It is necessary for the chief special prosecutor Vladimir Novović to urgently review the business credibility of the tenant of Željezara Nikšić and thus prevent possible negative consequences, according to Professor Branko Radulović.
According to him, it is enough to type the name of the partner company "8B Capital SA - Lugano" and the name of their representative Igor Šamis into Google and everything will be clear.
The contract on the lease of the production facilities of the Nikšić Ironworks, its Kovačnica and Čeličana plants between the Electric Power Company of Montenegro (EPCG) and the Swiss company "8B Capital" was signed on July 26.
The contract was signed for a period of 50 years, and the company "8B Capital" undertook to invest 7,75 million euros within a year from the date of signing the contract and starting production, while in five years, as they stated in the offer, they will invest 36,85, XNUMX million.
"It is also necessary to review the conditions under which the lease was given, no expert knowledge is needed to come to the conclusion that this arrangement represents a loss and the last hope for Željezara Nikšić to become a modern, ecological and profitable company. If the Special State Prosecutor's Office (SDT ) leave everything to chance, Montenegro will be left without another development resource that would contribute to the diversification of the economy and the creation of new added value," warned Radulović.
He told "Vijesta" that he repeatedly pointed to the fact that the Ironworks can have a perspective if it is modernized and restructured in an optimal, efficient and effective way, if it is managed by a competent management team and if it has the support of the "famous Government" and professional institutions .
"A similar appeal was made by respected university professors from the region who claimed that the Ironworks has a promising perspective. There are numerous examples of successful ironworks, starting with Slovenian ones, which are proof of our claims. However, everything was in vain. Prime Minister (Milojko) Spajić and Minister "(Saša) Mujović did not consider a single argument of the profession or successful European and world practices. Unfortunately, they act similarly when it comes to energy hydro potential, thermal power plants, solar and wind potentials, and the aluminum industry," he said.
Radulović indicates that steel is the main artery of the economy and is used in all sectors.
He said that according to data from the World Steel Association, 2023 billion tons were produced in the world in 1,88, and that the International Energy Agency estimates that the demand for steel will increase by a third by 2050.
"However, new studies indicate that the world's steel production emits almost one tenth of CO2, which causes the greenhouse effect and leads to global warming. About 75% of steel is produced in coal-fired plants, which release CO2 through chemical reactions," said Radulović.
The next ten years, he adds, will represent a crucial period for changing the infrastructure in steel production with the aim of significantly reducing CO2 emissions and environmental neutrality.
"For this purpose, huge financial resources are allocated, new technologies are introduced, legal regulations are changed, and numerous economic measures are adopted. Definitely, the production of 'green' steel, the use of 'green' hydrogen and electricity from renewable sources are the set goals," Radulović said.
Radulović says that the call of the Council of the Agency for the Protection of Competition to meet the criteria for closing Chapter 8 on competition protection and Protocol 5 of the SAA, which treats steel production at the EU level and prohibits state aid in the coal and steel sector, has no basis in practice.
"For example, last year the European Commission approved the payment of about two billion euros of state aid to the German company ThyssenKrupp for the decarbonization of the hydrogen steel production process in Dresden. This company will invest another billion euros to restructure production. The direct reduction capacity of 2 million is foreseen tons and production of 5 million tons of 'green' steel", he stated.
The EU's executive body also, he added, approved state aid of 850 million euros to the French steel company ArcelorMittel in Dunkirk to switch to 'green' or low-carbon hydrogen, biogas and electricity. This company received 280 million euros from Belgium for the same purpose.
"There are other examples of financing the transition of steel production and the process of decarbonization and obtaining a carbon-neutral product. In Sweden, 190 million euros were collected from private investors to start the construction of a steel plant in Boden, which will use 'green' hydrogen. Norway's Blastr Green Steel announced the construction steel plants with an integrated hydrogen production plant in southern Finland. The investment is estimated at 4 billion. The Slovenian steel producers SIJ Acroni and SIJ Metal Ravne have received a loan of 230 million euros from NLB Bank, which leads a group of nine foreign and domestic creditors. The European Bank for Reconstruction and Development participated with 25 million euros in the project to reduce the impact of steel production on the environment," said Radulović.
According to him, Rio Tinto and China Baowu, the world's largest iron ore mining and steel producing companies, are teaming up on projects to reduce CO2 emissions in steel production in Australia and on the construction of a "sponge" steel pilot plant in China.
He also said that the company PSI, in cooperation with the Brazilian steel producer Villares Metals, is developing software for full control of energy consumption during steel production and processing.
He reminds that the global steel production and trade is being reorganized in order to take climate priorities into account, and that the European Union is particularly insisting on this.
"It should be borne in mind that China produces about 50% of the total steel production in the world, with technologies that emit huge amounts of CO2. China, as a state, subsidizes such production as well. Beijing projects that the Chinese steel industry will reach the peak of emissions by 2030. Such production technology and support must change," said Radulović.
He said that the European Parliament and the Council of the European Union reached an agreement on the introduction of a cross-border tax on CO2 for certain goods imported from countries that do not have adequate taxation of COXNUMX emissions.
"Steel 'quotas' have also been introduced in order for the EU to protect its economy from unfair competition. Companies exporting steel to the EU will be obliged to fulfill and purchase the CBAM certificate. The cross-border tax will not be paid by countries with the same climate ambitions as the EU. Despite the difference in their opinions, the USA and the EU harmonize the methodology for measuring CO2 emissions from steel and aluminum," said Radulović.
He believes that Željezara Nikšić has a great perspective, taking into account all the above, as well as the effects achieved by one workplace in the industry in developed countries, the demand for certain types of steel and metal processing products and assemblies, multiplier effects.
"It should be developed as an integrated production of 'green' steel with medium and high technological content, with a production structure of forged, structural and special steel, with a production volume of up to 200.000 tons/year. Such a steel plant would employ more than 1.500 employees. Solar panels and production hydrogen should be introduced in order to reduce the cost of consumed energy and carry out decarburization," said Radulović.
He believes that modernization and restructuring should be carried out through further ecological modernization of the Steel Plant, installation of another press, caster and rolling mill.
"The value of the investment would be around 70 million euros, and the time to install the new equipment would be around three years. The cost of introducing 'green' hydrogen is not included. The financing method can be state aid, state guarantees, grants, assistance and/or commercial lending with a grace period of three years. Such a modern steel plant could generate income of over 350 million euros, service all obligations, repay loans for modernization and operate profitably," said Radulović.
Radulović says that with further processing and increasing the technological content, the effects would grow exponentially.
He says that the study of the modernization and restructuring of the Ironworks must be of high quality and done by the University of Montenegro.
He believes that organizationally, Željezara should be part of the newly formed state enterprise "Industrija Crne Gore" ad
"EPCG only needs to develop the production of 'green' energy and remain state-owned. The future of Željezara solely depends on the competence and actions of the Government. UCG must make a full contribution in terms of expert knowledge. If they do not do this, it will be another reason to it is of the greatest national interest that this parliamentary majority be changed and the home faculty be abolished," said Radulović.
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