A chemical factory in Prahovo (IHP Prahovo) established in 1960 is located on the right bank of river Danube near the town Negotin and the villages Prahovo and Radujevac in Eastern Serbia. The people from these villages are agriculturalists or employed in the chemical industry. The company manufactures phosphorus fertilizers, acid, detergents and chemicals for domestic use.
Between 1978 and 1992 manufacturing capacity peaked and at the end of this period IHP Prahovo employed 4500 workers. The poor environmental management and lack of environmental protection measures resulted in the establishment of industrial uncontrolled waste dump sites containing 2 million tonnes of toxic pyrites cinder and 10 million tonnes of probably radioactive phosphogypsum. The dust from dump sites (40,000m3) has been dispersed by the wind, polluting more than 100 ha of fertile agricultural land and drinking water sources, while phosphogypsum have been gradually washed down into the Danube River creating several meters high deposits on the river bank. Several times since 2004, the local community and NGOs reported the company to environmental inspection demanding a solution to this historical pollution, however with no success.
The factory was privatized in 2007 for the first time, and since 2012 it is owned by the Elixir group DOO and changed its name to Elixir Prahovo, with plans to continue production of phosphorous fertilizers.
In 2012 Elixir group started the process of revitalization of the Prahovo factory. As there was no possibility of processing this kind of industrial waste in Serbia Elixir sold 2 million tonnes of pyrite cinder from both Prahovo to a Chinese company interested in it due to its high content of the iron ore. The buyer from China committed to transport the complete amount of pyrite cinder until June 2013. The transport of the pyrite cinder from dump sites to the port on the Danube (from where it was shipped further to China) was done in open trucks passing through the neighboring settlements. This resulted in pyrite dust pollution and was reported by neighboring communities to the Environmental Inspectorate and police. The local communities assisted by NGOs made a documentary movie to present the case to the broader public. The community protests resulted in the company responding by emphasizing its social responsibility and construction plans of facilities and equipment under the highest European standards, and promised to include more frequent cleaning of the trucks and washing the roads. However, due to the significant pollution already released, the local NGO contacted the environmental inspection and environmental ministry to continue to pressure the company to conduct an environmental assessment of land pollution levels and do the necessary actions to remediate the polluted land.
In February 2015, the company announced plans to in 2016 build a new dump site for phosphogypsum (46.5 ha) and ash (12 ha) under the EU standards. The old phosphogypsum dump site is still in use. Local NGOs and people are against it. The Ministry of agriculture and environment approved the EIA study for this project.