MINISTRY OF MINING AND ENERGY
BLY PLUS trading agency for
mining and construction equipment Email: bly@sbb.rs; violetabilic@sbb.rs Phone: +381 11 317976; +381 63 202 661 Address; Generala Mihajla Nedeljkovica 84b, 11070 Novi Beograd bly_plus_mining_equipment BLY PLUS
ABOUT US! Already in 1993 BLY PLUS has started its journey as a representing agency for the company BOART LONGYEAR WHO DO WE REPRESENT? We also represent some of the biggest and most popular companies in this field like WEIRMINERALS-GEHO, PAUS, BRIDON BEKAERT, MINOVA! AREA OF REPRESENTATION Areas where BLY represent manufacturers include: Serbia, Kosovo, Bosnia and Herzegovina, Montenegro, Macedonia.
MONARK-NORWAY is one of the world leading producers off percussive drill steel, like integral drill steel, tapered rods, plug hole rods, threaded rods, button bits and furnace tapping equipment
www.bly.co.rs
MINING SECTOR 2021
CONTENT
06
CAN SUSTAINABLE MINING BE LESS OF AN OXYMORON?
COMMENT
08
MINING CAN BE 18 ENVIRONMENTALLY FRIENDLY
H.E. JAN LUNDIN, SWEDISH AMBASSADOR TO SERBIA
MINING HAS SERIOUS DEVELOPMENT POTENTIAL
32
EXPECTING NEW INVESTMENTS
SLOBODANKA LAZAREV, CEO, JANTAR GRUPA
ZORANA MIHAJLOVIĆ PH.D., DEPUTY SERBIAN PRIME MINISTER AND MINISTER OF MINING AND ENERGY
NATURE IS NOT 33 EXPLOITED, BUT PRESERVED
MINES BRING 40 NEW NEW TECHNOLOGIES
BRANKO ZEČEVIĆ, PRESIDENT OF THE GEOLOGICAL AND MINING ASSOCIATION OF SERBIA (GRAS)
MIHAILO DVOJAKOVIĆ, DIRECTOR, Mg Serbien
20
MINECO: MINING FIRST, GEOLOGICAL EXPLORATION SECOND
BOJAN POPOVIĆ, DIRECTOR OF LONDON-BASED MINECO LIMITED
12
WE GLADLY SHARE OUR KNOWLEDGE
H.E. GILES NORMAN, AMBASSADOR OF CANADA TO SERBIA
26
DR MILINKO RADOSAVLJEVIĆ, DIRECTOR OF THE MINING INSTITUTE OF SERBIA EDITOR IN CHIEF Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs
JADAR PROJECT – DEVELOPMENT OPPORTUNITY FOR SERBIA
PHOTOS Zoran Petrović
OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs
COPY EDITOR Mark Pullen mrpeditorial@mail.com
EDITORIAL MANAGER Neda Lukić n.lukic@aim.rs
4
CHRIS JAMES, CHAIRMAN AND CEO, TARA RESOURCES AG
CONSTRUCTION WASTE 47 IS A VALUABLE RAW MATERIAL FUTURE IS 37 MINING’S DIGITAL
IVAN JOVANOVIĆ, MINING BUSINESS DIRECTOR SOUTHEAST EUROPE, FLSMIDTH
FINANCE Dragana Skrobonja finance@aim.rs GENERAL MANAGER Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić
SLOBODAN DRAGANOVIĆ, TEHNICAL DIRECTOR, ŠUTEX D.O.O.
THE 42 CHASING BALANCE UNDER AND 52 TREASURE ABOVE GROUND
VESNA PRODANOVIĆ, GENERAL MANAGER OF RIO SAVA EXPLORATION D.O.O.
PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs
42 NEWS HISTORY, GREAT 46 LONG FUTURE
INVESTMENTS IN THE MINING SECTOR OF PUBLIC ENTERPRISE ELECTRIC POWER INDUSTRY OF SERBIA - EPS PAUL CRONIN, CEO AND MANAGING DIRECTOR OF ADRIATIC METALS PLC.
15
DRAGOMAN RABRENOVIĆ PH.D., DIRECTOR OF THE GEOLOGICAL SURVEY OF SERBIA / SERBIAN GEOLOGICAL INSTITUTE
PROJECTS FOR A 22 STABLE ENERGY FUTURE
24 YEAR OF BIG PLANS LINKING SCIENCE AND PRACTISE
FOR THE 34 PLEDGE FUTURE
a.novcic@aim.rs a.novcic@cordmagazine.com PRINTING Rotografika d.o.o. Segedinski put 72, Subotica MINING 2021 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia
Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 24 ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those
of the presenter; they do not necessary reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE
This is Epiroc
Our segments
Epiroc is a leading global productivity partner for the mining and infrastructure industries. With groundbreaking technology, we develop and produce innovative, safe and sustainable drill rigs, rock excavation and construction equipment, and tools. We also provide world-class service and solutions for automation and interoperability.
The Equipment & Service segment provides equipment and solutions for rock drilling, mechanical rock excavation, rock reinforcement, loading and haulage, ventilation systems, exploration drilling, drilling equipment for water, energy, oil and gas. It also provides related parts and service and solutions for automation and interoperability.
Equipment & Service
We have a strong operating model characterized by focus on innovation, a strong and resilient services business, and an agile and decentralized operational setup. Our world is changing and our ambition is to be the leader in automation, interoperability and fossil-free operations.
Surface equipment
Underground equipment
We are a 147-year old start-up – a dynamic new company, but with proven expertise and experience. Epiroc means at or on rock, coming from Greek and Latin roots. It reflects our core business, our proximity to customers and the strength of our partnerships.
Parts & Service
Automation and digital solutions
Epiroc is based in Stockholm, Sweden, had revenues of SEK 41 billion in 2019, and has more than 14 000 passionate employees supporting and collaborating with customers in more than 150 countries. Learn more at www.epirocgroup.com. Epiroc was part of the Atlas Copco Group, founded in 1873, until June 18, 2018, when Epiroc was distributed to the shareholders of Atlas Copco and listed on Nasdaq Stockholm
Tools & Attachments
The Tools & Attachments segment provides rock drilling tools and hydraulic attachments that are attached to machines and used mainly for drilling, demolition and recycling as well as rock excavation. It also provides related spare parts and service.
Rock Drilling Tools
Hydraulic Attachment Tools
5
MINING SECTOR 2021
COMMENT
Can Sustainable Mining Be Less
OF AN OXYMORON? The best modern mining practises represent a huge step forward in terms of maintaining a more sustainable environmental footprint. In order to progress in a responsible way, Serbia's private and public sectors need to cooperate.
F
ollowing the 2002 World Summit on Sustainable Development, nine of the world’s largest mining companies decided to initiate a project aimed at examining the role of the minerals sector in contributing to sustainable development, and how that contribution could be increased. Almost two decades on, this quest continues. The best modern mining practises represent a huge step forward compared to previous practise. Most of the world’s leading mining companies are today committed to making continuous progress on environmental performance. However, the holy grail of sustainable mining remains hard to achieve. Even the best modern operations may have some undesirable environmental impacts, while good practises are slow to gain ground across the industry. The objective of improved performance is to ensure that critical natural resources are maintained and ecosystems are enhanced, if possible. 6
Many underdeveloped and developing countries view mining as an opportunity for economic growth. However, the overall positive impact of the mining sector is much greater if there are strong linkages to other industries. Serbia hopes to rebuild some of those links. That is to say that mineral wealth should not only contribute to economic development, but also to net environmental continuity. The challenge is huge, both in the short and medium term. It is often said that the private and public sectors need to cooperate in order for progress to be achieved in a responsible way. That is exactly what foreign investors, the Serbian government and academia are
trying to achieve with amendments to the Law on and Geological Research, the adopting of a whole set of new by-laws and the introduction of e-mining. These steps must secure increased investments in the mining sector, solid planning and the preservation of Serbia’s mineral wealth. Many underdeveloped and developing countries view mining as an opportunity for economic growth. However, by definition, the overall positive impact of the mining sector is much greater if there are infrastructure benefits and strong linkages to other industries, especially through domestic procurement. Most of those capacities in Serbia were devastated in the 1990s, during the civil war and economic crisis in Serbia, so there are today high hopes that foreign investments will also mean that Serbia will gain some processing facilities and that more value added products will be made within the country’s borders. With the use of highly advanced technologies, mining today doesn’t offer many jobs. However, employment related to the mining sector was very high in countries where linkages were strong, even before taking into account the multiplier and fiscal expenditure impacts. Cooperation between the public and private sectors seems to have been essential to increasing such linkages. Moreover, mining firms have often made substantial contributions to local and regional development, at times due to legal requirements but often not. This now seems to be one of the most pressing issues in those parts of Serbia where mining sites are concentrated.
MINING SECTOR 2021
7
MINING SECTOR 2021
INTERVIEW
ZORANA MIHAJLOVIĆ PH.D., DEPUTY SERBIAN PRIME MINISTER AND MINISTER OF MINING AND ENERGY
Mining Has Serious
DEVELOPMENT POTENTIAL The value of Serbia's mineral wealth totals in excess of 200 billion dollars, and that wealth should be used in a sustainable way – in order to contribute to economic development and growth, and for that to be responsible towards the environment and, finally, for us to see the effects of that in Serbia's national budget.
O
ur aim is to create the conditions to invest in mining in Serbia, for investors to be able to rely on transparent and efficient procedures, but, on the other hand, for us as a state to take care of our mineral resources, of the income that’s generated from their use, and for all projects to be in compliance with requirements that relate to the environment. - This is how Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović summarises the directions of the ministry’s activities in the field of mining for the period ahead. ou started your term by announcing reforms in the sectors of energy Y and mining. What are the preconditions for these two sectors to become development drivers of the Serbian economy? Mining and energy are sectors that have long been “sleeping” and have not developed in the previous six years at the speed required for Serbia to be energy secure and to utilise the potentials that exist in these sectors. Mining is a sector that has been stalled for a long time completely undeservedly. We want to fix this injustice, because mining has much greater potential than is currently utilised. The value of Serbia’s mineral wealth totals in excess of 200 billion dollars, and that wealth should be used in a sustainable way – in order to contribute to economic development and growth, and for that to be responsible towards the environment and, finally, for us to see the effects of that in Serbia’s national budget. It was with this aim in mind that the Ministry prepared draft amendments to the Law on Mining and Geological Research, with which we want to create the conditions for Serbia to gain a modern and much more successful mining sector. This means that we want to attract new investments to Serbia, and for the share of mining in GDP to increase over a period of about three years to be close to 4%, instead of the current 1.9%. With this in mind, it is important to better protect our mineral resources, and to secure higher revenues for the state, because 8
mining resources are non-renewable. Last but by no means least, we want the development of mining to be sustainable, and for everything done in this area to be carried out with adherence to all regulations and the highest environmental standards. Juxtaposed to that, Serbia is in a period of major and serious changes to the energy sector, because we are turning towards climate-neutral development, which implies increased investment in renewable energy sources and energy efficiency, while electricity production from coal – as part of the energy transition – will be gradually reduced in the coming decades. The beginnings of these changes are already visible in the draft laws prepared by the Ministry. By amending the Law on Energy and introducing new laws on renewable energy sources and a law on energy efficiency and the rational use of energy, we will enable the energy sector to operate more efficiently and orderly and to be harmonised with current regulations and processes applied in the European Union. At the same time, we are starting to establish new directions in our energy policy, in which we want to raise energy efficiency to the level of the national goal and national project, as well as creating opportunities to invest in and use much more energy from renewable sources. Among other things, with the new law we’ve provided the possibility for customers to also be energy producers, to have solar panels on the roofs of their houses, residential buildings, production facilities and sports halls. ou’ve announced e-energy and e-mining, or the digitisation of Y procedures. Will that require more or less work compared to building permits? How much have we progressedin the digital transformation of administrative procedures as a country, at both the national and local levels? With the introducing of e-permits in construction we showed what we are capable of doing as a country when the political will, knowledge, commitment
MINING SECTOR 2021
MANDATE
REVENUE
TURNAROUND
Serbia as a state should play a key role in managing its own mineral wealth, and that should be recognised in all legal solutions, as well as strategic documents
By increasing the mineral exploitation royalty charge, we will value our mineral wealth more as a country, while on the other hand that will impact significantly on increasing the budget of the Republic of Serbia
Mining is a sector that has been stalled for a long time completely undeservedly. We want to fix this injustice, because mining has much greater potential than is currently utilised
Serbia is in a period of major and serious changes to the energy sector, because we are turning towards climateneutral development, which implies increased investment in renewable energy sources and energy efficiency and a clear goal exist. From a country that was ranked 186th in the world in the field of issuing building permits, we’ve reached 9th place on the list of the World Bank’s Doing Business Index. We said that we want to apply this model to other areas, and now we’ll do just that in the fields of energy and mining, through e-energy and e-mining. The legal basis for digitisation has been created through proposed amendments to the law, which will enable the introduction of electronic procedures. This will bring great changes not only in energy, but also in mining, where a digital procedure is being introduced in mining to obtain documentation for the first time. This means that permits will be issued under shorter deadlines, falling on average from the current 150 days to around 15 days, while investors will be able to monitor the exact stage that their procedure has reached. In other words, the effi-
ciency and electronic procedures that we introduced for the issuance of construction permits will now also exist in mining, as well as in energy. ou’ve also announced the creation of conditions for the entry of Y private capital in the field of energy and mining. The experience with mini power plants didn’t prove to be the most fortuitous concept. How will you progress? Neither mining nor energy can advance without new investments, and without their significant increase. Our task is to create the conditions for that, for us to have clear and transparent procedures that are equal for all investors, while at the same time protecting the interests of the state, for example when it comes to taking care of mineral resources. 9
MINING SECTOR 2021
INTERVIEW The same applies to renewable energy sources, where the goal is for that potential to be better utilised, which – together with investing in increasing energy efficiency – should enable us to generate about 50 per cent of electricity from renewable sources by 2050. The focus in this area will primarily be on new medium-sized and large hydropower plants, which can most quickly ensure energy security and compensate for the gradual reduction of coal-fuelled electricity production. In addition to this, the use of solar energy is especially important in all parts of Serbia, as well as greater use of biomass potential, particularly in heating plants, while we also expect continued investment in the use of wind energy. When it comes to the construction of small hydropower plants, one of the basic and most stringent criterion from the aspect of environmental protection relates the conditions issued by the Institute for Nature Protection of Serbia and its agreement to the Environmental Impact Assessment Study. That’s precisely why we will stipulate in the Draft Law on RES that qualification for participation in auctions envisaged for each project must include a confirmed Environmental Impact Study, which has been confirmed by the Ministry of Environmental Protection, in order for us to eliminate any project that would harm nature in any way.
The Ministry of Mining and Energy will continue its analysis of the application of possible models for mineral exploitation royalty charges and their increasing, starting from the fact that we want amendments to the Law on Mining and Geological Research to provide an environment in which Serbia’s mineral wealth, which has a value exceeding 200 billion dollars, will be valorised in a sustainable and responsible way, with its full contribution to economic development and growth. By increasing the royalty charge, we will value our mineral wealth more as a country, while on the other hand that will impact significantly on increasing the budget of the Republic of Serbia.
A priority for us, as the Government, is for everything in mining to be done with the highest level of technology, and the highest degree of environmental protection, because there is no amount of money and investment that can justify the destruction of the environment
ou’ve also announced the way mineral Y exploitation royalty charges are to be determined. We saw in the previous period that this is an issue that has its own political weight. What are you striving for as the ideal variant of change, and what would it be realistic to expect? The level of royalty charges, i.e. fees for the exploitation of mineral raw materials, is regulated by the Law on Fees for the Use of Public Goods, which is under the jurisdiction of the Ministry of Finance. We have forwards an initiative to the Ministry of Finance to amend the level of fees, with the aim of securing greater funds for the budget of the Republic of Serbia from the mining sector, and the Ministry of Finance - as the competent ministry - will analyse and evaluate this initiative and make a decision. Mineral royalty charges in Serbia are today the lowest by far compared to all surrounding countries. For example, in Romania this fee ranges from two to 10 per cent of the value of mining production, and in Hungary it ranges from two to 12 per cent. In North Macedonia the fee is 1.5 to 15 per cent of the value of sold mineral raw materials, while in Russia this fee ranges from 3.8 to 20 per cent, depending on the value and type of mineral raw material. 10
I n your opinion, what is the best way for Serbia to retain part of the value created on its territory – not only at the moment of exploitation, but also when production ceases? Firstandforemost,Serbiaasastateshould play a key role in managing its own mineral wealth, and that should be recognised in all legal solutions, as well as strategic documents. Security for investors, in terms of a predictable and stable legal framework, must be accompanied by greater security for the state in terms of providing essential quantities of raw materials that will be processed in our country and getting the final product created from them. We thus create an environment for the sustainable use of mineral resources with clearly defined rules for its further treatment, and we do so with a special emphasis on human health and environmental protection.
hat are your most important priorities when it comes to current W projects, including lithium exploitation? The Jadar Project is the project with perhaps the greatest development potential of all projects in the mining sector, due to the high level of investment and the number of people to be hired, but also due to the possibility of organising the production of batteries for electric vehicles in Serbia. which is particularly important to us. However, a priority for us, as the Government, is for everything to be done with the highest level of technology, and the highest degree of environmental protection, because there is no amount of money and investment that can justify the destruction of the environment. Only when all the analyses and studies have been carried out, especially the environmental impact study, will we discuss and examine the final decision on this project. What we certainly won’t allow is for this project to be politicised, and for panic to be spread among citizens in order for someone to score political
MINING SECTOR 2021
important institution in this field, via the University, to professional aspoints by spreading untruths about the project’s environmental impact. I understand the fear that people have, because I’m very well aware of sociations. Through amendments to the Law on Mining and Geological the experiences that citizens had with the Zajača Mine, and that’s why Research, it has been proposed that the competencies and role of the everything related to this project must be completely transparent, in Geological Survey of Serbia be strengthened, as this is an institution order for the citizens of Loznica and Podrinje to be informed about every with a great international reputation, where all data from geological step, and the Government has formed a special working group to monitor this project. In the area of renewable energry sources the focus will primarily Of the remaining projects, the launch of operations be on new medium-sized and large hydropower plants, which at the Čukaru Peki copper and gold mine, by company Serbia Zijin Mining, are planned for the second half of can most quickly ensure energy security and compensate for the the year, with which conditions will be provided for the gradual reduction of coal-fuelled electricity production exploitation of these mineral reserves with an annual capacity of 3.3 million tonnes and an increase in the production of copper concentrat, which is also significant because of research will be collected. Moreover, the Geological Survey will give the impact on GDP and job creation. The total value of the investment its opinion on all feasibility studies and general projects for capital in the entire project is 474 million dollars. The construction of flotafacilities of importance to the Republic of Serbia. An important intion plants in Majdanpek by the Serbia Zijin Copper company is also novation in amendments to this law is that licenses are to be introexpected to be completed by year’s end 2021. duced for individuals and companies engaged in mining and geology for the first time. These licenses will be issued by the profession, i.e. the Chamber of Mining and Geology that will be established on the When it comes to the reform of the mining sector, to what extent model of the Serbian Chamber of Engineers, in order for us to have does Serbia utilise its human resources when it comes to our scia fully organised and reviewed system in this segment too, which is entific community at universities and institutes? important not only today, but also for all those who will deal with this There can be no development of mining without a strong foothold profession in the future. in the profession, from the Geological Survey of Serbia, as the most
11
MINING SECTOR 2021
INTERVIEW
H.E. GILES NORMAN, AMBASSADOR OF CANADA TO SERBIA
We Gladly Share
OUR KNOWLEDGE We welcome the intention of the Serbian Ministry of Mining and Energy to further develop the mining regime and adjust it to the needs of the most important stakeholders: citizens of Serbia and the mining industry. Canada is committed to support that process and we will continue to discuss details of that cooperation with the Ministry.
C
anadian companies are responsible for some of the major successful exploration projects that are currently developed in Serbia, representing an important cornerstone in Serbia’s decision to further develop its capacities in the mining sector. We spoke with H.E. Giles Norman (Designate), Ambassador of Canada to Serbia, about possibilities for transfers of knowledge and best practices in sustainable mining. I n 2013, previous Canadian ambassador to Serbia Roman Vaschuk expressed surprise that many in Serbia “neglect the importance 12
of the mining potential for the development of the entire Serbian economy”. How have things changed in the meantime; and how much has Canada contributed to this change? Mining has a long tradition in Serbia and it is my understanding that local communities are well aware of its importance, considering that several regions in this country, especially in Eastern Serbia, are economically dependent on mining. Serbia plans to strategically develop the mining industry’s share of GDP from the current 1.6% to 4%, and to do so largely thanks to excellent mineral deposits, which are recognised by international mining investors, including those
MINING SECTOR 2021
RECOGNITION
OPPORTUNITY
ENVIRONMENT
Canada is recognised globally for its leadership in developing sustainable mining standards
We will be looking for opportunities to partner with Serbia in successfully transitioning away from coal
I am encouraged by the Serbian local authorities’ commitment to cope with challenges related to pollution of air, water and soil
from Canada. That said, I would say that Serbia is heading in the right direction in leveraging from its good geographic position and mineral deposits richness, and that the government has recognised the opportunity to develop the mining industry to its full potential. Canadian companies discovered Serbia’s mining potential almost 20 years ago and are responsible for some of the country’s major successful exploration projects, including the development of the globally famous copper-gold deposit Čukaru Peki in Bor. We are also proud that Canadian mining investors, who have a proven track record in developing sustainable operating mines in the region, are also developing projects in Serbia, and we look forward to the further progress of these projects. Several years ago, SNC Lavalin led the project of the new smelter construction in RTB Bor, which contributed to reducing air pollution in that city. Our companies have developed partnerships with some of the biggest mining investors in Serbia on exciting and innovative projects that are focused on critical minerals, such as lithium. My impression so far is that Canadian investors enjoy a good reputation in Serbia, as they were one of the first foreign investor groups to expand to the Serbian market, transferring their responsible business conduct standards and knowhow in exploration, which is a very important stage in the life cycle of a mining project. ustainable mining is becoming more important every day. S How do you deal with these issues at home, and what would be the key lessons you would like to share with the Serbia public? Mining is often perceived as a dirty, polluting industry, given that a traditional view of the typical mine would be an open pit with an enormous environmental impact on surrounding territories. Major stakeholders in mining: local communities, the private sector and governments, long ago recognised that, while mining remains critical for our everyday lives, its direct and indirect impact on environmental and social well-being must not exceed its benefits. This resulted in the development of strict national and international environmental, health&safety and social standards in mining, innovative technologies and an increase in strategic and inclusive project development communication, which led to what we today call ‘sustainable mining’. Canada is recognised globally for its leadership in developing sustainable mining standards, which our companies need to respect regardless of whether their projects are in Canada or abroad. The Mining Association of Canada’s Towards Sustainable Mining (TSM) standard is a globally recognised sustainability programme that supports mining companies in managing key environmental and social risks. TSM was the first mining sustainability standard in the world to require site-level assessments and is mandatory for all companies that are members of implementing associations. Through TSM, eight critical aspects of social and environmental performance are
evaluated, independently validated, and publicly reported against 30 distinct performance indicators. Increasingly, other mining associations, governments, investors and manufacturers are looking to TSM as the global best practice in sustainable and responsible mining. In recent years, mining associations in Spain, Finland, Norway, Botswana, Argentina, Brazil and the Philippines have adopted the programme. We hope to work with Serbian mining authorities on the adoption of this standard in this country as well.
The Mining Association of Canada’s Towards Sustainable Mining (TSM) standard is a globally recognised sustainability programme. We hope to work with the Serbian mining authorities on the adoption of this standard in this country as well ustainable mining is increasingly related to digital and innovaS tive solutions. Serbia just embarked on the e-mining road. What is the Canadian experience in this area? The transparency, predictability and efficiency of the permitting process are crucial for the successful realisation of mine development, given the reality of the mining project life-cycle that can span over a 30-year period. After adopting the new Law on Mining in 2015, which relies on the best international practices from countries like Canada or Australia, Serbia was ranked very high in the international mining community for 13
MINING SECTOR 2021
INTERVIEW its regulatory framework. We welcome the intention of the Serbian Ministry of Mining and Energy to further develop its mining regime and adjust it to the needs of the most important stakeholders: citizens of Serbia and the mining industry. Canada is committed to support that process and we will continue to discuss details of that cooperation with the Ministry.
of bilateral trade by 20%, despite COVID-19, while the total value surpassed CAD100 million for the first time in 10 years. Our Embassy remains committed to support this increased cooperation, with a focus on the “green agenda” and sustainable economic recovery based on investments in reducing pollution, water and wastewater treatment, waste management and decarbonisation.
ur two countries already have very vibrant O economic cooperation in the area of mining. How could we raise this bar even higher in this and other areas of importance, such as the energy sector? Similar to the other countries of Central and Southeast Europe, Serbia has certain challenges with pollution of the air, water and soil. I am encouraged by the local authorities’ commitment to cope with these challenges, and also by the international community’s readiness to offer a supportive hand to the entire region in that process. Canada is strongly committed to the realisation of the Paris Agreement and the fight against climate change, which poses a substantial threat to our planet. We are glad that we share a partnership with Serbia in that agreement. Serbia, like many countries in this region of Europe, is dependant on coal as its prime energy source, which creates high emissions of GHG and results in pollution and challenges to nation’s health status. The diversification of energy sources in Serbia, including switching to alternative energy sources (water, solar, wind and biomass) will Trade relations between Canada and Serbia are growing and in 2020 we to the realisation of the government’s witnessed the increase of bilateral trade by 20%, despite COVID-19, with contribute plans to cope with pollution challenges. Canada the total value surpassing CAD100 million for the first time in 10 years is recognised for its successful transition away from coal, as well as for its technology in the water and wastewater treatment and the solar and wind sectors, Minister Mihajlović was very successful in introducing an eand we will be looking for opportunities to partner with Serbia in permitting system to the construction sector and has received praise solving some of these challenges. for that from the international community, including the World Bank. Canada has vast experience in introducing e-permitting in mining, The two countries have been in talks about a regular direct flight as a majority of our mining jurisdictions are already using it. We will between Belgrade and Toronto for a long time. When might that gladly share that expertise with Serbia, in the hope of introducing be expected, given the current challenges posed by COVID-19? the system soon, to the benefit of all mining stakeholders. Canada and Serbia signed their Air Transport Agreement in May 2018, amid an ongoing process to acquire the necessary permits for How many Canadian companies operate in Serbia today and on direct flights between Belgrade and Toronto that was initiated by Air which issues do they seek your support? Serbia. The Embassy of Canada supports the Serbian national carThe Canadian business community in Serbia gathers companies that are active in the following sectors: food&beverage, automotive, rier’s efforts in receiving these permits, but the decision on further ICT, real estate, agriculture, mining and others. Our biggest invesdevelopments lies with Air Serbia. The introduction of a direct flight between Canada and Serbia will be highly welcomed by the large tors in Serbia are Molson&Coors (Apatinska Brewery) and Magna Serbian and regional Diaspora in Canada, as well as by businesses International, while five companies are developing mineral resources from both countries, as it would ease the further expansion of growexploration projects in all regions of Serbia. Trade relations between Canada and Serbia are growing and in 2020 we witnessed the increase ing economic ties between the two countries.. 14
MINING SECTOR 2021
DR MILINKO RADOSAVLJEVIĆ, DIRECTOR OF THE MINING INSTITUTE OF SERBIA
INTERVIEW
Linking Science
AND PRACTISE The Mining Institute of Serbia, one of the country's pre-eminent scientific institutions, consists of three reference laboratories and two design institutes. It is accredited as a research and development institute, which shows the great importance of the link between science and practise, and has done so for a full six decades. responsible and professional way, with respect for the multidisciplinary approach in finding the best solution. Representing a guarantee of quality is the 60 years of experience of the work of the Mining Institute, which has amassed more than 8,000 projects for a large number of mines in the former Yugoslavia and for several other countries around the world.
We have an exceptional partnership with EPS and realise up to 80% of our total income through that cooperation
O
ver the many years of its practical work, our institute has adapted its activities to the needs of the market, while the primary goal has always been to raise the quality of services to a higher level, and that will also be the case in the years ahead, announces Dr Radosavljević oes the Mining Institute represent the D best address for everyone interested in investing in Serbia’s mining sector, but also for those seeking to improve and expand their operations? Setting out from the fact that an investor can receive, in one place, the service and support they need in preparing the complete investment and technical documentation that’s required, we remain the best address. Every single problem is approached in an extremely
Alongside our two design institutes, the Mining Institute comprises three accredited laboratories that are well referenced and well known in their field: the Laboratory for Geomechanics; the Laboratory of Solid Fuels; and the Laboratory for Environmental Protection and Work Safety. In addition to this, the Mining Institute is accredited as a research and development institute, meaning that this link between science and practise is extremely important. our experts have participated in numerous Y large and important projects around the world. What are you currently working on? Over recent years, if we excluding the surrounding countries, all of our activities have been focused on the Serbian market. The institute had to change and adapt, and today it is a stable company that uses its potentials rationally. The Institute continues to strive to strike a balance between modern science and the scientific achievements and development projects that it realises on the market and under
market conditions. In this sense, we generate most of our revenue – in excess of 95% – on the market by selling our services, whether that be design services or the services of our accredited laboratories. We have an exceptional partnership with EPS and realise up to 80% of our total income through that cooperation. Projects are carried out in accordance with the Law on Mining and Geological Research, or in accordance with the Law on Planning and Construction, depending on their specific needs or requirements. Some of the important projects that we’re currently working on relate to the problematic issue of disposing of ash and slag from thermal power plants in the EPS system and environmental issues: testing emissions of pollutants into the air from our thermal power plants. Are you preparing for the 8th Balkan Mining Congress? How important are such major gatherings of experts for the development of the sector, the advancement of cooperation, exchanges of knowledge etc.? This year’s 8th Balkan Mining Congress was rescheduled due to the pandemic and should be held in Belgrade from 25th to 27th May. Papers have so far arrived from around 30 countries worldwide, which shows that this congress has long since surpassed regional frameworks. Such gatherings are an opportunity to establish new contacts with the aim of exchanging knowledge, but also establishing cooperation in the mining sector between our companies and companies from around the world. We will also host some prominent experts, one of whom is academic Valentin Chanturia Ph.D., a member of the Russian Academy of Sciences. 15
MINING SECTOR 2021
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MINING SECTOR 2021
MINING IS A PATIENT GAME AND IT ALWAYS WILL BE - CLIVE PALMER 17
MINING SECTOR 2021
INTERVIEW
H.E. JAN LUNDIN, SWEDISH AMBASSADOR TO SERBIA
Mining Can Be
ENVIRONMENTALLY FRIENDLY With great natural resources, Serbia has the potential to grow a strong and sustainable mining industry. Sweden and the EU remain open to collaboration with Serbia in ensuring that, together, we enable better prerequisites for good new mining projects.
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wedish technological knowhow and a firm policy in addressing global climate emissions can serve as a valuable example to Serbia in developing a sustainable mining industry, says H.E. Jan Lundin, Swedish Ambassador to Serbia. Given that Sweden is the EU’s leading nation for mining and minerals, we spoke with Ambassador Lundin about the pros and cons of having a developed mining industry. Confirming that Sweden is indeed Europe’s leading mining nation, accounting for 91% of iron production throughout the continent, Ambassador Lundin adds: “we are also one of the largest suppliers of lead, zinc, copper, silver and gold within our continent. Therefore, with regard 18
to pros, I can say that the mining and mineral industry has been of great importance to Sweden’s prosperity for almost a thousand years”. This industry has been contributing around three per cent to Sweden’s GDP annually over the last several years, which translates to billions of euros annually. The industry also provides over 15,000 jobs in the country, while the goal is to triple mining production in the second half of this decade, creating close to 50,000 new jobs in the process. Other benefits include a high level of technological and innovative progress, resulting in efficient, sustainable and environmentally friendly mining processes. “Speaking of the cons, growing global demand for metals and minerals
MINING SECTOR 2021
PROGRESS
HARMONY
SUPPORT
We believe that a sustainable mining industry creates positive conditions for future growth.
For Sweden, mining must occur with great respect for nature and human life, ensuring, for instance, that both reindeer grazing and mining can go on in harmony.
Sweden is ready to help Serbia make the switch to the use of fossil-free energy sources in the future.
has led to a serious ecological imbalance over time. However, global air and water emissions have been dropping gradually, and the Swedish mining industry is well-positioned internationally, with its climate-smart production, to lead on addressing these issues,” says our interlocutor. ccording to the Swedish Minerals Strategy, the mining and minerals A industry has to be in harmony with the environment and cultural values. What does that mean in practical terms? It’s important to control all phases in the life cycle of a mine, from exploration stages to the eventually closure and rehabilitation of a mine, in order to minimise the environmental impact of the mine. Investigations of potential exploration areas, documenting environmental effects, creating action plans, keeping an eye on ground movements and showing the effects of previous actions are all of great importance for sustainable mining. The potential impact must be documented in accordance with Swedish environmental laws and it is up to us to do so in the smartest and most resource-efficient way. For Sweden, mining must occur with great respect for nature and human life, ensuring, for instance, that both reindeer grazing and mining can go on in harmony. ow close is Sweden to its goal of developing an innovative mining H and minerals industry with a strong knowledge base? The overwhelming success of the Swedish mining industry can be primarily attributed to the fact that we have been able to combine a specialised academic base with an industry that’s driven by innovation. By establishing close cooperation and partnerships between the academic knowledge base and the industry, Swedish mining became a testing ground for the development of innovative and environmentally friendly products and processes that may be adaptable by other countries, such as Serbia. For example, this strong link between innovative industry and academic knowledge led to Sweden being a leader in the manufacturing of mining equipment, accounting for nearly 60% of all underground equipment. ow are Sweden and Swedish enterprises contributing to developing H a sustainable mining industry in developing countries? Over the years, Sweden has managed to develop environmental and worker safety legislation that guarantees the use of energy-efficient methods in delivering finished products to the customer, while greatly reducing the overall environmental impact. We believe that a sustainable mining industry creates positive conditions for future growth. By having world-class facilities and expertise for processes like recycling and the handling of mining waste, the goal is to continue contributing to the reduction of global emissions by supplying the world market with both climate-smart metals and environmentally smart technology. What does this mean in the case of Serbia? Serbia is also a country with great natural resources potential and a growing mining industry. Swedish technological knowhow and a firm
policy in addressing global climate emissions can serve as a valuable example to Serbia in developing its mining industry sustainably. We are all aware that about two-thirds of Serbia’s energy needs currently come from opencast lignite coal mines that power thermal power plants, and Sweden is ready to help Serbia make the switch to the use of fossil-free energy sources in the future. ou were among the organisers of a large conference in Serbia Y devoted to the development of mining in the country. How has the mining sector evolved over the last two years, and which are the most important issues in terms of closer cooperation between the EU and Serbia in that respect? Actually four years in a row, from 2016 to 2019, we hosted a conference in Belgrade at which participants from the mining industry across Serbia, Sweden and the EU gathered to discuss important topics, such as creating a sustainable mining industry through partnerships and how Serbia’s mining can contribute to a successful Europe. Although the COVID-19 crisis has had an impact on the mining industry around the world, especially in areas like the financing of exploration activities and delays in supply chains, new methods continue to emerge, creating more efficient mining
The development of the innovative and environmentally friendly products and processes that Swedish mining is renowned for may be adapted by other countries, such as Serbia operations that respect human, environmental and local cultures. Sweden and the EU remain open to collaboration with Serbia in ensuring that we can together enable better prerequisites for good new mining projects. ithium is seen as an important element in the development of the L European automotive industry. What will Serbia get from that? Is it realistic to expect that Li-ion batteries for hybrid and electric vehicles could be manufactured in Serbia? So-called innovation critical metals and minerals like lithium are needed for the advancement of the use of renewable energy sources, such as energy storage batteries, where lithium is seen as a key component. The European Commission has said that the lack of production of these metals and minerals may hinder the development of green technologies, which could be one of the reasons why a Swedish company, Northvolt, is currently building a four-billion-euro factory that will produce Li-ion batteries for electric cars and energy storage in the north of Sweden. This and other future battery factories will need to source lithium from places where it’s mined, therefore hopefully Serbian officials and a Serbian company looking to develop a lithium mine are closely evaluating the potential for such a mine in the west of Serbia, as well as evaluating future global demand for Li-ion batteries. 19
MINING SECTOR 2021
INTERVIEW
BOJAN POPOVIĆ, DIRECTOR OF LONDON-BASED MINECO LIMITED
Mineco: Mining first,
GEOLOGICAL EXPLORATION SECOND When we read or hear ‘base metals’ and ‘Serbia’ in the same sentence today, the usual association is with the many media articles that we can read about encouraging drilling results announced by some Canadian, Australian or British junior exploration company. For the most part, these are intended to capture the imagination of a far-away prospective investor or provide a degree of comfort to those that have already taken the plunge and are funding the promise of future riches. Alternatively, we can think of the large, world-class copper mine in Bor that was established many decades ago, or even the ‘Jadar’ lithium project – both of which are of strategic importance to the Serbian State in their own right.
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owever, amongst all the hubbub, one privately-owned company was the first to recognise the mining potentials of this region and invest its own resources, firstly into mining and secondly into geological exploration. The Mineco Group is today synonymous with lead and zinc mining in Serbia and Bosnia-Herzegovina, which is why we spoke with Bojan Popović, director of London-based Mineco Limited.
How do you see Mineco; what is its past? Mineco started out nearly twenty years ago, when experienced physical traders in base metals and concentrates formed their own 20
trading business. Capitalising on their wealth of knowledge of the international metals markets, Mineco quickly achieved successes in delivering solutions for producing mines, other trading companies and end-users by facilitating sales, purchases and deliveries. The opportunity for diversification into mining presented itself in 2004, when the bankrupt Rudnik lead and zinc mine near Gornji Milanovac was offered up for privatisation. At a time when the mining industry in the former Yugoslavia was struggling, the assessment was reached that Mineco possessed both the resources and the capability to relaunch operations at this mine, modernising and running it as a successful
MINING SECTOR 2021
business. Sometime later, the Rudnik case study was singled out as an example of an excellent privatisation in the mining sector, not just due to its commercial success, but also due to the creation of additional employment and improvements in safety records and environmental protection. By 2009, two more inactive lead and zinc mines had been acquired on both sides of the River Drina: the first near Srebrenica, which had been damaged heavily during the Bosnian civil war, and the second near Ljubovija, where the tailings dam had previously burst and flooded the underground horizons. Both mines received substantial funding from the Group, in order to repair, replace, modernise and reemploy workers that had previously left. Water management systems were redesigned and constructed to ensure the mines’ tailings facilities would not endanger the Drina and its river basin. By 2010, Mineco had successfully transformed itself from a pure trading company into a group that acquires, develops and operates mines in this region. Where is Mineco today? How has it evolved? The accomplishments with those three mines have not gone unnoticed. Aside from creating new employment, each of them became the principal generator of economic prosperity within their respective municipalities. With CSR principles being embraced from the outset, the goodwill that was generated equipped Mineco well to pursue additional capital projects and investments. Whereas the first three mines were ‘brownfield’ class, in 2010 and 2012 Mineco embarked on two ‘greenfield’ mining projects. The Bosil-Metal lead and zinc mine near Bosilegrad in southern Serbia and the Geomet lead mine in Olovo, Bosnia-Herzegovina both required a full range of works – from permitting, geological exploration and planning, to construction. Bosil-Metal is currently, since 2017, operating a pilot processing plant for the gathering of data and experience for the design of the commercial-sized plant. Meanwhile, a brand new gravitational separation plant has been built in Olovo, with the first tonnages of concentrates delivered in 2019. This increased mining activity led to more geological explorations being conducted, especially in exploration projects such as the one in the Čelebići area of eastern Bosnia, where we have submitted a verified mineral reserves statement, obtained the exploitation concession and are now planning construction of the sixth mine. Our group companies, in Serbia and B-H, are licensed to conduct exploration drilling campaigns using their own drilling rigs. Further afield, through large capital investments Mineco has acquired and developed a lead recycling plant in the Moscow region. We are presently the largest producers of refined lead and lead alloys in Russia. Where is Mineco heading? What is planned for the future? We recently announced that our long-term plans in rebuilding and opening the old “Suva Ruda” lead & zinc mine in the municipality of Raška is gaining pace. Since 2016, when legal due diligence was performed, our local company, “Vavrina d.o.o.”, has purchased all land plots comprising the land area of the old mine and tailings facility, as the highest bidder in public auctions, and applied for exploration rights. Once the required licensing and permitting is issued by the Serbian Ministry of Mining & Energy, Mineco will be on a fast track to perform all required steps to ultimately commission, alone or with partners, another operating mine in Serbia. Our capability to carry out this process will generate much
needed workplaces and investments in the Raška District, as well as regular mining royalties and other tax revenues for the State and local authority. On reflection, the Mineco Group has thus far invested and re-invested close to $200 million in its mining assets. We will continue working towards upgrading the Bosil-Metal mine in 2021, as well as optimising the Geomet mine, while planning for the construction of our Čelebići and Raška mines. he Serbian Ministry of Mining and Energy is planning to adopt a T new Mining Law. Has Mineco participated in public consultations? As was the case previously, when the current Mining Law was drafted, we have again taken part by voicing our views and recommendations in relation to the drafting of the new Law under Minister Mihajlović. On this occasion, the chosen forum was GRAS, which had put forward
Once the required licensing and permitting is issued by the Serbian Ministry of Mining & Energy, Mineco will be on a fast track to perform all required steps to ultimately commission, alone or with partners, another operating mine in Serbia a lengthy list of amendments to the Ministry’s first draft. Successive Serbian governments have stated that they see the mining industry as a prominent segment of the economy that increasingly contributes to the country’s GDP. FDI statistics illustrate that the current mining law has already achieved this year on year, with more foreign junior exploration companies than ever now being present in Serbia. Deservedly, it has been praised as one of the best mining laws in the world, making Serbia – an EU membership candidate country – a favourite destination for miners and mineral explorers. We think it is important that the new law continues to promote this industry internationally, not at the expense of its people but for their benefit, observing the sentiments of an ever more observant public. Lawmakers should ensure that certain provisions of the new law are not in conflict with provisions and principles of other existing laws, to ensure clarity. 21
MINING SECTOR 2021
BUSINESS
INVESTMENTS IN THE MINING SECTOR OF PUBLIC ENTERPRISE ELECTRIC POWER INDUSTRY OF SERBIA - EPS
Projects for a Stable
ENERGY FUTURE For public enterprise Electric Power Industry of Serbia - EPS, the mining sector represents one of the most important business segments and the backbone of electricity production. The announcement of new investments in electricity and mines provides an incentive for EPS to accelerate previously launched projects and launch as many new ones as possible soon.
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ithout investing in existing production capacities and building new ones, there can be no stable energy future, and the current and planned investment projects in EPS confirm that the country’s largest energy company has a secure future. At various locations there are increasingly more works, construction sites and launched projects. When many jobs in the region and around the world halted in 2020, EPS’s investments reached a value of almost half a billion euros, while development projects undertaken over the last five years were worth around two billion euros. Plans indicate that next year should be the most successful for EPS in terms of investment, enabling Serbia’s largest energy company to guarantee energy supply stability for approximately 3.6 million customers. 22
Although many projects found themselves stalled or on the brink of termination just a few years ago, the efforts of EPS management and experts led to an investment cycle being launched. The objective is for EPS to improve existing thermal power plants, hydro power plants and mining mechanisation, to open modern mines and build new “green” power plants. The announcement of new investments in electricity production and mines provides an incentive for EPS to accelerate previously launched projects and launch as many new ones as possible soon. The mining sector is one of the most important business segments for EPS and represents the backbone of electricity production. As much as 70 per cent of electricity in Serbia is generated from coal, as a domestic resource, and that represents the main pillar of our country’s energy independence. At the same time, the aim is to strive to bring coal production in
MINING SECTOR 2021
line with European norms, to maximally modernise the production process and improve environmental protection conditions. That’s why projects to improve production at the Kolubara Mining Basin and the Drmno Open pit mine in Kostolac have been realised with commitment for years. About 39 million tons of coal is extracted annually from these two branches of EPS. A “green” project has been completed at the Kolubara Mining Basin, bringing improvements to coal mining technology, ensuring uniform quality of lignite, the increased efficiency of thermal power plants and reductions in negative impacts on the environment. This complex project was implemented through three mutually connected parts. The first included the procurement of a new ECS System (excavatorconveyors-spreader) for the production of tailings at the Field C open pit mine, the second saw the procurement of interlayer overburden for Tamnava-West Field, while the third included the management of coal quality and homogenisation in the western part of the lignite basin. This “green” project has a value of 181 million euros. It has been financed by loans from the EBRD (80 million euros) and KfW (65 million euros), with help provided by the German government (nine million euros) and the participation of EPS (27 million euros). One extremely important part of this “green” project is the introduction of the system for managing the quality of coal and homogenisation in the western part of Kolubara. Thermal power plants will be supplied with coal of a balanced quality, thus ensuring that their work will also be more efficient. Studies have shown that this will reduce the consumption of coal at thermal power plants, while emissions of harmful gases will also be reduced, along with the levels of ash and slag. The uniform quality of lignite increases the utilisation of boilers at the Nikola Tesla Thermal Power Plants and provides for a product of guaranteed quality. The Kolubara Mining Basin has to date had varied quality of supply, depending on the deposit. In future, software and sensors will ensure that they know at any time how much coal has been mined and what kind, which will enable homogenisation and balanced supplies to thermal power plants. The opening of new, modern mines is one of EPS’s key investment jobs. The new Field G Mine is working already, while projects to open Field E are also being implemented, which is the reason that relocating part of the Peštan riverbed has been initiated, as well as the opening of the Radljevo Mine. With this EPS will have secured additional quantities of coal until the middle of the century. At the Radljevo Open pit mine, which is Kolubara’s youngest active mine, product has been extracted since October 2019. Given that production from this mine will contribute significantly to the certainty of coal and electricity production in the thermal sector, the Radljevo Mine is of extremely great importance to the Kolubara Mining Basin and EPS as a whole. That’s why miners working at this mine have a major job to do when it comes to extracting overburden as efficiently as possible, in order to reach the first tons of coal. Total investments for the entire period of exploitation at this mine are around 977 million euros. The key objective of opening the Radljevo Mine is to provide replacement capacities for the Field D and Field C mines. It is estimated that reserves total more than 300 million tonnes of coal. Another major EPS investment project is the construction of the new unit B3 at Kostolac. Alongside the construction of a new unit of 350 megawatts, a new Excavator-Conveyor-Spreader system was procured
that will enable an increase in coal production at the Drmno Mine from the current nine million tonnes of coal per year to 12 million. This ECS system is worth as much as 97.6 million U.S. dollars. On the Kostolac-West stretch near Velika Morava, research has confirmed that a rich coal deposit exists that could yield 350 million tonnes of coal. An additional advantage is the fact that the complete overburden consists of the highest quality Moravian gravel, which can be used in the construction industry. Study documentation for the opening of the Western Kostolac coal deposit is in the final phase. Investments of 100 million euros are expected in the coming years, to cover the basic mechanisation of the open pit mine. The start of excavations to clear the overburden from the open pit mine is expected to being in 2025, with the exploitation of coal expected to commence in 2028. Every investment job also includes the participation of domestic companies, which is very important for the country’s economic growth.
Energy crops at RB Kolubara EPS recently signed a letter of intent with company E3 International, within the scope of the SLLES project that’s supported by the Austrian Development Agency, on the implementation of a pilot project to plant energy crops on the site of one of the RB Kolubara mines. The idea is to establish plantations of fast-growing willows on 3.8 hectares, in order to make maximum use of the territory and reclaim land where coal was previously mined. This contributes to better protecting the environment and provides a cleaner energy resource. EPS has a direct impact on GDP growth equating to three per cent at the annual level, as well as another three per cent provided indirectly, through construction and other industries. The production of electricity from all resources and the implementation of environmental protection projects contribute to a sustainable energy balance and enable important competitiveness for the Serbian economy. That’s why it will also be essential to include domestic companies in all future projects. 23
MINING SECTOR 2021
INTERVIEW
PAUL CRONIN, CEO AND MANAGING DIRECTOR OF ADRIATIC METALS PLC.
Year of
BIG PLANS Adriatic Metals Plc is a British-based precious and base metals explorer and developer. The company is listed on both the London and Australian stock exchanges and owns the world-class Vares Silver Project in Bosnia-Herzegovina and holds licences across the Raška District in Serbia. Following extensive research of old archived Yugoslav state documents, we identified two targets in Bosnia, which we believed had not had their full potential previously realised, namely: Veovaca, a disused open-pit mine; and Rupice, a high-
We would like to develop a world-class mining company with multiple assets
A
ll in all, 2021 will be an exciting year for Adriatic. Not only because we plan to start construction at Vares in Bosnia, but also because we are expecting a lot of exciting exploration results from Raška in Serbia - says Adriatic Metals CEO and MD Paul Cronin. lease give us a brief overview of P Adriatic Metals and explain how you arrived in the Balkans? I first came to the region in 2016, following an invitation from a local contact. It was quite apparent to me that there has been lack of exploration across the Balkan region over the past 25 years, and that there are plenty of undeveloped opportunities to explore using modern exploration techniques. 24
grade underground deposit 12km from Veovaca. These two silver-zinc deposits make up the Vares Project, which we plan to start mining within the next two years. In addition, we have also recently acquired an exciting lead-zinc project in Serbia, called the Raška project. hat was the reasoning behind acquirW ing the Serbian assets? In five years’ time, I want Adriatic Metals to be a mining company with multiple world-class mining operations across the Balkan region. Realising this vision requires finding and developing mineral resources across multiple locations that have the economic potential. We identified that potential in the Raška Project, which is why we acquired Tethyan Resources in May 2020. Along with the acquisition, we inherited a very experienced team, which complements the existing geological team in Bosnia. Since the acquisition, both teams have
been working well together and sharing their knowledge about the Tethyan Metallogenic Belt, on which both the Vares and Raška projects are situated. I believe that the Raška Project could be the second mine that Adriatic puts into production, so it is our focus right now to determine a large enough mineral resource for this to happen. This is why we shall be dedicating two-thirds of our total exploration budget to Raška this year. So that once the Vares Project is built and operating, in two years’ time, we can turn our attention to Serbia. ell us more about Adriatic’s exploraT tion of the Raška Project. What sort of potential does this project offer? The Raška project consists of two deposits, called Kizevak and Sastavci. Both deposits are former producing open-pit mines and we are confident, from the work we’ve done to date, that there are significant resources left behind that are yet to be mined. As with all mining projects, there is significant up-front investment before you can determine whether the resources in the ground are economically viable enough to build a mine. We are currently in the middle of that investment phase. This year we shall be drilling 25,000 metres of exploration holes at Raška, as well as conducing other exploration surveys, with which we expect to identify further mineralisation and delineate a resource base large enough for a commercial mining operation.
MINING SECTOR 2021
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MINING SECTOR 2021
INTERVIEW
VESNA PRODANOVIĆ, GENERAL MANAGER OF RIO SAVA EXPLORATION D.O.O.
Jadar Project – Development
OPPORTUNITY FOR SERBIA Rio Tinto has been responsibly developing “Jadar” for a full 17 years through the various stages of planning, design and approvals. We are committed to partnership, with the Government of Serbia, the local government and our communities. We have a joint commitment to responsible mining and operating to the highest environmental standards. of lithium and also boron. However, in order for us to develop that potential in the right way and achieve the best results, it is necessary to make a long-term commitment, work in real partnership, and leverage global expertise, in order to continue our progress from exploration, surveys and studies to developing this project.
The processing of jadarite will be performed in a modern industrial plant, using a unique, innovative and stable technology
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ur goal is to develop the project hand in hand caring for and preserving the environment, says Vesna Prodanović, who approaches the further development of Jadar with a great personal motivation and tenacity to build something of great value to both Serbia and the world. I t sounds really unbelievable that one of the world’s most important lithium deposits is located in Jadar... If that is indeed the case, then we aren’t even aware of how great a chance this represents for the economic development of Serbia as a whole... Lithium is increasingly called the material of the future, because it has a huge role to play in the further development of modern society. The development of modern lithium-ion batteries represents a genuine revolution in energy use, not only in terms of Electric Vehicles and the supporting industries, but also because of its use in the devices that we use on a daily basis, such as phones and laptops. I think we are becoming aware of how great the potential is for Serbia, considering that we have one of the world’s most important deposits 26
hat are your employment plans like, given that we know that W more than 2,100 workers will be engaged during the phase of constructing the mine and processing plant? The most valuable assets of our company are our people, and we understand that the success we achieve is linked directly to the abilities and engagement of our employees. That’s why the development of knowledge and skills is a priority for us. We are highly appreciative of the fact that Serbia’s education system and work ethic are very strong, which gives us a distinct advantage while we work on the development of employment plans and strategies for future skills and roles, from construction through operation. Jadar is planned as a mine of the future, using cutting-edge technology. The project will need a wide range of new skills and produce products key to a low carbon future. We already have a team of talented, highly-educated Serbian experts who are working on the project. We are working towards maintaining 90% of future employees also being from Serbia, as is the case today. We need not only miners and chemical engineers, also innovators, entrepreneurs and talented youth with passion and vision. That’s why we’re planning partnerships with universities, secondary schools and adult education systems. We will try to demonstrate, with our own example, what modern and sustainable mining in the 21st century looks like. In order for us to support our current and future employees, we will develop training programmes for the unique skills and specific domains we will require, using state-of-the-art training methods and equipment, including AR/VR and process simulators.
MINING SECTOR 2021
I s the public aware that this project’s development could bring Serbia a chance to entice other investors, as a green economy destination? That is well recognised by the national Government, the local government and, increasingly, by our host communities. The world is also closely following Jadar and the way Serbia is developing this potential. Jadar can strengthen and reposition Serbia on the world market as an excellent investment destination for the implementation of large, successful projects. Jadar is a first for Serbia – an entirely new project, which will use many technologies and processes for the first time. Here, communication is key. We pay special attention to this within the company, we believe that if we aren’t able to explain what we do in a simple way then we aren’t doing it right. As with any new technology or development, there will be concerns about its impact – particularly ecological and environmental. One of the most important tasks for our team at this stage is to present an accurate picture of all aspects of the project. We are certain that, with the results achieved to date, we have the expertise to build this project as a responsible, safe and environmentally sound way. I s it accurate that your company has developed innovative technology that has improved significantly over a series of years? Is it possible for an environmental challenge to exist that cannot be resolved in the 21st century? Jadarite is a unique mineral that’s found only in Serbia, it was discovered in the vicinity of Loznica in 2004. It required the development of a completely new technology for processing. Jadarite will be processed in a modern industrial plant, using a unique, innovative and stable technology that’s been developed by a team of leading domestic and foreign experts – that is has been proven at a pilot plant purpose-built in Rio Tinto’s Australian operations. Around 2,000
Investments in environmental protection will total a minimum of 100 million dollars, with around 40 million dollars to be invested in the water treatment plant alone tests were performed in order for us to ensure that we’ve developed the optimal solution to create the final industrial products of lithium carbonate, boric acid and sodium sulphate. We’ve also had five independent audits conducted by relevant experts in different fields in order to validate the entire process and we are very satisfied with the results achieved. We invested significant resources and a lot of time before confirming that the processing technology is technically sustainable and stable. The world continues to be confronted by challenges in the 21st century, but from my point of view none of those challenges are impossible. We’ve approached every aspect of the project’s development from the perspective of long-term sustainability. We encountered many technical challenges, but we continued seeking solutions so we could ensure good results. We’ve achieved great success in the area of industrial waste, which has been totally transformed, through the development
Rio Tinto, Jadar integrated continuous pilot plant, Bundoora Australia
of technology, from fluid, sludge waste to a solid mass – which allows much safer storage with a much smaller footprint. We will continue investing in systems and solutions that will enable the safe implementing of production activities, taking care to minimise the impact on the natural environment and the surrounding area. According to current estimates, investments in environmental protection 27
MINING SECTOR 2021
will total a minimum of US$100 million, with around US$40 million to be invested in the water treatment plant alone. Systems for monitoring impacts and regular measurements are also a priority, and all of this leads to us being able to say with certainty that Jadar will only be considered for development f it meets all the conditions to be a safe and sustainable industrial activity. inister Mihajlović has repeated on multiple occasions that eveM rything that’s being done must be undertaken with the highest degree of protection, because there is no amount of money and investment that can justify the destruction of the environment. How would you comment on that? We are in complete agreement! Our priority is safety, responsibility and a fair relationship towards the environment in all region where we operate. We have been developing the Jadar Project responsibly for a full 17 years, bringing sustainable planning and design solutions in the process. We are developing this project in partnership with the Government of Serbia, the local government and communities, and we have a joint commitment to protecting the environment, as one of the preconditions for the project’s further development. Our approach shows that responsible mining and processing is indeed possible with care for the environment. We will always strive to minimise any potential negative impacts, as well as optimising the long-term benefits that we share with the community. ow is it possible to reassure citizens and environmentalists H who believe that this project’s development will destroy many watercourses, including the River Jadar? Do they know that you will install a state-of-the-art wastewater treatment plant? What will you do with the waste generated during the exploitation and processing of jadarite? Let’s be clear – this project will not destroy any watercourses. All water used during production activities will be used several times, and that will be done in a closed, circular system, and prior to surplus water being released into the environment, specifically into the Jadar river, it will be treated in a water treatment plant, where it will reach the legally specified quality before being discharged into the river. Approximately US$40 million will be invested in the water treatment facility.
Rio Tinto, Jadar integrated continuous pilot plant, Bundoora Australia 28
When it comes to waste, the mine and processing plant will produce two types of waste: rock material from the underground mine, and industrial waste following the processing of jadarite concentrate. This waste will be converted into solid filter cakes that will be stacked, levelled and compacted at the landfill site. A certain part of the total waste from processing plant, approximately 30 per cent, will be used in a mixture that’s specially made for filling the excavated space within the underground mine. This solution will simultaneously contribute to reducing the amount of total waste deposited on the surface and prevent the possibility of land subsidence. We are committed to transparency and engagement. We have two information centres, in Loznica and Brezjak, but we are aware of the need for us to do more to ensure that accurate information reaches all stakeholders, most importantly our host communities. We are working on this with diligence and will complete this task and engage even more intensively. ou’ve worked on projects in Russia, Nigeria and Belarus and large Y and complex projects in Serbia. You spent a quarter of a century working in construction, at Energoprojekt and Bechtel dealing with projects above the ground, while now you’ve decided to “delve” under the ground. Has this change suited you? That’s interesting insight, I must admit, and thank you for that. I must say that I’m extremely grateful for the experience I gained while working for Energoprojekt and Bechtel, and not only for the experience that built me professionally and personally, but also for the time I spent with a great team and colleagues, working on projects that really do rise
MINING SECTOR 2021
high above the ground. All of this served and helped to ensure that I can today state with certainty that I approach the further development of Jadar with a great desire and perseverance for us to bring something that’s valuable to Serbia and the whole world. I’m grateful for the opportunity I’ve been given to work on such a significant and unique endeavour as Jadar and I feel proud that Serbia has such
Rio Tinto will strive towards ensuring that 90% of those engaged in the project in the future also come from Serbia, as is the case now an opportunity. However, in order to successfully realise that potential we need to continue developing and strengthening our existing partnerships at all levels, to build new ones and continue cooperating with all parties. Changes are always welcome. Jadar is much more than a mining project – actually, bigger part of the project are complex industrial plant with landfill and associated infrastructure, and each part of the project is equally important. rior to your arrival, the previous head of this project was also a P woman, Marnie Finlayson. Does this mean that ever more women are occupying important positions in the world of mining? Yes, and that’s wonderful. But there is still a lot of work ahead of us in that segment and I consider it necessary for more women who are top professionals and experts to find themselves in the positions that
they deserve, both in this and other industries. There is a long-standing prejudice that claims mining, construction, mechanical engineering and technology are “men’s jobs”, but I believe this concept was overcome a long time ago. I will personally dedicate myself and advocate for this, and that is one of this project’s goals – for gender equality and the empowerment and development of all talents, especially women, in our industry to become a practise that will be followed by others.
Rio Tinto, Jadar integrated continuous pilot plant, Bundoora Australia 29
SIMPLIFIED JADAR PROCESS FLOWSHEET MINING SECTOR 2021
LITHIUM-ION BATTERIES GLASS AND CERAMICS
Li
GREASES MEDICINE AIR TREATMENTS
CERAMICS GLASS
B
LIQUID CRYSTAL DISPLAYS INSULATION AGRICULTURE
TEXTILE INDUSTRY POWERED DETERGENTS
Na
GLASS
3 FINAL PRODUCTS
BORIC ACID
LITHIUM CARBONATE
SODIUM SULPHATE
EV
30
OUT: Lithium and sodium sulfate solution
LIMING The lithium liquor is combined with lime, which reacts with certain components of the liquor to form solids, thereby allowing remaining impurities to be filtered out.
SODIUM SULFATE CRYSTALLISATION Finally, the leftover liquor from lithium carbonate crystallisation is evaporated to yield sodium sulfate for sale. Sodium sulfate
OUT: Sodium sulfate liquor Lithium carbonate (>99,5% purity)
LITHIUM CARBONATE CRYSTALLISATION The crystallisation stage separates lithium carbonate from the sodium sulfate solution and refines it to produce high-quality battery-grade lithium carbonate for sale.
EV
MINING SECTOR 2021
Operations at Jadar will go well beyond mining, extending into the downstream chain to deliver added value for both Serbia and Rio Tinto. A Serbian and international team of technical experts, chemical and processing engineers has worked on the development of this new technology over several years. INDUSTRIAL WASTE LANDFILL
To Water Distribution
2 34 Beneficiation, Digestion and Liming Residue
Natural gas OUT: Waste truck 1. B eneficiation Fines From Classifying Water management Industrial facility waste landfill
BENEFICATION FINES FILTRATION
Aggregate gas
Backfill Plant OUT: Lithium liquor
Boric acid
2. Beneficiation Residue OUT: Backfill to mine
BORIC ACID CRYSTALLISATION Mother liquor is flash-cooled in a vacuum which creates boric acid crystals, which are filtered out and dried to yield boric acid for sale.
Production shaft
Ventilation shaft
DIGESTION Jadarite concentrate is mixed with dilute acid. This combination “digests” the crushed ore, producing a liquid rich in lithium and OUT: boron known as the “mother liquor”. Mother liquor OUT: Jadarite concentrate
BENEFICIATION During beneficiation, the ore is crushed to deliver a consistent stream of ore slurry to the processing plant. At this point, clay and impurities are extracted.
IN: Jadarite ore
A modern 21st century underground mine will perform the underground exploitation using the latest methods and the best available technology to ensure the safety and sustainability of expropriation and processing and minimize the possible impact on the environment. In the mine, an almost entirely electric fleet of vehicles will be used, minimizing emissions and energy consumption. Almost ~30% of total waste coming from the processing will be used to fill in spaces in underground structures. This solution is providing limitation of the amount of waste that is stored in the industrial landfill and preventing subsidence of the terrain surface.
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MINING SECTOR 2021
INTERVIEW
SLOBODANKA LAZAREV, CEO, JANTAR GRUPA
Expecting
NEW INVESTMENTS Jantar Grupa has been engaged in exploration and consulting in the fields of geology, mining and environmental protection for a full 20 years. The group has expanded its activities beyond the borders of Serbia, both in the region (North Macedonia, Bosnia-Herzegovina, Romania) and the Far East (Laos, Vietnam, North Korea).
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urrent legislation is quite good, but space exists to eliminate problems indicated in practice. Work is currently underway on amendments to the Law on Mining and Geological Surveys, and it remains to be seen what kinds of changes this will bring us, says Jantar Grupa director and CEO Slobodanka Lazarev.
How much has your job and area of work changed over the course of the previous two decades? The period after the 5th October changes of the year 2000, when the Jantar Grupa began dealing with this business, was a time filled with unknowns. We then organised a major 32
round-table event called “Geology, how to proceed” and brought together leading experts from the economy and the university faculty. The turning point in geological research in Serbia came in 2001, when the state began also granting approvals for mineral exploration to companies established with foreign capital. Along with foreign companies came greater investments of resources in exploration, as well as the transfer of knowledge and research procedures. Jantar Grupa was among the first domestic companies to establish cooperation with the world’s leading companies conducting geological surveys in Serbia. The geologists of Jantar Grupa – as members of the European Federation of Geologists and the American Institute of Professional Geologists – are recognised internationally as professional geologists, which enables us to also produce reports for foreign markets (stock exchanges, banks etc.) How would you assess the current legal possibilities in Serbia for exploring and exploiting mineral resources, as well as for launching and developing projects? Many changes have occurred since Jantar Grupa first entered the sphere of geological research, with the law governing the field of geological research alone having changed several times. It is crucial that we harmonise legislation with European laws and modern world practice (PERC, YORC), particularly in terms of the classification and categorisation of resources and reserves. Geology and mining imply a long period of time elapsing from initial exploration to the
opening of a deposit. It is therefore necessary for the basic postulates of the legal regulations – as the direct link between exploration and exploitation, mining royalties – to be stable. The mining sector’s contribution to the economic development of Serbia and the region has been increasing year on year. Are you expecting the arrival of some new major foreign companies? Serbia has done plenty on the promoting of the mining sector in recent years. Over the last few years, representatives of the Ministry have had a notable presence at the annual convention of the PDAC, the largest gathering covering investments in geology
Jantar Grupa was among the first domestic companies to establish cooperation with the world’s leading companies conducting geological surveys in Serbia and mining, which is held in Toronto. Together with the engagement of domestic consultants and companies, this has led to Serbia being recognised as a regional leader when it comes to interest in investing in the mining sector. Unfortunately, the current situation (COVID pandemic) has slowed the arrival of new investors to an extent, but it is encouraging that contacts are being maintained and great interest still exists. I hope the new amendments to the law and the end of the pandemic will contribute to the arrival of new investors in Serbia.
MINING SECTOR 2021
MIHAILO DVOJAKOVIĆ, PRESIDENT AND OWNER , Mg Serbien
INTERVIEW
Nature Is Not Exploited,
BUT PRESERVED Mining and metallurgical company Mg Serbien manages the Lokva dolomite mine and the Bela stena magnesite mine. This company doesn't perceive the issue of environmental protection as an imposed obligation, but rather as its strategic commitment with high levels of purity. We can state with pride that our deposit today represents one of the most complete mines when it comes to documentation. We have all adequate studies, exploitation rights and fields, a usage permit as well as certified reserves of 25,610,914 mt, while potential reserves total C 20,000,000 mt and D 100,000,000 mt. Lokva is considered a textbook example of a well managed mine, which is evidenced to a great extent by its quality and potential.
I
t is evident that, despite the pandemic, our president and our government are fighting to maintain capital investments in infrastructure, which is why we are obliged to support Serbia in that direction with our deposits and large reserves, notes company director Mihailo Dvojaković
he spectrum of works dealt with by your T company is very diverse, while you are currently focused on a dolomite mine. What are the reserves like there and how is the quality? Mg Serbien d.o.o. Is a company that consists of two main sectors of activity, mining and metallurgy. We are predominantly an exporter with world-renowned references: Fiat, VW, ZF, Autoliv, Peugeot, Renault and Citroen, while today we also operate two active mines: the Lokva dolomite mine and the Bela stena magnesite mine. The Lokva Mine is located in the south-western part of the Studenica series and is believed to be the source of dolomite
hy is this mineral so special? Apart for W the primary production of magnesium, what else is it used for? Dolomite is a two-tone carbonate of calcium and magnesium. It gained great industrial significance with the development of the ThomasGilchrist Basic Process for steel making in 1879. Apart from this, dolomite has a very wide range of economic applications. It is used for: * Primary magnesium production 99.9% (MgO exceeds 21%); * Glass industry (the only deposit that does not stain glass due to low Fe); * Road industry (we possess all European certificates; sand equivalent totals a record 92%); * Construction industry; * Fertilisers for PH correction in acidic soils; * Mineral supplement for animal feed. ou use waste as a primary raw mateY rial, thereby reducing CO2 emissions and operating in an environmentally friendly way... Is it true that you invest a lot in environmental protection? I’m glad that you have recognised the issue of the environment and ecology as
being important and crucial to our sector of business, because that really represents our primary focus. As a socially responsible and environmentally conscious company, we consider it our collective responsibility and obligation to view environmental protection
We carry out regular measurements of air emissions, measurements of waste, technical water and groundwater, whilst also periodically measuring noise and soil pollution levels as a primary goal and imperative; not as an imposed obligation, but as a responsibility of national importance. Mg Serbien carries out regular measurements of air emissions, measurements of waste, technical water and groundwater, whilst also periodically measuring noise and soil pollution levels. The investments and funds that we set aside for basic measurements, conducting studies, consulting services, equipment servicing and waste disposal are really large. These costs are included in the regular budget of Mg Serbien and we finance everything ourselves. As a consequence, we don’t exploit nature, but rather are focused on recycling and the circular economy concept based on the utilisation of materials from waste and reprocessing them through the use of value. The company’s management remains focused on improving the field of environmental protection and finding the most efficient methods or models to do so. 33
MINING SECTOR 2021
INTERVIEW
DRAGOMAN RABRENOVIĆ PH.D., DIRECTOR OF THE GEOLOGICAL SURVEY OF SERBIA / SERBIAN GEOLOGICAL INSTITUTE
Pledge For
THE FUTURE The adoption of a new, improved and modern Law on Mining and Geological Research, as well as an entire set of new by-laws, coupled with the introduction of e-mining, will increase the security of investments in the mining sector, but also domestic planning and the preservation of our mineral wealth.
T
he new Law on Mining and Geological Research provides transparent and stable conditions for investments in mining and geological research, both in the exploitation and processing of mineral resources, and in the area of concessions. “We will define the long-term goals for the development of mining and the geological research of mineral resources, as well as the projection of needs for all types of raw minerals, taking into account technical and technological development, not only through its application in mines and the processing of those raw materials, but also the possible substitution of the same in Serbian industry. This will create better conditions for the more efficient and rational geological research of 34
mineral raw materials,” considers Dragoman Rabrenović Ph.D., director of the Geological Survey of Serbia. he EU’s new raw materials strategy envisages Europe returning T to its own sources of mineral raw materials. What does that mean for Serbia and its base of raw materials? Europe cares about knowing what mineral resources it possesses on its territory. It determines this in a number of ways, one of which is generally through the EuroGeo Survey (European Association of Geological Surveys), which conducts and maintains a unique database of minerals. It is in the EU’s interests for European mineral resources to
MINING SECTOR 2021
POTENTIAL
STAKEHOLDERS
PARTNERSHIP
Serbia is among the leading countries when it comes to some mineral raw materials that are today important or strategic
Serbia's mining sector and mining industry are carried by large systems like Kolubara, Kostolac and Bor, but also the large research projects of foreign companies
The Geological Survey of Serbia can be the best partner when it comes to making positive decisions in areas that fall under the jurisdiction of the Ministry of Mining and Energy
be produced and marketed on its own territory, and Serbia is among the leading countries when it comes to some mineral raw materials that are today important or strategic. The EU’s new raw materials strategy, which envisages Europe returning to its own sources of mineral resources, in order to ensure the security of supply, returns Serbia to the position it enjoyed in the past, as a highly rated base of raw materials. In addition to traditional ores of copper, gold and lead, Europe is particularly interested in our deposits of minerals, both lithium and boron, but also other rare elements that can be applied in new technologies. Due to the balance reserves of certain minerals in Serbia, especially boron, major foreign companies – from Canada, the U.S. and Australia – are interested and have invested substantial funds in researching and proving the raw mineral potential. It was in 2014 that EU member states promoted the TAIEX directive, intended for the mining sector. This is an instrument for technical assistance and information exchange that provides support to partner countries in terms of adapting to and implementing European Union legislation. Through this instrument, the state can adopt good policies in the field of concessions, while the state has a function of planning in the national interest (who offers the best mineral extraction technologies, innovative solutions, promotes sustainable or “green mining”), through the selection of the best environmental vulnerability studies. Environmental impact studies should be available to a wide range of government institutions, public health institutions, regional and local stakeholders, while all stakeholders can freely make non-binding decisions on whether a concession is acceptable.
EuroGeoSurveys (EGS) currently brings together 38 geological survey institutes from Europe. As of March 2015, the Geological Survey of Serbia has been a full member of the EGS organisation, among its 33 full members (with voting rights). EGS brings together the geological survey institutes of Europe with the aim of performing jointly in accessing the financial funds of the European Union, adopting common strategy priorities in geological fields, as well as in cooperation with geological institutes in the form of expert and administrative councils, the possibility of cooperation between experts, as well as for the needs
How prepared are we for these steps in a technological sense? Post-war studies revealed more than 95% of various deposits, while many mines have been opened. New local investments in the expansion of research were needed, then came the arrival of foreign research companies in our country, which to a great extent led to many research projects and activities being launched, which simultaneously also represented a good opportunity to employ domestic knowhow - our geologists and miners. And thus many Serbian geologists and miners secured jobs at these companies, either as managers or research team associates. With their already proven local knowhow – gained both through the acquisition of new knowledge and their introduction to new, contemporary exploration methods and technologies – our geologists provided a great contribution to this research with their professional engagements. On the other hand, with this our country gained, among other things, new, renewed and strengthened research potential, which is also important for the future of Serbian geology.
If the Government of the Republic of Serbia and the Ministry responsible for geology and mining want the Geological Survey to be present through the Law – not only in geology and mining, but also in many state projects – it is necessary to strengthen the Geological Survey through the renewal of personnel and technical capacities
I n 2015, the Geological Surveys of Europe organisation granted full membership status to the Geological Survey of Serbia. What does that mean for you?
of harmonising practises and regulations with the current relevant regulations and priorities of the EU. Another advantage of this project is the harmonisation of methods in geological practises, which leads to regional comparability and the continuity of geological data. An example of the work of the Geological Survey of Serbia within the EGS association is its participation in the GeoERA ERA-NET programme financed with funds from Horizon 2020. Participation in this programme includes 48 national and regional organisations/institutions for geological research from 33 European countries, which have joined forces to develop the ERA-NET action to co-finance projects intended 35
MINING SECTOR 2021
INTERVIEW to establish a European Geological Surveys Research Area (GeoERA) to deliver a geological service for Europe. The GeoERA encompasses four thematic areas: geo-energy, groundwater, mineral resources and an information platform, while the Geological Survey of Serbia participates successfully in five GeoERA international projects, in the fields of geo-energy, hydrogeology and mineral resources.
The fact that the Geological Surveys of Europe organisation granted full and equal membership status to the Geological Survey of Serbia in 2015, despite Serbia not yet being an EU member state, shows the exceptional importance that is given to our raw mineral potentials hat could the announced changes to the Law on Mining and W Geological Research mean for the Geological Survey of Serbia? Given that the Law on Mining and Geological Research (Official Gazette 88/2011) established the Geological Survey as the national geological body, it was assigned the competence to deal with basic geological research. Amendments to the same Law, from 2015, did not expand any new competencies that the Office was advocating for at that time, such as to be included in the domain of issuing investigative exploitation rights and monitoring the situation in that area. The Geological Survey of Serbia didn’t have access to geological data of interest to its activities in the manner that’s defined in all geological surveys and institutes of the EU. Taking into account its knowhow, vast experience and access to a huge fund of geological documentation, the Geological Survey has a stance to be better positioned as a profession in amendments to the new Law, exclusively for the needs of the Republic of Serbia in the fields of mining and geological research. Our proposal was supported on the part of the Ministry of Mining and Energy by the statement of Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović Ph.D., who stressed that “there can be no development of mining if the Geological 36
Survey of Serbia does not get its proper place, if it is not made a much more recognisable and unavoidable address for all geological research.” Some of the jurisdictions provided in the draft Law relate to the submitting of opinions on feasibility studies and general projects for capital facilities that are of interest to the Republic of Serbia. The Geological Institute should, in part, be recognisable in the domain of issuing permits for the geological research and exploitation of mineral resources through the e-mining electronic service, with which the procedure would be accelerated and deadlines shorten to the optimal level. The Institute should have a stake in monitoring research, from issuing acts with information for the drafting of projects and the performing of planned geological works, through oversight in geological research, to the revision and defence of studies, in accordance with European practises, and of course with the expert control of the Minister of Mining and Energy. The draft law should define the assigning and availability of geological data, through the fund of geological documentation of the Minister of Mining and Energy, with the aim of producing various geological maps and improving the management of the geological information system. he Serbian Geological Institute was once a powerful institution T that operated in more than 40 countries of Europe and Africa. What is required today for the Geological Survey of Serbia to be recognisable for its capacities? The history of the geological profession and science in Serbia have traversed a very complex and dramatic period, but it has managed to resist all the challenges of social happenings from the very beginning. As an organised profession, its beginning lie in the formation of the “geological service” under the scope of the mining department of Majdanpek Mine (1848), under the management of the Ministry of Finance of the then Principality of Serbia. With the strong support of the Serbian Geological Society and a “decree”, the Geological Institute of the Kingdom of Yugoslavia was established in 1930 as an “independent state institution” tasked with “studying the soil and deeper parts of the earth, mineral wealth and groundwater, according to an established plan and modern scientific methods”. The scientific “Journal of the Geological Institute of the Kingdom of Yugoslavia” was also founded. It was the predecessor of Geozavod, which was founded after World War II and reached the highest level of its development from 1951 to 1973, when more than 1,100 highly educated engineers and technicians were employed. It was also in 1948 that the Geoinstitute was established, for the needs of researching and developing nuclear and other mineral raw materials, which had a staff numbering over 400 engineers and technicians. The Geoinstitute reached a high level in the field of applying new methods in the research of nuclear raw materials, which ranked comparably to many institutes around the world. Alongside nuclear geology, research was carried out on mineral deposits and the geological map of Yugoslavia, while other work was also done abroad. The decision to integrate and merge these two geological houses into one was brought in 2005, with the Law on Mining and Geological Research forming the basis for the Geological Survey of Serbia to be established in 2011 as a special organisation of the state administration, tasked with the jurisdiction to perform basic geological research throughout the entire territory of the Republic of Serbia.
MINING SECTOR 2021
IVAN JOVANOVIĆ, MINING BUSINESS DIRECTOR SOUTH-EAST EUROPE, FLSMIDTH
INTERVIEW
Mining's Future
IS DIGITAL FLSmidth is a leading supplier of sustainable productivity to the global mining industry. We deliver engineering, equipment and service solutions that enable customers to improve performance, drive down costs and reduce their environmental impact green transition is putting even more pressure on miners to deliver minerals needed for wind turbines, solar panels, electric vehicles, refrigeration and other electronics. Electric vehicles contain metals like copper, lithium and cobalt, and they require four to five times more copper than a combustion engine vehicle. But it is true to say that a transition to renewable energy sources is only possible with an increase in mining and a rise in the recycling of minerals. But that is, of course, possible.
Europe is a key area for FLSmidth: it makes up 19% of our revenue and is a region where we see significant growth
T
he future of mining is about sustainability and digitisation. FLSmidth is a company that believes that digitisation and automation are central to sustainable mining, as they allow mines to use fewer resources, such as energy and water, and to reduce emissions. conomic growth and urbanisation drive E the ever increasing demand for minerals, especially specific, non-renewable resources that must be used rationally. Can existing known reserves satisfy those needs? We are seeing factors, such as population growth, a growing middle class and increasing urbanisation, driving the need for mining. The
It is how we get there that can be challenging. Mining must deliver more minerals but in a less resource-intensive manner. Our response has been the MissionZero ambition, where we set a goal to collaborate with our customers and partners to work towards zero emissions, zero water waste and zero energy waste by 2030. ould you tell us more about your comC pany’s position and role in the mining industries of Serbia, Europe and the world? Our operations span the globe and our close to 10,700 employees are present in more than 60 countries. Europe is a key area for FLSmidth: it makes up 19% of our revenue and is a region where we see significant growth. In Serbia we are long term partners of the two biggest mining operators and have worked with them on many significant projects, especially over the last five years. To be the trusted partner of the biggest miners is proof of our strong
presence in this market and our position as a key OEM for mining equipment. It also shows our strong commitment to supporting Serbia in transforming its mining operation to be safer, more environmentally friendly and sustainably productive. onsidering the aspects of digitisation C and sustainability, how do you see the future of mining? Digital already gives operators more control over operations and availability. But the real value will arrive with fully interconnected data over the full mine’s flow sheet and even beyond. What will then be available is an uninterrupted stream of data and processes that can be flexible enough to self-optimise and self-adapt to changing conditions in real-time, or close to real-time. round 20 international companies curA rently operate in Serbia. What do we have to thank for the expansion of mining activities? Significant growth and expansion has come from the Law on Mining and Geological Explorations that came into effect a few years ago. This has been the base for a lot of the current activities of major miners in Serbia. The second factor is the strong commitment of the government to the mining sector. The share of mining in Serbia’s GDP is 1.9%, while the intention is to raise this further to 3.5-4% over the next three years. This is a clear signal to mining operators that they will have full support related to local legislation and approvals. We will be there to help them with our market-leading engineering, equipment and service solutions that improve productivity and throughput, whilst minimising the environmental footprint. 37
MINING SECTOR 2021
THE MOST IMPORTANT THING TO COME OUT OF A MINE IS THE MINER
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MINING SECTOR 2021
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MINING SECTOR 2021
INTERVIEW
BRANKO ZEČEVIĆ, PRESIDENT OF THE GEOLOGICAL AND MINING ASSOCIATION OF SERBIA (GRAS)
New Mines Bring
NEW TECHNOLOGIES If the version of amendments to the Law on Mining is finally adopted, we will receive one of the best laws in Europe and the world. This is one of the preconditions for Serbia to be able to fully utilise its capacities in this area and enable intensive momentum for mining In the past few weeks, GRAS has been working intensively with the Ministry of Mining and Energy on a proposal to amend the Mining Law. I think that, in the end, we reached a jointly harmonised version that will satisfy both the state and investors. If this version of amendments to the Law on Mining is finally adopted, that will mean Serbia receiving a law that can be considered one of the best in Europe and anywhere in the world. ow can it be ensured that the shortening of procedures still satisH fies the large number of conditions for the entire process to be led transparent and responsibly? The introduction of e-government to the process of submitting applications and issuing solutions will speed up the process itself, as
Serbia must redevelop its base industry to a much higher level than it is at today, and I’m hopeful of some practical steps in that direction well as rendering it more transparent. However, a large number of steps and necessary permissions, approvals and other documents exist that are not issued by the Ministry of Mining itself, so it remains for us to see what these changes will mean in practise.
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est assured that no one will open a new mine in Serbia tomorrow using twentieth-century technology - says Branko Zečević, president of the Geological and Mining Association of Serbia (GRAS). The foreign companies that are coming to Serbia apply the latest technologies and solutions in mining, which relate to both the efficient exploitation of ores and a positive relationship towards environmental protection. I n your opinion, to what extent will the announced amendments to the Law on Mining impact on improving procedures in this area? 40
I s this enough, or will it be necessary to make changes to some other laws and regulations? This is an essential first step. After that, work should continue with other ministries and administrative bodies on the harmonisation of laws and regulations, in order for us to ease and accelerate the issuance of permits and approvals. The process is complex and there is still a lot of work ahead of us. lthough we always consider mining as being an extremely labourA intensive activity, we are witnessing the grad entry of Industry 4.0. and digital transformation into this sector. Where are we in this; and what can we hope for in the coming period? The vast majority of mining and geological companies that are active in Serbia monitor the latest advances in our industry. Some of them
MINING SECTOR 2021
investments by major world players in new plants (Zi Jing, Rio Tinto). It is are also world leaders in their fields, so mining will certainly be in step also noticeable that the state has a desire to attract more investments with world trends. The planning of new mines is today done with the in this area, in order for us to make the optimal use of our resources. world’s highest environmental standards in mind, while production itself is envisaged in accordance with the latest technological achievements. Rest assured that no one will open a new Mining must be environmentally and socially acceptable, and mine tomorrow using twentieth-century technology.
that means that it mustn’t harm local communities, rather it should include them in the process itself, in such a way that local communities see their own advantage from mining projects
o what extent are local experts and other resources T engaged in this revival of mining as a branch of industry? I believe that all existing professional resources in Serbia are already included in the development of mining. Mining has become an increasingly attractive branch of the economy in recent years, so the existing number of experts are constantly being joined by new generations of geologists and mining engineers. I hope that even more young people will opt for a career in this field, because it offers the prospect of fast employment with the possibility of advancement for those who are ready to keep learning and follow the latest achievements worldwide.
ountries with valuable raw materials very rarely manage to retain C the added value because, apart from mining the ore, they lack the processing capacities. Where are we in this equation and what could we realistically do to produce higher value products in this sector? Serbia can’t be viewed as a country that only has ores and lacks expert personnel or an industry that can utilise such resources for the production of goods with a higher level of processing. It is true that a lot of the potential and capacities of the base and metallurgical industries has been lost during transition, but we are also witnessing
Serbia must redevelop its base industry to a much higher level than it is at today, and I’m hopeful of some practical steps in that direction. hat are the fundamentals of sustainable mining today, and what W are the essential prerequisites for that? Sustainable mining is something of an awkward notion, because mining by definition exploits non-renewable resources. This means that every mine is destined to stop working at some point, because the resources will be depleted. As such, planning the work of a mine must start from the end, i.e. from how the operations of a mine will end and what will be left behind. It is quite possible to carry out land reclamation and construct facilities that can be very attractive. Mining must be environmentally and socially acceptable, and that means that it mustn’t harm local communities, rather it should include them in the process itself, and should do so in such a way that local communities see their own advantage from mining projects. Mining must use resources in the most optimal way, so that they yield the highest possible value for the wider community. 41
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NEWS
Mining Represents The
FUTURE OF SERBIA In a drive to increase the share of mining's contribution to the country's GDP from 1.9 to 3.5 per cent over the next few years, which is one of the strategic goals of the Republic of Serbia, the Ministry of Mining and Energy has launched a procedure to amend the Law on Mining and Geological Research
A
mong the goals of these amendments are attracting investors, increasing mining royalties and ensuring greater protection for human health and the environment.
NO MINING DEVELOPMENT WITHOUT SCIENTIFIC RESEARCH INSTITUTIONS
Serbian Mining and Energy Minister Zorana Mihajlović discussed plans for the development of mining in Serbia and support for scientific research institutions in this sector with Mile Bugarin, director of the Institute of Mining and Metallurgy Bor. “It is important for the future of mining in Serbia to take care of domestic scientific research institutions, which should also play an important role in developing the national plan for the climate and energy and new energy development strategies, as well as being engaged in all activities in the domain of mining, especially when it comes to environmental protection,” noted Minister Mihajlović. Bugarin said that the Institute, which emerged within the scope of 42
RTB Bor, has been operating independently since 2007 and today boasts modern laboratories, is strengthened in terms of personnel and generates its own revenues on the market, through its participation in projects and provision of services both in the country and abroad.
MINING SECTOR 2021
DUNDEE PRECIOUS METALS (DPM)
CORPORATE
Leader In
RESPONSIBLE MINING Dundee Precious Metals (DPM), an international gold mining company based in Canada, delivered record operational and financial results in 2020, while also continuing to successfully implement its key development projects worldwide. DPM is committed to adhering to the principles of responsible mining and maintaining the highest industry standards “2020 was another milestone year for DPM, as we delivered record gold production and met or exceeded our production guidance at each of our operations,” says DPM President and CEO David Rae. “Our impressive operating results throughout the year reflect outstanding efforts by our teams to effectively manage the challenges of the COVID-19 pandemic while continuing to prioritise the health and safety of our workforce and local communities.” WE’LL TALK ABOUT A GREEN SERBIA IN THREE DECADES
The aim of the changes initiated in Serbia’s energy sector will be to secure sufficient quantities of good quality energy and increase the level of energy generated from renewable sources, in order for us to be able to green energy and a green Serbia by 2050. These changes are taking place through amendments to key laws, the reforming of large enterprises and the increasing of investments in the energy sector.
DPM has a successful track record of incorporating into its operations advanced technological solutions that satisfy the highest environmental standards DPM has a successful track record of incorporating into its operations advanced technological solutions that satisfy the highest environmental standards. DPM’s Krumovgrad operation was declared Investor in Environment of the Year in Bulgaria in 2020. Under the auspices of the Bulgarian Investments Agency, DPM’s Krumovgrad operation was also recognised with the Annual Grand Award for Investor of the Year 2019. In addition to its successful Krumovgrad and Chelopech mining operations in Bulgaria, DPM also operates a smelter in Namibia and has ongoing exploration activities in Bulgaria, Canada and Serbia. DPM is an active citizen within the communities where it operates and supports sustainable development programmes tailored to suit the needs of those communities. DPM has been active in Serbia since 2004 and currently has the rights to ten exploration sites. DPM’s current leading project in Serbia, Timok Gold, is advancing to a feasibility study and represents important development potential for the Municipality of Žagubica and the region of Eastern Serbia. 43
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The line ministry has prepared drafts of four laws from the fields of energy and mining, while relevant by-laws are set to be completed in three to six months. With these new laws in the pipeline, the competent authorities have noted that no decision and no investment in the fields of mining and energy can be made today without being linked to environmental protection. BRITS PLAN TO OPEN MINE NEAR RAŠKA
British company Adriatic Metals is conducting extensive geological research in Serbia with the aim of investing and launching the construction of a new mine in Raška by 2024. Paul Cronin, general manager and director of Adriatic Metals, said that the company had recognised Serbia as a successful economy with a good legal framework and great potential in the field of mining. “A great thing for Serbia is that some of the world’s largest companies from the field of mining are already present in the country, and I believe we can also implement this project successfully in Serbia. Our company is already present in this region, in Bosnia-Herzegovina, where we have a strong focus on environmental protection and cooperation with the local community, and we will have the same approach in Serbia,” said Cronin. MINING RESERVES IN SERBIA REACH 200 BILLION DOLLARS
The value of confirmed reserves of mineral raw materials in Serbia has reached almost 200 billion dollars, while the state is tasked with creating the conditions for mining to develop. The goal is for both the state and citizens to benefit from this, through a healthy environment, higher incomes, the creation of jobs and high-quality investments. It is essential for the development of mining to provide a legal framework and introduce e-mining, in order for the country to have simpler and more efficient procedures. “No one should be privileged if they want to explore and subsequent exploit some ore, and that’s why we’ll propose the shortening of exploration rights, as opposed to having someone do that for eight or nine years, occupying a certain area,” said Serbian Mining and Energy Minister Zorana Mihajlović Ph.D. 44
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VACCINATION ENCOURAGES RECOVERY OF METAL AND MINERALS MARKETS
Miners and manufacturers of metal can hope for the recovery of the market they operate on, as they are awaited by a more favourable pricing structure, with all prices of minerals and metals – with the exception of iron ore – expected to rise in 2021, according to predictions in the latest report of Fitch Solutions.
According to official data, about two per cent of Serbia’s GDP is generated by the mining sector. In terms of structure, about 90 per cent is accounted for by coal, oil, natural gas and copper, with the structure of the remaining 10 per cent consisting of the production of lead and zinc and non-metallic mineral raw materials, mainly stone aggregate, sand and gravel, and raw materials for the cement industry. A major expansion of mining activities is underway in Serbia. The most common activities at present include the exploitation of copper, lead, zinc, silver and gold, which leads experts to note the importance of developing the supporting industry in parallel with the opening of mines. They also emphasise that notably more attention is being paid to environmental protection in the mining sector than was previously the case. According to data from the Serbian Chamber of Commerce & Industry’s Association for Energy and Energy Mining, Serbia has 200 exploitation fields and approximately 125 exploration fields where major research is being conducted. The highest level of investment over the next three years is expected in the Čukaru Peki Mine and the Jadar project, as well as investments in the mines of Bor, which are now owned by the Chinese Zijin Mining Group. GOLD TO REMAIN WORLD’S MOST SOUGHT-AFTER COMMODITY
Although metal prices have recovered unexpectedly positively compared to the decline recorded a year ago as a result of the COVID-19 Pandemic, they are set to remain lower than expected. Contributing to the recovery of mineral and metal prices is the fact that global economic recovery has become more certain since vaccination programmes have been launched worldwide. MAJOR EXPANSION OF MINING CURRENTLY UNDERWAY IN SERBIA
Global demand for gold has grown continuously over the past decade, with the pandemic only helping to strengthen that historic growth in 2020, with similar predictions for 2021. According to a McKinsey & Company report on metals and mining, this clearly demonstrates that gold remains one of the most sought-after commodities in the world and one of the most profitable investments. The pandemic and its devastating impact on the global economy have increased demand for gold, as the safest commodity. Also contributing to this increase are the low interest rates that have rendered stocks, government bonds and other securities less attractive than gold. 45
MINING SECTOR 2021
INTERVIEW
CHRIS JAMES, CHAIRMAN AND CEO, TARA RESOURCES AG
Long History,
GREAT FUTURE The Brksovo Mine has a long history, with mining operations first recorded in the thirteenth century, while today the Brskovo Mine has excellent prospects as a large scale open pit zinc, lead and copper mine, and potentially the lowest cost zinc mine in Europe as a large scale open pit zinc, lead and copper mine, and could potentially be the lowest cost zinc mine in Europe, due to its attractive ore grades, low mining strip ratio and low operating costs in the region. The Brksovo Mine has a long history, with mining operations first recorded in the thirteenth century, with small-scale silver mining operations and a mint producing coins called the “Grossi de Brescova”. Small scale mining operations also
We believe the Brskovo Mine presents an excellent opportunity to develop a leading European zinc mine in Montenegro
ne of the greatest assets of the project location in Mojkovac is the local community, which has experience in, and a long tradition of, mining, and which is largely supportive of the development of the project and the employment and growth it will bring to the region.
took place from 1976 to 1991. In 2010, a new exploration and mining concession was issued to an Australian exploration company, and drilling was conducted to grow the resource. Tara Resources acquired the project in 2018 and completed significant additional drilling to expand the resource. In 2021, we intend to complete all local permits and approvals, as well as our international Feasibility Study to support financing and construction.
Your company is dealing with the development of Montenegro’s Brskovo Mine. Does it really have the potential to be one of Europe’s largest and lowest cost open pit mines for the production of zinc, lead and copper concentrates? Yes! Having recently completed our international Pre Feasibility Study, we can confirm that the Brskovo Mine has excellent prospects
part from a long tradition and rich deposA its, is one of Brskovo’s greatest advantages its quality infrastructure, such as road connections with the international Port of Bar? Like many projects in the Balkans, Brskovo benefits from excellent infrastructure in the local town of Mojkovac, which is approximately 100km northeast of the capital Podgorica. Highways provide excellent connections to
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smelters and ports, and there is a high voltage power substation close to the site. ou have a commitment to protecting the Y environment, promoting the health and safety of employees and improving the living standards of local communities. What are you doing in this context on the territory of the municipality of Mojkovac? The management team of Tara Resources has a track record of developing and operating mines in accordance with EU and international regulations for the protection of the environment.The health and safety of employees is also of paramount importance to Tara Resources, where the team utilises modern equipment and best practices in safety training and procedures. Tara Resources is committed to developing strong relationships and engaging with the local community in Mojkovac and the surrounding communities in the northern region of Montenegro. The company will primarily hire and train employees from the region, creating employment and opportunities for new businesses. As in many Balkan countries, state royalties will be shared with the local municipality, thus funding improved services. The company also supports regional initiatives in health and safety, sport, education and other charitable initiatives. We believe the Brskovo Mine presents an excellent opportunity to develop a leading European zinc mine in Montenegro, in line with global best practices for safety and the environment, and we look forward to bringing employment and growth to the local communities and building on the long tradition of mining at Brskovo.
MINING SECTOR 2021
SLOBODAN DRAGANOVIĆ, TEHNICAL DIRECTOR, ŠUTEX D.O.O.
INTERVIEW
Construction Waste Is A Valuable
RAW MATERIAL
Šuteks is a company that has been dealing with the disposal of rubble, refuse and waste for 18 years. The company has ever more work, not only in Belgrade, which is one big construction site, but also across the country
Darko Draganović, Šuteks general director, and Slobodan Draganović, Šuteks technical director
T
he most important thing for construction waste management is to ensure the obligation to secure sorting and separating for reuse and recycling at the point of origin. That will then significantly ease the further management of this waste - explains Šuteks Technical Director Slobodan Draganović
uteks has also worked for Š the Rio Tinto subcontractor? What was specific about that cooperation? Yes, we also worked for this large, world-renowned company, and that cooperation was very important for us. Foreign companies in our country work according to our laws, but also according to their own, in the case that they are more stringent than ours, which only shows how responsible they are and how much attention they
pay to environmental protection. Although up to 80 per cent of rubble and other construction waste can be reused, it still ends up in landfill sites in our country. Do you think that problem could be solved through changes to regulations and laws? The construction industry, as one of the leading contributors in terms of the consumption of raw materials, has gradually become an increasing source of pollution due to the huge amounts of construction waste it generates. The issue of construction waste has not yet been resolved in Serbia. EU member states and other developed countries, such as Japan, have long viewed construction waste as a significant raw material for sustainable development and green building, while in the Netherlands and Denmark up to 90 per cent of all construction waste is recycled.
It is estimated that between a million and 1.5 million cubic metres of construction waste is generated in Serbia annually, while the percentage of construction waste that is recycled is negligible. The most prevalent construction waste items – concrete, asphalt, wood, brick, tiles, ceramics, steel, aluminium, iron, copper, gypsum and glass – can be recycled and have their own market value and many application possibilities. That’s why it’s important for the competent institutions to create the necessary preconditions for the recycling of this waste by amending the legal framework. This would allow this type of waste to be treated as a raw material, and not as waste. The EU has long since adopted a package of measures relating to the transition from a linear to a circular economy, and that is a direction that Serbia will have to follow on its road to EU accession. Otherwise, mining waste can be used as a building material, for making barriers, for local rural roads, for raising embankments during floods, and even for covering fires. How can our companies be equipped to work according to European standards, given that none of them have a license to create new material from waste? There is no existing legislation that prescribes such licenses. That’s why it’s essential to amend the exist-
ing legal framework, with which the obligations and responsibilities of all participants in the waste management process will be clearly defined, and which will at the same time ensuretheconditionsforprotectingthe environment.There is huge potential for the reuse of waste materials and the recycling of construction waste,because–inadditiontosaving resources and raw materials – that also enables additional savings to be made in the economic domain, in terms of the price of materials, transport and mechanisation. Are the potential for savings in construction and the preservation of the environment sufficient reasons for the state to priorities addressing this issue? As a socially responsible company, Šuteks d.o.o. certainly monitors and fulfils all legal obligations and has all essential permits required to ensure that, primarily, waste management is carried out in a safe way for the health of Serbian citizens and the environment. Simultaneously, we also expect the state to take a serious approach to solving this problem in the coming period, because construction – as one of the leading industrial activities – will be an ever growing consumer of raw materials and natural resources, and consequently an ever growing producer of solid waste and a source of air, water and land pollution. 47
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Chasing
THE BALANCE According to market and consumer data company Statista, the mining industry's market size is expected to increase worldwide by 10.1% in 2021. As such, mining is considered a highly desirable area of activity from the perspective of GDP growth and the creation of new jobs. However, with modern societies requiring ever more rare minerals in order to function, questions related to sustainability are becoming even more important.
D
o we need mining? It comes across as an awkward question. Indeed, the mining sector represents one of the world economy’s strongest engines. The revenue generated by the top 40 global mining companies, which represent a vast majority of the whole industry, amounted to around 692 billion U.S. dollars in 2019, according to Statista. The market size of the mining industry is expected to increase worldwide by 10.1% in 2021. As such, mining is considered as being highly desirable from the perspective of GDP growth and the creation of new jobs. However, mining contributes across the world to erosion, deforestation, biodiversity loss, the use of significant water resources, wastewater disposal issues and the contamination of soil, all of which contribute to the degradation of health in the local communities where mining takes place. How can these two be brought closer together? In the future, modern societies will certainly demand, produce and purchase metals and minerals in even larger quantities than today. Rare minerals will be needed, for example, in infrastructure, communications equip48
ment and sustainable energy systems (solar cells, wind turbines, batteries etc.). Under such circumstances, pressure is mounting for the mining industry to adhere to the UN’s Sustainable Development Goals. In order to be considered sustainable, a mining community needs to adhere to the principles of ecological sustainability, economic vitality and social equity. The mining and minerals industries have an impact on all three dimensions of sustainability, both positively and negatively. However, experts warn that without the industry’s contribution, not least in supplying materials for the necessary technological transformation of global energy systems, climate change would become difficult to solve. Sustainable mining itself might be an oxymoron, given that every single mine has a limited lifespan and is ultimately abandoned when a mining company loses the ability to extract minerals profitably, which depends entirely on the percentage of a mineral contained in the ore. In that respect, mineral resources are viewed as finite and non-renewable.
MINING SECTOR 2021
As previously mentioned, new technologies are also contributing to the development of 21st century mining. The latest technological trends in mining indicate a compelling shift in the industry towards sustainability. By effectively using new technologies like geospatial data, the mining industry gains insights into mine systems at a reduced cost and with a reduced impact on the environment. Industry experts observe that it will soon be pos-
In deciding how to mine, states and companies today rely on an integrated assessment of ecological, environmental, economic and social impacts. Decision-making processes usually entail making choices and trade-offs between competing interests
When discussing sustainability, therefore, we highlight the environmental concerns that can be addressed through different types of measures, including shifting to new technologies. Economic aspects include social development, prosperity, competitiveness, resource management and the circular economy. Environmental considerations must take into account emissions, waste management, post-extraction remediation, the conservation of nature, energy use and climate. In summary, modern mining processes involve prospecting for ore bodies, analysing the profit potential of a proposed mine, extracting the desired materials and carrying out the final reclamation of land after a mine has been closed. These practises include measures like reducing the consumption of water and energy, minimising land disturbances and waste production, preventing the pollution of soil, water and air at mine sites and conducting successful mine closures and reclamation activities. As such, environmental criteria have to be embedded in today’s investment and business decision-making processes from the very outset. The use of new technological solutions represents the backbone for ensuring operations and processes are made more efficient, collaborative in nature and more traceable. Those are some of the values being embraced by modern mining in the 21st century. The new consensus on sustainability has resulted in strategic alliances being forged between the mining industry and some of the largest conservation organisations, including the World Wide Fund for Nature (WWF), Conservation International and the International Union for Conservation of Nature (IUCN).
sible to virtually construct and deconstruct buildings, plants, mines and all associated infrastructure before ground is even broken, thus creating a truly intelligent mine. Geographic information systems (GIS) are an integral tool that allows a deeper look at how mining can be made more efficient in terms of location and accessibility. Furthermore, artificial intelligence (AI) is also in use in advanced mining firms. Those companies use smart data and machine learning to improve operational efficiency, mine safety and production workflows. Implementing AI technology generates day-to-day data in half the time than was previously the case on the ground. As a result, companies can more easily find minerals by using high-performance AI technology. Furthermore, firms across the globe are increasingly using autonomous vehicles and drills in their pit-to-pit operations. This is resulting in drilling systems being simplified and representing much safer workplaces. Consequently, using mining equipment that encompasses AI helps to ensure safety and reliability for both miners and the land that mines occupy. Over recent years, advanced mining companies have increasingly been using drones or unmanned aerial systems (UAS) to replace helicopters , thereby reducing their costs. These new technologies also allow mining companies to efficiently use lower ore grades, work under extreme weather conditions, access deeper deposits, or treat harder rock mass and high-stress environments. 49
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A DIAMOND IS A CHUNK OF COAL THAT DID REALLY WELL UNDER PRESSURE - Hendry Kissinger 51
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SERBIA
Treasure Under and
ABOVE GROUND There are more than 200 mines in Serbia, and, several dozen deposits, so the value of the country's mineral wealth is estimated at more than $ 200 billion.
E
xperts believe that mining in Serbia could be the main competitive advantage of our economy over the coming years, contributing to economic growth and development, being environmentally friendly at the same time. The competent persons intend to enable a modern and more successful mining sector in Serbia, to attract new investors to comply with all the regulations and the highest environmental standards, in order to protect the beautiful nature of Serbia around the existing and future mines. BEAUTIFUL NATURE OF BOR CANNOT BE HIDDEN BY MINE DUST
One of the largest mines in Serbia is located in Bor, with Veliki krš and Mali krš mountain ranges in the immediate vicinity, about ten kilometres northwest of the city. Some of the favourite cycling routes are located on those mountains, attracting cyclists from the whole Europe. On the 52
Dubašnica mountain, near Bor, there are the Samar Gates. Gates are the remains of caves, manifested as splendid gates that, when observed from the ground, show the magnificence of nature, and how small we are in relation to them and to those rock giants. Near the village of Zlot there is a huge cave system, one of the largest in Europe, with a dozen caves and pits. The best known are Lazar’s Cave and Vernjikica. There is also the Bor Lake, an artificial lake formed in 1959 when the dam and accumulation for the water of rivers Valja Žoni, Marecova and a part of the basin of Zlotska River were constructed. The lake is located at the foothill of the Crni vrh Mountain, whose clear mountain springs fill the lake with water. The bathing season lasts for more than two months, which is a rather long period compared to other lakes. Few know that there is the Tilva Njagra volcano cup over the Bor lake. The Lazar’s Canyon might be the largest and the most beautiful attraction
MINING SECTOR 2021
NATURAL RESOURCES OF MAJDANPEK ATTRACT NUMEROUS TOURISTS
White Spring
Near Majdanpek, there is a natural stone brigde Valja prerast, the natural monument of exceptional importance. It was placed under the state protection in 1959, with the “Beli izvor” site with a 17-metrehigh waterfall near it and about fifty tufa lakes. This natural resource may promote the tourist offer and complete the wonderful picture of Majdanpek – the mining town. People in Majdanpek believe that Valja prerast and Beli izvor will soon become well-known tourist destinations in the country. “BELA STENA” SURROUNDED BY AMAZING CREEKS, STREAMS AND RIVERS
in the Bor municipality. Its robustness and impressiveness are beyond words. It is about 4.5km long and up to 350m deep on the left side and more than 500m on the right side, below Malinik. The smallest length of the riverbed and the Canyon is between three and four metres. There are no walking trails along the Canyon, and it is impossible to get down into the Canyon or get out of it. The sides of the canyon are very steep, mostly vertical.
Lake Bor
Ibar river
The “Bela stena” magnesium mine is located near Baljevac in the Municipality of Raška. This small town is tucked away between Kopaonik and Golija mountains, in the valley in which first the Trnavska River flows into Raška, and then Raška flows into Ibar, and it is no wonder that it is visited by hikers, rafters, paragliders, fishermen, and skiers throughout the year. There are some of the greatest medieval monuments like Studenica, Gradac, Končul, Nova and Stara Pavlica monasteries. The natural resource of this region consists of numerous watercourses, with the most important rivers like Ibar, Jošanica, Brvenica, Radošićka, Rudnička, and Raška. Due to numerous rivers, this whole region is full of other hydrological resources, such as: healing thermal springs and 53
MINING SECTOR 2021
SERBIA numerous wells and lakes, the best-known of which are the Semetsko Lake, and Kazanovske bačije i Marina voda radioactive springs. These healing thermal springs are exploited, and everybody knows of Jošanička Spa near Raška. Apart from hydrological potentials of the rivers and the wonderful nature surrounding them, Raška is tucked in between Golija and Kopaonik mountains, visited by increasing numbers of tourists every year. WHAT IS MORE VALUABLE - SIJARINSKA SPA OR LECE MINE?
The “Drmno” deposit is located in the eastern part of the Kostolac Coal Basin, east of Mlava River, covering the area of about 50 km2. Some 25 % of lignite in Serbia is produced in the Kostolac Basin, supplying the Kostolac thermal power plant. Kostolac is located in the middle of Braničevo, with Stiška Plain, the rivers Danube, Morava and Mlava, artificial lakes, Homoljske Mountains, thermal springs, medieval fortresses in Golubac and Ram, monasteries, churches and archaeological sites. Near the old Kostolac there is the church of the Great Martyr St. George. It is located on the hill called Mali grad, overlooking the surroundings of Kostolac, the estuary of Mlava into the Danube, and with a view of Banat. SENJE MINE - STILL A SYMBOL OF MINERS AND MINING IN SERBIA
Sijarin Spa
God, they say, was not frugal when he gave the natural resources and beauty to Medvedja and its surroundings. Sijarinska Spa got the most of it, with more than 20 healing springs, geyser, clean river, thick forests and spacious meadows, with Lece Hill with ore resources worth billions of dollars under it. The Sijarinska Spa is located on the river banks of Jablanica, at the foothill of the Goljak Mountain, at an altitude of 250 meters. The Spa includes springs of sulphur-iron-radioactive and carbonic acid water and a natural geyser, the only one in this part of Europe. THE KOSTOLAC BASIN IN THE MIDDLE OF THE BRANIČEVO DISTRICT
Lisine waterfall
Homolje mountain
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Senje Mine, the oldest dark coal mine, is surrounded by mountains and hills full of beech, oak and pine forests, as well as mountain rivers. In Senje Mine, there is the Coal Mining Museum, opened in 1980, and declared a cultural monument of great importance three years later. At the foothill of the Beljanice Mountain there are the Veliko vrelo spring and a 20-metre-high Veliki buk waterfall, the largest natural waterfall in Serbia. On the territory of Despotovac there is also the Prskalo waterfall. Only a few kilometres from Veliki buk, there is a small river Resava carving its way through the stones of the Kučaj Mountains.
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Overlooking the river, there are the rocks of the canyon, a few hundred meters high, approaching each other at only a few meters. The Resava Cave is located in the limestone hill called Babina glava at an altitude of 485 metres. It is 45 million years old, and it is one of the oldest explored caves in Serbia. Manasija Monastery is 2 km from Despotovac. It was built next to the right river bank of Resava in a picturesque canyon made up of the high slopes of the Beljanica Mountain. Manasija is the endowment of Despot Stefan Lazarević.
The head office of the Serbian part is located in Zvečan, and it includes two active mines, Crnac and Belo brdo. The most significant sites of the Municipality of Zvečan are located in the village of Banjska, with a spa for rheumatic and skin diseases, known from the Roman times. There is a medieval monastery Banjska, too, the endowment of Stefan Uroš II Milutin, attracting numerous believers and tourists. In the immediate vicinity, there are also the Sokolica and Devine vode monasteries, representing significant destinations for religious and cultural tourism in this Municipality.
BEAUTIFUL NATURE OF PODRINJE IS CONCENTRATED AROUND ZAJAČA AND JADAR
Banjska Monastery_Photo_Vanjagenije
KOLUBARA MINING BASIN IN THE KOLUBARA AND TAMNAVA RIVER BASINS
Žeravijsko Spring
The nature of Podrinje, consisting of parts of territories of the town of Loznica and the area of Jadar, is rich and versatile. In Zajača, the populated place near Loznica, there is the antimony and lead mine, with Jadar, the largest lithium deposit in the world from which a mine and a tailings pond should be formed. The wonders of this part of Podrinje are supported by the geographically interesting Lešnica, Rađevina and Azbukovica. The most beautiful sites are the Drina River, Banja Koviljača and Banja Badanja spas, Gučevo and Cer Mountains, and Tronoša and Čokešina monasteries. The following sites to be visited in this region, too, are the following: Žeravijsko vrelo, the spring of Žeravija stream, boiling and erupting to surface, Skakavac waterfall that is more than 7m high, and distant 1.5 km from Budimlija, “Rajsku dolinu”, a unique botanic garden in the village of Lipnica, with more than a thousand plant species growing, blooming and smelling on about two hectares of land... TREPČA WILL ALWAYS BE OUR LARGEST MINE IN KOSOVO
Since it is located on Kosovo and Metohija, after the division into the Serbian and the Albanian parts, Trepča, as the largest domestic lead and zinc mine, still has the status of a socially-owned enterprise.
Tamnava River
The Kolubara Mining Basin is a coal mine with a melting plant located near Lazarevac, south of the River Sava, in the Kolubara and Tamnava River Basisn. In the village of Ćelije, above the Ibar Highway, there is the Vrače Hill eaching a height of 240 metres, overlooking the surroundings. It is believed that the holy sorcerers Cosmas and Damian spent part of their lives in the monastery on this foothill that people from Lazarevac enjoy visiting, and that the hill was named after them. 55
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