Tougher measures to curb illegal mining

TIRANA, Jan. 31 – In a task force meeting held this week, Energy Minister Edmond Haxhinasto called for an end to illegal practices in the mining sector so that efficiency increases and local communities benefit more. “The mining sector is a very important branch of the Albanian economy in its trade balance, the development of rural areas and especially in increasing employment. Some 10,000 new jobs were created in this sector only last year,” said the minister calling for an increase in safety measures.
Government revenues from mining royalties rose to 5.2 billion lek in the first 11 months of 2012 up 2 billion compared to the same period in 2011, according to data published by the General Customs Directorate. Compared to 2009 when legal changes increasing royalty rates were not effective, collection has increased by almost seven times.
Data show the customs administration collected 3.6 billion lek (Euro 25 million) in 2011, up from 2.1 billion lek in 2010 and only 893 million in 2009. The mining royalty varies from 4 to 10 percent based on the kind of mineral. For chromium and copper, two of Albania’s most extracted minerals, the royalty is at 6 percent.
The increase in royalty is also a result of the increase in the number of concessions government has been awarding in the mining sector.
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 royalty.
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, two main companies are involved in mining in Albania, Austria’s DCM Decometal and Canada’s Empire Mining Tirex Resources.
Albania has around 390 million tonnes of unexplored oil reserves, some 3 billion m3 of natural gas, 740 million tonnes of coals, 32 million tonnes of chrome, and hundreds of tones 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.
The map features Albania’s metal and non-metallic mineral combustible materials and mineral waters in a computerized version accompanied by databases, also classifying the resources based on their importance.