2015 Yearbook

KOSOVO [ADVANCE RELEASE]

U.S. Department of the Interior August 2019 U.S. Geological Survey The Industry of By Sinan Hastorun

Kosovo is a landlocked country located in the center of Production the Balkan Peninsula; the country is bordered by , Macedonia, Montenegro, and . Despite its relatively small In 2015, the production of andesite increased by almost size, Kosovo hosts substantial mineral resources of , lead, 90 times (or by 9,000%); , by 76%; ore (gross , nickel, , and . The eastern Vardari zone in the weight), by 30%; ferronickel (gross weight), by an estimated northern part of Kosovo hosts the Trepca lead, silver, and zinc 15%; ferronickel (Ni content), by an estimated 14%; lignite, by mines, which provided the majority of mineral production in 14%; cement, by an estimated 11%; clay, by 11%; and nickel the former (Independent Commission for Mines and mine output (Ni content), by 10%. Production of silica sand Minerals, 2011, p. 2–3; 2015; Shabani and others, 2016, p. 4). decreased by 86%; sand and gravel, by 70%; lead concentrate In 2015, Kosovo’s mineral commodity output remained small (gross weight) and lead concentrate (Pb content), by 29% each; by regional and world standards. With the exception of lignite zinc concentrate (Zn content), by 27%; basalt, lead and zinc , mineral production in 2015, including that of andesite, mine output (Zn content), and zinc concentrate (gross weight), basalt, clay, dunite, lead, limestone, marl, sand, sand and by 25% each; dunite, by 22%; lead and zinc ore (gross weight), gravel, schist, and zinc, fell short of the planned production by 20%; lead and zinc mine output (Pb content), by 19%; and for the year. The Trepca and Metallurgical Complex marl, by 8%. production ceased in 2015, and pumice continued to operate well below its capacity. Kosovo had output remained at zero in 2015 (table 1). substantial hydropower potential, which, if harnessed, could Structure of the Mineral Industry help compensate for the prevailing power deficit throughout southeastern ; however, the country remained reliant on The Trepca Mining and Metallurgical Complex remained lignite coal for in 2015 (Independent Commission for in a trust administered by the Agency of Kosovo Mines and Minerals, 2016a, p. 41–42; Kalo & Associates, 2016, and, as of yearend 2015, continued to operate under a 2006 p. 93; U.S. Commercial Service, 2016). moratorium on the sale, removal, transfer, or rent of its assets. The considered Trepca to be wholly Minerals in the National Economy owned by Kosovo, but the Government of Serbia claimed In 2015, Kosovo’s real gross domestic product (GDP) majority ownership. In 2015, the Supreme Court of Kosovo increased by 3.5%, which was a higher rate of growth than in set November 2016 as the deadline for submission of the 2014. The nominal GDP was EUR5.73 billion ($6.12 billion1). reorganization plan for the complex to address outstanding Economic growth was based mainly on increased private creditor claims. Trepca was not nationalized in January 2015 consumption and investment, and net exports (defined as exports when it was excluded from the amendment to the Law on the minus imports) continued to decrease. Mining and quarrying Reorganization of Certain Enterprises and Their Assets. Table 2 accounted for 2.1% of the GDP in 2015 compared with 2.3% is a list of major mineral industry facilities and their ownership in 2014, and accounted for 10.0% compared in Kosovo (InSerbia, 2015; Ministry of Foreign Affairs, 2015; with 10.7% in 2014. Mining and quarrying output decreased by Privatization Agency of Kosovo, 2016, p. 47; U.S. Commercial 2.5% in 2015; manufacturing output increased by 0.5% (Central Service, 2016). Bank of Kosovo, 2016, p. 27; Kosovo Agency of Statistics, Commodity Review 2016, p. 4–6). Exports of base , which decreased by 5.8% in 2015 Metals owing to lower global prices, accounted for 49% of total exports and continued to be the Kosovo’s leading export Chromium.—Arsi Sh.p.k. Ltd. held three chromium category. Exports of mineral products decreased by 6.9% and exploration licenses, two of which were located in Gjakove, accounted for 13% of total exports. Imports of mineral products and one, in Zubin Potok. These three licenses were issued decreased by 21% and accounted for 10.8% of total imports. in April 2014 and were valid until February 2017. In Imports of base metals increased by 46% and accounted for September 2015, Arsi was denied an exploration license for 9.9% of total imports. Imports of petroleum products, which the Prizren prospect. The company had begun production was the largest category of imported mineral products, increased of chromite through open pit mining at the Briu i Gjeletocit in terms of volume in 2015 but decreased in terms of value deposit on its Llapceve property in 2012, with a projected goal ( of Kosovo, 2016, p. 32–33). of producing 10,000 metric tons per year (t/yr) grading 30%

chromium oxide (Cr2O3). Arsi’s reported chromite production

was 2,000 metric tons (t) of ore grading 26.2% Cr2O3 in 2012, 2,978 t grading 28.0% Cr O in 2013, and 3,750 t grading 27.0% 1 2 3 Where necessary, values have been converted from area (EUR) to Cr O in 2014. The company had planned to reach an output U.S. dollars (US$) at an annual average exchange rate of EUR0.937=US$1.00 2 3 for 2015 and EUR0.784=US$1.00 for 2014. level of 5,000 t in 2015, but it did not produce any chromite kosovo—2015 [ADVANCE RELEASE] 25.1 during the year (Arsi Sh.p.k., 2013, p. 2, 3, 8, 9; Independent and the Stan Terg Mines, which were the largest mines in Commission for Mines and Minerals, 2016b, p. 30, 39–40). Trepca, was 180,994 t in 2015 compared with 204,140 t in 2014; Ferronickel and Nickel.—Newco Ferronikeli, which was actual output corresponded to only 62% of planned production the only producer of ferronickel and nickel in Kosovo, reported in 2015 compared with 69% in 2014. The production of lead that annual ferronickel output at its Glogovac plant was about concentrate decreased by 25.8% to 5,440 t, and that of zinc 9,000 t in 2015. About 50% of the nickel ore processed for concentrate, by 26.3% to 6,880 t (Office of the Prime Minister, ferronickel production was imported from other countries. The 2016, p. 36; Privatization Agency of Kosovo, 2016a, p. 54–55). company planned to increase production to 10,000 t/yr with technological upgrades. Ferronikeli exported its ferronickel Industrial Minerals output primarily to , India, and Italy; its ferronickel Limestone.—Kosovo had current reserves of 348.6 million exports accounted for about 90% of the total value of Kosovo’s cubic meters of limestone, of which about 191.9 million cubic metal exports. The company produced 506,000 t/yr of electric meters were exploitable reserves. About 31.3 million cubic furnace slag and 54,000 t/yr of converter slag as a byproduct meters of limestone reserves had been exploited through of ferronickel production. Slag was subsequently used in the end of 2015. In 2015, the country’s limestone output of industrial applications, such as clinker and concrete production about 6.5 million cubic meters amounted to 78% of planned and sand blasting (Ministry of Trade and Industry, 2014, p. 24; production for the year (Independent Commission for Mines and Cunico Resources NV, 2015a, p. 10, 17; 2015b; Independent Minerals, 2016a, p. 41–42). Commission for Mines and Minerals, 2016a, p. 38). Fox Marble Holdings plc of the United Kingdom extracted and Silver.—Avrupa Minerals Ltd. of Canada drilled 44 about 10,700 t of marble from its four operational quarries in holes in the 2014–15 time period at the Slivovo gold and silver 2015 compared with 14,188 t in 2014. Three of these quarries— prospects located near the capital city of . Field review Cervenilla, Malesheva, and Syrigane—were located in Kosovo. and mapping of the Peshter Gossan (one of the mineralized In November 2015, Fox Marble extracted the first blocks from zones) found the potential mineral target zone to be larger than a new quarry close to the license area in Malesheva that it previously assessed. Seven of the holes drilled intercepted more had acquired in October. The company was in the process of than 2 grams per metric ton (g/t) gold, including SLV011, which building a plant in Lipjan for the cutting and processing of stone intercepted 30 meters (m) of 6.92 g/t gold from a depth of 91 m blocks into polished tiles and slabs for exporting; it expected to to a depth of 121 m. An initial resource estimate for the Slivovo begin processing materials year-round at the plant in the summer gold project was expected in 2016 (Avrupa Minerals Ltd., of 2016 (Fox Marble Holdings plc, 2016, p. 5–8). 2016a, p. 2; 2016b, p. 10–12). and .—Llamkos GalvaSteel, the leading metal- Mineral Fuels and Related Materials processing company in Kosovo, manufactured iron and steel, ferroalloys and flat and finished steel products. The company Coal.—Coal remained the only mineral fuel produced in exported its galvanized steel products to Macedonia and Kosovo and made up 63.7% of the country’s primary energy Portugal. Exports which consisted mainly of such iron and steel supply in 2015. Coal provided 97% of the generated products as hollow profiles, line pipes, and tubes, accounted in the country. Kosovo’s lignite reserves were estimated for about 7% of the total value of Kosovo’s metal exports. In to be at least 12.5 billion metric tons (Gt), most of which 2015, there was no update on the status of construction of the were considered minable. The country’s three major lignite Vushtrri steel-recycling mill, whose main output would be rebar basins were, in descending order of reserve size, the Kosova, (reinforcing steel bars) (Steel Business Briefing, 2013; Ministry the Dukagjini, and the basins, and they contained of Trade and Industry, 2014, p. 11, 18). about 10 Gt, 3 Gt, and 90 million metric tons (Mt) of lignite, Lead and Zinc.—Lead and zinc concentrate output in respectively. According to the Independent Commission for table 1 from 2011 through 2015 reflects production from the Mines and Minerals (ICMM) of Kosovo, the Kosova basin Government-controlled southern section of the Trepca Mining had one of the largest lignite deposits in Europe. In 2015, the and Metallurgical Complex only and not from the Serbian- country’s lignite production of 8.2 Mt amounted to 103% of controlled northern section of Trepca. The northern section of planned output compared with 90% in 2014 (World Bank, The, the complex was last reported in 2012 to produce 11,000 t/yr 2011, p. 4; Ministry of Economic Development, 2015, p. 5, of lead concentrate and 8,000 t/yr of zinc concentrate (table 1; 6; Independent Commission for Mines and Minerals, 2016a, Filipovic, 2013). p. 41–42; Kalo & Associates, 2016, p. 93, 94, 96; Shabani and Lead and zinc ore were extracted in the following four others, 2016, p. 10, 12, 13). underground mines of the southern section of Trepca in Kosovo: Artana, Belo Brdo, Crnac, and Stan Terg. The Government- Outlook controlled southern section of the Trepca Complex operated at Kosovo is likely to increase its cement, ferronickel, only 29% of its capacity owing to obsolete technology and lack lignite, limestone (marble), nickel, and steel output owing of investment. Both ore extraction and the production of lead to new investments. Exploration for gold and silver is at the and zinc concentrate in the complex decreased in 2015 owing prefeasibility stage and not expected to lead to precious- to a disruption to mine operations caused by a worker strike metal extraction in the near future. The new limestone- concerning the nationalization issue and the lack of a renewed processing facility in Lipjan could enhance Kosovo’s role as a mining license until May 2015. Ore extraction from the Artana

25.2 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 limestone producer in the . The Trepca Complex could Independent Commission for Mines and Minerals [Kosovo], 2016b, Raporti substantially increase its production of lead and zinc, but this vjetor per vitin 2015 [Annual report for the year 2015]: Pristina, Kosovo, Independent Commission for Mines and Minerals, March, 147 p. (Accessed would require major investment in the mines. Coal is expected September 1, 2016, at https://www.kosovo-mining.org/wp-content/ to continue to play an important role in Kosovo’s energy supply, uploads/2017/09/Raporti-vjetor_KPMM_2015-shq.pdf.) but production is likely to remain modest. InSerbia, 2015, Kosovo—Trepca exempt from amendments to law on public enterprises: Pristina, Kosovo, InSerbia, January 20. (Accessed References Cited September 11, 2016, at http://inserbia.info/today/2015/01/kosovo-trepca- exempt-from-amendments-to-law-on-public-enterprises/.) Arsi Sh.p.k., 2013, Arsi’s chromium and base metal projects—Kosovo: Tirana, Kalo & Associates, 2016, Kosovo, in Papamichalopoulos, G.J., and Dasic, Albania, Arsi Group, February, 19 p. (Accessed September 8, 2016, at Vladimir, eds., The southeast Europe energy handbook (4th ed.): South East http://www.arsi-group.com/wp-content/uploads/2013/04/Arsi-Presentation.pdf.) Europe Legal Group, p. 91–97. Avrupa Minerals Ltd., 2016a, NI 43–101 technical report on the Slivovo gold- Kosovo Agency of Statistics, 2016, Quarterly gross domestic product—Q4– silver project: Pristina, Kosovo, Avrupa Minerals Ltd. Technical Report, 2015: Pristina, Kosovo, Kosovo Agency of Statistics, 12 p. May 31, 117 p. (Accessed September 7, 2016, at http://www.avrupaminerals.com/ Ministry of Economic Development [Kosovo], 2015, Balanca vjetore e _resources/projects/Slivovo/NI-43-101_Avrupa-Minerals_Slivovo-Project.pdf.) energjisë e Republikës së Kosovës për vitin 2016 [Annual energy balance Avrupa Minerals Ltd., 2016b, World class districts—New discoveries— of the Republic of Kosovo for the year 2016]: Pristina, Kosovo, Ministry of Shareholder value: Avrupa Minerals Ltd. corporate presentation, July, 45 p. Economic Development, December, 28 p. (Accessed September 3, 2016, at (Accessed September 7, 2016, at http://www.avrupaminerals.com/_resources/ https://mzhe-ks.net/repository/docs/Balanca_e_energjise_2016_eng.pdf.) presentations/Corporate_presentation_July-2016.pdf.) Ministry of Foreign Affairs [Kosovo], 2015, Kosovo is 100% owner of , 2016, Annual report 2015: Pristina, Kosovo, Central Trepca: Ministry of Foreign Affairs. (Accessed September 10, 2016, at Bank of Kosovo, August 11, 167 p. http://www.mfa-ks.net/?page=2,131,2559.) Cunico Resources NV, 2015a, Cunico—Europe’s leading ferronickel producer: Ministry of Trade and Industry [Kosovo], 2014, Sector profile of metal Cunico Resources NV brochure, October, 20 p. (Accessed September 7, 2016, processing industry: Ministry of Trade and Industry, March, 42 p. at http://www.cunicoresources.com/Attachments/cadc4d3f-9fbc-4ec1-bb2e- (Accessed September 10, 2016, at http://www.invest-ks.org/repository/docs/ 1dff660ba4d6.pdf.) Metal_ENG_qershor_103393_450617.pdf.) Cunico Resources NV, 2015b, Newco Ferronikeli: Cunico Resources NV Web Office of the Prime Minister [Kosovo], 2016, National development strategy page. (Accessed September 7, 2016, at http://www.cunicoresources.com/ 2016–2021 (NDS): Pristina, Kosovo, Office of the Prime Minister, January, NewCoFerronikeli/en.) 55 p. (Accessed September 10, 2016, at http://www.kryeministri-ks.net/ Filipovic, Gordana, 2013, Serbia seeks investment in Trepca mines ahead repository/docs/National_Development_Strategy_2016-2021_ENG.pdf.) of Kosovo talks: Bloomberg, May 17. (Accessed September 2, 2016, at Privatization Agency of Kosovo, 2016, Annual report of the Privatization http://www.bloomberg.com/news/2013-05-17/serbia-seeks-investment-in- Agency of Kosovo for the Assembly of the Republic of Kosovo: Pristina, trepca-mines-ahead-of-kosovo-talks.html.) Kosovo, Privatization Agency of Kosovo, March 31, 164 p. Fox Marble Holdings plc, 2016, Annual report and financial statements 2015: Shabani, Musa, Zeqiri, Kemajl, and Kutllovci, Festim, 2016, Kosovo—Land London, United Kingdom, Fox Marble Holdings plc, April, 56 p. (Accessed of mining opportunities: Toronto, Ontario, Canada, PDAC Conference & September 1, 2016, at https://static1.squarespace.com/static/ NATO Economy Forum 2016, March, 26 p. (Accessed September 4, 2016, at 541ff465e4b0a0d6201bc718/t/5756af69f85082c8788adfbc/1465298795098/ http://natoassociation.ca/wp-content/uploads/2016/03/Kemajl-Zeqiri-Kosovo- 167538-Fox-Marble-Annual-Report-CL.pdf.) land-of-Oppertunities-1.pdf.) Independent Commission for Mines and Minerals [Kosovo], 2011, Discover Steel Business Briefing, 2013, Kosovo’s Llamkos to launch rebar production in the mineral resources of Kosovo: Pristina, Kosovo, Independent 2014: Steel Business Briefing, March 1. (Accessed September 10, 2016, at Commission for Mines and Minerals, 13 p. (Accessed September 4, 2016, at https://www.steelbb.com/?Page ID=157&article_id=117619.) http://www.invest-ks.org/repository/docs/Discover_the_Mineral_Resources_ U.S. Commercial Service, 2016, Kosovo—Market opportunities: Pristina, Kosovo, of_Kosovo_97075.pdf.) U.S. Department of Commerce, August 11. (Accessed September 2, 2016, at Independent Commission for Mines and Minerals [Kosovo], 2015, Mineral http://apps.export.gov/article?id=Kosovo-Market-Opportunities.) deposits: Independent Commission for Mines and Minerals Web page. World Bank, The, 2011, Kosovo—Regulatory reform for promoting sustainable (Accessed September 4, 2016, at http://www.kosovo-mining.org/kosovoweb/ mining sector development: Washington, DC, Poverty Reduction and Economic en/mining/minerals.html.) Management Unit Europe and Central Asia Region, June, 32 p. (Accessed Independent Commission for Mines and Minerals [Kosovo], 2016a, Annual September 1, 2016, at http://www-wds.worldbank.org/external/default/ report for the year 2015: Pristina, Kosovo, Independent Commission for WDSContentServer/WDSP/IB/2012/06/20/000333038_20120620013117/ Mines and Minerals, March, 146 p. Rendered/PDF/621150ESW0P1230g0sector0development.pdf.)

kosovo—2015 [ADVANCE RELEASE] 25.3 TABLE 1 kosovo: PRoDUCTIoN oF MINERAL CoMMoDITIEs1

(Metric tons unless otherwise specified)

Commodity2 2011 2012 2013 2014 2015 METALs r r r Chromite (Cr2o3, 26.2% to 28%) -- 2,000 2,978 3,750 -- Ferroalloys, ferronickel: Gross weighte 41,000 30,200 33,300 34,000 r 39,200 Ni content 9,435 6,944 7,652 7,900 r, e 9,000 e Iron and steele thousand metric tons -- 120 120 150 150 Lead and zinc: ore, gross weight 233,115 225,490 252,768 282,254 225,289 Mine output, Pb content 7,100 6,700 7,400 7,900 6,400 Mine output, Zn content 6,600 6,600 7,100 7,700 5,800 Concentrate: Lead: Concentrate, gross weight 7,471 r 8,298 r 9,025 r 11,045 r 7,791 Pb content 4,500 r 5,300 r 6,400 r 7,700 r 5,500 Zinc: Concentrate, gross weight 7,409 r 9,695 r 10,417 r 11,696 r 8,730 Zn content 2,900 r 3,800 r 5,000 r 5,500 r 4,000 Nickel: ore, wet, gross weight 683,855 379,151 623,504 565,056 734,423 Mine output, Ni content 7,700 4,400 7,600 6,700 7,400 INDUsTRIAL MINERALs Andesite cubic meters NA 34,057 14,410 2,500 226,746 Basalt do. -- 8,743 9,705 10,964 8,271 Cemente thousand metric tons 420 535 560 630 700 Clay3 38,800 55,300 50,100 55,300 61,300 Dunite cubic meters -- 95,284 1,783,317 206,117 160,219 Limestone do. 3,282,964 2,666,449 5,215,997 3,706,710 r 6,530,159 Marl do. 259,616 128,161 411,073 310,953 284,962 Pumice and related materials, volcanic tuffe do. 60,000 ------sand and gravel, excluding glass sand do. 32,819 22,749 25,399 26,142 7,958 silica sand (glass sand) do. 19,711 22,490 27,371 120,668 16,467 MINERAL FUELs AND RELATED MATERIALs Coal, lignite thousand metric tons 8,212 8,028 8,219 7,204 8,241 eEstimated; estimated data are rounded to no more than three significant digits. rRevised. do. Ditto. NA Not available. -- Zero. 1Table includes data available through september 12, 2016. 2In addition to the commodities listed, , kaolin, lead metal, zinc metal, and other aggregates and construction materials were thought to have been produced, but available information was inadequate to make reliable estimates of output. 3Figures were converted to thousand metric tons from production that was reported in cubic meters, as follows: 2011—65,930; 2012—94,008; 2013—85,134; 2014—93,924; and 2015—104,170.

25.4 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 TABLE 2 kosovo: sTRUCTURE oF THE MINERAL INDUsTRY IN 2015

(Thousand metric tons)

Major operating companies and major Annual Commodity equity owners Location of main facilities capacitye Bauxite Bauxite Mine volljak (Government owned) Grebnik Mine, about 50 kilometers east of Pristina NA and 17 kilometers north of orahovac Cement sharrcem sh.p.k. [sharr Beteiligungs GmbH Cement plant in Hani i Elezit, on border with 835 (Titan Group)] Macedonia Chromite Arsi sh.p.k. Ltd. Llapceve, about 12 kilometers north of Rahovec NA Coal, lignite kosovo Energy Corp. JsC (Government owned) Bardh and Mirash Mines, just west of Pristina NA Iron and steel Llamkos Galvasteel (Core Group) steel plant in vushtrri, northeastern kosovo 210 kaolin NA karaceva i Ulte Mine and ceramic tile factory in NA kamenica Lead and zinc: ore Trepca Complex (Government owned) stan Terg Mine, northern kosovo NA Do. do. , northern kosovo NA Do. do. Artana Mine at NA Do. do. Belo Brdo Mine, northern kosovo NA Do. do. Cicavica Mine, northern kosovo NA 1 Do. do. Hajvalia Mine, 8 kilometers southeast of Pristina NA 1 Concentrate do. Concentrator at Tuneli i Pare, near Mitrovica NA Do. do. Concentrator at kizhnica, about 8 kilometers NA southeast of Pristina Do. do. Concentrator at Leposavic in northern kosovo NA Do. Trepca Complex (serbian controlled) Concentrator in northern Mitrovica 126 Metal: Lead do. Lead smelter at Zvecan NA Zinc do. Zinc smelter at Mitrovica NA Limestone Fox Marble Holdings plc Cervenilla, Malesheva, syrigane quarries 20 Do. sharrcem sh.p.k. [sharr Beteiligungs GmbH Hani i Elezit Mine, on border with Macedonia NA (Titan Group)] XIM strezoc Magnesite Mine LLC (“Iminggrup Mine and processing plant in strezovce, kamenica 45 2 mgo” sh.p.k.) municipality Do. Mine and Industry of Magnesite Goleshi LLC Magure, Lipjan municipality NA 2 (“Iminggrup mgo” sh.p.k.) Nickel: ore Newco Ferronikeli (Cunico Resources Nv) Mines at Chikatovo (Dushkaja and suke Mines) 800 e and Glavitca Metal3 do. Ferronickel plant at Glogovac, about 20 kilometers 12 west of Pristina eEstimated. Do., do. Ditto. NA Not available. 1Closed (not active). 2Not operational in 2015. 3Nickel in ferronickel.

kosovo—2015 [ADVANCE RELEASE] 25.5