Quartzite Mine PTD „SMRČEVICE“ DOO GORNJI VAKUF-USKOPLJE

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Quartzite Mine PTD „SMRČEVICE“ D. O. O. GORNJI VAKUF-USKOPLJE Basic information about the mine

Publisher: Quartzite Mine PTD „SMRČEVICE“ d. o. o. Gornji Vakuf-Uskoplje

For the publisher: Hazim OHRAN

Authors: Besim OHRAN Salih KASUMOVIĆ Kerim KASUMOVIĆ Mumer ČEHIĆ

Proof reader: Samra HOZIĆ

English translation: Samra HOZIĆ

Photo: Muamer ČEHIĆ, Besim OHRAN

Graphics design and dtp: Muamer ČEHIĆ

Printing: GRAFIKA s.z.r. Bugojno

Circulation: 100 copies.

CONTENTS

INTRODUCTION ...... 4 1.1. Economic-legal and contact information ...... 6 2. LOCATION OF THE ORE BODY ...... 7 3. HISTORY OF THE COMPANY ...... 9 3.1. History of the production ...... 9 4. GEOLOGICAL, GEOMORPHOLOGICAL AND HYDROLOGICAL CHARACTERISTICS OF THE AREA ...... 10 4.1. THE GEOLOGICAL STRUCTURE OF THE MINE GRADAC ...... 11 5. ORE RESERVES ...... 13 6. THE CHEMICAL CONTENT OF THE QUARTZITE ...... 14 7. OUR PRODUCTS ...... 17 8. TECHNOLOGICAL PROCESS OF PRODUCTION ...... 19 8.1. MACHINERY AND EQUIPMENT ...... 21 8.2. Objects in the industrial area ...... 22 8.3. Human resources ...... 22 9. ENVIRONMENT PROTECTION ...... 23 10. SOCIAL RESPOSIBILITY ...... 24 11. CONCLUSION ...... 25

INTRODUCTION This paper defines basic information about the Quartzite Mine “Smrčevice” d.o.o. Gornji Vakuf-Uskoplje, the location, technical information about the production process, the chemical composition of the ore and the mine and our products and about the machines and equipment of the company. The company’s principal activity is the exploitation of raw mineral quartzite on three locations: “Gradac I” and “Gradac III”, on which the intensive production is carried out and the orebody “Obodski Potok-Gromilica” in which the production is carried out only when needed. Data on the mines of quartzite is defined through studies on the classification, categorization, and calculation of Quartzite reserves, and the technological process of production is defined through the Main and the Additional Mining Project, which will be presented in one of the chapters of this paper. The management of large Quartzite ore bodies of different chemical compositions (SiO2-content) does give us the possibility of the exploitation and the separation, which leads us to the satisfaction of our clients with the quality and quantity of our products. The supply of ore in our Mine is estimated to be a few million tons. We offer Quartzite of different fractions (granulation) from 0-500 mm up to more than 500 mm, which will be described further in the chapter about our products. Our company has all consents and approvals from all levels of the government of Bosnia and Herzegovina (State, Entity, Canton, Municipality), which are required for this kind of economic activity. This paper presents a number of important pieces of information about the production process of our company. To make the descriptions clearer and more complete, a large number of images is provided. This paper can be used by potential clients to provide a more detailed insight into our company, as well as by any other person, who is interested in the work of a company. The paper can also be used by researchers or scientists, who are interested in mining.

Figure 1. Production of Quartzite ore at the Gradac I ore body

1.1. Economic-legal and contact information

Name PTD “Smrčevice” d. o. o

Type of organization Limited liability company

Address Gradska bb

Address Location Gornji Vakuf-Uskoplje

Municipality Gornji Vakuf-Uskoplje

Phone Kerim Kasumović +387 62 144 302;

Salih Kasumović +387 61 195 611;

Besim Ohran +387 62 974 142;

E-Mail rudnik. smrcevice@gmail. com

Identification number 4236179860005

VAT-Number 236179860005

Application number in the U/I 316/2000 court register

Location of the entry into Cantonal court Travnik the court register

Giro account 3060240000114127 – Addiko bank Table 1. Basic information about the business

2. LOCATION OF THE ORE BODY

Gornji Vakuf-Uskoplje is a town and municipality located in Central Bosnia Canton of the Federation of Bosnia and Herzegovina, an entity of Bosnia and Herzegovina.

The ore bodies “Gradac I and Gradac III” are part of the municipality of Gornji Vakuf- Uskoplje and are located 32 km eastward of the town center. 15 km of the 32 km is covered with asphalt, whereas the rest (17 km) is a macadam-road. The altitude of the ore body is 1700 m. The third ore body “Obodinski Potok-Gromilica” is located about 30 km from the town center. 23 of the 30 km road are covered in asphalt and the rest (7 km) is a macadam-road. This ore body has an altitude of 1430 m.

Figure 2. Satellite images of the geographical position of the ore body (mine) on the map of B&H and the map of the municipality

Figure 3 shows the geographical position of the Gradac I and III mines and the Obodisnki Potok-Gromilica mine in a larger scale.

Figure 3. Satellite recording of the geographical position of the mine (mine) Within the area of the ore bodies Gradac I and III there is a house with a kitchen, and with equipped rooms, and a petrol station and a warehouse for the explosives and the initial equipment, for which we have all needed permits.

Figure 4. Surface mine Gradac I

3. HISTORY OF THE COMPANY

Our company, PTD „Smrčevice“ d.o.o. Gornji Vakuf is, since its founding in 1982, primarily concerned with the exploitation of raw mineral materials, especially quartzite, which is also the core business of the company. In addition to the exploitation of mineral raw materials, the company also deals with all activities related to civil engineering. The company was after the founding property of the State. As part of the privatization of the company, the ownership changed fully from a government-property to private property. After that, significant investments were made, primarily for equipment, facilities, technical documentation and professional training of employees. More than five million KM have been invested. Also, in the last year, more than two million KM were invested in machinery and equipment. The company has a well-trained workforce, which is able to carry out all operations throughout the mineral exploitation, as well as all operations in civil engineering. The company owns concession contracts for the exploitation of the raw mineral material on the quarry „Gradac I and III“ and the quarry „Obodski Potok- Gromilica“. The company is also in possession of the technical-mining-documentation, which has been approved by the corresponding ministry. 3.1. History of the production

Geological exploration activities conducted during the period between 1979- 1984 in the region of the source of the River Vrbas have shown significant reserves of the mineral raw material of quartzite. The exclusive test-production for the ferrosilicon factory “Elektrobosna” from Jajce began during 1982 in the region of the quartzite mountain Gunjača. During 1984, the Elaborate on the raw material basis was made, which has framed significant quartzite reserves at the "Gradac I and III" mine. The Main mining-project was made in the same year. From 1984 to 1992 the average annual quantity of quartzite in the PK Gradac I and III ranged on average about 40.000 tones. The produced amount was exclusively sold to the company “Elektrobosna” from Jajce. During the war from 1992 to 1995, the mine was not working, and assets from the mine have been completely destroyed or stolen. After the re- commissioning of the ferrosilicon factory in Jajce, the company gradually gained all conditions to restart the process of quartzite mining. In 1998 an amount of 16.500 tons of quartzite was produced, which led to the production of 54.622 tons of quartzite in 2004. In 2005 the ferroelectric factory “Elektrobosna” stopped working, which led to the discontinuation of the quartzite production on the PK “Gradac I and III”. With the arrival of new investors to the quartzite mine PTD “Smrčevice” d.o.o. Gornji Vakuf- Uskoplje during 2018 the production on the PK “Gradac I and II” were restarted. The new/old main customer is the factory “Elektrobosna” Jajce, which is now privatized and has changed its name to “Steelmin” d.o.o. Jajce.

4. GEOLOGICAL, GEOMORPHOLOGICAL AND HYDROLOGICAL CHARACTERISTICS OF THE AREA

The treated region is very heterogeneous and uneven in terms of geomorphology. Its complexity stems from a variety of lithological and tectonic features. There is a complete dependence of the relief on the rock resistance, whereby different kinds of mountain peaks (such as lonely peaks, reefs and the like) are formed. The wider exploration area belongs to the high mountain relief with a dissectedness from 50 to 400 m. The mountains of the Vranica mountain range stand out with their dominant peaks, such as Nadkrstac (2110 m), Bijela Gromilica (2071 m). The mountain Vitreuša (1911 m) is especially interesting for us since in this area the most economically interesting mines of quartzite were found. In terms of hydrology, this area is a watershed between the river basins of the Rivers Neretva and Vrbas, which goes through the eastern slopes of the mountain Vranica up to the mountain Vitruša. In addition to the River Vrbas (on the right) as the main watercourse, the terrain is filled with numerous streams with occasional and temporary watercourses. According to the altitude of the explored area, the climate is extremely mountainous with long and hard winters, because of what they are covered in snow from October to May. In the exploration area, the vegetation is differently distributed and it has a significant influence on the retention and infiltration of the precipitation. Parts of the mountains are mostly covered with coniferous forests of spruces and deciduous forests of beech. The upper parts of the listed mountains are meadows. The average annual temperature is 8,8 C.

Figure 5. Lake and pastures near PK Gradac I and III

4.1. THE GEOLOGICAL STRUCTURE OF THE MINE GRADAC

The mine Gradac builds two ore bodies, which are both primary mines (Gradac I and III). Quartzite is a metamorphic rock that is in the most cases made of quartzite sandstone and quartzite sand. The main mass is represented by fragments and quartzite grains, which are cemented minerals of silicon. In the process of metamorphosis, the cement mixture is fully coming together and sticks to the basic compound, because of what it becomes solid and compact. The mine and the appearance of the quartzite are formed in the process of the regional metamorphosis, or the action of hydrothermal solutions from the acid magma. They are mostly spatially localized in older crystalline terrains. During the metamorphosis a precrystallization of the mass of the cement and quartzite grains happens, where a homogeneous mass of silicon is created, in which the quartzite grains get arranged in a coalesce order. Secondary mines are created through the destruction of primary mines. Most of these primary mines were destroyed through glaciers, where parts of the quartzite mass of different sizes were distributed to lower parts of the terrain. In addition to quartzite as the geologically most important rocks, quartzite sand, quartzite- sericite shrubs, and subordinate sericite quartzite shingles, and quartzite porphyrins also participate in the mines. Researches and detailed mapping in the scale of 1 : 1000 include the region of about 35 hectares. Quartzite is in the researched region bankrupt and massive with occasional alterations with quartzite-sericites and a smaller schistose. They are mostly banked in the form of stretched lenses, whose thickness reaches up to a hundred meters. The thinner layers of other silicon rocks appear on the edges of these lens-like objects. Quartzites are cracked and decomposed on the surface, their colors are white, greyish and occasionally yellowish-white. Other varieties are of the local type with a color which comes from the content of dispersed organic matter and the impregnation of Fe-Hydroxide. They are crystallines, massive textures and the structure is granoblastic with a medium to large grainage. In some parts of the mine, relics of the pyramid structures were discovered, indicating the production of quartzite through the metamorphosis of sandstone. The basic part is quartzite with a rare occurrence of corneas and feldspar grains. Within a 150 hectare area, there is also a secondary mine “Gradac II”, which was built during intense glacial activity, with blocks sloping on steep slopes and sloping along with passages of surrounding rock material and a shaded clay-sand-netting. The quality of such prefabricated rocks is often variable so that the slaked and broken parts are getting more broken and further trimmed. Discontinued material during the transport is crushed, processed and precipitated in the melting zone. After the total drainage of the glacier, there was a rinsing of the small parts, mostly shingle and part of the sand-clay material and the quartzite itself. This process has enriched most of the mine, which we consider being a quartzite mine in a geological-economic sense. Quartzite sand in the exploration area is most common in the form of thin layers and lenslike-forms, in alternation with quartzites and quartzite-sericite shrubs. The color is light grey or white. The texture is massive, the structure is uneven, with medium to large grains, with a transition to a granoblastic structure. The rock detritus is minimally available and represented by fragments of corneas

and quartzite. The binder is a quartzite-sericite in a contact-type. It is partially lost, because of what quartzite grains get interlocked. In some places, this rock passes into the quartzite area. Quartzite-sericite shrubs come into both floor and roof parts of the mine. They are schist in texture and lepidoblastic in structure. Subtle amounts of quartzite shrubs, sericite quartzite shrubs, and quartziteporphyras appear. The described rock complex belongs entirely to the Paleozoic creations of the Silurian and Devonian age.

Figure 6. Quartzite ore mine "Gradac I“

5. ORE RESERVES

The Vranica Mountain has long been known as an ancient mountain where gold has been harvested since Roman times and it relatively soon attracted the attention of geologists and miners. E. Mojsisovics and E. Tietze (1880) published the first complete work on geology in B&H, containing descriptions of sedimentary, metamorphic and magmatic rocks in the Vranica area. F. Katzer (1903) fully presents the geology of the Vranica Mountain as well as adjacent terrains in his works. His works were supplemented by M. Milošoković (1929) and M. Živanović (1961-1972). Researches about quartzite have been existent since 1979 when the Regional geological research of quartzite in the Central Bosnian Shrubby Mountains started. During this research, significant mines of quartzite in the enforcement section of the River Vrbas were discovered. Further studies were developed and over 1981 a detailed Geological with a scale of 1 : 10.000 for the immediate area of the mountain Vitreuša has been constructed. Two types of minees were determined in this area: primary and secondary mines. Primary quartzite mines are layered and lens-like and it occurs in Paleozoic slate clastites with a length of 250 to 500 meters and a thickness of 5 to 150 m. With a high number of tested samples, a high quality and a SiO2 range of 96-99 % was determined. The secondary type originates from the destruction of the primary type at the time of intense glacial activity, and it later got deployed on the steep slopes, which were already described in the paper. The data shows that the detected occurrences and mines are very perspective, and they range from tens of thousands of tons to several million tons. At the Gradac I and III mines, almost all floors were developed with altitudes and the width of the mine, creating conditions for calculating the mining reserves with acceptable precision.

6. THE CHEMICAL CONTENT OF THE QUARTZITE

The key criterion of determining the suitability of quartzite ores for the application in the production of FeSi75 is the content of SiO2 as a useful component and Al2O3 as a non- component. Laboratory analyzes of the samples obtained during geological investigations from the quartzite mine individually yield the following average results:

O. Average oxide content (%) Mine Nr. SiO2 Fe2O3 Al2O3 CaO MgO Other 1 GRADAC 97, 95 0, 55 0, 48 0, 18 0, 03 0, 81 2 OBOD-GROMILICA 97, 34 1, 12 0, 97 0, 21 0, 03 0, 33 Table 3. Chemical characteristics of quartzite mine "Gradac I and III" and Obodinski Potok- Gromilica

The data on the quality of individual mines represent the average of several analyzed samples and shows that in all mines selective separation of materials that meets the quality criteria for the production of FeSi75 is possible. According to the technical conditions of the raw material intended for the production of FeSi75 in "Elektrobosna" from Jajce, the raw quartzite must satisfy the following criteria:

-SiO2……………...... min. 97, 00 %

-Al2O3………...... max. 1, 20 %

-CaO……………...... max 0, 50 %

Granulation: 25-120 mm

During the long-term exploitation and delivery of quartzite from the mines “Gradac I and III” the average chemical quality of quartzite was undoubtedly determined, as shown in the previous table (note: each delivery of quartzite of 25.000 kg was sampled and a chemical analysis was performed). Based on the above analyzes, it can be concluded that quartzite from these mines fully meets the criteria for the production of FeSi75 in an electric arc furnace. The following pages show the reports of the chemical quality of the quartzite, which were performed in the relevant institutions, as well as the reports from the laboratory of the factory “Elektrobosna” in Jajce, which has been using quartzite from our mines to make FeSi75.

Figure 7. Chemical analysis of the quartzite from the Gradac I mine 15

Figure 8. Chemical analysis of the quartzite from the Gradac I mine

7. OUR PRODUCTS

Our company PTD „Smrčevice“ d.o.o. is based in Gornji Vakuf- Uskoplje and its core business are based on the exploitation of mineral resources in the quartzite mine Gradac I and III. The main fraction of quartzite, which is produced and delivered, is from 20 to 120 mm. Quartzite of the mentioned granulation is used for the production of Ferro-alloys (primarily FeSi) in electric arc furnaces. In the period of 1982-2005, the quartzite was delivered for the production of ferroalloys in the factory Elektrobosna in Jajce. From 2018, starting the re- production in "Steelmin" d. o. o. Jajce (formerly "Elektrobosna") the delivery continued. During 2008, quartzite for "Vatrostalna" Busovaća was produced and delivered in fractions from +10 to 25 mm and +25 to 50 mm.

Product name Granulation Description and use Picture - manufacturing of semi- glazed and colored glass - production of ceramics - metal casting - production of sandcrete Fine Sand 0 – 0, 2 mm blocks 0 – 0, 4 mm - production of sand bricks 0, 4 – 0, 8 mm and DINAS bricks - production of Portland cement - Roofing papers - purification filters

Dry quartzite 0, 5 – 2, 0 mm - Used for sandblasting sand for - a foundation for railways sandblasting Sand for building 0, 0 – 4, 0 mm - Used as a binder for and plastering building and plastering - As installation of foundations/beddings and as a coating around tubes

- The basic raw material in FeSi 75 20 – 120 mm the production of ferrosilicon 75 %

120 – 200 mm - slabs for gardens, streets, Stone blocks 201 – 500 mm and cobblestones 501 – 1000 mm - wall coverings > 1000 mm - Staircase boards - cut kitchen boards

- covering soil for roads Embankment - lining for tram- and railway tracks

Table 4. Products of PTD „Smrčevice“ d.o.o. Based on the chemical analyzes and the content of SiO2 in the quartzite from our mines and the prescribed minimal requirements for the quality and the granulometric composition for the application of the quartzite in individual branches of the economy (shown in the table) we can safely confirm that our company can respond to the demands of our potential customers both with quality and quantity. The planned capacity of the surface mining of the mine Gradac I and III is 100.000 tons of quartzite per year, but the objective capacity is much higher depending on the demand of potential customers.

8. TECHNOLOGICAL PROCESS OF PRODUCTION

The technological solution for surface mining in the Gradac mine consists of the technological process of obtaining, storing and processing of the quartzite. This technological process consists of the following actions:

- Drilling and demolition of the overburden and the ore quartzite (Hydraulic drill).

- Loading and transport of the overburden and waste at the outer landfill (bucket-wheel excavator and loader) - Loading and transport of the quartzite to the crusher (truck, loader, and bucket-wheel excavator) - Primary rock breaking with portable crushers and separation with sieves (crusher and sieves) - Rotational machines - Loading and transport of the quartzite to the consumer/buyer (trucks)

Figure 9. Technological scheme of the surface exploitation system

Figure 10. Technological process of the production

Figure 11. Cleaning of mined floors and breaking of materials

Figure 12. Display of the technological production line from another perspective

Figure 13. Quartzite plant

8.1. MACHINERY AND EQUIPMENT

O. Nr. Type of machinery / equipment Volume m3/t/h Year of production 1. Wheel Loader ULT 220C 3 2000. 2. Wheel Loader ULT 220CK 3 1999. 3. Wheel Loader ULT 160 CK 2, 3 1999. 4. Tracked excavator – New Holland 1, 4 1985. 5. Wheel excavator – Case 1, 2 2005. 6. Crusher – HARTL PC 1265 J 300 t/h 2006. 7. Crusher – MACRON 30 t/h 1990. 8. Stationary crushing and sieving plant 9. Truck MAN T42 10 m3 1999. 10. Tipper trailer 15 m3 1999. 11. Hydraulic drill – Hydrofore Monta bert 1986. 12. Rotaciono postrojenje 80 t/h 1998. 13. Vibrating sieve VS 2017. 14. Terrain vehicle Lada NIVA 2008. 15. Terrain vehicle Toyota Land Cruser 2006. 16. Van Sprinter 1999. 18. Van T2 1988. 19. Aggregate 10 kW 1990. 20. Aggregate 16 kW 1986. 21. Aggregate 30 kW 1988. 22. Hydraulic hammer 2005. Table 5. List of machinery and equipment of the company The company made a plan for the investment, for the modernization of machinery and equipment, and the funds are provided.

Figure 14. Stationary crushing and sieving plant

8.2. Objects in the industrial area

On the surface mine of Gradac I and III, there is a house with a kitchen and sleeping rooms, a petrol pump, a workstation, a warehouse for explosives and initial funds and a spare part storage for which we have all needed permits. 8.3. Human resources

The most important capital of our company are certainly our employees, for who we are especially thankful.

O. Nr. Number of perpetrators Level of qualification Current state Predicted state 1 University qualification 2 4

2 Secondary school qualification 2 4

3 Qualified 8 23 4 No qualification 8 9 Total 20 40

Table 3. Overview of the qualification structure of employees In addition to permanent employees, transport services and other services are performed by third parties.

9. ENVIRONMENT PROTECTION

The company operates in accordance with the applicable legislation, complying with the regulations. All types of waste are neatly stored and disposed at designated locations. Metal waste is sold to customers, who are then dealing with its further manipulation and the distribution into processing capacities (ironworks) in the metal industry. Depending on the size of the metal waste, it is dispersed in a metal box (for small parts, up to 1 m3) or next to the box (for larger parts). The waste removal to a known customer is performed as soon as the mass of metal waste reaches about 10.000 kg. Solid waste of different structures (metal, plastic, paper, etc.), as well as other waste, are stored in metal barrels and transported to a local company which core business it is to take care of it. Liquid waste (all types of oil, which are used during machine servicing) are placed in metal barrels of a certain quantity (about 1.000 liters) and then carried out to a known customer, who will process and refine the oils for further use for various purposes. The before mentioned activities are fully defined by the rulebooks of the company whose basic rules have been taken from the laws of the state, federation, cantons, and municipalities.

10. SOCIAL RESPOSIBILITY

As a socially responsible company, the Quartzite mine PTD “Smrčevice” d.o.o. helps the local and wider social community. The company supports creditable individuals (through scholarships), groups, sports clubs and institutions, who are constantly enriching the society through their activities. Our company does regularly make the machinery and personnel available to clean snow, escarpments or other consequences of natural disasters. The Quartzite Mine PTD “Smrčevice” d.o.o. Gornji Vakuf- Uskoplje does also take care of the macadam road from Mačkara to Gradac, which is also used by other companies, hunters, mountaineers or other people, who are picking herbs in the mountains. Social responsibility becomes one of the key leverages of the economy in promoting sustainable development and the process of change in which resources are exploited, the way of investing, the direction of technical and technological developments and the institutional change and it enables the fulfillment of the needs and expectations of present and future generations.

11. CONCLUSION

This paper presents the quartzite mine PTD „Smrčevice“ d.o.o. Gornji Vakuf with a presentation of the location and the quality of the quartzite ore mines, the technological process of production, organization, our products, the machinery, and equipment, as well as our human resources etc. Due to the quality of our mines in terms of the chemical SiO2 content, the agile management, the available machinery, and human resources, the Quartzite mine PTD "Smrčevice" d.o.o. Gornji Vakuf-Uskoplje can without any problems respond to the demands of our potential buyers, both in quality and quantity. As a socially responsible company, PTD "Smrčevice" d.o.o. is available to the wider social community, individuals and collectives. We sincerely hope that we have been able to present our company and products in a correct, easy and comprehensible manner and that we have received the attention of our future partners.

„Exploitation of resources is the basis for the economic development of the local community, the municipalities, cantons and the state“