Concessions rights on deposits

Spatial Plan of Montenegro 2008, under the Section 3.2.2. Mineral raw materials, defines that Montenegrin terrains have over 90 occurrences and deposits of red bauxite.

Most numerous and richest deposits are located in karst terrains of High karst zone, where deposits ‘Zagrad’, ‘Đurakov do II’, ‘Štitovo II’ and ‘Biočki stan’ belong.

Administratively, deposits ‘Zagrad’, ‘Đurakov do II’, ‘Štitovo II’ and ‘Biočki stan’ belong to municipality of Nikšić.

According to the information provided by Real – Estate Administration, Organizational Unit Nikšić (act no. 958-103-205/14 of 16 March 2015), the area marked by deposit borders is a property of natural persons and (bankrupted) JSC Bauxite Mines – Nikšić.

Under the Article 44 of the Law on Concessions if expropriation of immovables must be executed in relation to the use of concession or a development of buildable land, the costs, manner and deadline for payment of fee for expropriation or development of buildable land shall be determined and carried out in accordance with law.

If the owner of the land is the Grantor, the expropriation shall not be carried out but it shall be regarded as that a concessionaire by getting the concession obtained the consent for its use.

However, having in mind that the Mining Law (Official Gazette of Montenegro, 65/08, 74/10 and 40/11) does not define the exploitation of mineral resources as a public interest, and that under the Law on Expropriation (Official Gazette of the Republic of Montenegro 55/00; 12/02, 28/06 and Official Gazette of Montenegro 21/08), private entities may not be expropriation beneficiaries, there are no legal options to carry out expropriation for the area where said deposits are located, with a view to exploitation of red bauxite ore.