2016 Minerals Yearbook

CZECHIA [ADVANCE RELEASE]

U.S. Department of the Interior March 2021 U.S. Geological Survey The Mineral Industry of Czechia By Lindsey Abdale

In 2016, Czechia was the world’s 2d-ranked producer of Mineral Trade diatomite, having produced 15% of world output; the 4th-ranked producer of kaolin (9.7% of world output); and the 10th-ranked In 2016, Czechia’s total exports were valued at $163 billion producer of bentonite (1.9% of world output). The country did and its total imports were valued at $143 billion. Exports of not mine any metal ores but produced processed metal products, metals were valued at $14.3 billion; fuels (all types), $3 billion; such as crude steel, pig iron, and semimanufactured steel, as and all mineral products, $251 million. Imports of metals were well as secondary aluminum and lead metals. Production of valued at $15.4 billion; fuels, $6.4 billion; and all mineral mineral fuels and related materials included coal, small amounts products, $676 million. Germany received 32% of Czechia’s of crude petroleum, natural gas, and uranium. The country total exports; Slovakia, 8.3%; Poland 5.8%; France, 5.2%; and supplied about 70% of its total electricity demand through Austria, 4.2%. Czechia received 26.5% of its total imports from coal-fired thermal powerplants and nuclear powerplants in 2016 Germany; 12%, from China; 8.3%, from Poland; 5.1%, from (table 1; Euracoal, 2017; Crangle, 2018; West, 2018). Slovakia; and 3.2%, from France (Czech Statistical Office, 2017a; World Integrated Trade Solution, 2017). Minerals in the National Economy Commodity Review In 2016, the real gross domestic product (GDP) of Czechia increased by 2.6% compared with that of 2015. The nominal Metals GDP was $195.3 billion. The mining and quarrying sector accounted for 0.8% of the nominal GDP and employed an Iron and Steel.—Pig iron, crude steel, and semimanufactured average of 32,400 people during the year (Czech Statistical steel production remained relatively steady in 2016, increasing Office, 2017b, c; International Monetary Fund, 2017). by 3%, 1%, and 4%, respectively. ArcelorMittal Ostrava a.s. (Ostrava), which was a fully owned subsidiary of ArcelorMittal Government Policies and Programs Holdings A.G. of Switzerland, was Czechia’s leading iron and steel producer. In May, Ostrava announced environmental The principal authority for the mining industry is the State investments of $84 million in a new filtration system at its Mining Administration. The Czech Mining Authority is the Kunice steel plant in western Czechia. The plant’s production central body of the State Mining Administration and supervises averaged more than 2 million metric tons per year (Mt/yr) and the District Mining Authorities. The mining authorities are the new technology would capture an additional 520 metric responsible for the administration and management of mining tons (t) of dust emissions annually, thus lowering the total activities, including monitoring compliance with mining laws annual particulate matter stack emissions to about 490 t. The and issuing mining licenses. The mineral industry of Czechia is installment would exceed European Union (EU) requirements, governed by the following three main laws: Act No. 44/1988, and Ostrava received $67 million in EU subsidies to support the which deals with the protection and use of mineral resources project (ArcelorMittal Ostrava a.s., 2016). and establishes the authority of certain Government agencies regarding mining activities; Act No. 61/1988, which deals Industrial Minerals with the safety and procedures of mining operations; and Act No. 62/1988, which establishes the rules for the prospecting Cement.—Czechia’s cement production increased by 4% in for and extraction of minerals (State Mining Administration, 2016. Ready-mix concrete production increased by an estimated 2014; Min-Guide, 2018, p. 1, 3, 4, 10). 1.5%. In 2016, total output of the construction sector in Czechia decreased by about 8.5% owing to a decrease in EU funding in Production 2015 and because multiple large projects were postponed owing to noncompliance with environmental impact assessment laws. In 2016, the production of diatomite increased by 73%; Total cement consumption in the country increased by about 3% feldspar substitutes, by 48%; silica minerals, by 29%; and brick (table 1; CEMEX S.A.B. de C.V., 2017, p. 84). clay, by 22%. The production of pyrope-bearing rock decreased Lithium.—Czechia had one of the largest undeveloped by 53%; bituminous coal, by 20%; refined petroleum products, tin and hard-rock lithium resources in the world. The Czech by 17%; dimension stone and natural gas, by 16% each; and Geological Survey estimated that the country held about uranium concentrate, by 4%. Data on mineral production are in 1.3 million metric tons (Mt) of lithium—the largest resource table 1. in Europe—in Cinovec in northwestern Czechia. Global consumption of lithium used for batteries in smart phones and Structure of the Mineral Industry electric cars was expected to triple in the next decade. In 2012, Table 2 is a list of major mineral industrial facilities in European Metals Holdings (EMH) of Australia purchased the Czechia. exclusive exploration rights to the Cinovec lithium and tin project, and in 2015, completed a preliminary feasibility study

Czechia—2016 [ADVANCE RELEASE] 12.1 indicating that the project had the potential to be one of the also likely to stop owing to the depletion of the Dolni Rozinka the lowest cost hard-rock lithium operations globally. The deposit; however, the production of lithium is expected to begin indicated and inferred resources were estimated to be 657 Mt if the Cinovec deposit can be developed as planned. grading 0.2% lithium, 0.4% lithium oxide, and 0.04% tin. EMH planned to develop a mine at the Cinovec site that would References Cited have a projected production capacity of 20,000 metric tons per ArcelorMittal Ostrava a.s., 2016, ArcelorMittal Ostrava commissions 13 new year (t/yr) of lithium carbonate equivalent, which would rank investments that will cut dust emissions to historic low: ArcelorMittal Ostrava a.s., Czechia as one of the top five lithium producers in the world May 11. (Accessed January 31, 2018, at http://corporate.arcelormittal.com/ (European Metals Holdings, 2017; Jamasmie, 2017). news-and-media/news/2016/may/11-05-2016.) CEMEX S.A.B. de C.V., 2017, 20–F report 2016: CEMEX S.A.B. de C.V., 365 p. (Accessed January 31, 2018, at https://www.cemex.com/ Mineral Fuels and Related Materials documents/20143/21521932/CEMEX2016_20F.pdf/cbb118a9-3efd-e5c2- 677f-f71caef77cb0.) [Form 20–F submitted to U.S. Securities and Exchange Coal.—In 2016, Czechia’s production of bituminous coal Commission.] decreased by 21%. The country’s proven and probable reserves Crangle, R.D., Jr., 2018, Diatomite: U.S. Geological Survey Mineral Commodity were estimated to be 880 Mt at the beginning of 2016, which Summaries 2018, p. 56–57. included 42 Mt of bituminous coal reserves and 737 Mt of Czech Statistical Office, 2017a, External trade in 2015 and 2016: Czech Statistical Office, September 29. (Accessed February 6, 2018, at lignite reserves. The country relied on coal for about 50% of https://www.czso.cz/csu/czso/external-trade-of-the-czech-republic-annual-data.) its total energy consumption. About 40% of the country’s total Czech Statistical Office, 2017b, Total economy—Production account for the coal demand was met through domestic production. (table 1; year 2016: Czech Statistical Office, June 30. (Accessed February 6, 2018, at Euracoal, 2017). http://apl.czso.cz/pll/rocenka/rocenkavyber.so_en.) Czech Statistical Office, 2017c, Total employment (persons): Czech Statistical In May, Ostravsko-Karvinske Doly a.s. (OKD), which was Office, June 30. (Accessed February 6, 2018, at http://apl.czso.cz/pll/rocenka/ owned by New World Resources Plc (NWR) of the Netherlands rocenkavyber.makroek_pracov_en.) and was the country’s only bituminous coal producer, filed an Euracoal, 2017, The voice of coal in Europe: Brussels, Belgium, Euracoal, insolvency petition. OKD employed about 10,000 people and August 1. (Accessed February 2, 2018, at https://euracoal.eu/info/ country-profiles/czech-republic/.) was the leading employer in the Moravia-Silesia region. NWR European Metals Holdings, 2017, Cinovec lithium/tin project: European Metals employed about 13,000 people and operated seven coal mines in Holdings. (Accessed January 31, 2018, at https://www.europeanmet.com/ Poland and Czechia (Jamasmie, 2016; MiningSee, 2016; New cinovec-lithium-tin-project/.) World Resources, 2016). International Monetary Fund, 2017, World economic outlook database—Czech Republic: International Monetary Fund, October. (Accessed February 6, 2018, Petroleum.—In 2016, Czechia’s production of crude at https://www.imf.org/external/pubs/ft/weo/2017/02/weodata/weoselgr.aspx.) petroleum and refined petroleum products decreased by 8% and Jamasmie, Cecilia, 2016, Czech coal miner NWR on the verge of collapse as 17%, respectively. Unipetrol Group (a fully owned subsidiary of rescue talks freeze: Mining.com, April 25. (Accessed February 5, 2018, at PKN Orlen of Poland) was the only crude petroleum processor http://www.mining.com/czech-coal-miner-nwr-verge-collapse-rescue-talks- freeze/.) in Czechia and operated two refineries with a combined capacity Jamasmie, Cecilia, 2017, Czech mining industry pins hopes of revival of 8.7 Mt/yr of crude petroleum, three polyolefin units with a on lithium: Mining.com, April 26. (Accessed January 31, 2018, at combined capacity of 544,000 t/yr, and 363 fuel-filling stations. http://www.mining.com/czech-mining-industry-pins-hopes-revival-lithium/.) By the end of June, Unipetrol Group and PKN Orlen had Min-Guide, 2018, Minerals policy country profile—Czech Republic: Min-Guide, p. 28. (Accessed February 6, 2018, at http://www.min-guide.eu/ signed an agreement with Russian Rosneft Oil Co. for Rosneft sites/default/files/project_result/Minerals_Policy_Country_Profile_CZ.pdf.) to receive crude petroleum deliveries totaling a minimum of MiningSee, 2016, Czech Republic OKD major hard coal mining company 2.9 Mt/yr and a maximum of 5 Mt/yr (Unipetrol, a.s., 2017, on crossroads: MiningSee, May 4. (Accessed February 5, 2018, at p. 4–6). http://www.miningsee.eu/czech-republic-okd-major-hard-coal-mining- company-on-crossroad/.) Uranium.—In 2016, Czechia operated six nuclear reactors New World Resources, 2016, Update on the OKD insolvency: Amsterdam, that generated about one-third of the country’s electricity. The Netherlands, New World Resources, August 8. (Accessed February 5, 2018, state-owned company Diamo s.p. operated the country’s only at http://www.newworldresources.eu/Home/investors/update-on-the-okd- uranium mine—the Rozna Mine—which is located in southern insolvency.) State Mining Administration, 2014, Competence: Prague, Czechia, State Mining Moravia in the Dolni Rozinka deposit. In 2014, the mine was Administration. (Accessed February 6, 2018, at http://cbusbs.cz/index.php/ essentially depleted, and by the end of 2016, all production had podzemni-objekty/itemlist/category/59-an-a.html.) ceased (World Nuclear Association, 2017). Unipetrol, a.s., 2017, Annual report 2016: Unipetrol, a.s., March 15. (Accessed February 5, 2018, at http://www.unipetrol.cz/en/investorrelations/ Outlook regulatoryannouncements/Pages/Annual-Report-2016.aspx.) West, D.N., 2018, Clays: U.S. Geological Survey Mineral Commodity Summaries 2018, p. 48–49. The economy of Czechia was expected to continue to grow World Integrated Trade Solution, 2017, Czech Republic trade statistics: in the coming years. The country’s real GDP was expected to World Integrated Trade Solution. (Accessed February 6, 2018, at increase by about 3.5% in 2017 and 2.6% in 2018. Czechia’s https://wits.worldbank.org/CountryProfile/en/CZE.) steel market is expected to remain steady after modernization World Nuclear Association, 2017, Nuclear power in Czech Republic: World Nuclear Association, December. (Accessed February 5, 2018, investments by Ostrava and an increase in production by the at http://www.world-nuclear.org/information-library/country-profiles/ automotive industry. Production of coal is likely to decrease countries-a-f/czech-republic.aspx.) following the insolvency of OKD. The production of uranium is

12.2 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2016 TABLE 1 CZECHIA: PRODUCTION OF MINERAL COMMODITIES1

(Thousand metric tons, gross weight, unless otherwise specified)

Commodity2 2012 2013 2014 2015 2016 METALS Aluminum, metal, secondary 64 e 64 e 64 64 e 64 e Iron and steel, metal: Pig iron 3,935 r 4,040 r 4,152 4,031 4,165 Steel, crude 5,072 5,171 5,360 5,262 5,305 Semimanufactures, hot-rolled products 4,276 4,416 4,375 4,459 r 4,657 Lead, metal, secondary 41 r 42 r 44 r 45 r 43 INDUSTRIAL MINERALS Cement, hydraulic 3,434 3,211 3,511 r 3,781 r 3,937 Clay: Bentonite 221 226 301 369 374 Brick clay and related materials 1,851 1,589 1,509 1,622 1,984 Kaolin, raw 3,318 3,108 3,281 3,454 3,540 Other 485 465 518 569 538 Diatomite 43 49 34 15 26 Feldspar 445 r 411 r 422 r 433 454 Feldspar substitutes, including nepheline syenite 15 15 17 21 31 Gemstones, crude: Moldavite-bearing rock 74 74 81 120 r 128 Pyrope-bearing rock 12 16 18 17 8 Gypsum and anhydrite, crude 14 11 11 11 10 Lime, hydrated and quicklime 973 982 1,011 1,006 1,066 Nitrogen, N content of ammonia 190 r 150 r 170 r 180 170 Sand and gravel: Common sand and gravel 18,785 17,363 17,668 19,546 18,338 Foundry sand 491 412 603 535 521 Glass sand 849 862 734 812 801 Silica minerals, including quartz and quartzite 17 15 16 14 18 Stone: Crushed 32,535 33,004 35,972 40,260 r 37,242 Dimension 504 462 549 654 r 551 Dolomite 440 392 449 451 440 Limestone and other calcareous stones 9,858 9,605 10,342 10,568 11,412 Sulfuric acide 200 200 220 220 220 MINERAL FUELS AND RELATED MATERIALS Coal: Bituminous 10,796 8,610 8,341 7,640 6,074 Lignite 43,710 40,585 38,348 38,251 38,646 Coke, from coke ovens 2,467 r 2,489 2,533 2,332 2,209 Gas: Manufactured, all typese million cubic meters 1,500 1,500 NA NA NA Natural, marketed do. 204 207 198 200 169 Petroleum: Crude3 thousand 42-gallon barrels 1,000 r 1,100 r 1,100 r 920 r 850 Refinery products4 do. 30,700 28,200 40,200 50,800 42,400 Uranium: Mine output, U content metric tons 222 232 165 134 128 Concentrate production, U content do. 219 206 146 122 r 117 e eEstimated. rRevised. do. Ditto. NA Not available. 1Table includes data available through February 13, 2018. Estimated data are rounded to no more than three significant digits. 2In addition to the commodities listed, ferrovanadium, fuel briquets from lignite, graphite, precious metals, secondary copper, secondary gold recovered from scrap, and zinc metal may have been produced, but available information was inadequate to make reliable estimates of output. 3Figures were converted to barrels from production reported in thousand metric tons, as follows: 2012—150; 2013—152; 2014—148; 2015—126; and 2016—116. 4Estimated based on throughput reported in million metric tons, as follows: 2012—3.927; 2013—3.607; 2014—5.13; 2015—6.496; and 2016—5.422.

Czechia—2016 [ADVANCE RELEASE] 12.3 TABLE 2 CZECHIA: STRUCTURE OF THE MINERAL INDUSTRY IN 2016

(Thousand metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners Location of main facilities capacity Aluminum, secondary Alcan Decin Extrusions s.r.o. (Constellium) Decin, northern Bohemia NA Do. Kovohute Holding DT, a.s.- Mnišek Division Mnisek pod Brdy 100 e (majority owned by Demonta Trade SE) Cement Cement Hranice a.s. (Dyckerhoff Hranice 1,100 Aktiengesellschaft, 100%) Do. Ceskomoravsky Cement a.s. (HeidelbergCement AG, 100%) Mokra 1,400 e Do. do. Radotin 800 e Do. do. Kraluv Dvur NA Do. Cemex Czech Republic s.r.o. (CEMEX, S.A.B. de C.V., 100%) Prachovice 1,000 Do. Lafarge Cement a.s. (LafargeHolcim S.A., 68%, and Cizkovice 1,200 STRABAG SE, 32%) Clay: Unspecified LB Minerals s.r.o. Horni Briza NA Do. KERAMOST a.s. Most NA Do. Ceske Lupkove Zavody a.s. Nove Straseci (refractory clay) NA Do. P-D Refractories CZ a.s. Velke Opatovice (refractory clay) NA Do. RAKO-LUPKY s.r.o. Lubna u Rakovnika NA Do. Sedlecky Kaolin a.s. Bozicany NA Kaolin KERAMOST a.s. Most NA Do. Sedlecky Kaolin a.s. Bozicany NA Do. LB Minerals s.r.o. Horni Briza NA Do. Kaolin Hlubany a.s. Podborany NA Do. KSB s.r.o. Bozicany NA Coal: Bituminous Ostravsko-Karvinske Doly a.s. (OKD) (MTX CZ, a.s) 4 mines near Ostrava and Karvina in 10,000 e, 1 eastern Czechia Lignite Dul Kohinoor a.s. (Czech Coal Group) Centrum Mine in Marianske Radcice 350 e Do. Severní Energeticka a.s. CSA Mine near Most 5,000 e Do. Severoceske Doly a.s. (CEZ Group a.s., 100%) Nastup Tusimice Mine southwest of 25,000 e Chomutov and Bilina Mine in Bilina Do. Sokolovska Uhelna a.s. Jiri and Druzba Mines at Sokolov 10,000 e Do. Vrsanska Uhelna a.s. (Czech Coal Group) Vrsany Mine just west of Most (contains 10,000 e the Vrsany and the Sverma sites) Do. Lignit Hodonin s.r.o. Hodonin, south of Moravia 500 2 Coke ArcelorMittal Ostrava a.s. Ostrava 1,500 Do. Ostravsko-Karvinské Koksovny a.s. (OKK) Jan Sverma coking plant near Ostrava 800 (MTX Group) Do. do. Svoboda coking plant near Ostrava 650 Do. Trinecké Železarny a.s. (Moravia Steel a.s., 69%) Trinec 700 Feldspar LB Minerals s.r.o. Horni Briza NA Do. KMK Granit a.s. Krasno NA Do. Druzstvo DRUMAPO Nemcicky NA Do. Ceske Sterkopisky Spol s.r.o. Prague NA Do. AGRO Brno - Turany a.s. Brno NA Feldspar substitutes (including KERAMOST a.s. Most NA nepheline phonolite and syenite) Ferrovanadium Nikom a.s. (Evraz Vitkovice Steel a.s.) Vitkovice-Ostrava 5 Gold, metal, secondary Kovohute Pribram Nastupnicka a.s. Pribram NA Do. Galmet Trade, spol. s r.o. Chvaletice NA Graphite Grafitove Doly Stare Mesto s.r.o. Stare Mesto NA Iron and steel: Pig iron ArcelorMittal Ostrava a.s. (ArcelorMittal Holdings A.G., 100%) Kunice-Ostrava 3,000 Do. Trinecké Železarny a.s. (Moravia Steel a.s., 69%) Trinec 2,100 See footnotes at end of table.

12.4 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2016 TABLE 2—Continued CZECHIA: STRUCTURE OF THE MINERAL INDUSTRY IN 2016

(Thousand metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners Location of main facilities capacity Iron and steel:—Continued Steel: Crude ArcelorMittal Ostrava a.s. (ArcelorMittal Holdings A.G., 100%) Kunice-Ostrava 3,000 Do. Vitkovice Steel a.s. (private investors, 100%) Vitkovice-Ostrava 950 2 Do. Pilsen Steel s.r.o. (OAO OMZ) Plzen 150 Do. Poldi s.r.o. (Ferromet a.s.) Kladno 120 e Do. Trinecké Železarny a.s. (Moravia Steel a.s., 69%) Trinec 2,600 Do. Vitkovice Heavy Machinery a.s. Vitkovice-Ostrava 200 Processed products ArcelorMittal Ostrava a.s. (ArcelorMittal Holdings A.G., 100%) Frydek-Mistek 2,500 e Do. Vitkovice Steel a.s. (private investors, 100%) Vitkovice-Ostrava, including: Rolling mill 755 Section mill 170 Do. Zelezarny Hradek a.s. (Ferromet a.s.) Hradek NA Do. Zelezarny Veseli, a.s. (Ferromet a.s.) Veseli nad Moravou NA Do. Zelezarny Chomutov s.p. (Ferromet a.s.) Chomutov NA Do. ZDB Drátovna a.s. (Trinecké Železarny a.s.) Bohumin 40 e Lead, refined, metal, secondary Kovohute Pribram Nastupnicka a.s. Pribram 30 Natural gas million cubic Gasfield operators in Brno and Ostrava regions, Eastern and southeastern Czechia, 200 e, 3 meters including: including: Moravske Naftove doly a.s. Hodonin Ceska Naftarska Spol s.r.o. do. Green Gas DPB a.s. Paskov UNIGEO a.s. Ostrava-Hrabova Petroleum: Crude thousand 42-gallon Oilfield operators around Hodonin, including: Of which: 2,100 e, 3 barrels Moravske Naftove doly a.s. Hodonin Ceska Naftarska Spol s.r.o. do. UNIGEO a.s. Ostrava-Hrabova Refinery million 42-gallon Ceska Rafinerska a.s. (Unipetrol a.s., 100%) Refineries at Litvinov-Zaluzi and 68 barrels Kralupy and Vltavou Sand, industrial (glass and foundry) Provodinske pisky a.s. Provodin NA Do. Sklopisek Strelec a.s. Mladejov NA Do. Druzstvo DRUMAPO Nemcicky NA Do. LB Minerals s.r.o. Horni Briza NA Do. Kalcit s.r.o. Brno NA Do. SEDOS doprava a.s. Drnovice NA Do. PEDOP s.r.o. Lipovec NA Do. SETRA s.r.o. Brno NA Do. Kaolin Hlubany a.s. (WBB Minerals, 94%) Podborany NA Uranium, U content metric tons DIAMO s.p. (Government, 100%) Rozna Mine at Dolni Rozinka 500 1 eEstimated. Do., do. Ditto. NA Not available. 1Closed in 2016. 2Closed in 2015. 3Annual capacity listed is total for all deposits, mines, and companies that produce the commodity.

Czechia—2016 [ADVANCE RELEASE] 12.5