The Mineral Industry of Bosnia and Herzegovina in 2015
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2015 Minerals Yearbook BOSNIA AND HERZEGOVINA [ADVANCE RELEASE] U.S. Department of the Interior October 2018 U.S. Geological Survey The Mineral Industry of Bosnia and Herzegovina By John R. Matzko Bosnia and Herzegovina was not a significant world producer products (except machinery and equipment) was 9.6%; and that of mineral commodities, although the country had substantial of base metals was 1.3%. The year-on-year rate of growth in the metallic mineral resources. Metal ores mined in Bosnia and manufacture of coke and refined petroleum products decreased Herzegovina included bauxite, iron, and lead-zinc ores. The by 1.1%; that of nonmetallic mineral products, by 0.7%; and metallurgical sector produced aluminum and steel. Mineral that of the energy sector, by 0.8% (Agency for Statistics of fuels produced in the country included coke, lignite, and Bosnia and Herzegovina, 2016e, p. 5). subbituminous coal. The country’s production of electricity By the end of December 2013, foreign direct investment exceeded domestic demand, and it was a net exporter of (FDI) in the metal sector amounted to 527.8 million convertible electrical energy. The country was prospective for petroleum marks (BAM) ($358.3 million1), of which 33.4% (176.3 million and natural gas. Industrial minerals produced included barite, BAM, or $119.7 million) was invested in the production of cement, clays, crushed stone, dimension stone, dolomite, fabricated metal products (except machinery and equipment), gypsum and anhydrite, lime, salt, and sand and gravel and 9.3% (49.6 million BAM, or $33.7 million) was invested in (table 1; Foreign Investment Promotion Agency of Bosnia and base metals (Foreign Investment Promotion Agency of Bosnia Herzegovina, 2013, p. 6; 2015a, p. 9, 11; U.S. Department of and Herzegovina, 2015b, p. 13). State, 2016, p. 63). Government Policies and Programs Minerals in the National Economy The two main political entities that make up Bosnia and Bosnia and Herzegovina’s real gross domestic product Herzegovina are the Federation of Bosnia and Herzegovina, (GDP) increased by 2.8% in 2015—a growth rate that was which encompasses the central and western regions of the notably higher than the 1.08% rate of growth in 2014, when country, and the Republika Srpska (RS), which encompasses the country had significant flooding. The nominal GDP in 2015 the northern and eastern regions. Each entity has its own was $15.8 billion. The economic growth in 2015 was attributed government regulatory agencies responsible for mineral, to increased economic activity in Europe, as well as increased environmental protection, and energy-related activities. In the domestic industrial activity and exports, which, together with Federation of Bosnia and Herzegovina, the Federal Ministry the decrease in fuel prices, boosted incomes and consumption. of Energy, Mining and Industry sets the policies for the use of The unemployment rate remained high, however, at 27.7% of natural resources and for energy. Relevant regulations governing the total labor force (International Monetary Fund, 2015, p. 1; the mining sector include the Law on Mining No. 26/10 of 2016). 2010; the Law on Geological Survey No. 9/10 of 2010; the Law Mining and quarrying accounted for about 2.0% of the on Environmental Protection No. 33/03 of 2003, as amended by country’s GDP in 2015, which was unchanged from the law No. 38/09 of 2009; and the Law on Concessions No. 40/02 percentage in 2014. The mining of coal and lignite made up of 2002, as amended by law No. 61/06 of 2006 (Marinkovic about 65% of total mining and quarrying sector production, in and Dzaferovic, 2015, p. 47, 49; United Nations Environment terms of value, whereas the mining of metal ores accounted for Programme, 2016a; U.S. Central Intelligence Agency, 2016). about 23%. Manufacturing accounted for about 11.6% of the The Federation of Bosnia and Herzegovina established the GDP, which was a slight increase from the 11% share in 2014. Law on Research and Exploitation of Oil and Gas in 2013. The manufacture of base metals (those not considered precious) This law governs hydrocarbon research and exploration and accounted for about 14.1% of total manufacturing output, in includes environmental regulations for hydrocarbon extraction. terms of value; the manufacture of fabricated metal products The Government’s target for the share of national energy (except machinery and equipment) accounted for 8.6%; the consumption from renewable sources was 40% by 2020; manufacture of coke and refined petroleum products, 8.0%; no country-wide plan was in place for development of the and the manufacture of nonmetallic mineral products, 4.0%. renewable energy sector (European Commission, 2014, p. 49; Construction accounted for about 4% of the GDP in 2015, 2015, p. 53; Marinkovic and Dzaferovic, 2015, p. 49). which was unchanged from the percentage in 2014 (Agency for In the Republika Srpska, the Ministry of Industry, Energy Statistics of Bosnia and Herzegovina, 2016b, p. 3; 2016d, p. 2). and Mining sets the policies for the use of natural resources In 2015, the year-on-year rate of growth in the mining and and for the production and use of electric energy and biofuels. quarrying sector overall was 3.5%. The year-on-year rate of growth in the mining of metal ores was 11.6%; that of coal and 1 lignite, 1.9%; and that of all other mining and quarrying, 5.6%. Where necessary, values have been converted from Bosnia and Herzegovina convertible mark (BAM) to U.S. dollars (US$) at an average annual exchange The year-on-year rate of growth in the manufacturing sector rate of BAM1.7625=US$1.00 for 2015; and BAM1.4739=US$1.00 for 2014; was 4.8% in 2015; that of the manufacture of fabricated metal and BAM1.4731=US$1.00 for 2013. BOSNIA AND HERZEGOVINA—2015 [ADVANCE RELEASE] 8.1 The relevant regulations governing the mining sector include into Bosnia and Herzegovina in 2015 was 15.85 billion BAM the Law on Mining No. 107/05 of 2005 as amended by law ($8.99 billion), which was a decrease of 2.1% from that of No. 75/10 of 2010; the Law on Energy No. 49/09 of 2009; the 2014. Imports from EU countries were valued at 9.95 billion Law on Geological Survey No. 51/04 of 2004; and the Law on BAM ($5.64 billion), which was 1.1% higher than in 2014, and Concessions No. 20/02 of 2002, as amended by law Nos. 91/06 those from CEFTA countries were valued at 1.957 billion BAM of 2006 and 92/09 of 2009 (United Nations Environment ($1.11 billion), which was 5% higher than in 2014 (Agency for Programme, 2016b). Statistics of Bosnia and Herzegovina, 2016a, p. 1). In 2015, 72% of Bosnia and Herzegovina’s exports went Production to EU countries. The country’s top five export partners were Germany (which received 16% of Bosnia and Herzegovina’s In 2015, the production of kaolin increased by more than exports, by value), Italy (14%), Croatia (10%), Serbia (9%), and 1,000%; marble and travertine, by 194%; chalk, by 171%; silica Slovenia (8%). Also in 2015, 61% of Bosnia and Herzegovina’s sand and gravel, by about 130% each; alumina and construction imports originated from EU countries. The top five import sand, by about 47% each; bauxite, by 30%; lead (ores and partners were Germany (which supplied 12% of Bosnia and concentrates), by an estimated 19%; and limestone and sodium Herzegovina’s imports, by value); Italy, Serbia, and Croatia bicarbonate, by about 10% each. The reasons for the significant (11% each); and China (6%) (Agency for Statistics of Bosnia increases include the completion of orders from the previous and Herzegovina, 2016a, p. 6–8). year, and, in the case of gravel production, the inclusion of new In 2015, the value of exported mined and quarried mineral companies in the 2015 data (table 1). commodities decreased by 14.9% compared with that of 2014, In 2015, the production of granite decreased by 80%; slate, by to 97.06 million BAM ($55.07 million), or 1.1% of the value of 61%; dolomite, by 34%; bentonite and lead (secondary metal), all exports. Exports of base metals were valued at 1.07 billion by 17% each; gypsum and anhydrite, by 13%; zinc ore and BAM ($606.16 million), or 11.9% of the value of all exports; concentrate, by an estimated 13%; and unwrought aluminum, by fabricated metal products (except machinery and equipment) 10% (table 1). were valued at 745.05 million BAM ($422.73 million), or Structure of the Mineral Industry 8.3%; coke and refined petroleum products were valued at 307.78 million BAM ($174.63 million), or 3.4%. Exports of The major mineral production companies in Bosnia and nonmetallic mineral products, metal ores, coal and lignite, and Herzegovina were privately owned, with the exception of other mining and quarrying exports were each valued at less the two major coal-powered electrical-utility companies, than 1% of the value of all exports (Agency for Statistics of Elektroprivreda BiH and Elektroprivreda Republike Srpske Bosnia and Herzegovina, 2016a, p. 19–20, 22–23). and their associated coal mines, which were owned by the In 2015, the value of mining and quarrying imports decreased Government. The government of the Federation of Bosnia and by 26.2% to 1.13 billion BAM ($641.5 million), or 7.1% of Herzegovina owned a 90.4% share of Elektroprivreda BiH, the value of all imports. Imports of base metals were valued and the government of the Republika Srpska owned 100% of at 1.02 billion BAM ($579.73 million), or 6.4% of the value Elektroprivreda Republike Srpske.