NATIONALNATIONAL AGENCYAGENCY OFOF NATURALNATURAL RESOURCESRESOURCES

Overview,Overview, OpportunitiesOpportunities andand LegalLegal FrameworkFramework onon MiningMining SectorSector inin AlbaniaAlbania

Tokyo,Tokyo, AugustAugust 27,27, 20082008 MINING DEPARTMENT

•• Consults and collaborates with relevant government structures, on preparing policies related to mining sector; •• Applies the governmental policies in mining sector; •• Provides the technical expertise, in respect of its institutional obligations, on studies and projects in the mining and post mining activity; •• Promotes mining resources, negotiates mining agreements and monitors the implementation of development programs; •• Supervises mining and post mining activity.

BRIEF HISTORY OF MINING ACTIVITY IN Albania is a very rich country in mineral resources. Exploration, exploitation and processing of mineral ores constitutes in a significant activity in Albanian economy. In the year 1922, was compiled the Geological map of Albania, the first of such maps in Balkan Peninsula. In the year 1929, was formulated and approved the Mining Law of Albanian Kingdom, which opened the road towards the initiation of prospecting- exploration-mining of minerals. In the years 1944-1994, the mining activity has been organized in the stat form entreprises The process of restructuring of mining activity has passed through different stages: •• Privatisation process (1994 in continuity); •• Restructuring of state enterprises in the chromium and copper sector (1994-1998); •• Administration and legal framework based on the laws of market economy (Albanian Mining Law 1994); •• Concession on the assets of mining industry (1995); •• The closure of the non-effective mines and conservation of the potential mines (1993 in continuity). The main products realised by this industry during the years:

− Chromium ore, 1948-2007: 26.8 million tons − Ferrochrome from 1976, about: 720.000 tons − Copper ore, 1938-2007: 24.4 million tons − Coal, 1938-2007: 38.7 million tons − Iron- Nickel ore, 1962-2007: 15.26 million tons − Nickel -Silicate ore till 2007: 1.3 million tons − : 0.5 tons − Silver: 2.4 tons − Olivinite : 0.4 million tons − Dolomite: 0.1 million tons − Gips: 0.3 million tons − Salt: 1.4 million tons − Phosphorites : 1.2 million tons − Volcanic glass: 0.3 million tons − Refined natural bitum: 0.2 million tons

1400000 350000

1200000 300000

1000000 250000

800000 200000

600000 150000

400000 100000 Production, ton Production, Production, ton Production, 200000 50000

0 Years 0 Years 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992

Chromium ore production in years

1200000 250000

1000000 200000 800000 150000 600000 100000 400000 Production, ton Production, production, ton production, 50000 200000

0 0 Years Years 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991

Copper ore production in years 1200000 450000 1000000 400000 350000 800000 300000 250000 600000 200000 400000 150000 100000 production, ton production, Production, ton Production, 200000 50000 0 Years 0 Years 2002 2003 2004 2005 2006 2007 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992

Fe-Ni ore production in years

2500000 160000 2000000 140000 120000 1500000 100000

80000 1000000 60000 40000 Production, ton Production, ton Production, 500000 20000

0 Years 0 Years 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1938 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992

Coal production in years MINING PRIVATE ACTIVITY IN ALBANIA

The private mining activity in Albania started in 1995. Up to 13.12.2007, 600 mining permits are given, from which, 503 are exploitation mining permits. The regions with more mining permits, are: Bulqizë, Krujë, Tiranë, Vlorë, Tropojë. In the map and charts 1, 2, 3, are shown the dispersion of exploitation mining permits, according to the kind of mineral, districts and years.

The map of Albania with mining permits according to the districts chrome 12 2 copper 79 Fe-Ni, Ni-Si 159 coal 17 limestones 24 baoxide 9 quartz 13 5 gypsum 27 2 clays 5 marm.limestones baded limest. 215 baded sandstone plagiogranit

Chart 1. Mining Permits according to the kind of mineral 100 88 90

80

70

60 56

50 43 Years 38 40 34 31 29 30 25

21 18 22 20 15 17 19 13 14 11 13 12 14 12 8 6 7 10 5 6 6 6 2 3 Districts 2 2 2 0 MAT HAS PUKE DIBRA KRUJE VLORE KUKES TIRANE KAVAJE KORCE LEZHE LEZHE PERMET ERSEKE MIRDITE DURRES DELVINA KURBINI M.MADHE SARANDE SKRAPAR TROPOJE LUSHNJE BULQIZE BULQIZE SHKODER TEPELENE POGRAFEC GJIROKASTER MALLAKASTER

Chart 2. Mining Permits according to the districts 140

79 63 57 60 52 44 41

No. Mining Permits Mining No. 24 15 12 7 6

Years 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Chart 3. Mining Permits according to the years THE CONCESSIONS

By the approval of Concession Law in 1998, are given these concessions:

•• Bulqiza Massif, to the Italian Company “DARFO”, the Chrome Mine of Bulqiza, concentrator of it, heavy-media suspense concentrator of Klosi, ferrochrome Plant-Burrel- Mat, Chrome Mine of Katjel, Librazhd district, Chrome Mine Pojska, Pogradec and Ferrochrome Plant in Elbasan. •• The Polymetallic Massif of Munella, to the Turkish Company “BER-ALB”. •• Bitumen Mine of Selenica, in the 2001, to the French Company Bitumi Selenica sh.a. MAIN MINERALS PRODUCTION IN 2007

No. Mineral Production Production 2006 2007 1. Chrome 189 531 tons 325 000 tons 2. Chromium Concentrate 2800 tons 2 800 tons 3. Copper 0 100 000 tons 4. Copper Concentrate 0 16 000 tons 5. Fe-Ni and Ni-Si 74 000 tons 370 000 tons 6. Coal 3 800 tons 4000 tons 7. Limestones 1 344 890 m3 1 600 000 m3 8. Marbled limestones blocks 11 420 m3 20 000 m3 9. Beded limestones 22 793 m3 30 000 m3 10. Sandstone in blocks and beded 3 200 m3 10 000 m3 11. Clays 562 469 tons 800 000 tons 12. Gypsum 20 378 tons 40 000 tons CHROME

There are three main regions of Ultrabasic Massifs of chrome in Albania:

1. North-East Region (Ultrabasic Massif of Tropoja and Kukës) 2. Central Region (Ultrabasic Massif of Bulqiza). 3. South-East Region (Ultrabasic Massif of -Pogradecit)

Present Geologic Reserves of chrome in these regions are:

•• Category B+C1 21.8 million tons

•• Category C2 : 15.1 million tons

•• Total: B+C1 +C2 : 36.9 million tons

Chrome’s deposits •• Tropoja Ultrabasic Massif

Geological reserves: 6.1 million tons x 26.48% Cr2O 3 Perspective deposits: Zogaj, Vlahnë, Qaf-Perollaj •• Kukës Ultrabasic Massif

Geological reserves : 6.8 million tons x 21.4% Cr2 O3 Perspective deposits : Kalimash, Përroi Batrës •• Bulqiza Ultrabasic Massif Geological reserves : 12 million tons

Geological reserves, more than 38% Cr2O 3 : 7.5 million tons Perspective deposits: North Bulqiza, Qaf-Buall, Batër, Krasta in depth, Thekna in depth, intermediate region of Batër-Liqeni Sopeve-Thekën-Tërnovë •• Shebenik-Pogradec Ultrabasic Massif

Geological reserves: 1.2 million tons, more than 38% Cr2O 3 Perspective regions: Katjel-Pojskë; Bushtricë-Përroi Govatës. COPPER

Based on the geological conditions of ophiolites position, their morphology, genetic and mineralogical components, etc., are distinguished four main types of copper deposits: •• Hydrothermal-Methasomatic and Volcanogenic -Sedimentary Deposits, as: Munella, Qaf-Bari, Gurthi, Rruga Rinise, etc. •• Main type Volcanogenic-Hydrothermal- Methasomatic Deposits, as: Tuçi, Spaci, Derven, Paluca, etc. •• Volcanogene-Sedimentary Deposits, as: Munella, Gjegjan, Palaj, Karma, Rubik •• Metasomatic Sulphide Massif Deposits, as: Kurbneshi, Golaj, Thirra, Nikoliqi, etc.

Copper’s deposits Based on the data of the Geologic Survey, the geological reserves of copper ores in Albania are calculated about 53 million tons of the categories B, C1, C2 and prognosis categories, from which about 27 million tons are extractable reserves, approximately in 50 deposits. The most important copper mining deposits: •• Munella Deposit, •• Lak Roshi Deposit, •• Karma Deposit, •• Perlati South Deposit, •• Spaç i Deposit, •• Bregu Geshtenjes Deposit.

Geologic reserves in new deposits are about 13,4 million tons of 1.853% Cu, which represents about 50% of total reserves, from which 8 million tons (about 30% of total and 60% of new deposits) are located in Munella deposit. Fe-Ni and Ni-Si

Fe-Ni and Ni-Si minerals, are located mainly in three regions:

•• Devolli (Bilishti, Bitincka, etc). •• Pogradec -Librazhd (Guri Kuq, Cervenaka, etc.), (Prrenjasi, Skroska, Xixillasi, Bushtrica). •• Kukes (Mamez, Trull Surroj, Nome) The nickel ore is in form of iron- nickel (Pogradec, Librazhd) of a grade of 0.8-1.1 % Ni and in form of nickel-silicate (Devoll, Kukes) of a grade of 1.1–1.4 % Ni. Deposits of Fe-Ni and Ni-Si NICKEL MINERAL RESERVES ACCORDING TO THE REGIONS

No. Region Quantity Fe% Ni % SiO2% Co % 000/ton 1. Devolli

Total Ni-Si 52 179 16.60 1.20 35.12 0.0397

Total Fe-Ni 59 193 38.66 1.074 12.2 0.056 2. Kukësi Total Ni-Si 29 221 21.73 1.057 40.12 0.053

Total Fe-Ni 65 504 37.22 1.029 26.93 0.0547 3. Librazhd-Pogradec

Fe-Ni 105 592 44.72 1

Total Fe-Ni 230 000

Total Ni-Si 81 400 COAL The coal reserves In our country are approximately 794 million tons, located in three main regions:

•• region: 86% of reserves •• Korça-Pogradec region: 10% of reserves •• Memaliaj region: 4% of reserves Coals, generally, are of lignite type, with calorific analytical value of 2000-5600 kcal/kg (averagely 3200- 3300). Their calorific value in concentrates up to 4500-5500 kcal/kg.

Coal’s deposits PEATS Peats is another energy source, located in the deposit of Maliq. The reserves are 150 million m3, with 2200 kcal/kg. The peats could be used as fuel but also as complex fertilizer in the agriculture. The characteristics of the peats: - Calorific value: 2960 kcal/kg - Moisture: 11% - Volatiles: 39% - Sulphur content: 1.1% BITUMEN AND OTHERS Natural bitumen of high content is located in the Selenica deposit, in Vlora district. The amount of geologic reserves for Selenica deposit is calculated to be about 520 000 tons. Bituminous coal, is found together with the natural bitumen in the Selenica deposit. The reserves, according to geological workings carried out, are about 3-4 million tons. Bituminous sands (tar sands), are located in Patosi, Treblova- Selenica, Selishta, Kucova, Murrizi, Kreshpan, Belishova, Greshica, Makareshti, Thuman-Miloti, deposits. The reserves of bituminous sands are about 246 million tons. NON-METALLIFEROUS MINERALS

Albania is a rich country on the industrial minerals (non- metalliferous). They constitute a great wealth of the country. Each non-metalliferous mineral has its particular importance. The most important minerals are: limestones and dolomites, clays, gypsums and anhydrites, all types of decorative stones, basalts, etc., including and olivinites, kaolins, volcanic glass, granites, phosphorites, etc.

Deposits of non-metalliferous minerals NON-METALLIFEROUS MINERALS DEPOSITS

Geologic Reserves No. Minerals Quantity, Quality, Region and deposit Million % tons 1 2 3 4 5 I.1,2 Limestones 655 CaO 50-55 Kukes, Tropoje, Peshkopi, Shkoder, Dolomites CaO 30-34 Puke, Mirdite, Lezhe, Burrel, Kurbin, MgO 18-21 Kruje, Tirane, Elbasan, Berat, Korce, Vlore, Permet, Kolonje, Gjirokater, Sarande. I.3 Carbonatic 700 CaO 50 Sarande, Vlore, Lushnje, Peshkopi, Decorative Kukes, Tropoje, Burrel, Kurbin, Kruje, Stones Tirane, Berat, Pogradec, Korce,Korce, Gjirokaster.

II Phosphorites 57 P2 O5 10-15 Tepelene (Gusmar), Gjirokaster (Fushe bardhe), Sarande. III Clays 262 , Alarup, Tamare, Diber, Zonat bregdetare, Gropat e brendeshme.

IV Silica Sands 200 SiO2 80 Pellgu i Tiranes, i Devollit, Kukes & Quartzites Al2 O3 10 (Kallabak), Tropoje (Kernaje). Fe2 O3 15 1 2 3 4 5

V Gypsum & 85 CaSO4 2H2 O Peshkopi (Perroi i Llixhave, Vrenjt, Anhydrites 88-98 Perroi i Games, Radomire), Kavaje (Mengaj, Tilje), Sarande (Dhrovjan). VI Rock Salt 300 NaCl 76-82 Kavaje (Mengaj, Tilje), Sarande (Dhrovjan). VII River-bed 242 Aggregates VIII.1 Olivinites 108 MgO 48 Kukes (Kalimash), Tropoje (Kam, SiO2 37 Lugu i Zi, Vlad, Kepenek, Cabrat)., Lure, Shebenik, Krrab, Valamare. VIII.2 Volcanic Glass 18 Puke (Qafe Bari, Lumzi).

VIII.3 Magnesites 1 Shkoder (Gomsiqe), Levrushk, Korthpule, massif of Bulqiza (Shahinaj, Shengjun, Lucane), Gramsh (Devolli basin). VIII.4 Granites 71 Puke (Levrushk), massifs of Trokuzit, Fierze, Radomire, Peladhi.

VIII.5 Ophiolite 230 SiO2 37-38 Kukes, Puke, Mirdite, Mat, Librazhd, Decorative MgO 8-47 Tropoje, Elbasan, Bulqize. Stones

VIII.6 Basalts 1 064 SiO2 47 Kukes, Puke, Mirdite, Librazhd, Al2 O3 13 Korce, Kolonje. MAIN DIRECTIONS OF MINING INDUSTRY DEVELOPMENT

•• The growth of production of traditional minerals as chrome, copper , nickel and energetic minerals, accompanied with a long-term programme for the development of prospection- exploration geologic workings; •• Increase of the processing degree of chrome and copper ores to increase their values and to make them more competitive and supplier of domestic and foreign market; •• Extension of the production and deep processing sorts of energetic minerals as, tar sands, peats, high quality and competitive mining cost, etc.; •• Extension of the production and processing sorts of olivinites, basalts , decorative stones, marbles, etc.; •• Putting into economic circulation (operation) of the vanadium- bearing potential. LEGALLEGAL FRAMEWORKFRAMEWORK

•• The mining activity is performed in accordance with the requirements of “the Mining Law of Albania" No.7796, dt. 17.02.1994, amended by Law No.9261, dt. 22.07.2004 and Law No.9667, dt. 29.12.2007. •• The use of any kind of explosive material during the mining activity, is performed in accordance with the requirements of Law No.9126, dt. 29.07.2003 “For civil using of explosives in the Republic of Albania”, the Decision of Council of Ministers No.52, dt. 29.01.2004 and the Order No.1, dt. 12.02.2004 of the Minister of Economy, Trade and Energy. •• Any kind of mining activity related to engineering, assessment, consulting, monitoring, technical supervision etc. is conducted through a Professional Permit. THANKTHANK YOUYOU FORFOR YOURYOUR ATTENTIONATTENTION

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