Construction of an aluminium smelter in Montenegro was first proposed in the 1960s, when significant quantities of high quality bauxite ore were discovered near Nikšić.

[3] In May 2006 CEAC said that "various breaches of representations and warranties" of the deal were discovered by accountants Deloitte, including KAP having "hidden" debts and obligations towards the state totalling tens of millions of euros.

[6] As relationship between the owners and management and the Government of Montenegro became increasingly sour, there was an ongoing debate within the country about the fate of the company.

[9] The Podgorica Aluminium Plant (KAP) has been a focal point of controversy and criticism, despite its status as the largest individual contributor to Montenegro's GDP and exports.

The primary source of discontent revolves around environmental concerns, as the plant is heavily criticized for polluting the fertile Zeta Plain.

They contend that the plant was undervalued and raise concerns about the business practices of CEAC owners, alleging consistent annual losses to avoid dividends payments to minority shareholders.

[citation needed] KAP's trade union has launched strikes frequently since privatization, demanding increases in wages.