Kromi Çan Bllokadën – Albanian Chromium Mining Revisited

Vol. 146, No. 4 · Research article

DIE ERDE Kromi çan bllokadën – Journal of the Geographical Society Albanian chromium mining revisited of Berlin

Daniel Göler1, Matthias Bickert1, Dhimiter Doka2

1 University of Bamberg, Department of Geography, Geographical Research on Migration and Transition, Am Kranen 12, 96045 Bamberg, Germany, [email protected], [email protected] 2 Universiteti i Tiranës, Fakulteti i Historisë dhe Filologjisë, Departamenti i Gjeografisë, Rruga e Elbasanit, Tirana, Albania, [email protected]

Manuscript submitted: 26 November 2014 / Accepted for publication: 10 August 2015 / Published online: 17 December 2015

Abstract Chromium mining was one of the main economic pillars of socialist Albania. In the 1990s, in the wake of the economic transition, extraction nearly stopped altogether. However, chromium mining has undergone a certain revival since the beginning of the 21st century. Its background, context, problems and perspectives are highly diverse. In the following paper, these aspects will be assessed in a differentiated analysis and an evaluation from the position of a critical resource geography. On the one hand, chromite ore is exceedingly rare and highly valuable, which determines both global demand and economic dependencies. On the other hand, inefficiency, low levels of professionalism and widespread informality hinder a renewed economic valorisation of chromium as a resource. The study follows the commodity chain of chromium. Besides macro- and microeconomic issues, a variety of social and geographical aspects as well as the influence of vari- ables relating to resource governance are discussed, both based primarily on qualitative field research. In addition, issues relating to competitiveness and perspectives on settlement and regional development are critically examined.

Zusammenfassung Chrombergbau war eines der wesentlichen ökonomischen Standbeine im sozialistischen Albanien. In Folge der Wirtschaftstransformation kam die Förderung in den 1990er Jahren nahezu zum Erliegen. Seit Beginn des 21. Jahrhunderts erlebt der Chrombergbau ein Revival, dessen Hintergründe, Kontexte, Probleme und Perspek- critical resource geography differen- ziert analysiert und bewertet. Auf der einen Seite steht die Seltenheit und Wertigkeit des Rohstoffes; beides tiven äußerst diversifiziert sind. Sie werden im Folgenden im Sinne einer - - wirtschaftlichegeneriert Nachfrage Inwertsetzung auf dem Weltmarkt der Ressource und definiert Chrom. entsprechendeDie Studie folgt Abhängigkeiten. der Wertschöpfungskette Auf der anderen Chrom. Seite Neben be Aspektenhindern mangelnde betrieblicher Effizienz, Transformationen geringe Professionalität werden, vorzugsweise und weit verbreitete auf der Basis Informalität qualitativer eine Feldforschungen,neuerliche volks thematisiert. Darüber hinaus werden die Konkurrenz- und Wettbewerbsfähigkeit sowie die Perspektiven der Regional-gesellschaftliche und Siedlungsentwicklung und raumstrukturelle an Bergbaustandorten Kontexte sowie Einflüsse kritisch derhinterfragt. Variablen der Ressourcen-Governance

Keywords Chromium mining, transition, glocalisation, critical resource geography, communist new towns; Albania

Göler, Daniel, Matthias Bickert and Dhimiter Doka 2015: Kromi çan bllokadën – Albanian chromium mining revisited. – DIE ERDE 146 (4): 271-288

DOI: 10.12854/erde-146-17

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“Kromi çan bllokadën” [Chromium against the blockade] The political upheaval of the 1990s and the renuncia- tion from the socialist system contributed to a complete

1. Introduction: the problem, the research question, of the industrial structure in Albania. Industrial activi- the concept ty,shortfall including of the chromium organisational mining, and rapidly financial dwindled framework away to almost zero. The mining regions in Albania’s north- “Kromi çan bllokadën – Chromium against the eastern periphery experienced existential problems, blockade” was one of the striking propaganda slo- which was to a lesser extent due to the quality of the gans of the 1980s in late socialist Albania. The country felt constricted in its development potential extraction as a result of the immanent weaknesses of by its immediate neighbours, and especially from theraw socialist material, system but ultimately in the valorisation to the inefficiency of the country’s of the its former trading partner USSR. For this reason, resources. Recorded output (Fig. 1) proves that a cer- the Albanian economic policy gradually commit- tain restructuring of chromium mining only occurred ted itself to auto-centric development. Chromium in the last decade. However, the restructuring was geo- played a leading role in the implementation of that graphically extremely selective and played out within endogenous strategy in this largely isolated, agrar- a very special economic and social framework, not ian and technologically backward country. The re- least because of its past history. In the following, three source chromite ore was one of the few opportuni- leading research questions help to highlight resulting ties of acquiring urgently needed foreign currency to overcome the “development blockade”. Deposits informality and corresponding interdependencies on in the peripheral mountainous regions in the north differentproblems political, such as economic permanent and inefficiency, social scales: persistent and east were subsequently developed and the resource supplied to the global market, but mostly as - unrefined raw material. Consequently, the country ency, in particular the extent of the “socialist legacy“ became the third-largest exporter of chromite ore resultingFirstly, this from was extreme influenced isolation by stability and a and subsequent depend worldwide (Schappelwein 1993: 381). One crucial transformation path characterised by intensive factor here was the strict implementation of a so- “shock treatment“. In contrast to that, “the persistent cialist system based on a flawless Stalinist orien- - tation, which means using extensive material, per- ence on external capital” (Kaser 2001: 627, 631) are sonal and financial resources and undersupplying stillneed central for external lines ofresource continuity inflow” in the and history the “depend and de- consumer goods to the population. velopment of the Albanian economy.

MillionMillion tonnes tonnes

1,21.2

1,01.0

0,80.8

0,60.6

0,40.4

0,20.2

0,00 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Fig. 1 Output of chromium mining in Albania. – Source: Schappelwein 1991: 148; Steblez 1994: 18; 1995: 4; 2000: 2.7; 2004: 4.9; Brininstool 2010: 2.3; 2013: 2.2

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Secondly, referring to the debate on globalisation, the The study aims to present the background to and the question of interlinking local with global becomes - more and more relevant given the recent turbulent um mining under the current institutional and po- past, rapid westernisation of the country and the con- liticalspecific conditions, course of thewhich most are recent completely revival different of chromi to nection with Albanian chromite extraction. With all those of its period of origin. In the wake of stability its economic, social and geographical implications and change in forms of organisation and production and interdependencies, this industry can almost be as well as in the value chain, the selected example called a paradigmatic example of the variability of is especially suited to demonstrating the variability spatial formations under the auspices of “glocalisa- and vulnerability of socio-spatial formations. This tion” processes (Robertson 1995). is true of interdependencies between different spatial levels and scales as well as the way in which the Thirdly, the “renegotiation of the relation of the global scale determines and affects the local scale. global, regional and local level” (Reuber 2012: 221) Following the philosophy of a critical resource geo includes in particular the economic geography di- graphy (Bridge 2009: 267) this analysis of chromium mension of spatial and institutional (re-)scaling mining and resource-dependent regional and local (Swyngedouw 1992, 1997) beyond the debate in so- development trends in Albania may serve as a con- cial sciences (loc. cit., Robertson 1995). tribution to the study of the political economy of raw material extraction in a transitional context. The concept of our study follows the basic approach of political economy. We analyse the contribution of the chromium resources to national, regional and lo- 2. Remarks on the political economy of resource cal development at a social, political and moral level geographies during post-socialism (Dicken and Lloyd 1990: 367). Years ago, (neo-)classical locational theories of In terms of a contemporary “economic geography re- the early 20th century were primarily concerned search agenda” (Bridge 2009: 267), we discuss in detail with natural resources and especially the deter- the role and legacy of knowledge, scarcity, governance ministic effect on economic locations and indus- and sustainability, and highlight these implications trial formations. Modernisation and dependence under the precept of evaluating the ascertained re- theory debates of the 1950s and 1960s dealt with sults, which actually involves analysing organisational the question of availability of natural resources and forms and the actions of key protagonists at a micro- the power constellations relevant to their exploita- economic level. From a macroeconomic perspective, tion. The following more recent economically and this involves in particular the issue of connectivity politically informed geographical research concen- trates mainly on two topics that are more or less of chromium mining for Albania. Conversely it involves related: One is the debate on natural resource man- aspectswith the ofglobal resource market governance, and the changing namely significanceapproaches agement (Mitchell 1989), which occasionally makes for the regulation of the commodity chain. special reference to rare metals (Reller et al. 2013). Another one emphasises natural resources as con- Both perspectives form the conceptual basis of an flict potential and a catalyst for war, civil strife or empirical case study carried out in northeastern Al- nepotism (among others Auty 2004; Le Billon 2004; bania in April 2013. We eventually follow the value Doe venspeck 2012; Andrews-Speed et al. 2012). chain of chromium from the ore deposits to the gate- way to the global market at the port of Durrës. Infor- But besides the last-mentioned topics, general in- mation from interviews with representatives of local terest in the geography of natural resources ap- and national authorities as well as managers and em- pears to be declining in the post-Fordist era, at ployees from the companies involved was contrasted least apart from the so-called carbon economies with impressions from local observation and media (Bridge 2011). However, Ostrowski’s (2013: 114) reports. A differentiated picture therefore emerges statement that “extracting industries [have been] of an economic sector that on the one hand holds eco- missing from the political economy analysis since nomic potential in an otherwise unprosperous and the 1970s” may underestimate the status quo. But marginalised region, but on the other hand bears it applies equally to the post-socialist transition high economic and social risks. period – just the hydrocarbon geographies of the

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Fig. 1 Chromium mining areas in Albania and relevant transport infrastructures

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Soviet Union and its transition were and continue has so frequently been seen as a ‘laboratory’ for spa- to be particular objects of research interest (see tial research and transition (e.g. King 2005). This ap- Kryukov and Moe 2013a, b). Studies on single phe- plies especially to manufacturing and mining, where nomena of transition in other mining sectors, such drawing parallels with other contexts of transition is as that of Waack (2009) or thematic readers such virtually impossible: Other economies of Eastern and as Dorian et al. (1993), however, are an exception. Southeast Europe (i.e. Yugoslavia, Romania, Bulgaria) had already adopted a much more global position than Theoretical approaches to the geography of natural Albania during socialism, and they were much more resources continue to focus on the resource curse competitive because of their technical infrastructure. (Auty 1993; Sachs and Warner 1995). This is the par- adox that economic development, especially in resource-rich countries, is often relatively poorer than 3. Why chromium? genesis and application would be expected in view of their natural resources (see Sachs and Warner 1995; Auty 2001). On the other Chromium and chromium compounds are used in a hand, as early as the 1930s H.A. Innis demonstrated wide range of technical applications such as tanning, with his staple theory how the economic development strength and heat resistance. Chromite ore is a stock grain, minerals and fuels, using the Canadian example resource,as a dye, or i.e. especially a scarce, in local,steel refiningexhaustible due toand its non-high (e.g.,of a country Findlay canand benefit Lundahl from 2001: single 100). staples The approachlike furs, was then much criticised and fell into oblivion later Cum grano salis, with these characteristics chromite on (Tamaschke 1980). Nevertheless, Innis refuted ex orerenewable resembles mineral the ofso-called global economicrare earth significance. elements, ante the hypothesis of dependency often expressed whose strategic importance is currently strongly on and used ubiquitously in connection with resource the rise. The main deposits and mining areas are locat- extraction and passivity and marginalisation of the ed in South Africa, Kazakhstan and India (Mati 2012). dependency theory (Bone 1992: 132). Of Albania’s chromite deposits, which are mined there and exported globally as unprocessed or enriched ore, A ”new economic geography that raises socio-spatial the most important customer is currently China, ac- questions on resource extraction“ (Bridge 2011: 821) counting for 75 % of exports (Kavina et al. 2010). is more productive regarding the techniques for re- writing spatial and social practices in the resource Albania’s chromite deposits are a result of the di- geographies in the context of post-socialist transi- naric-hellenic fold mountain orogeny. The so-called tion. Bridge (ibid.) suggests amongst others the topics Internal Albanides are seen as a continuation of the “cartography” and “ethnography”. We follow this re- foot of the Rhodope Mountains (Lienau 1993: 2). adjustment and offer a “cartography of reserves that They consist mainly of ophiolitic-basic and ultraba- Fig. 2), sic metamorphites from the Triassic and Cretaceous which is based on the example of the town of Bulqiza periods, the latter being especially important for territorialises and fixes chromite in space“ (see - chromite deposits. Such serpentinites also form the nent of livelihood and its variability. massif of the eastern Mirdita zone around Bulqiza, as an ethnographic field, supplemented by the compo where the highest quality chromite can be found. The example of chromium mining in Albania feeds The area of Tropoja (prefecture of Kukës) and cen- similar debates, even though Albania is neither a tral eastern Albania (Region of Shebenik-Pogradec) resource periphery nor a mineral economy. Never- (Lienau 1993: 3; Frasheri et al. 2009: 13ff.) are known theless, resource extraction serves “as an agent of - regional development” there (Bridge 2008: 391). 2O3 and 12-13% FeOfor smaller(Schappelwein fields of1993: comparably 381). The low reason quality. why Chro it is form of development, a view that has made mineral somite competitive in Albania containsglobally is19-54 % because Cr rust-free, acid- resourcesHowever, mineralsomething extraction of a ‘pariah’ is a “uniquely in development difficult proof and heat-proof steels can be produced even if theories” (Bridge 2008: 391). Bridge’s three key terms (agent of development, uniqueness, pariah) are high- 2O3 ly relevant in connection with mineral extraction in the FeO-ratio is 3:1. Generally, a distinction is drawn between rich chromium with more than 40 % Cr a country like Albania. This is perhaps all the more Cr2O3 (Mueller et al. 2013: 85). The latter needs to be valid because Albania, in view of its particular past, inmechanically the ore and enriched poor chromium before further with lessprocessing. than 30 %

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4. The development of Albanian chromium mining1 chromium mining (e.g. Kukës) or were newly founded, geographically bound to the mineral deposits (Kali- Because of its rich mineral resources, the Italian mash, Kam, Bater, Krasta or Klos; see Fig. 2). The small geologist and palaeontologist Paolo Vinassa de Regny settlements in particular are considered typical min- - ing towns, i.e. mono-functional settlements with only bania (Vinassa de Regny 1903) during the Ottoman a few urban functions and low centrality. produced the first geological map of northern Al- ing the reign of the Albanian monarchy (1928-1939), Since the beginning of the 1970s, Albania’s annual period. The official regulation of mining began Matidur production of chromium almost doubled. By the late 1980s it was slightly over 1.1 million tons (Sand- 1930sand in in 1929 Bulqiza the first in northeastern mining law was Albania. passed Italian ( ström and Sjöberg 1991: 941) whereas between 1.5 companies2012: 9). The expanded first chromite this mining was activity mined inat thethe latebe- and 1.6 million tons were planned for 1990 (Sand- ginning of the Second World War (Hall 1994: 105). ström and Sjöberg 1991; Schappelwein 1991: 148). With a share of around one third of the national During the communist period (1945-1990) and espe- budget, the sector’s contribution to the national cially after 1961 (following the break with the USSR) economy was enormous (Hall 1994: 23). the focus of economic development moved to ex- panding heavy industry. The country had very little industry of any sort at the time (Hall 1987: 40ff.; for what was involved in reality was primary mining, Schappelwein 1991: 149; Kaser 1993). The initially carriedThese figures out using hide relatively the inefficiency simple means. of the The “industry”, ore was close political connections with several COMECON exported in enriched form or even unprocessed and transported to the port of Durrës by road. An enrich- and later, until 1978, with China were extremely use- ment plant was built in Klos to which the ore from the fulstates in (mainlyobtaining the the Soviet necessary Union, Polandtechnical and expertise. the GDR) mines in Bulqiza could be delivered through a system Mining was very important to the concept of inten- of galleries, making use of the topography and differ- sive industrialisation because from the very begin- ences in altitude below ground. However, the railway ning, and increasingly so after 1978, the explicit aim from Klos to Durrës was never completed and so the was to develop closed production cycles. ore still has to be transported by road to this very day. Contemporaries tell of entire caravans of he