The Mineral Industry of Serbia in 2015
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2015 Minerals Yearbook SERBIA [ADVANCE RELEASE] U.S. Department of the Interior August 2019 U.S. Geological Survey The Mineral Industry of Serbia By Karine M. Renaud Serbia has industrial mineral resources, including bentonite, 10%. Production of silica sand decreased by 77%; refined gold, borate, feldspar, kaolin, limestone, magnesite, mica, and by 52%; mine output of lead (Pb content) and zinc (Zn content), wollastonite; and metallic mineral resources, such as antimony, by 35% each; mine output of silver (Ag content), by 26%; chromite, cobalt, copper, gold, iron, lead, molybdenum, nickel, nitrogen (N content of ammonia), by 18%; selenium, by 13%; platinum-group elements, tin, tungsten, uranium, and zinc. The lime and refined petroleum products, by 12% each; and crude country also has mineral fuel resources and related materials. In petroleum, by 8%. Data on mineral production are in table 1. 2015, Serbia produced metals, such as aluminum, copper, crude steel, gold, lead, pig iron, platinum-group metals, selenium, Structure of the Mineral Industry silver, and zinc, and industrial minerals, which included cement, In 2015, Reservoir Minerals Inc. established a joint-venture chalk, silica sand, gypsum, kaolin, lime, limestone, marble, salt, agreement with Freeport McMoRan Exploration Corp. (FMEC) and sand and gravel. The country also produced mineral fuels of the United States for the Timok gold project. Reservoir and related materials, including coal, natural gas, petroleum, Minerals held 45% of the Timok project and FMEC held and petroleum refinery products (table 1; Monthel and others, 55% through its subsidiary Rakita d.o.o. In 2015, mining 2002, p. 5–6). and quarrying in Serbia employed 22,386 workers, of which Minerals in the National Economy 13,099 were employed in the mining of coal and lignite, 773 in the extraction of crude petroleum and natural gas, In 2015, Serbia’s real gross domestic product (GDP) increased 4,036 in the mining of metal ores, 3,296 in other mining and by 0.7% compared with a decrease of 1.8% in 2014. The quarrying, and 1,182 in mining support service activities. nominal GDP was $37.16 billion. Serbia’s industrial production Manufacturing employed 380,336 employees in 2015, which increased in value by 8.3% compared with a decrease of 6.5% included 1,761 employed in the manufacture of coke and refined in 2014. Serbia’s mining and quarrying production decreased petroleum products and 12,542 employed in the manufacture in value by 10.6% in 2014 compared with an increase of 16.6% of basic metals (Marketwired, 2015a; Serbia Energy, 2015d; in 2014. Manufacturing production increased in value by 5.3% Statistical Office of the Republic of Serbia, 2016c, p. 61–62, compared with a decrease of 1.4% in 2014 (Serbia Energy, 66). Table 2 is a list of major mineral industry facilities. 2015f; World Bank, The, 2015; International Monetary Fund, 2016, p. 232; Statistical Office of the Republic of Serbia, 2016a, Mineral Trade p. 258; 2016c, p. 258). In 2015, the total value of exports was about $13.4 billion Government Policies and Programs compared with about $14.8 billion (revised) in 2014. The export of manufactured goods accounted for 21.4% of total In 2015, the Law on Mining and Geological Explorations exports; raw materials, except fuels, 3.4%; and mineral fuels continued to be under revision. The law stipulates the and lubricants, 2.8%. Serbia’s main export partners were establishment of the Geological Institute of Serbia and Italy (which received 16.2% of Serbia’s exports), Germany formulates a strategy of mineral resources management. Under (12.5%), Bosnia and Herzegovina (8.8%), Romania (5.6%), the law, entities performing mining activities in Serbia are Russia (5.4%), and Montenegro (5.1%) (Statistical Office of the required to pay fees for the use of mineral and geothermal Republic of Serbia, 2016b, p. 313, 320). resources, as follows: 7% of the revenue from hydrocarbons The total value of imports in 2015 was about $18.2 billion in a liquid and gas state (crude petroleum and natural gas) and compared with $20.6 billion in 2014. Imports of manufactured other natural gases; 5% of the net revenue from smelters (the goods accounted for 18.1% of total imports; mineral fuels revenues from the sale of final product); 5% of the revenue from and lubricants, 11.5%; and raw materials, except fuels, 4.1%. nonmetallic raw materials; 3% of the revenue from all types of Serbia’s main import partners were Germany (which supplied coal and oil shale; 2% of the revenue from geothermal energy 12.4% of Serbia’s imports), Italy (10.6%), Russia (9.6%), and (Ministry of Mines and Energy, 2014, p. 77; Jelenković, 2016, China (8.5%) (Statistical Office of the Republic of Serbia, p. 4, 6–7; KPMG d.o.o., 2016, p. 10). 2016b, p. 314, 320). Production Commodity Review In 2015, production of hot-rolled steel products was estimated Metals to have increased by 160%; smelter copper, by 67%; pig iron and crude steel, by 64% each; refined copper (primary) and Copper and Gold.—In 2015, despite the difficulties resulting palladium, by 35% each; platinum, by 33%; coal (lignite), and from low global prices for copper and gold, RTB Bor produced sand and gravel, excluding glass sand, by 27% each; marble and 44,646 metric tons (t) of refined copper, 55,000 t of copper granite blocks, by 20%; and limestone, gypsum, and chalk, by smelter output, 628 kilograms (kg) of gold (refined), 5,470 kg SERBIA—2015 [ADVANCE RELEASE] 39.1 of silver, 14,950 kg of selenium, 31 kg of palladium, and 4 kg 5,000 employees, and to increase production at the plant. In of platinum. In November 2015, a new refinery and smelter 2015, Hebei Iron and Steel Group Co. Ltd. of China expressed started operating at RTB Bor with a production capacity of interest in acquiring the Zelezara plant, proposing to invest 80,000 metric tons per year of copper anodes. In 2015, RTB $320 million [300 million euros (EUR)]1 (eKapija, 2015; Ilić, Bor started to mine a new section at the Majdanpek Mine—the 2015; InSerbia Network Foundation, 2015; Thomson Reuters, Dolovi 1 section. To enhance production at the Jama Mine, 2015; Williams, 2015). the company was expecting to start excavation at ore bodies Lead and Zinc.—In 2015, Mineco Group of the United “T3” and “D” in 2016. The reserves of T3 were estimated to Kingdom invested $11 million in Bosil Metal d.o.o. to conduct be 4.3 million metric tons (Mt) of ore grading 0.66% copper, exploration for lead and zinc in the Bosilegrad municipality. 0.31 gram per metric ton (g/t) gold, and 1.67 g/t silver. RTB Bor The exploration project was expected to be completed by also planned to continue mining at the Cerovo Mine by starting March 2016. The company planned to start preparation for mining activities at the new surface mine (Cerovo 2) in 2016 a feasibility study once the exploration is complete (Serbia (table 1; Serbia Energy, 2013; Kolektiv, 2015a, p. 2; 2015b, p. 4; Energy, 2015c). 2016, p. 3, 9; Rudarsko Topionicki Bazen Bor, 2015). In 2015, production at the Veliki Majdan lead and zinc mine In 2014, Dundee Precious Metals Inc. of Canada announced increased despite the flooding that caused interruptions in that it was acquiring a 50.1% share in Avala Resources Ltd. of mining. Production of lead and zinc concentrates increased by Canada (Avala) in Serbia; the acquisition was expected to be 24%. In 2015, 47,000 t of ore was mined and 2,562 t of lead completed in 2016. In 2015, Avala agreed to form a joint venture concentrate and 3,582 t of zinc concentrate were produced. The with Rio Tinto plc of the United Kingdom on the Lenovac Veliki Majdan Mine, which is located in Ljubovija municipality, project; Rio Tinto would hold 75% interest in the Lenovac was owned by Mineco Ltd. of the United Kingdom and project and Avala would hold the remaining 25%. Avala started employed 800 people (Serbia Energy, 2015b, c). exploration on the Lenovac project in 2015. Avala had acquired the Timok gold project from Dundee Precious Metals in 2010 Industrial Minerals through its subsidiary Avala Resources d.o.o; the project Lithium and Boron.—Rio Tinto plc held 100% interest was located in east-central Serbia about 270 kilometers (km) in the Jadar lithium-borate project through its wholly owned southeast of the capital city of Belgrade and to the west of the subsidiary Rio Sava Exploration d.o.o.; the project was located Cretaceous Timok magmatic complex. The Timok gold project, about 100 km from Belgrade in western Serbia. As of yearend which had a total area of 570 square kilometers, hosts the Bigar 2013, the total mineral resources at Jadar were estimated to Hill, the Korkan, the Korkan East, and the Kraku Pester deposits be 118 Mt at average grades of 1.8% lithium oxide and 13.1% and comprises the following seven exploration areas: Bigar boron oxide, of which inferred resources of borates were Istok, Blizna, Breza Malinik, Goli Vrh, Lenovac, Potoj Čuka estimated to be 18 Mt. In 2015, a prefeasibility study was at the Tisnica, and Tilva Toma. As of May 2014, the inferred resources final stage. Rio Tinto planned to submit its study on reserves for the Bigar Hill, the Korkan, and the Kraku Pester deposits, to the Ministry of Energy at the beginning of 2017 and to start which are located within the Potoj Cuka Tisnica exploration mining if and when the Ministry of Energy accepts the study area, were estimated to be 38 Mt at an average grade of 1.3 g/t (Rio Tinto plc, 2014, p.