Foreign Investments Revitalize Serbian Mining Towns
The influx of foreign capital is transforming local economies and raising living standards in traditional mining regions.
The recent surge in foreign investments in Serbia has had a monumental impact on numerous regions, particularly in famous mining towns such as Bor and Majdanpek.
These investments have not only created new job opportunities but have also significantly improved living conditions, halted population decline, and even led to a reversal of migration trends as individuals return to their hometowns seeking employment.
In recent years, Serbia has established itself as an attractive destination for foreign direct investments (FDI), largely due to its favorable business environment, stable economic conditions, and strong governmental support.
This influx has facilitated technological advancements and boosted the competitiveness of the Serbian economy on an international scale.
Notable examples of successful foreign investment can be found across the country, from the automotive industry in Šumadija and Vojvodina to the information technology sector in Belgrade and Novi Sad.
The transformation in Bor and Majdanpek is particularly striking.
These mining areas, once plagued by declining populations and low wages, have experienced a revitalization since the arrival of Chinese investors.
A significant indicator of this economic recovery is reflected in the local real estate market; average property prices in Bor have surged approximately 40%, with current rates averaging around 820 euros per square meter and some properties even reaching prices as high as 1,665 euros per square meter.
Moreover, increased purchasing power is evident in the rise of vehicle ownership in these towns.
According to local police data, the number of registered vehicles in Bor has markedly increased over the past five years, contributing to improved comfort and mobility for residents.
This shift has attracted major retail chains that have opened stores in the city centre, further promoting urban development.
According to Bojan Stanić, assistant director of the Sector for Strategic Analysis, Services, and Internationalization at the Chamber of Commerce of Serbia, foreign investments have notably improved living standards in various cities including Bor, Majdanpek, Smederevo, and Priboj.
He noted that new jobs have been created, wages have risen, and there has been a marked improvement in both health and educational services.
Additionally, the arrival of foreign investors has been instrumental in curtailing the emigration of residents from areas that have seen consistent population losses.
A key driver of the recent economic changes is substantial investment in the mining sector, particularly from companies such as Serbia Zijin Mining and Serbia Zijin Copper.
These enterprises directly employ over 7,000 workers and create an additional 2,000 jobs indirectly through partnerships with local subcontractors.
The average salary in this sector is now around 1,200 euros, significantly above the national average.
In 2025, Serbia Zijin Copper plans to increase wages in collaboration with labor unions, thereby enhancing work conditions and financial stability for employees.
The copper production has also positively impacted the municipal budget of Bor, enabling investments in vital infrastructural projects such as educational facilities, healthcare services, sports complexes, and support for local agriculture, as well as the renovation and development of roads and water supply networks.
These investments have not only created new job opportunities but have also significantly improved living conditions, halted population decline, and even led to a reversal of migration trends as individuals return to their hometowns seeking employment.
In recent years, Serbia has established itself as an attractive destination for foreign direct investments (FDI), largely due to its favorable business environment, stable economic conditions, and strong governmental support.
This influx has facilitated technological advancements and boosted the competitiveness of the Serbian economy on an international scale.
Notable examples of successful foreign investment can be found across the country, from the automotive industry in Šumadija and Vojvodina to the information technology sector in Belgrade and Novi Sad.
The transformation in Bor and Majdanpek is particularly striking.
These mining areas, once plagued by declining populations and low wages, have experienced a revitalization since the arrival of Chinese investors.
A significant indicator of this economic recovery is reflected in the local real estate market; average property prices in Bor have surged approximately 40%, with current rates averaging around 820 euros per square meter and some properties even reaching prices as high as 1,665 euros per square meter.
Moreover, increased purchasing power is evident in the rise of vehicle ownership in these towns.
According to local police data, the number of registered vehicles in Bor has markedly increased over the past five years, contributing to improved comfort and mobility for residents.
This shift has attracted major retail chains that have opened stores in the city centre, further promoting urban development.
According to Bojan Stanić, assistant director of the Sector for Strategic Analysis, Services, and Internationalization at the Chamber of Commerce of Serbia, foreign investments have notably improved living standards in various cities including Bor, Majdanpek, Smederevo, and Priboj.
He noted that new jobs have been created, wages have risen, and there has been a marked improvement in both health and educational services.
Additionally, the arrival of foreign investors has been instrumental in curtailing the emigration of residents from areas that have seen consistent population losses.
A key driver of the recent economic changes is substantial investment in the mining sector, particularly from companies such as Serbia Zijin Mining and Serbia Zijin Copper.
These enterprises directly employ over 7,000 workers and create an additional 2,000 jobs indirectly through partnerships with local subcontractors.
The average salary in this sector is now around 1,200 euros, significantly above the national average.
In 2025, Serbia Zijin Copper plans to increase wages in collaboration with labor unions, thereby enhancing work conditions and financial stability for employees.
The copper production has also positively impacted the municipal budget of Bor, enabling investments in vital infrastructural projects such as educational facilities, healthcare services, sports complexes, and support for local agriculture, as well as the renovation and development of roads and water supply networks.
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