Recession report - Bulgaria zinc mine Dimov Dol to close down

Monday, 17 Nov 2008

It is reported that Dimov Dol is closing leaving 200 miners unemployed.

Mr Mitko Mladenov manager of Dimov explained that in the next six months it would make efforts to begin functioning again and rehire the miners.

If the efforts fail, the mine is facing total liquidation. The financial crisis is the result of the constant reduction of the zinc and lead prices, the current price is between BGN 1,000 and 1,200 for one tonne, compared to BGN 4,000 one year ago.

According to Mr Mladenov, the price needs to be at least at the BGN 2,000 per tonne level in order for the mine to be functioning. The mine has been asking for the support of the Bulgarian Economy and Energy Minister Mr Petar Dimitrov. In the next six months, the miners are not going to be laid off, but would rather use the rest of their paid annual leave and would be on unpaid leave afterwards.