Mineral Commodity Summaries of the Czech Republic 2018
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MINERAL COMMODITY SUMMARIES OF THE CZECH REPUBLIC 2018 STATISTICAL DATA TO 2017 (Data deadline: August 31, 2018) Czech Geological Survey October 2018 Compiled by: Jaromír Starý Ivo Sitenský Dalibor Mašek Tereza Hodková Mirko Vaněček Jaroslav Novák Pavel Kavina Typesetting: Oleg Man Graphic design: Oleg Man Ludmila Richterová Budoš Volák Renata Kachlíková [email protected] www.geology.cz 3 CONTENTS EXPLANATORY NOTES .................................................11 List of abbreviations, symbols and technical units ................................11 Exchange and inflation rates of currencies in which minerals are priced ...............14 Annual inflation rates (%) in the USA (US), the United Kingdom (UK), the Euro Area (EUR) and the Czech Republic (CZ) ............................14 Average yearly exchange rates of CZK against EUR, USD and GBP ...............15 Mineral reserve and resource classification in the Czech Republic and its evolutional comparison with international classifications .....................16 Czech classification .....................................................16 International classifications ...............................................18 Comparison of Czech and international systems of classification ..................20 Conclusions ...........................................................23 INTRODUCTION. .24 MINERAL BASE OF THE CZECH REPUBLIC AND ITS DEVELOPMENT IN 2017 ........................................27 1. Legal framework for mineral resource use. .27 1.1. Reserved and non-reserved minerals and their deposits ....................27 1.2. Planning, approval and carrying out of mineral prospecting and exploration ....................................................27 1.2.1. Reserved minerals. .27 1.2.2. Non-reserved minerals (and their mining) ...........................28 1.3. Permit to mine a prospected and explored deposit ........................28 1.4. Royalties on reserved minerals mined ..................................29 1.5. Reserves for mining damages and remediation during the mining of reserved minerals ................................................30 2. Selected statistical data on exploration and mining on the territory of the Czech Republic .................................................30 3. Significance of mining in the Czech economy ...............................31 4. Trends of reserves of minerals (economic explored disposable reserves) ..................................................31 5. Summary of exploration licences valid in 2017 and newly issued in 2017 (listed according to minerals) – prospecting and exploration works financed by companies ........................................................32 Contents 4 6. State-funded geological projects .........................................32 6.1. Economic geology projects ..........................................32 6.2. Other geological projects ...........................................33 7. Summary of selected legal regulations on mineral prospecting and exploration in force as of June 30, 2018 ................................33 7.1. Acts ............................................................34 7.2. Other legal regulations ..............................................35 7.2.1. Mineral deposits exploitation .....................................35 7.2.2. Geological work ...............................................35 7.2.3. Regulations on licensing of mining operations and verification of qualification ................................................35 ECONOMY AND MINERALS .............................................36 Development of the Czech economy ..........................................36 General performance ....................................................36 Sector performance ......................................................38 External economic relations ...............................................42 Prices . .45 Labour market .........................................................48 Monetary conditions .....................................................51 State budget ...........................................................52 Global economic development ..............................................58 Euro area ..............................................................58 Germany ..............................................................59 The United States of America .............................................59 United Kingdom ........................................................60 Japan . .61 China . .61 India . .62 Russia . .63 Brazil . .63 Developments on commodity markets. 64 Crude oil and natural gas .................................................64 Unconventional monetary policy of ECB ....................................65 List of abbreviations ....................................................67 Glossary of selected economic terms in foregoing chapters Development of the Czech economy and Global economic development .........................68 Foreign direct investment in mining in the Czech economy ........................70 Contents 5 Mineral facts: Incompetent competent persons ..................................73 The economic situation of domestic mining companies ............................76 Mining total ...........................................................76 Sales in 2017 ..........................................................77 Number of enterprises ...................................................78 Number of employees ...................................................79 Average number of employees per enterprise .................................79 Sales . .80 Average sales per enterprise ...............................................81 Value added ...........................................................82 Labour productivity based on value added ....................................82 Hourly labour productivity ................................................83 Sales per employee ......................................................84 Average salary .........................................................85 Value added – salaries per employee ........................................85 Bituminous coal, brown coal, and lignite .....................................86 Kaolin . .87 Clays and bentonite .....................................................88 Feldspar ..............................................................89 Glass sand .............................................................90 Foundry sand ..........................................................91 Limestone and corrective additives for cement production and dolomite ............92 Dimension stone ........................................................93 Crushed stone ..........................................................94 Sand and gravel ........................................................95 Brick clays and related minerals ...........................................96 Other minerals .........................................................97 Outline of domestic mine production ..........................................98 Domestic share in the world mine production ...................................99 ENVIRONMENT AND MINERALS .......................................100 Mining and nature protection ...............................................100 Specially protected areas (ZCHÚ) in the Czech Republic .......................100 National parks in the Czech Republic ......................................100 Structure of ZCHÚ in 2017 ..............................................101 Mining of reserved and non-reserved mineral deposits in CHKO .................101 Mining of reserved and non-reserved mineral deposits in individual CHKO ....................................................102 Impact of mining of reserved deposits in CHKO, t/km2 in a year .................103 Contents 6 Mining activities charge of the Czech Republic territory .......................104 Development of reclamations after mining ..................................105 Reclamation after mining of reserved minerals in 2017 ........................105 Share of specially Protected Areas of the Czech Republic nature established in localities with former mining (“after mining”) in all the ZCHÚs ...............111 Eliminating negative consequences of mining in the Czech Republic – major methods and financial resources ........................................112 Introduction ..........................................................112 1. Use of funds from a financial reserve generated by mining companies for remediation, reclamation, and mining damages ..........................112 Financial reserve for remediation and reclamation. .112 Financial reserve for mining damages ..................................113 2. Use of funds from annual royalties paid by mining companies on mining leases and on extracted reserved minerals pursuant to the Mining Act ...........113 Reimbursements on mining leases .....................................113 Generated and drawn reserves for remediation and reclamation ..............114 Royalties on extracted reserved minerals ................................115 Generated and drawn reserves for mining damages .......................115 Reimbursements from mining lease areas paid out to municipalities pursuant to Article 32a) Sec. 1 of the Mining Act .........................116 Distribution of royalties on extracted reserved minerals pursuant to Article 32a) Sec. 1 of the Mining Act ................................117 3. Phase-out programme