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.