Economic Benefits
01 Benefits from the ore extraction
02 Public–private partnership
03 The importance of borates for Valjevo
The Valjevo Borates project has the potential to deliver significant economic benefits to the local communities and to the nation.
We strongly believe in sharing the benefits that the project can generate.
Benefits from the ore extraction
Initial assessments indicate a significant development opportunity for Valjevo and Serbia.
- The operational life of the mine is estimated at approximately 30 years.
- The total investment in the underground mine, surface facilities and processing plant is estimated at approximately €500 million. The project aims to involve as many domestic suppliers as possible in this investment.
- Approximately 1,000 employees of various educational and professional profiles are expected to be engaged in project implementation.
- Revenues to the Republic of Serbia and the City of Valjevo from mining royalties are estimated at around €500 million over the life of the mine. These funds would flow directly into national and municipal budgets.
- Palkovsky Group proposes implementing the project as a public–private partnership with the Republic of Serbia, under which the State would participate in additional profit-sharing.
- The discovery and development of such a rare mineral resource could attract investment in manufacturing facilities which use borates, creating additional employment and economic activity in Serbia.
- Palkovsky Group has also established a foundation supporting projects in four areas: youth and skills; education and science; ecology and environmental protection; and community development and sustainability.
Public–private partnership
Palkovsky Group is among the first private investors in the mineral resources sector to propose implementing a greenfield project through a public–private partnership with the Republic of Serbia.
The company views the responsible development of sodium borates in the Valjevo area as a considerable opportunity to generate significant short and long-term benefits for the wider community while protecting and remediating the natural environment.
What is a public–private partnership?
A public–private partnership (PPP) is a form of long-term cooperation between the public and private sectors based on shared interests and clearly defined responsibilities. In this model, the public sector provides the legal framework, regulatory oversight, and transparency, while the private partner contributes capital, technology, and expertise.
The objective of PPPs is to use public resources efficiently and sustainably while delivering social and economic value, combining the stability of the public sector with the innovation and efficiency of the private sector.
PPP and Valjevo Borates
For the Valjevo Borates project, Palkovsky Group proposes that the Republic of Serbia participate as a project partner and to take part in profit-sharing.
This would represent an additional revenue stream for the Republic of Serbia, alongside royalties and taxes generated by the project.
The specific PPP structure would be formalized with the Republic of Serbia through a PPP agreement.
The importance of borates for Valjevo
What benefits could the development of Valjevo borates bring to the City of Valjevo?
- Royalty income flowing into the City of Valjevo budget. It is estimated that royalties over the operational life of the mine (more than 30 years) would total approximately €500 million. Under the current legal framework, the City of Valjevo would receive 40% of that amount, approximately €200 million.
- Creation of new jobs for residents of Valjevo. Around 1,000 employees of various educational and professional profiles are expected to be engaged.
- Inclusion of local companies in the project’s supply chain, ensuring that part of the approximately €500 million investment would generate revenue and profit for companies in the Valjevo area.
- The planned Palkovsky Foundation provides financial support for community-led initiatives targeting four key areas: youth and skills; education and science; ecology and environmental protection; and community development and sustainability, allocating significant funding to projects aimed at improving quality of life in Valjevo.
- Development of sodium borate mining would position Valjevo and the region as an important location in the global economy.
- Attracting additional industrial players who could establish manufacturing facilities using borates as a raw material, creating further employment opportunities.