Montenegro has launched a new concession procedure covering four zinc-lead deposits in the Ljubišnja mining district, reopening one of the country’s largest established base-metals areas for exploration and mining. The public tender, issued by the Ministry of Energy and Mining, seeks a concessionaire for detailed geological exploration and future exploitation at the Šuplja stijena, Đurđeve vode, Paljevine and Ribnik deposits in the municipality of Pljevlja.
The concession area extends across approximately 6.1 square kilometres (610 hectares) and is supported by decades of geological exploration that have already defined a substantial mineral inventory. Bids under the open tender are due by 31 July.
Unlike a conventional greenfield mining opportunity, the concession involves a long-established mining district with existing geological data, historical production, operating infrastructure and environmental legacy, placing equal emphasis on technical, financial and environmental performance.
Geological inventory supports long-term mining plans
The concession documentation identifies total geological reserves across the four deposits of approximately 17.14 million tonnes of ore. The largest resource is located within the Šuplja stijena and Đurđeve vode deposits, where geological reserves are estimated at approximately 15.6 million tonnes, including more than 7 million tonnes of exploitable reserves. The Ribnik deposit contains approximately 1.4 million tonnes of geological reserves, while Paljevine hosts around 137,000 tonnes of confirmed geological reserves together with an estimated 1.7 million tonnes of prospective resources.
Under the concession model, the successful bidder will receive rights for 20 years, with the first six months allocated to detailed geological exploration, the following six months dedicated to mining documentation and permitting, and the remaining 19 years reserved for commercial mining operations. Government estimates project total production of approximately 9.5 million tonnes of ore during the exploitation period.
Production value and concession revenues outlined
According to the concession documentation, the planned mining operation could generate an estimated production value of approximately €275 million, equivalent to around €14.5 million annually over the planned production period. Based on these assumptions, the minimum concession fee is projected at approximately €11 million over the life of the concession, corresponding to at least €580,000 per year.
The fiscal structure allocates 70% of concession fee revenues to the municipality of Pljevlja, while the remaining 30% is directed to the national budget. Tender documents also indicate expected direct employment of approximately 150 workers, reflecting the project’s significance for northern Montenegro’s industrial economy.
Historical mining provides established production base
The Pljevlja zinc-lead district has an extensive production history. The Šuplja stijena mine operated between 1954 and 1987, producing approximately 3.95 million tonnes of ore with average grades of 1.72% lead and 4.73% zinc. During that period, operations generated approximately 76,687 tonnes of lead concentrate and 299,890 tonnes of zinc concentrate.
Subsequent surface mining between 1996 and 2000 recovered an additional 283,000 tonnes of ore. Mining activity resumed after 2010, when Gradir Montenegro restarted operations in the district.
Between 2010 and 2024, the company extracted approximately 7.25 million tonnes of ore, producing and exporting approximately 171,000 tonnes of selective zinc concentrate, 47,000 tonnes of selective lead concentrate containing silver, and 36,000 tonnes of collective concentrate. The established production history reduces geological uncertainty while providing an operational foundation for future concession development.
Reserve verification remains part of future development
Despite extensive historical exploration and mining, the concession documentation identifies the need for additional geological investigations. Further detailed exploration is planned, particularly within deeper sections of the Šuplja stijena deposit and at Ribnik, to improve geological confidence and support future mine planning.The documentation also identifies differences in projected annual production capacity.
Public information associated with the tender refers to planned annual production of approximately 500,000 tonnes of high-grade ore, while official government concession planning indicates that verified reserves and existing mining documentation support annual production planning of approximately 600,000 tonnes. Production assumptions directly influence mine scheduling, processing plant capacity, flotation throughput, tailings storage requirements, workforce planning, energy demand and operating costs.
Technical proposals extend beyond financial bids
The future concessionaire will be expected to submit more than a commercial offer. Project evaluation will depend on detailed mine planning, reserve reconciliation, capital expenditure requirements for equipment replacement and expansion, water management strategies, tailings storage design and financially secured mine closure and reclamation provisions.
The concession framework also requires implementation of environmental protection measures, including rehabilitation of mined areas, protection of surrounding watercourses and responsible management of flotation tailings following mining activities.
Environmental management forms part of concession process
Environmental issues remain a central element of the concession process. The 2026 concession planning procedure generated 54 comments, objections and proposals during public consultation. According to government records, 19 submissions were fully accepted, five were partially accepted, while 25 were rejected.
The Ministry of Energy and Mining also recorded comments concerning potential impacts on Mjednički Potok and the Ćehotina River system. Environmental management requirements extend beyond local permitting considerations as Montenegro continues aligning mining regulation with European standards covering water protection, mining waste management, biodiversity, industrial emissions, public participation and mine closure planning.
Existing infrastructure may reduce capital requirements
The future investment programme will depend partly on the condition and availability of existing mining infrastructure. Government documentation notes that Gradir Montenegro previously constructed mine administration facilities in Šula, together with pre-concentration and flotation plants supporting production from the district.
The mining complex is connected to Pljevlja by approximately 37 kilometres of asphalt road, while onward transport provides access to the Belgrade-Bar railway at Prijepolje, located around 70 kilometres from the mine. The presence of existing infrastructure may reduce initial capital expenditure compared with a completely new mining development, although investment requirements will ultimately depend on equipment condition, processing plant upgrades, tailings capacity, mine expansion strategy, power supply and regulatory compliance.
Energy efficiency included in concession obligations
Energy consumption represents another important component of the project’s operating model. Mining, crushing, grinding, flotation, pumping and mine dewatering require substantial electricity consumption throughout the production cycle.
The concession documentation therefore requires the successful operator to introduce energy-efficiency measures, including modern lower-energy mining equipment, more efficient processing technologies and, where appropriate, renewable energy solutions such as solar power installations. These requirements directly influence future operating costs, production efficiency and the carbon profile of zinc and lead concentrate production.
Project combines established resources with long-term investment
The Pljevlja concession combines a defined geological resource, existing mining history, export-oriented concentrate production and a concession period designed to support long-term capital recovery. For investors, the project offers established ore reserves, previous mining operations and transport infrastructure.
For financing institutions, project assessment will focus on environmental liabilities, tailings management, water protection, reserve confidence, permitting progress and the operator’s ability to sustain production throughout the planned 19-year exploitation period. With an estimated production value of approximately €275 million over the concession life, the project represents one of Montenegro’s largest current base-metals investment opportunities in the northern part of the country while placing significant emphasis on modern environmental standards, technical mine planning and long-term concession management.
