Boron One Holdings has estimated a post-tax value of approximately €571 million for its Piskanja boron project in Serbia, with an initial capital requirement of €71.4 million and a projected post-tax internal rate of return of 89%.
The updated preliminary economic assessment outlines a planned 13-year underground mining and processing operation, with capital payback expected in less than 12 months after production begins. Average annual revenue is projected at approximately €125.5 million, generating around €1.76 billion over the modelled mine life. The development plan combines underground extraction with processing facilities in Serbia, targeting commercial borate products and downstream chemical production.
Mineral resources and planned production
Piskanja contains approximately 7.14 million tonnes of Measured and Indicated resources grading 32.4% B₂O₃. Boron One plans to extract the ore using mechanical continuous miners before processing it into marketable products. Projected annual production includes approximately 157,600 tonnes of colemanite and 83,800 tonnes of ulexite. The development concept also incorporates a boric acid operation with planned output of approximately 25,000 tonnes annually.
The integrated approach would combine mining, beneficiation and chemical manufacturing within Serbia rather than relying exclusively on exports of mineral concentrates. Borates are used in glass, ceramics, insulation, fertilisers, specialty chemicals and other industrial applications. Producing boric acid alongside borate products would add a downstream processing component to the proposed operation.
Capital requirements and project economics
The estimated initial investment of €71.4 million represents the preliminary capital requirement for developing the mine and processing operation. The assessment indicates that the project could achieve substantial returns if its current economic assumptions are maintained through subsequent development stages. The estimates remain preliminary, with capital and operating costs carrying an accuracy range of approximately ±35%. The existing mineral resource has not yet been converted into a mineral reserve.
Further mine design, metallurgical assessments and engineering work will be required to refine the development costs and establish whether the projected returns can withstand detailed technical evaluation and lender scrutiny.
Offtake and downstream processing requirements
Project economics depend on forecast selling prices for colemanite, ulexite and boric acid. Long-term demand and the commercial terms achieved under supply contracts will therefore be important to the financing case. Boron One has reported a binding offtake agreement, providing a commercial basis for the project, although construction financing has not yet been secured.
The planned boric acid facility will require additional technical and financial assessment. While downstream processing could increase the value captured from production, it also introduces further capital requirements and exposure to technical performance, reagent consumption, energy costs and product-quality specifications. These factors must be defined more precisely before potential lenders can assess the financing requirements of the integrated mining and processing operation.
Feasibility work and Serbian approvals
The preliminary development schedule envisages approximately 24 months for construction and mine development. Before this phase can begin, Boron One must advance feasibility studies, progress Serbian regulatory approvals, refine the processing design and assemble a project financing package.
The next development stage will need to establish whether the preliminary capital estimates, projected production volumes and operating assumptions can be maintained through detailed engineering and regulatory review. The results will determine whether the project can proceed towards a final investment decision and construction.
