Larco

The planned sale of indebted and idle state mining firm Larco has been called off, the Ministry of Finance announced Monday.

Market analysts had long expected the move. It was made inevitable Friday, when GEK Terna and AD Holdings, the consortium chosen to buy Larco's assets and the accompanying mining rights, informed the ministries concerned of its decision to pull out of the deal.

Greece's state mining company Larco has appeared in this newspaper more times than its size would justify.

But Kathimerini's disproportionate insistence on revisiting the bankrupt state company reflects the disproportionate burden taxpayers have shouldered to keep Larco "alive" - a zombie company, that is.

The Larco company now truly is a symbol - sadly, one of inaction.

Another costly chapter in the lengthy and tumultuous history of state mining company Larco has been added by the liquidation project to find an investor.

For one more year, the fourth in a row, the Larco state mining company will remain idle, but subsidized by the state budget. This is despite the fact that the relevant tender for its sale and the entry of a strategic investor has already been completed since last year and the demand for nickel internationally is strong.

Six candidates have expressed their interest in a tender to buy Larco General Mining & Metallurgical Company assets, including the leasing of the mining complex in Larymna.

According to information, the six candidates were: GEK Terna, Tharisa Plc, Mytilineos Group, Solway Investment Group, Trafigura Group Pte, and Commodity and Mining Insight Ireland Limited.

The Hellenic Republic Asset Development Fund SA (TAIPED) announced on Monday that six interested parties have submitted expressions of interest for the lease of a number of Larco General Mining & Metallurgical Company assets, namely its Larymna smelting plant, the Larymna and Loutsi mines and relevant mining rights, and other assets owned by the Greek state.

The next few months will determine the future of Larco, Greece's state mining and metallurgical company founded in 1963, but this month's tenders for its assets will likely be boosted by the founder and chief executive of Tesla Inc, Elon Musk.

The Larco General Mining and Metallurgical Company is one step from closure, after entering receivership status in March to be sold to a private investor or declare bankruptcy.
The problematic state company suffers losses of $8,000 per ton of nickel output, and with a daily output of 15 tons, the company is posting losses of $120,000 every day.

Greek lawmakers approved a restructuring plan for Larco late on Wednesday which Greece called a last attempt to save Europe's biggest nickel producer.
The European Commission said in November it was taking Greece to the European Court of Justice (ECJ) over its failure to recover 135.8 million euros of illegal state aid to Larco, which is struggling under heavy debt.

The government is seeking to dig Greece out of a debt hole to the tune of three billion euros created by five of Greece's state-run corporations (DEKO).