The Study on Master Plan for Promotion of Mining Industry in Republic of Serbia Final Report

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The Study on Master Plan for Promotion of Mining Industry in Republic of Serbia Final Report THE STUDY ON MASTER PLAN FOR PROMOTION OF MINING INDUSTRY IN REPUBLIC OF SERBIA FINAL REPORT CONTENTS Pages CHAPTER1 Outline of the Study 1.1 Background of the Study··········································································1 1.2 Purpose of the Study ··············································································1 1.3 Target Area of the Study ··········································································1 1.4 Method and Content of Study ····································································1 1.5 Local Survey ·······················································································2 1.6 Case Study ··························································································6 1.7 Summary of Survey Results (Status of the Serbian Mining Industry) ······················7 1.8 Draft of the Master Plan ··········································································8 CHAPTER2 Investment Foundation 2.1 National Economic Development Plan························································ 11 2.2 Economic Conditions············································································ 11 2.3 General State of the Mining Industry ························································· 15 2.4 Finances and Accounting ······································································· 18 2.5 Serbian Infrastructure ··········································································· 23 CHAPTER3 Current State of the Mining Industry 3.1 Privatization ······················································································ 32 3.2 Investment Climate and Investment Promotion·············································· 33 3.3 World Bank and Internationally Supported Projects ········································ 38 3.4 Mining Policy ···················································································· 38 3.5 Mining Administration ·········································································· 40 3.6 The Mining Law and Procedures for Mining Licenses ····································· 47 3.7 Mining Activities ················································································ 55 3.8 Geology and Mineral Potential in Serbia ····················································· 59 3.9 Current State and Tasks of Mining Activities ················································ 65 3.10 Geology and Deposits of the Velijki Majdan Mine ········································ 70 i 3.11 Geology and Deposits of the Zajaca Mine ·················································· 71 3.12 Activities of Serbian Non-Ferrous Mines ··················································· 75 CHAPTER4 Current State and Tasks of Mining Activities 4.1 Activities of Large Mines owned by RTB Bor ··············································· 78 4.2 Activities of Middle/Small-Scale Mines in Serbia ·········································· 96 4.3 Other Mining Activities········································································104 4.4 Smelting Activities ·············································································107 CHAPTER5 Compilation of Digital Spatial Data Sets and Information Disclosure 5.1 Current State and Evaluation of GIS Database at MEM···································133 5.2 MEM Website ···················································································137 5.3 Some Approaches to Database Creation at MEP ···········································142 5.4 Geological and Related Maps at the Geological Institute ·································145 5.5 Topographical maps by the Military Geography Institute·································146 5.6 Current IT Utilization at Bor ··································································147 5.7 The Seismological Survey of Serbia ·························································153 5.8 Construction of a GIS Database ······························································153 5.9 Local Consignment and Lease ································································155 5.10 Technology Transfer ··········································································155 5.11 Strategic Future Database Construction ····················································156 CHAPTER6 Environmental Considerations 6.1 Laws and Regulations related to Environment··············································158 6.2 Environmental Monitor System·······························································163 6.3 Inspection System ··············································································169 6.4 Environmental Status in Serbia and Environmental Problems in Local Mine ··········172 CHAPTER7 Case Study 7.1 Preparation and Implementation of the Case Study ········································189 7.2 Geology, Deposits and Exploration ··························································189 7.3 Mining and Processing ·········································································199 7.4 Processing Plant and Tailings Dam of the Bor Complex ··································212 ii 7.5 Issues in Serbian Mining Companies ························································233 CHAPTER8 Draft of the Master Plan 8.1 Policy and Purpose of the Master Plan·······················································244 8.2 Mining Sector Institutional Strengthening and Visions····································247 8.3 Action Program and Institutional Program ··················································249 8.4 Implementation Organization ·································································253 8.5 Action Program··················································································254 8.6 Institutional Reform Programs ································································273 CHAPTER9 Recommendations 9.1 Current State of the Mining Industry and Serbian Mining ································285 9.2 National Economic Development Plan and Master Plan ··································289 9.3 Capacity Building···············································································291 9.4 Exploration, Development and Production Activities······································292 9.5 The Exploration System of Japan·····························································294 9.6 Providing Raw Materials to Smelters ························································296 9.7 Mining Management············································································297 9.8 Environmental Conservation ··································································300 9.9 Unused Resources ··············································································301 9.10 Sustainable Development of the Mining Industry ········································303 9.11 Database ························································································304 iii List of Tables Table 1.1 Study Team Members·······························································3 Table 1.2 Candidate Mines for the Case Study··············································6 Table 1.3 Target Mines for the Case Study ··················································6 Table 1.4 Case Study Schedule ·······························································7 Table 1.5 Implementation Schedule of the Master Plan····································9 Table 1.6 List for Action Program and Institutional Reform Program ··················10 Table 2.1 Main Indices for Economic Growth (2001-2005) ······························13 Table 2.2 Indices for Population, Wages, and Productivity·······························14 Table 2.3 Features and Current State of the Serbian Mining Industry ················· 18 Table 2.4 Classification of company size·················································· 20 Table 2.5 Serbian Road Network (as of 2002) ············································ 24 Table 2.6 Tolls for Motorways (in Dinars) ················································ 24 Table 3.1 Mine Privatization ································································ 32 Table 3.2 Ore Deposits and Metallogenesis in Serbia···································· 60 Table 3.3 Ore Reserves and Potential in Serbia··········································· 62 Table 3.4 Mineral Potential and Explored Areas·········································· 63 Table 3.5 List of Reserves in RTB Bor····················································· 68 Table 3.6 Reserves at the Zajaca Mine····················································· 74 Table 3.7 Mineral Resources at the Zajaca Mine ········································· 74 Table 4.1 Main Machines used in the Bor Underground Mine (source: RTB Bor) ··· 81 Table 4.2 Comparison of Underground Operations in the Bor Mine in 1996 and 2003 (source: Bor) ·························································· 83 Table 4.3 Comparison of Exploited Mass in the Veriki Krivelj Open Pit·············· 87 Table 4.4 Principal Machines used in the Veriki Krivel Open Pit (source: RTB Bor) 87 Table 4.5 Transition of RBB Personnel (source: RTB Bor) ····························· 89 Table 4.6 Slag to be Mined ·································································· 90 Table 4.7 Estimated Flotation Operation Values·········································· 91 Table 4.8 Achieved Slag Flotation Values
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