Adriatic eyes January for first production

Vares is now on track for first production at the end of January 2024, Paul Cronin, chief executive, told Mining Journal. 

The company, which is developing the polymetallic mine in Vares, Bosnia,  previously thought that the mine would be up and running by November this year, but has had to delay the start up due to delays in the delivery of the reagent feeders and dust collectors and a delay in the electricity connection from the local supplier (Elektroprivreda BiH).

Nameplate capacity is expected to be reached by June 2024.

Speaking to Mining Journal on the sidelines of an industry conference, held in London last week, Cronin pointed to the bullish gold and silver outlooks at the moment and agreed that it was good time for Vares to start production.

"I'm quite bullish on silver, I think it's ready for another good run," Cronin said.

"I think zinc prices are going to remain rigid for the next few years, but gold and silver are performing well, so we are focusing more on that," he added.

Adriatic has an offtake agreement in place with Boliden for 82% of its zinc, which it signed in October. As the Swedish-headquartered company closed its Tara mine last year, it has looked elsewhere to fulfil its concentrate input. 

The zinc will be produced via Boliden's Odda smelter in Norway, which is being expanded and renamed the Odda Green Zinc Project, taking it from a medium-sized smelter to a leading zinc smelter.

The remaining 18% of its zinc will be sold on the spot, Cronin confirmed.

Train, Vares opens up

The first train is expected to run from Vares to Sarajevo this week, following some refurbishment on the line. A train has not run on this line for 30 years, and although it is expected to be reserved for transporting ore, Cronin understands the magnitude for the area in opening it up to the country's capital.

In fact, the mine - which is expected to contribute 2% to Bosnia GDP  - has become not only a springboard for Bosnians wanting to start a career and earn a meaningful salary, but has started to attract workers back to the country.

"The path to prosperity previously has been to leave the country or go into politics," Cronin deadpans. But he's not kidding.

"I think that [graduates in their 20s] feel their only option is to join a political party and get a handout sometimes just down the tracks or leave the country. (…)  All of those people are eligible for jobs in Switzerland, Austria, Germany, because they've all got degrees. And our challenge as a company is to convinced them that they can have a much better lifestyle and it's better balanced, at home," he said.

And it is working. According to Cronin they've had at least 20 people return from places such as Saudi Arabia, Germany, Australia and Canada to work with the company.

"They used to come back [to Vares] for the summer holidays every year, that was always sort of going home willingly. Now they get to work here and stay," Cronin said.