Can you provide us with some background information on Ferronickel: its potential and activities ?
Ferronickel is a socially owned enterprise, made out of two units, the foundry and the mine. Ferronickel began its production in 1985, and was established by the Assembly of Kosovo of 1978. Till 1991 the production was improving every year, therefore we achieved to produce 7 thousand tones of nickel. But in 1991, the Serbs took over the leadership violently and the Albanian directors and professionals were expelled from their positions. After that until 1998 Ferronickel had a small production, and even the planed production was not accomplished. During the war, between 1998 till June 1999, the Serbian police and army occupied Ferronickel. After June 1999, we could come back and start working again. Concerning the technology, the machines are mainly from Western Europe, starting from the rotary furnaces which were produced in Denmark then the electric furnaces produced in Elkin-Norway, converters produced in Germany, and other technology which is mainly from Western Europe. There are also parts and machines that come from Slovenia, Croatia, so this is a truly international company. The technology is relatively new, for example the Canadian company Falconbridge has a technology of the year 1975, and they have a good production. The ore of Ferronickel is very rich, with 1.32% Nickel in it. Ferronickel has two mines, one is near Slavkan, just 1.5 kilometers away from the actual factory, and the second one is near the airport of Prishtina, which is also not very far from the factory.
Can you tell us about the amount of ore and the potential you have?
The scientifically verified reserves of Ferronickel are 15 million tones of ore, but we have geological indications that tell us that this amount could be much bigger, but we still need to research and find out the approximate figure of other reserves that Kosovo might have. All the resources that I am talking about are very near to the factory, 10-15 kilometers. To find out more exactly these indications we have made some drills and the results that we got were surprisingly good. Ferronickel has always produced only one article which was called "ferronickel" and which was prepared in "goth" with the percent of nickel in it up to 35-50%. The markets were open for us in Europe and the price was always assessed by LME (London Metal Exchange), the index that we still take into consideration when establishing the price. For the moment in South-Eastern Europe we are the only producers of ferronickel, and it was successful, therefore we still have some requests from some European companies about our products.
Could you provide us with some financial figures as far as production is concerned, sales, turnover?
At the moment Ferronickel is not producing, because it has been severely damaged by the Serbian forces, which were stationed in the factory, and during their withdrawal, they looted the facilities. Furthermore, NATO bombed Ferronickel, again because of the Serbian forces stationed within the facilities, therefore it also suffered some outer damage, and for this reason Ferronickel at the moment is not in production.
Mining has always been traditionally strong in Kosovo, how is Ferronickel looking forward to regaining its position in the Balkans and within Europe?
Ferronickel has always exported its products, since steel was not produced here, and all our production went directly to the European market straight. The benefit therefore that we can get from the reactivation of the company is tremendous, because we could earn money by exporting and provide jobs to a lot of people here. The expenses for the production are very low, because the ore is just beneath the surface of the land. Therefore the exploration is done without mining or dynamite, the other advantage is that the land is extremely rich in ore, mining 1 cubic meter of land produces 1 cubic meter of ore.
You had approximately 2000 workers, Ferronickel has a large social responsibility, to Kosovo how are you going to re-employ and re-activate these workers?
It's true that we had 2000 workers employed, and we think that initially their number will be reduced, but we plan to start with some new projects where those people could find employment. We have projects of producing different construction materials, and other fireproof materials, but the first mission is to reactivate Ferronickel in order to be able to start with other projects. For this, we are waiting and inviting foreign investors, because the possibilities we can offer are huge. Now we have a new government established and we have their support as well as Mr. Steiner's support, the international supervisor of the region appointed by the UN, who is also very keen and engaged in the development of the local economy.
What are your plans for this development?
We have made a plan that we submitted to the ministry, because since the beginning in Ferronickel we have been working in a different direction. At first it was necessary to clean up the building and repair the parts of the machines that we could; for example, we have completely fixed the water system, the electricity system, then we repaired the part of the factory in which we extract the ore, then we controlled the fire-proof material inside the furnaces. Hence we did all what we could with our potential, but unfortunately we cannot restart without foreign investments. The war has destroyed a lot of things in Kosovo and worst of all the economy was hit. At the moment investments in Ferronickel and Trepca, the mine complex are directly linked with the status of Kosovo. We, as an enterprise are very interested in improving economically; therefore we are ready to act jointly with the foreign investors, to reach an agreement for investment in our enterprise that would be beneficial for both sides.
| Privatization is starting soon, I understand that investments depend on the status of Kosovo, but I would like to know what is your opinion about it?
Privatization in Kosovo has not started yet unfortunately and it is taking way too long now. With the privatization the owner of the factory would be finally determined, we signalled towards the ministry several times that the privatization must begin and there should be clear regulations about foreign investments. We think that the privatization should start immediately since all the Eastern European countries have passed through this road and which we should pass also by implementing their positive experience. The more it is delayed the more damage it causes to our economy.
How is the situation evolving as far as Ferronickel finding a potential investor?
The strategic investors that are interested are mainly in Europe, but that process was slowed down mainly because of the lack of regulations. Since the second part of last year the regulations for the election of leading people, general managers etc. for socially owned enterprises was passed, the enterprises have now the right to make contacts with foreign investors directly; this is a big help for us and we are waiting for the investments to happen.
Could you name some of the companies interested in Ferronickel?
Certainly: Thyssen from Germany, Billiton from Canada and some other companies.
What markets would you be targeting once you start exporting?
Our market is in Europe, in Germany, Austria, and Italy to be more precise, but we had a market also in Denmark and Sweden, lets see if we can get them back.
Could you to tell me about your professional experience and how you ended up being in such a responsible position?
I am a doctor of science of geodesy and I have been working for twenty years in Ferronickel, since 1980. From 1991 I was expelled from the company as all the Albanian workers and I mainly worked at the university. I have been working for Ferronickel since it was established.
Why did you decide to come back to the company after the university?
For the sake of the people who worked there, and because of the factory itself. It needed a group of people to come back and to start work again this was our aim. Although I still work at the university, I see that Ferronickel is important for Kosovo´s economy. It seemed wise, that for at least two or three coming years we work for Ferronickel, because we know its economical importance and the success of the ferronickel is based in three main components. These are the verified geological reserves, the second one is the technology, which is relatively new and in good condition, and the third is the experience that is from 10 to 15 years in Ferronickel.
Since you have been in the company for 20 years what has been your biggest challenge?
Our biggest challenge was to start the production in ferronickel, to test our abilities in such circumstances. This is the first factory ever to be built in a socialist country with Western European technology, therefore our biggest wish was to accomplish ourselves professionally, and at the same time to produce ferronickel for the European market. We had different trainings in Europe, in Sweden, Spain, Germany etc. Therefore this was a big challenge, but indeed we managed to have success. In 1985 a Norwegian representative named Anderson, said that there was no more need for us to stay there because we have learned everything. We were capable to do everything needed to run the factory.
What will be your message to the foreign investors looking at Kosovo?
My message for the foreign investors would be that Kosovo is a very reliable environment for investments, and with the biggest competence. I can add that the security is in a very high level and especially the workers would welcome the investors. We are open for all possible ways of investments, and we are convinced that they will not be disappointed with us, or with the profit they will make here.
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