New Draft Law to Eliminate Mining Permit Abuses

TIRANA, March 18 – The Albanian Business Consultative Council has expressed its approval to the draft law on the mining sector compiled by the Ministry of Economy, Trade and Energy.
Speaking at a meeting of the Council last week, Economy Minister Dritan Prifti, who also chairs the Council, said the new changes would make possible the elimination of abuses of mining permits in Albania. Under the new draft, the local government units will benefit with 25 percent of the mining rent. Another novelty the draft law brings is the financial guarantee for companies which want to get a mining permit.
The company seeking to obtain a permit must deposit 10 percent of the investment value foreseen in the exploration permit in a bank to avoid the possibility of granting permits to companies which cannot explore them, said the ministry.
Should the company manage to fulfill this investment plan within the first year, the sum is immediately returned.
“We have set some criteria regarding the surface area of a mining permit. These changes are necessary to discipline this sector better in favour of the state and companies which are serious,” said minister Prifti.
Members of the Business Consultative Council expressed the necessity of disciplining and setting stricter criteria regarding the exploitation of mining permits.
Meanwhile, the Industrial Policy Director at the Ministry of Economy, Sokol Mati, elaborated on the novelties of the draft law such as the concepts of the mining strategy, transparency and competition, the participation of local government authorities in the decision-making and the rehabilitation mining waste hotspots.
Robust commodity prices and the recovering Albanian economy have led to an increase in mineral exploration and mining activities in several regions of Albania. Both chromium and copper production have increased steadily since 2004, and several foreign companies have begun to explore for and develop Albania’s abundant mineral wealth utilizing modern technologies.