Niksic, (MINA-BUSINESS) – Representatives of Elektroprivreda (EPCG) responded to what they claim are inaccurate allegations targeting former Minister of Energy Sasa Mujovic as a public official involved in signing the lease agreement for the manufacturing capacities of Zeljezara with 8B Capital.

EPCG stated in a press release that the company had owned the assets of the former Zeljezara factory since early 2023.

“In order to tap into production capacities, EPCG decided at the end of 2023 to launch public calls in an attempt to find a company willing to restore the production of forged carbon and alloy steels, given that EPCG was not legally allowed to engage in steel production and that this was not EPCG’s core business,” the press release reads.

EPCG added that, according to the company’s statute, it was not obligated to seek approval from the relevant ministry for this, but, guided by good business practices, the EPCG Board of Directors and Executive Director informed the Ministry of Energy of all decisions related to the public call for leasing Zeljezara’s production capacities and later on the signing of the lease agreement with the lessee.

EPCG launched three public calls so that all companies from Montenegro, the region, and globally engaged in steel production could apply.

“Unfortunately, despite significant efforts, none of the companies that applied in all three calls met the very strict requirements,” EPCG said.

Only 8B Capital applied and met the requirements in the last public call.

“The decision to conclude the lease agreement with 8B Capital was made by the EPCG Board of Directors in accordance with EPCG’s Statute, not the Minister of Energy. The decision was made with the best intention to try to restart production at the factory, as none of the established companies with decades of experience in producing this type of steel applied or expressed interest in launching production,” the press release states.