New mining map unveils Albanian unexplored treasures

TIRANA, Dec. 6 – Albania has around 390 million tons of unexplored oil reserves, some 3 billion m3 of natural gas, 740 million tons of coal, 32 million tons of chrome, and hundreds of tons of other iron-ore and copper reserves, proving the country’s rich mineral reserves despite the small territory it occupies. The findings are revealed in the latest mineral resources map of Albania, an updated version of 1971 and 1989 publications during the country’s communist regime.
Launching the map prepared by the Albania’s Geological Services this week, Economy Minister Nasip Naco described it as the best tool to support the development of the mining sector in Albania, and obligations stemming from the new mining strategy, new concepts of planning, transparency and free competition.
The map features Albania’s metal and non-metal minerals, combustible materials and mineral waters in a computerized version accompanied by databases, also classifying the resources based on their importance.
The mining map features 15 oil resources, 6 gas resources and more than 500 sites of solid minerals, the majority of which being chromite and copper, bringing an updated version for new potential domestic and foreign investors.
Data published by the Economy and Energy Ministry show Albania has reserves of 427 million tons of oil and has managed to produce 50 million tons since modern-day exploration in the early 20th century. Natural gas reserves are estimated at 13 billion m3 with production at 10 billion m3. Albania also has huge reserves in coal with an estimated 800 million tons but production at only 38 million tons to date. Chromite and copper reserves stand at 32 million and 48 million tons respectively, based on calculations from the ministry’s data on reserves and production to date.
Last October, Albania’s Economy and Energy Ministry 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.
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
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. Under the new law, the local government units will benefit 20 percent of the mining rent.
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.
Currently, three main companies are involved in mining in Albania, Austria’s DCM Decometal and Canada’s Empire Mining Tirex Resources.