Data show some 770 mining permits are currently in force, of which 150 are for exploration purposes
TIRANA, Oct. 10 – Albania’s Economy and Energy Ministry has announced it will issue 151 mining concession contracts by the end of this year as part of a new legal package it has drafted to reform the sector. In a statement, the Ministry says it invites bids for 151 mining licenses this year and plans to allocate 20 of them in weekly competitions.
“The Ministry of Economy, Trade and Energy will organize this year the competition procedures for 151 mining areas and 20 mining objects and mining stocks of the former state-owned enterprises,” the Ministry said.
“Competition procedures are expected to be held each week for 20 zones. Currently, 36 zones have been published. The rest will be published in the coming days,” the Ministry added.
The details of the mining areas will be published in the websites of Economy Ministry and the Albanian Public Procurement Agency.
A recent report by the Extractive Industries Transparency Initiative (EITI), the first since Albania became an EITI candidate country in May 2009, has shown that the vast majority of 93 percent of the Albanian government’s revenues from the extractive industries come from the oil and gas sector.
Despite the large number of companies operating in the mining sector, government revenues from this sector are relatively smallؕS $2 million in 2009. Out of the 31 mining companies with a relatively significant production, only six small and medium-sized companies did not provide data in time to be included in the report. The report covered three minerals: chrome (13 companies), copper (13 companies) and nickel (five companies).
Under the new legal package, mining permits will be offered by the state under competitive procedures through the mid-term programme approved by the Council of Ministers and the 437 mining zones planned for this period.
Data show some 770 mining permits are currently in force of which 150 are for exploration purposes.
The new 2011-2014 strategy on the mining sector foresees a 5 percent increase in production. Since 1994, when a new mining law was approved soon after the communist system collapsed, Albanian mines have been explored by private companies under mining permits and concessions.
Under the new law, the local government units will benefit 20 percent of the mining rent. Another element the draft law brings is the financial guarantee for companies which want to get a mining permit. Currently, three main companies are involved in mining in Albania, Austria’s DCM Decometal and Canada’s Empire Mining Tirex Resources.
