Περιγραφή της προμήθειας
HRADF holds approx. 55.2 % of the share capital of a company under the name ‘LARCO General Metallurgical and Mining Company S.A.’ (‘LARCO’).
LARCO operates a smelting plant in Larymna, in central Greece (‘Smelter’). LARCO also holds mining rights in various locations in Greece in four bundles: the Agios Ioannis mines (near Larymna), the Evia mines, the Kastoria mines and the Servia lignite mine. Some of these mining rights are leased from the State or third parties, whereas others are owned by LARCO.
Pursuant to decision nr. C(2014) 1805 final/27.03.2014 of DG Competition of the European Commission, the sale of certain assets of LARCO in a transaction structure has been approved from a state aid perspective, which inter alia ensures the absence of economic continuity from LARCO (‘Transaction DG Comp Decision’).
The Transaction DG Comp Decision has not yet been implemented.
Pursuant to art. 21 of Law 4664/2020 (GG A’ 32/14.02.2020) certain issues pertaining to LARCO have been addressed (‘LARCO Law’). More specifically, according to LARCO Law, LARCO entered into a special administration process Court of Appeal of Athens, LARCO entered into a special administration process as of 28 February 2020. LARCO Law provides certain procedures in relation to the sale of LARCO’s owned assets by the Special Administrator, as well as an arbitration procedure through which the ownership status of the Smelter will be determined (‘Arbitration Procedure’).
An Arbitration Procedure between the HR, LARCO and its res creditors has been initiated in April 2020. By virtue of No 1/2020 award of the arbitral tribunal, as corrected by the under No 2/2020 award of same tribunal (the ‘Arbitral Award’), it was held that HR has the ownership of the Smelter along with a number of plots of land and installations in the Larymna Mine. The validity of the Arbitral Award has been challenged before the Athens Single Member Court of Appeals by means of relevant petitions/lawsuits for annulment filed by the res creditors. The hearing before the Court of Appeals took place on 13 October 2020 and the issuance of the Court decision remains still pending. Despite the filing of said petitions/lawsuits, the Arbitral Award, as per LARCO law, remains in full force and effect.
According to LARCO Law, the HR may assign to HRADF the conduct of the tender in relation to the lease of the mining rights owned by the HR and currently leased to LARCO (‘Mining Tender’), as prescribed under art. 55 par. 7 of Law 4223/2013 (GG A’ 287). Furthermore, the HR has also assigned to HRADF the conduct of the tender for the lease of the Smelter (‘Larymna Tender’). The Mining Tender and the Larymna Tender jointly are referred to as ‘HR Tender’.
For the purposes of conducting the HR Tender, pursuant to Joint Ministerial Decision No 114545/10967/27.11.2020 of the Minister of Finance and the Minister of Energy and Environment (GG B’ 5254/28.11.2020) (‘HR Μinisterial Decision’), issued in accordance with par. 11 of article 21 of the LARCO Law, the HR has assigned to the Fund the task of conducting the tender in relation to:
(i) the lease of the Larymna Mine, i.e. the lease of the mining rights along with the plots of land, the Smelter, installations and equipment thereon, owned by the HR and leased to LARCO, as prescribed under art. 55 par. 7 of Law 4223/2013 (GG A’ 287), and
(ii) the lease of the Loutsi mine i.e. the lease of the mining rights together with plots of land and installations thereon owned by the HR (jointly the ‘Tender Assets’). It is clarified that the lease of the mining rights will be done in accordance with the procedure described in the HR Μinisterial Decision.
Following the issuance of the HR Ministerial Decision, the Fund has launched the HR Tender pursuant to an Invitation for the submission of Expressions of Interest, dated 30 November 2020.