Hundreds of miners in Kosovo refused to resurface at the end of their shift on Tuesday to protest a government policy reversal on the fate of the mine, which is claimed by the country's former master Serbia.

Fearing bankruptcy, Kosovo's new government said last week it would take control of the sprawling Trepca mining complex, but backtracked on Monday following a furious response from Serbia and intense discussions with Western diplomats.

Serbia is not setting any conditions, "on the contrary, it shows with each step how much it cares and is working on regional cooperation,"says Zorana Mihajlovic.

The deputy prime minister responded this way "on the criticism of the government, received from European parliament rapporteur David McAllister who said that Serbia should not condition the dialogue with Kosovo's abandonment of the nationalization of the Trepca mine," the daily Danas writes.

Mihajlovic was also quoted as saying by the Belgrade-based paper that "Serbia, unlike Kosovo" respects all agreements.

PRISTINA, Jan 19 (Reuters) - Kosovo backtracked on Monday from a pledge to take control of a huge mining complex claimed by Serbia, a step Belgrade had warned would put at risk European Union-sponsored negotiations between the Balkan neighbours.

The Trepca complex of lead, zinc and silver mines once employed 20,000 people and accounted for the majority of the former Yugoslavia's mineral wealth.

Kosovo Minister for Local Government, Ljubomir Maric said last night that for the Serbs was unacceptable to change status of Trepca, as a pillar of the economy and economic development of the Serbian community in Kosovo, with "hastily adopted decisions".

According to him, the issue of Trepca is and the political and legal issue. Kosovo Parliament last night adopted specific legislation to extend the deadlines and prevent the liquidation of Trepca.

Within the dialogue between Belgrade and Pristina should be discussed all property of Serbia in Kosovo and Metohija, not only “Trepca”, says Secretary General of the Ministry of Foreign Affairs, Veljko Odalović. 

The head of the European Union Office in Kosovo, Samuel Zbogar said on Monday that the dispute over Trepca mining complex should be resolved within the Kosovo institutions, with the participation of Serbs who are present in the government and Parliament.  According to Kallxo.com, Zbogar said that it is in everyone’s interest to prevent the liquidation of Trepca, which according to him, would cost thousands of jobs.

Kosovo's government said on Friday it planned to take over the giant Trepca mine complex to save it from bankruptcy and restore it to its former glory, angering the country's former master Serbia.

Serbia said the plan, which is expected to be debated by the Kosovo parliament on Monday, would threaten a fragile thaw in relations with its former southern province which it lost control of in 1999.

The Trepca mine is a giant, rusting complex of lead, zinc and silver mines that once employed 20,000 people and accounted for the majority of the former Yugoslavia's mineral wealth.

The government "will not accept" a unilateral decision of Pristina to take over the ownership of the Mining, Metallurgical and Chemical Combine Trepca.

The reason is the fact the Republic of Serbia Development Fund owns a majority stake in the mines, Director of the Serbian Government's Office for Kosovo and Metohija Marko Djuric said on Sunday.

The government warned over the weekend that such a move "will jeopardize the negotiating process between Belgrade and Pristina."

Aleksandar Vucic says a unilateral decision of the Kosovo government to take over Trepca "would deal a heavy blow to the Belgrade-Pristina dialogue."

According to Pristina-based daily Koha Ditore, the government of Kosovo adopted the bill modifying the law on public enterprises, paving the way for the Kosovo government to take over the ownership of the Mining, Metallurgical and Chemical Combine Trepca.

The presidency of the assembly of Kosovo decided - contrary to the rules of procedure - to debate the bill under urgent procedure at the session scheduled for January 19.

In the regular meeting of the government of Kosovo on Wednesday, it was decided that the mining complex Trepca should be returned from the Kosovo Privatization Agency (KPA) to  the government of Kosovo.