Privatization of the Dashkesan Ore Combine Postponed until June

The opening of bids for the privatization of 99.22% of shares of the Dashkesan ore mining and processing complex was scheduled for April 3. However, due to lack of proposals, the State Property Committee postponed the date of receipt of applications from investors until May 31.

The third privatization of OJSC Daskesan Filizsaflasdirma began in July 2016. At the same time, the enterprise, where 358 people work, suspended the extraction and enrichment of iron ore. Since that time, the liabilities of the enterprise have been growing at a high rate and as of March 1, 2017, they exceeded AZN 21 million. The value of net assets of the JSC is not reported. The company does not publish annual financial statements.

Though investors did not show interest in the ore mining complex, the conditions for privatization of the joint-stock company have not changed: applicants are required to submit a five-year investment program for at least 600 million US dollars. To the state budget, the investor will have to transfer an amount of at least 100 million manat.

It should be recalled that in 2003-2006, Daskesan Filizsaflasdirma OJSC was privatized twice with the same method. But soon the result of the investment competitions was canceled due to non-fulfillment of the commitments. ----08D