Boron One Holdings has outlined a potential €571 million post-tax value for its Piskanja boron project in Serbia, based on estimated initial capital expenditure of €71.4 million. The updated preliminary economic assessment forecasts an 89% post-tax internal rate of return (IRR) and a capital payback period of less than 12 months after production starts.
The proposed underground mine and processing complex is designed for a 13-year operating life, with average annual revenue of approximately €125.5 million and estimated lifetime gross revenue of €1.76 billion. Piskanja contains approximately 7.14 million tonnes of Measured and Indicated mineral resources, grading 32.4% B₂O₃. The development plan combines underground extraction with processing into higher-value borate products.
Underground mining and downstream processing
The proposed mining operation would use mechanical continuous miners, with projected annual output of approximately 157,600 tonnes of colemanite and 83,800 tonnes of ulexite.
The development concept also includes a boric acid facility with annual production capacity of around 25,000 tonnes. This downstream component is intended to expand processing beyond raw mineral extraction and retain more value within Serbia. Borates are used in glass, ceramics, fertilisers, insulation, chemicals and advanced industrial applications. The planned product mix would position Piskanja as both an industrial-minerals mining operation and a chemical-processing project.
Preliminary economics and financing requirements
The projected returns remain subject to further technical and financial assessment. The preliminary economic assessment uses capital and operating cost estimates with an accuracy range of approximately ±35%, while the identified mineral resources have not yet been converted into mineral reserves. Commodity prices are another key factor in the project’s economics. Assumptions for colemanite, ulexite and boric acid selling prices affect the projected net present value and IRR, making future sales contracts and product qualification important to securing financing.
Boron One has reported a binding offtake arrangement, providing a commercial basis for the proposed operation. However, construction financing has not been secured. The planned boric acid facility will require further engineering and cost definition. Although downstream processing can increase product value, it also introduces additional technical complexity, reagent requirements, quality-control obligations and capital costs. The current assessment does not yet provide the level of cost certainty lenders would require to finance the facility.
Development schedule and Serbian approvals
The current plan envisages approximately 24 months for construction and mine development. Before work can begin, Boron One must advance the Serbian permitting process, complete more detailed feasibility and engineering studies, and establish the project’s debt-equity financing structure. With initial capital expenditure estimated at about €71 million, Piskanja represents a smaller-scale investment than major copper, lithium or polymetallic developments. Its combination of underground mining, downstream processing and potential export sales forms the basis of its proposed development model.
The next stage will depend on whether detailed engineering, conversion of resources into reserves, Serbian permits and lender due diligence can substantiate the preliminary projections and support a final investment decision.
