Mining & Energy D I P L OM AC Y
&
C OM M E RC E
FOCUS ON
2021
P R E S E N T S
READ THIS ON WEB
MINING & ENERGY
by NEVENA KUVELJIĆ
Green Serbia is Our Vision
Our goal is to have at least 40% of energy coming from renewable sources by 2040
I N T E RV I E W
ccording to the Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy, Zorana Mihajlović, energy in Serbia has been dormant for a long time, but it did not stagnate but rather regressed. Following her appointment as Mining and Energy Minister, she announced major reforms and investments in this area. We talked with Minister Mihajlović about that, as well as about the new laws and plans for the mining and energy sectors.
A
What is the current energy situation in Serbia like and what is your starting position for reforms? — Energy has been dormant for a long time, and when energy is at a standstill, it causes many problems and adversely affects the security of supply. That is why this year is, in many ways, crucial for Serbia's energy future. On the one hand, projects, that will be implemented fast, have been launched
30
SPECIAL EDITION
ZORANA MIHAJLOVIĆ Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy
This year is crucial for Serbia's energy future
which should ensure energy security for the country, while, on the other hand, we are adopting a new regulation and starting to draft strategic documents that will give a new direction to our energy policy. Today, Serbia needs an investment boom in the energy sector, i.e. investments in the amount of billions of euro in the next few years in order to catch up with other European countries that have invested faster than us, and further advanced in decarbonisation, increasing energy efficiency and facilitating greater use of renewable energy sources. Our goal is to have at least 40% of energy coming from renewable sources by 2040 and 50% by 2050. In addition to the new laws we are passing, this year we are also starting to draft strategic documents. They focus on the integrated national plan for climate and energy until 2030, which should be completed by the year-end, as well as the new strategy for energy development until 2050. Earlier this year, you announced major reforms in the mining and energy sectors. What exactly will they entail and what will be the focus of investments? — The new investment plan, that we are putting together, includes projects that cover all segments of the sector worth close to 16 billion euro and reflects our strategic goals. Nothing more can be done in the field of energy and mining and no decision can be made without involving the Ministry of Environmental Protection and without fulfilling the highest environmental protection standards. In terms of electricity production, the planned investments will amount to around 6.6 billion euro, in mining around 3 billion euro, and around 3.4 billion euro of renewable energy resource projects, primarily in solar power plants and wind farms. The plan is also to invest
over half a billion euro in the gas sector, more than 200 million euro in the crude oil sector, and about 400 million euro in the thermal energy and energy efficiency sector. The investment plan directly relates to the energy transition that Serbia has been undergoing, because our energy security will depend on the construction of new large and medium-sized hydropower plants, gas power plants, and the use of RES. That is why this plan is both a plan for green energy and for green Serbia, which bases its future development on clean energy and is focused on development that is climate neutral. We will soon put all these projects in one place, in the project book, where all interested investors will be able to see what our priorities are, which public investments we plan to make, and where we expect active participation of the private sector. In addition to legislative changes, reforming the most important public energy companies has begun, with the approval of reorganization plans for Srbijagas and the Electric Power Industry of Serbia (EPS). In the electric power industry, the production of electricity is already separated from the management of the power distribution system. It is also important to mention that in the gas sector the transmission system operator has become independent from Srbijagas, which had to be done in line with the relevant Serbian and European laws. Four new mining energy laws have been passed. What will these laws change? — Two of those laws are completely new - one of them is the law that regulates the use of RES, which will, for the first time, allow all of us who consume electricity to become its producers. By installing solar panels on the roofs, each of us will be able to produce electric-
ity for our own needs, and thus reduce our electric bill. For the average household, a 3 kW solar panel costs between 2,500 and 3,000 euro and it only takes 8 to 10 days for the investment to pay for itself after which the household will start saving both energy and money. We will also simplify the procedure to the maximum and it will take only several steps to complete it. These steps include obtaining technical documentation, getting approval to commence works instead of obtaining the standard building permit, the installation of panels and two-way electricity meters and signing a contract with Elektrodistribucija Srbije and the supplier. Also, the new law on the use of RES introduces market premiums instead of the current feed-in tariffs, which means that we will have more competition and lower costs for individuals and businesses. Another important novelty is that this law also introduces a ban on the construction of hydropower plants of any type and power in protected areas. With the Law on Energy Efficiency and Rational Use of Energy, we want to raise energy efficiency to the level of a national project, because Serbia today consumes about four times more energy than the EU average for the same unit of GDP. The most important novelty is the establishment of the Directorate for Financing and Facilitating Energy Efficiency that will work under the Ministry of Mining and Energy, which will make it easier for people to obtain subsidies for the replacement of windows, doors, get front wall insulation and heating systems in their households. They will have up to 50% of their costs covered through a subsidy from their local authorities and will have to pay the 50% themselves. Incentives will be allocated through public calls for citizens, and they also could be used for the installation of efficient biomass and gas boilers, which should help reduce the pollution that comes from individual fireplaces. After these measures are implemented, energy in Serbia will no longer be the same. Green Serbia is our vision, and all of us, as citizens of this country, can contribute to its realization while working in their best interest. In addition to these two new laws, amendments to the Law on Energy are being adopted, which are important for harmonization with EU regulations and security of energy supply, as well as the amendments to the Law
on Mining and Geological Research.
Serbia bases its future on clean energy and climate-neutral development
When can we expect digitalization in the mining and energy sector to take place, i.e. the implementation of e-energy and e-mining? — NALED has declared an electronic building permit, created by the Ministry I helmed before, as the reform of the year. Thanks to this reform, Serbia advanced from 186th to 9th place on the World Bank's Doing Business List in the segment of building permits. When I took over the Ministry of Mining and Energy, I saw that many permits and notices have been waiting for more than six months to be issued. Therefore, we have decided to digitize procedures through amendments to the relevant law and the adoption of new laws, so we could also minimize the time needed to obtain all kinds of permits, consents and other documents issued by the Ministry. In addi-
tion to creating a legal basis, this year, we will work on securing finances and procuring software for the implementation of these reforms, and we believe that next year we will have e-mining and e-energy up and running. Also, the amendments to the Law on Mining and Geological Research have created the foundation for the introduction of electronic business in this area, which will contribute to more transparent and efficient procedures. The approval procedure has also been simplified and shortened from the current 150 to an average of between 15 to 20 days. What are Serbia's goals when it comes to connecting with the region in the gas sector and diversifying suppliers? — The main goal in the gas sector is
to have a safe energy supply. To have that, we need to diversify not only gas routes but also suppliers. Earlier this year, Serbia got an additional gas supply route, but our goal is to diversify sources and to be linked via gas interconnections with all neighbouring countries. Serbia-Bulgaria, i.e. the Niš-Dimitrovgrad gas pipeline, is the first interconnection we are going to build. The construction should start his year and the interconnection should become operational by 2023. This gas pipeline will allow Serbia to get natural gas from other suppliers - from LNG terminals in Greece and the TAP and TANAP gas pipelines which are part of the Southern Gas Corridor that transports gas from the Caspian and the Middle East region. In the future, and after the completion of the Eastern Mediterranean project, it will be possible to receive gas from the coastal reserves of the Leviathan field in Cyprus and Israel, which is important for Serbia and the region’s energy security. Mining is our great chance. What are Serbia’s mining potentials like and how are we going to develop and use them? — The value of the confirmed mineral reserves of Serbia is more than 200 billion U.S. dollars, and the goal of the amendments to the Law on Mining and Geological Research is for the state to better care for this natural wealth. It’s in Serbia’s best interest to have a modern mining sector, in which the interests of the state will be protected, and the management of mineral resources will be sustainable and efficient. One of the expected effects of this law will be an increase in the share that mining has in the national GDP. The sector’s current share is only 1.9 percent, and we believe that it can go up to 4-5 percent in the next five years. We should be much more mindful of environmental protection, both by improving the work of inspectors and regulations, as well as by reacting to every piece of information that the environment is being abused somewhere. We don’t want to allow in the 21st century is for someone to alarm people by spreading rumours and half-information about projects that have not yet begun, without a decision on their implementation, even being made and without all relevant studies completed. Even the people who tell such untruths are aware of that.
SPECIAL EDITION
31
READ THIS ON WEB
MINING & ENERGY
by RUŽA VELJOVIĆ
80 Years of Diplomatic Relations Between Serbia and Canada
Canada and Serbia have positive and dynamic bilateral relations, with the potential for these relations to become even stronger
his year, Canada and Serbia are marking 80 years of diplomatic relations. Relations between this two country quickly returned to a positive track after October 2000, and continue to expand and deepen. Canada strongly supports Serbia’s aspiration for EU membership. We talked about the relations between these two countries with the Ambassador of Canada to Serbia H.E. Giles Norman.
T
You came to Belgrade in the year when Serbia and Canada are celebrating a significant jubilee - 80 years since the establishment of diplomatic relations. Is this an opportunity to improve political dialogue between our countries? — There is always room for more political dialogue in relations between countries. We were pleased to host the Special Envoy of the Prime Minister of Canada in Belgrade in 2018, but political dialogue is not a pre-condition for many of the cooperation activities that are already taking place in commerce, culture, education and defence. Canada and Serbia have positive and dynamic bilateral relations, with the potential for these relations to become
32
SPECIAL EDITION
even stronger. Canada is deeply committed to multilateralism, so in addition to healthy bilateral relations between our two countries, we can step up our cooperation on issues of mutual relevance in multilateral forums, such as the OSCE and the Francophonie. We strongly support Serbia’s EU accession process, as we do for our Embassy’s two other countries of accreditation, Montenegro and North Macedonia. Due to the Canada-EU Comprehensive Economic and Trade Agreement (CETA), accession to the EU would automatically mean closer economic relations with Canada. Canada’s priorities in Serbia include increased bilateral commercial and economic co-operation. We also aim to promote democratic reform and good governance; rule of law and the fight against corruption; and respect for human and minority rights. Media freedom, for example, remains a serious concern in the region, and this is why we are glad that Serbia is a contributor to the Global Media Defence Fund, and a member of the Media Freedom Coalition, which Canada co-chairs. There are a number of examples of our successful cooperation. For instance, Canada supported Serbia’s successful ef-
I N T E RV I E W
H.E. GILES NORMAN Ambassador of Canada to Serbia
Canada’s priorities in Serbia include increased bilateral commercial and economic cooperation
fort to upgrade its membership status from observer to associate member of the Organisation internationale de la Francophonie (OIF) during the organization’s summit in Armenia in 2018. Canada supported Serbia’s successful candidacy to be re-elected to the UNESCO Executive Board for the 2019-2023 term. Serbia wants to boost all forms of cooperation with Canada, given its international influence, the size of the Serbian diaspora in Canada etc. What is your assessment of overall relations between our two countries? — Our relations are positive and solid, with the potential for further growth. Recently, we have organized initiatives to promote cooperation in book publishing, and we have supported projects in Serbia to boost gender equality and combat gender-based violence, in support of our common values. There are 97,000 Canadians who self-identify as being of Serbian origin. However, this
number is probably higher, as we assume that many Canadians self-identifying as Yugoslavs are likely of Serbian ethnic origin. Our friendship is evident at many levels, and I must reiterate my gratitude to Serbian authorities for facilitating the repatriation of Canadians in the context of the COVID-19 pandemic, including on an Air Serbia charter flight one year ago. We have established a strong framework for cooperation through a number of bilateral agreements that are in force, covering taxation, social security, investment, air transportation and other areas. Through our Canada Fund for Local Initiatives, the Embassy supports projects with civil society organizations and NGOs, with a focus on gender equality, the empowerment of women and girls, peace and security, and inclusive governance and the rule of law. Our cultural and academic cooperation remains vibrant despite challenges posed by COVID-19 and continue to be a bridge between our two countries. We are proud of our regular Days of Canada program outside the capital of Belgrade, continuing presence of Canadian dance the-
atre, film and music at local festivals, as well as of the visual art exhibitions and over 300 Canadian titles translated into Serbian. Many of the internationally acclaimed Canadian artists are of Serbian origin. Our defence relations also open doors to cooperation, and we regularly welcome members of the Serbian Armed Forces on various Canadian defense and security courses. Canadian investments in Serbia are growing, especially in the mining and energy sectors. How important is it for these segments to be properly regulated by laws and regulations and to apply innovative solutions and digital technologies? — Transparency, predictability and efficiency of the legislative framework is crucial for investments in any industry, especially in mining and energy having in mind the long-term nature of the project lifecycle in these industries. After adopting the new Law on Mining in 2015, which relies on the best international practices from countries such as Canada or Australia, Serbia was ranked very high in the international mining community for its regulatory
framework. We welcome the intention of the Ministry of Mining and Energy to further develop 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.
We have much more to offer to Serbia and especially in the sectors such as clean technologies and renewable energy sources
What can we learn from Canadians in terms of sustainable development and environmental protection? — Canada has the second largest territory in the world, rich in wild, untouched nature and diversified natural resources. Our population of over 37 million people represents a unique mixture of inhabitants living in modern, urban areas such as big cities of Ottawa, Toronto or Vancouver, as well as in distant territories such as Nunavut. Whether living in Toronto or in Iqaluit, people have the right to clean air, water and soil and Canadian companies and associations, especially in mining and energy, are recognized for their leadership in developing sustainable business models and practices in these industries.
SPECIAL EDITION
33
MINING & ENERGY
The Mining Association of Canada’s Towards Sustainable Mining (TSM) standard is a globally recognized sustainability program 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 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 program. We hope to work with Serbian mining authorities on adoption of the standard in this country as well. Are there any Canadian companies interested in investing in other economic branches and what can we do to make Serbia more attractive for the arrival of as many Canadian investors as possible? — Although Canada is mostly recognized for its past and current investments in the mining industry in Serbia, we have much more to offer to Serbia and especially in the sectors such as clean technologies and renewable energy sources. Canada and Serbia have both committed to climate change mitigation and adaption under Paris Agreement and we are looking forward to working together on issues such as decarbonizing local energy production and introducing more renewable energy sources. Canada’s experience in water management, decarbonisation of district heating systems or introduction of large solar plants can add value to Serbia’s goal of reducing carbon-dioxide emissions by 2050 and coping with increasing problems with air pollution. The adoption of the four laws on energy and mining in April created a solid ground for acceleration of investments in these sectors and we will be looking forward to promote Serbia as a good investment location to Canadian companies. I trust that subsectors of water and wastewater management and renewable energy sources will be
34
SPECIAL EDITION
The introduction of a direct flight between Canada and Serbia would be highly welcomed by the large Serbian and regional diaspora in Canada
of particular interest to our companies and I expect to see more Canadian projects in Serbia. Continuity and predictability of and respect for enhanced regulatory framework will be of essential importance in attracting and maintaining interest of international investors in looking into Serbia as a potential destination for their future projects. There has been a lot of talk about introducing direct flights between Canada and Serbia? How much would that contribute to economic cooperation? — In May 2018 Canada and Serbia have signed an Air Transport Agreement as part of the on-going process of acquiring the necessary permits to allow direct Air Serbia flights between Belgrade and Toronto. The Embassy of Canada supports the Serbian national air carrier’s efforts in receiving these permits, but the decision on further developments is with Air Serbia. The introduction of a direct flight between Canada and Serbia would be highly welcomed by the large Serbian and regional diaspora in Canada, as well
as by businesses from both countries as it would encourage the further expansion of growing economic ties between the two countries. What are your first impressions of Serbia and what do you especially like here? — Positive. The Serbian people have lived up to their well-deserved reputation for warm hospitality and my family and I have been made to feel very welcome. The pandemic situation has limited my ability to travel outside Belgrade but I am hoping to change that soon and see more of this beautiful country. The scale of the investment activity in Serbia from a range of countries was something I hadn’t appreciated before my arrival and is impressive. I have also been struck by how many Serbs have relatives and family in Canada, almost everyone I meet from all walks of life know someone living in Canada. It will be a priority of my time in Serbia to use these people-to-people links to broaden and strengthen the relationship between our two countries.
MINING & ENERGY
READ THIS ON WEB
CLICK ON ICON
WEBSITE
YOUTUBE
Photo: ND studio
The Future Mine Will be Safe for People And the Environment All parties should value - or there will be no mine
36
SPECIAL EDITION
C O R P O R AT E
NENAD GRUBIN B.Sc. geology
ho brought Rio Tinto to Serbia? Rio Tinto came to Serbia attracted by the mineral potential of our country. I participated directly in that, the story is interesting, but too long for this text. Rio Sava will turn twenty in May. The company started operating in a 12 m2 office in New Belgrade with one employee. It now has 140 employees. I have always said that the Rio Sava will either go big or be gone. They laughed at me. And that was neither funny nor fanatical, but logical. When you look for gold in Alaska, you'll either find it or you won't, and you'll quit. Such is the nature of mineral exploration. It is irrational for them to last too long. They are exciting and fun, but only until discovery is made. Then they are too serious.
W
Progress pioneer, whose success has encouraged others
What makes geological exploration successful? Is it a team made up of ingenious scientists, money, good organization, superior technology, luck? All of that played a role in finding the "Jadar" deposit. And there is more. For example, “first mover advantage”. Be the first in an area. Rio Sava was a pioneer of commercial geological exploration in Serbia. Our presence and our success have incentivized and encouraged many other mining companies to come to Serbia. Everyone used Rio Tinto as an example. Looking at all those competitors, some dear to me personally, I always thought of the Chinese saying, "let a thousand flowers bloom". Then there are the laws. Without a legal link between exploration and the right to exploit, no one would invest in geological exploration. The purpose of the exploration is not to satisfy scientific ambitions, but to find new mineral deposits and open mines that will in turn contribute to human progress. When we first started out, we were looking for borates. Rio Tinto is one of the two globally significant borate producers. Jadarite, which is a borate mineral also contains lithium. And lithium was not what we set out to find. But we did find it. And coupled with Borates, we decided to progress with the project. We are now focused on completing the feasibility stage of the project. At the same time, we are collaborating with leading Serbian and international experts in mining, processing, engineering and design, communities and environment to deepen our understanding of the project. And working through the permitting process. At the end of this study phase, an approval decision will need to be made.
This is the Serbia in which our children should live. Supermodern, yet conservative, full of knowledge, emancipated, busy, smiling, militarily capable, wellintended, attractive
of mineral resources must be profitable. The ore body can only be mined once. It is senseless to mine ore without creating new value, including value for our communities. All parties should value. Mining risk for the investor also needs to be understood. In addition to all imaginable technical, political, environmental risks, there is also the ordinary, economic one. What if the prices is significantly lower, or significantly higher than planned?
The most important value of the "Jadar" project is knowledge and innovation
In 1970, historian Danica Milić published the paper "Foreign Capital in Serbian Mining until 1918." In a study published in socialist Yugoslavia, she analyzed the impact of foreign capital invested in copper and coal mines in the Kingdom of Serbia. She described foreign capital as necessary for the greater good. Historian Milić consid-
ered the Serbian experience gained in foreign investment in Serbia to be very valuable. Most important, she argues, is the access to European technology and the knowledge which otherwise would not have been gained. For me, that is the best value of the Jadar Project. Money is of course important, but opportunity for our engineers and technicians to work with the most modern technologies, to cooperate with domestic and foreign universities and scientific and technical centers, is even more important. We have all the key resources. First of all, we have smart kids and good teachers. We also have lithium, boron, copper, nickel. So why shouldn't we be the country where electro-mobility and other best technologies of this century are being created? We can do it. This is the Serbia in which our children should live. Super-modern, yet conservative, full of knowledge, emancipated, busy, smiling, militarily capable, well-intended, attractive.
ABOUT THE AUTHOR I am Nenad Grubin, B.Sc. geology, a proud member of the Serbian Geological Society and the European Federation of Geologists. Also, I was the first director of Rio Sava Exploration in the first 11 years of the company's operation. I am one of the four geologists who discovered the Jadar deposit. Before Rio Tinto, I worked as an assistant at the Faculty of Mining and Geology, University of Belgrade.
The future mine will be safe for people and the environment, or there will be no mine
We appreciate that there are opponents of the Jadar project and we respect this. What is important to realize is that we too take our obligations to the environment seriously. Rio Sava have the same task: if we find fatal flaws, the project cannot go further. The future mine will either be safe for people and environment, or there will be no mine. This should also be said: exploitation
Rio Tinto, Resolution Copper
20 YEARS Rio Sava will turn twenty in May. The company started operating in a 12 m2 office in New Belgrade with one employee. It now has 140 employees.
SPECIAL EDITION
37
READ THIS ON WEB
MINING & ENERGY
by TANJA BANKOVIĆ
Mineral Resources – Serbia’s Strategic Potential
There is a high depletion of mineral resources in the EU, which is why Serbia should adequately valorize them
I N T E RV I E W
ining has been done in this part of the world for 8,000 years, and it was the backbone of progress, cultural development, and the economic, political and military power of the medieval Serbian state. After the Second World War, the mining sector played a significant role in the reconstruction and economic development of the war-ravaged and devastated country and was the leading economic branch. Stagnation occurred in the period after the wars from the 1990s and NATO bombing, but today, this sector is on the rise again. We talked with the director of the Mining Institute in Belgrade, Milinko Radosavljević, PhD, about the potential and the future of mining, but also the environmental protection in the mining sector.
M
How developed is mining in Serbia and what kind of potential and reserves does our country have?
38
SPECIAL EDITION
MILINKO RADOSAVLJEVIĆ PhD, mining engineer, research associate and director of the Mining Institute
We need to find a model of strategic partnership between the state and foreign capital
— Numerous mineral raw materials, and metal ore deposits (copper, lead, zinc, silver, gold, nickel, antimony, cadmium, iron, chromium, manganese, molybdenum, cobalt, bismuth, magnesium, lithium, etc.), coal, crude oil, gas and oil shale have been registered on the territory of Serbia, as well as over 50 non-metallic mineral raw materials (asbestos, barite, magnesite, feldspar, quartz, clay, kaolin, decorative and technical stone, marl, gypsum, zeolite, graphite, pine, etc.), 17 types of raw materials used for making jewellery, over 160 natural thermal water springs, about 300 mineral water springs, etc. In active mines, by digging out the ore, the determined reserves change, decrease, remain unchanged or increase depending on new geological research. Given that, for almost three decades, there has been no precise data on what has been excavated and explored, we can only talk about potential reserves, and they are undoubtedly significant. The exploitation of mineral raw materials used in power production is one of the strategic economic pillars of our country in terms of preserving energy stability, bearing in mind that over 70% of electricity is obtained by burning coal. Despite the unfavourable environmental trend and the great campaign against the use of coal, in the next few decades, this will continue to be the most important energy resource, of course with the gradual introduction of renewable energy sources, which in my opinion are still limited. I would also like to point out
that the Electric Power Industry of Serbia (EPS) has around 2.5x109 tonnes worth of exploitation reserves of coal, which ensures the safe supply in the energy sector in the next 50 years. We should not forget the large reserves of lignite in Kosovo and Metohija, over 12x109 tonnes. Mineral resources are a real, strategically significant potential of Serbia, which is not renewable and is of even greater importance given the high depletion of these resources in the EU, which is why they should be adequately valorized in Serbia. Many experts believe that mining could be the main trump card of our economy. What else needs to be done to make that happen? — This is a segment that can significantly increase the economic growth of our country in the long run. The most important thing is that it requires substantial investments. I won’t focus on the problems in the legislation at this point, because the Law on Mining and Geological Research, which is currently in force and expected to be amended, is no longer an obstacle for the owner of capital to invest money in research and then in opening mines. My dilemma is how much the state directly benefits from each such project. On the one hand, mineral wealth is our potential and it would be best for the state and our companies to take part in it. However, bearing in mind that huge investments are needed for that, the only solution is to create
space for foreign capital. This is frequently happening today. In addition to the ore rent that the state collects, which should be higher, and all other benefits, we need to find a model of strategic partnership between the state and foreign capital, so that most of the profit remains in this country, while the interests of foreign investors are respected. That balance must be found for the state to preserve its interests, without selling its mineral wealth for nothing. Of course, sustainable development and environmental protection must be the priorities. How much attention has been paid so far and how much attention we should continue paying to environmental protection in the mining sector? — In addition to being a mining engineer, I have been dealing with ecology for many years in various ways. I think that environmental protection deserves a lot more attention. I would like to point out several aspects in the process itself, where the Ministry of Mining and Energy has relevant competencies and issues work permits, and the Ministry of the Environment, which gives consent for protection measures and monitoring. However, the question remains whether everything binding for the project developer is implemented in practice. I think that we have a big problem here and that both Ministries, each in their domain of responsibility, do not have the appropriate human resources to monitor that to the end of the project. We simply do not have enough inspectors to control the implementation of mandatory environmental protection measures. The Mining Institute has its place and role in this issue. One of our laboratories deals with environmental protection, primarily by measuring ambient air quality and noise levels in the environment. I would like to especially highlight the references we have when it comes to measuring the emission of pollutants into the air. This primarily relates to large furnaces, i.e. thermal power plants, with which we have extensive experience. I would also like to mention the calibration of continuous pollutant metres at our power plants. Of course, we also do studies by which we assess the impact of mining facilities on the environment, remediation and reclamation projects, etc. Furthermore, our experts are members of several committees working on relevant laws and regulations.
The Mining Institute marked its 60th anniversary in 2020. Although, this is quite a lengthy period, could you tell us how did the Institute contribute to Serbian mining? — The Mining Institute has authorized more than 5,500 studies, investment programmes and projects for the mining economy in the country and abroad (over 10 countries around the world). There is almost no significant mine in the former Yugoslavia (including Serbia, of course), where our
Ecology has no alternative while mineral raw materials are not renewable and limited
institute has not contributed to the improvement of production, technological modernization, increased efficiency, environmental protection and work safety with its project solutions. Based on our projects, new mining technologies were introduced, as well as over 70 mines with complete infrastructure were opened, more than 40 plants for the preparation of mineral raw materials and coal cleaning were put into operation, and more than 30 ash and slag dumps were built. The institute has also implemented more than 60 scientific research, development and innovation projects and patented 11 technologies and procedures. Many of these projects have been implemented in Serbia. We have also made an important contribution to Serbian mining by publishing books on mining, mining geology and the like. I would also like to mention that the Mining Institute has been yielding experts for decades, with many of them becoming distinguished university professors. I'll stop here because
it’s really hard to list all of our activities over the past 60 years. What is the future of the mining sector (mining industry) like and the future role of the Mining Institute in the sector’s development? — Mining is a branch without which all that we have today and all the benefits of new technologies that have become an integral part of every human life on this planet are simply unimaginable. The problem is that mineral resources are not renewable and there will be a shortage of many of them in the future. Our mineral wealth is certainly substantial and in that sense, we should be extremely rational in its exploitation, while keeping in mind future generations. In the future, this activity will simply continue to develop, and following our country opening to foreign investments, new deposits will be explored and conditions will be created for the opening of new mines. I must once again mention that we should be careful here and protect, above all, our country’s strategic interests by forging partnerships, precisely so that the bulk of the profit remains in Serbia. Another important thing for the future to mention, which is already happening, is that the public, non-governmental organizations and environmental movements are exerting more pressure, trying to stop projects that are potentially damaging to the environment. This will be a big problem because the current mistrust that prevails and is directed towards every investor, must be taken into account. There should be a compromise and measures that should be acceptable to the interests of the local community, on the one hand, and the state, i.e. the owner of the capital, on the other. This means that ecology has no alternative and that a lot will be done to implement protection measures for any project in question. Of course, state institutions need to do their job too. First of all, there should be adequate supervision by inspectors who should be efficient and timely, because all projected measures relating to protection and monitoring of the state of the environment must be binding and applied without compromise. The Mining Institute will play its role as before, by creating new solutions following the needs of mining companies. Also, scientific research work should not be neglected, for which our institute is accredited.
SPECIAL EDITION
39
MINING & ENERGY by NEVENA KUVELJIĆ
Serbia has Diverse Mineral Resources
The value of Serbia's mineral wealth is more than 200 billion U.S.dollars M I N I NG
ining in Serbia has been developed since ancient times. This is confirmed by numerous archeological sites, which are also considered cultural monuments such as Krivo Polje near Ramaća, Rujnik near Niš, Rudna Glava near Majdanpek and others. The value of Serbia's mineral wealth is more than 200 billion U.S. dollars, and that wealth should be used sustainably, i.e. contribute to economic development and growth, but also be used in an environmentally responsible manner. The Republic of Serbia has diverse mineral resources which include copper, lead, zinc, gold and silver, but also the resources of raw materials used in construction, magnesite, refractory and ceramic clays, as well as quartz. Serbia also has resources of secondary economic importance that are of lower potential and they include molybdenum, antimony, nickel, tin, uranium, bauxite, iron, manganese, tungsten and some rare elements. Mineral resources of tertiary economic importance have not been sufficiently explored, and these include mercury, arsenic, group of platinum-based elements, asbestos, graphite, phosphates, chalk, talc, piezooptic quartz and sepiolytic clay. Serbia lies on about two million tonnes of lead and zinc, more than a million tonnes of copper, about 20 tonnes of gold and four billion tonnes of coal. According to experts, Serbia mostly exploits iron, chromium, manganese, molybdenum, cobalt, cadmium, copper, antimony, lead and zinc. Most of the deposits were discovered by Serbian geologists (except for lithium), and foreign companies that are now present in Serbia have expanded their research with ad-
M
40
SPECIAL EDITION
Mining should be about using resources in the most optimal way
ditional investments. Having in mind the wealth of deposits, the abundance of ores (as many as 50 types) and the fact that mineral raw materials are currently being explored in about 200 locations in Serbia, experts estimate that mining in Serbia could be the main trump card of our economy in the coming years. Large foreign companies have already expressed their interest in the mining sector and have invested large funds in researching and evidencing the country's mineral potential. The Canadian company, Erin Ventures found reserves of boron in the area of Piskanj, not far from the abandoned coal mines near Baljevac on the Ibar River. According to a preliminary feasibility study, this mine could be in operation for 21 years. According to the estimates of the Canadian company, Nevsun, which deals with various medium-level ores, the Bor mine contains about 15 million tonnes of copper and about 370 tonnes of gold. This mining and smelting basin has been digging and smelting copper ore for more than 100 years. Also, great deposits of jadarite have been recently found in western Serbia near Loznica, which exploitation could start in 2023. This is one of the world's largest deposits of jadarite which is used to extract lithium. It is believed that 20 other jadarite ore deposits stretch to the town of Zaječar. The results of the initial research in those locations are even more impressive. The new EU raw materials strategy, which envisions Europe returning to its own mineral resources to ensure the security of supply, will put Serbia in the position it had in the past as an abundant raw material base. Mining must be using resources in the most optimal way, it must not harm local communities, and it must be environmentally and socially acceptable.
Our segments
This is Epiroc Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers. With ground-breaking technology, we develop and provide innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. We also offer world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification. Epiroc is based in Stockholm, Sweden, had revenues of SEK 36 billion in 2020, and has 14 000 passionate employees supporting and collaborating with customers in more than 150 countries. Learn more at www.epirocgroup.com.
Equipment & Service Equipment & Service 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 ser- vice and solutions for automation and interoperability.
Surface equipment
Underground equipmen
Parts and services
Automation and digital solutions
epi + roc epi in Greek at, close, upon
rocca in Latin rock
Tools & Attachments
Epiroc is a 148-year old start-up. We have a strong heritage with proven expertise since 1873, while also having the benefits of being a young company. We have passionate employees in a decentralized organiza- tion, which enables quick decision making, benefitting both customers and results. Our name Epiroc comes from Greek and Latin roots meaning “at the rock” – epi, Greek for “at, close, or upon,” and roc, Latin for “rock.” It reflects our core business, our proximity to customers and the strength of our partnerships well. 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 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 service and spare parts.
Rock drilling tools
Hydraulic attachment tools
United. Inspired
Epiroc Srbija a.d. Milutina Milankovića 23, 11070 Novi Beograd, Serbia Phone: +381 (0) 11 220 1645 E-mail: office.serbia@epiroc.rs www.epiroc.com
MINING & ENERGY
READ THIS ON WEB
Sustainable Management of Mineral Resources Should be Ensured
The proposed legal framework for the mining and geological research sector will improve the operations of companies in the energy sector
MIROSLAV LUTOVAC, energy advisor to the President of the Chamber of Commerce and Industry of Serbia
PETKO ŠIŠOVIĆ, the Energy and Mining Association’s Secretary-General
Dr MIROSLAV IGNJATOVIĆ, senior advisor in the Energy and Mining Association
I N T E RV I E W
arlier this year, the state authorities announced major reforms in mining and energy, while the adoption of 4 new laws is in progress. We talked with experts from the Chamber of Commerce and Industry of Serbia (Energy and Mining Association), energy advisor to the President of the Chamber, Miroslav Lutovac, Association’s Secretary-General, Petko Šišović and senior advisor in the Association, Dr. Miroslav Ignjatović about the effect of these changes on the economy and improving the mining and energy sectors in Serbia.
E
What needs to change in the mining and energy sector for the sector to improve? Lutovac: Given the need to build new mining capacities and revitalize the existing ones, as well as the fact that production and consumption improve the country's economic balance, it is important to increase productivity, efficiency and safety. The proposed legal framework in the mining and geological research sector will facilitate better operations of the companies in
42
SPECIAL EDITION
For the development and construction of new RES to gain real momentum, subsidies (min. 20%) are required
the energy sector, boost employment and create the prerequisites for a wide range of positive effects. To best achieve these effects, we need to control the implementation of regulations, primarily through carrying out inspections during the execution of mining works. Also, strict implementation of terms and conditions of tenders is required. The state authorities, companies and experts want to see relevant laws drafted and to properly define a coexistent, valid and realistically applicable platform for mining and geological research activities that should ensure sustainable management of mineral resources based on solutions acceptable to all stakeholders. Four new energy and mining laws should be passed soon. How will they affect businesses? Lutovac: The Law on Energy Efficiency and Rational Use of Energy and the Law on Renewable Energy Sources are of the greatest importance for the business community. We expect that the Law on Energy Efficiency will help to improve the
overall efficiency of the economy and its competitiveness, through the establishment of a sustainable mechanism for financing energy efficiency. The Directorate for Funding Energy Efficiency Incentives is in the process of being established. It will deal with the allocation of energy efficiency incentives and will monitor the implementation of projects and generated savings, as well as provide information on funding opportunities for energy efficiency improvements. In terms of the Law on Renewable Energy Sources, which is being passed for the first time, the most important thing for businesspeople is the opportunity to engage in the production of electricity through a simplified procedure. The law introduces the concept of PRO-BUYER (natural or legal person who produces energy for their own needs), which allows companies to produce electricity, despite that not being their core business activity. The law also removes obstacles to achieving a balance in producing energy (the supplier, with whom the businessperson has concluded a contract, is obligated to acquire electricity surpluses
and at the same time, provide the missing quantity of energy when needed). Businesses who choose this option will have a stable price of electricity for a longer period (it is estimated that the lifespan of such a solar power plant is between 20 and 25 years) and ensure predictability in their business, at least when it comes to the price of electricity consumed. Without any additional incentives, while bearing in mind the costs of the investment itself and the current price of electricity, the payback period is 8 years. In addition to this category of electricity producers (producing for own needs), the law also prescribes the possibility of stimulation for electricity production for the electricity market through the FEED-IN tariff modality (for production capacities below 500 KW) and the market premium system. These two modalities are primarily intended for those businesses whose main activity is related to the electricity market (producers, traders, suppliers...), but there are no obstacles for other kinds of businesses to join these programmes. However, they need to meet certain administrative prerequisites (registration, permits, licenses ...) but also be aware that this is a new, rather complex, business activity. For the development and construction of new RES to gain real momentum, it would be necessary to determine certain financial resources in the form of subsidies (min. 20%). This would lower the payback period to 5 to 6 years, which would be acceptable for most businesses, i.e. potential investors. Without additional incentives, the available funds of businesses would probably be directed to other projects with a higher rate of return. Which initiatives and results of the Association for Energy and Mining Energy would you especially like to single out which have contributed to the development of this sector in Serbia? Šišović: The Law on Amendments to the Law on Value Added Tax has been adopted following the group's initiative under the Chamber's auspices to reduce VAT from 20 to 10% for pellets and briquettes, as well as other biomass products obtained by agglomeration of sawdust, chips and other residues. These changes enabled further growth of the pellet and briquette market in Serbia, reduction of the shadow economy and had a positive impact on the
The Law on Renewable Energy Sources allows businesses to engage in electricity production
environment. A set of proposals was forwarded to the Government in order to adopt effective measures as a response of the Serbian energy sector to air pollution in urban areas. The set contained 12 proposals, most of which were adopted. Enabling the purchase of highly efficient combustion devices with a lower VAT rate and subsidies, the formation of an independent budget fund for energy efficiency in all sectors, prescribing the obligation of "green" public procurement, as well as the proposal to declare 2021 the year environmental protection in Serbia will accomplish quick results. Other initiatives have been adopted too that contribute to maintaining liquidity during the economic crisis, such as the initiative of the Renewable Energy Group to extend payment terms for delivered raw materials by public companies. The request to reduce the price of the wood used for energy purposes was welcome by public forest management companies.
for their own needs, one company for biogas cogeneration of 250kW capacity while others applied energy measures efficiency. The Chamber of Commerce and Industry of Serbia’s Energy and Mining Association, as a subdomain of the CCIS website, has launched the Green Energy web portal, which provides information on renewable energy sources and energy efficiency. We expect that the portal will contribute to building and raising capacity in the field of renewable energy sources and energy efficiency, improve competition and connect participants in the biomass market investors, project design companies, contractors, equipment distributors, banks, government and the civil sector. Companies and small businesses that operate in this area can also advertise themselves on the portal. Also, the Chamber’s expert teams are participating in the drafting of the law while public hearings were held in cooperation with the line ministry. The Law on Energy Efficiency and
How can we boost the energy efficiency of our industry and increase the share of renewable energy sources in final energy consumption? Ignjatović: The Chamber of Commerce and Industry of Serbia (CCIS) also contributes to the improvement of energy efficiency through training programmes for energy efficiency and energy managers, such as the EUREMnext project. Regarding renewable energy sources, the results can be presented through an overview of project implementation – in terms of the energy concept in the RES segment, four companies decided to build a rooftop solar power plant
Rational Use of Energy envisages the establishment of Public Records of Energy Service Providers - ESCO companies, which will be managed by the Chamber of Commerce and Industry of Serbia based on the entrusted public authority. The creation of this database aims to make information on energy service providers publicly available, together with references that energy service providers will get from service users in the case where the provision of a particular public service has been completed. Registration is on a voluntary basis. Submission of requests will be digitized which is yet another service that the CCIS provides.
SPECIAL EDITION
43
MINING & ENERGY
READ THIS ON WEB
by NEVENA KUVELJIĆ
Mining Can Contribute to GDP Growth
Mining is based on its own resources and employs the local population. This always has a positive effect on the development of secondary branches of the economy I N T E RV I E W
he Geological and Mining A s s o c i at i o n of S e r b i a (GRAS) represents the majority of foreign companies that are active in the mining sector in Serbia. We talked with Branko Zečević, Chairman of the Board and President of GRAS - Metalfer Group, about the changes in the law regulating mining, the impact of the pandemic, but also the development of the mining sector in Serbia.
T
The adoption of the new Mining Law is in progress. You took part in drafting this law. What issues did you want to see covered by this law and what changes should this law bring about? — GRAS has been involved in the work on the amendments to the Mining Law since the beginning of the public debate because as a professional association, we have a large professional capacity and our members have plenty of experience. We insisted that the law should not contain ambiguous provisions and should provide continuous legal security for geological and mining companies that are investing large funds in this economic branch. Thanks to our well-explained stances based on the experience of the real sector, we have contributed to harmonizing the text of the amendments to the Mining Law which has substantially improved the law and will make Serbia an even more attractive investment destination. Mining and Energy Minister Zorana Mihajlović has announced significant reforms in the energy and mining sector. What do you think should
44
SPECIAL EDITION
BRANKO ZEČEVIĆ Chairman of the Board and President of GRAS Metalfer Group
The pandemic has slowed but not completely stopped investments in mining worldwide
be done to improve the mining sector in Serbia? — The faster development of the mining sector is hampered by the various procedures which need to be completed to obtain approvals and permits of various types. There is a lot of inconsistency between the different laws that are implemented and investors are forced to turn to different state bodies to collect documentation which slows down and complicates the whole process. A change that would significantly facilitate this process would be for investors to have the possibility to apply only in one place that is in charge of geological and mining matters. Otherwise, mining has a significant development potential that can contribute to a noticeable increase in GDP. Mining is based on its own resources and employs the local population. This always has a positive effect on the development of secondary branches of the economy in the areas where the mines are located. How did the pandemic affect the operations and development of the mining sector in Serbia and other countries? — The pandemic has slowed but not completely stopped investments in mining worldwide. In the past year, there was a drop in metal prices and that had a negative impact on the entire mining sector. However, the recovery of our sector and the growth of metal and mineral prices are already taking place as a result of the increased economic activity in the whole world. Serbia follows global trends. By definition, mining uses non-re-
newable resources. What else needs to be done to ensure that the exploitation of minerals is in line with the environmental protection postulates? — Mining has changed a lot compared to what the average person thinks about it. Almost all mining companies today are much more concerned with protecting the environment and the impacts that their operations can have on both the immediate and distant environment, as well as on local communities. Modern mines are planned by starting from the end of mining operations, i.e. mine closure. Each mine has its own estimated lifespan because they exploit non-renewable resources. We need to think about that moment and what remains after mining operations subside. That site must be rehabilitated and its condition reinstated so that it can be used for other purposes and be safe. How does GRAS contribute to the development of mining in Serbia? Which activities would you single out? — GRAS is a professional association through which our members realize their interests, exchange experiences and receive advice and guidance. Almost all mining companies in Serbia, whether domestic or foreign, are members of GRAS. By acting together with third parties, we ensure that our opinion is heard and respected. We actively cooperate with all relevant state bodies, as well as international professional associations. Our strategic interest is to improve and develop mining in Serbia, which we wholeheartedly support.
READ THIS ON WEB
IRM’s Tradition is Over 60 Years Long The Institute has over 300 accredited methods applied in all laboratories and is a leader in this part of Europe in terms of the quality of equipment and work results C O R P O R AT E
MILE BUGARIN PhD, Director General of IRM Bor
erbia has great potential in energy, polymetallic ores, lithium and boron ores, non-metals, crude oil, etc. Mineral resources in Serbia have a great potential for sustainable economic development and boosting the national GDP as the main factor of the economic progress of the country.
S
The Institute of Mining and Metallurgy Bor (IRM Bor) was founded more than half a century ago. Could you tell us more about your services, resources and qualities? — IRM Bor is 100% state-owned, employs about 250 workers, of which 27 are doctors of sciences, 43 have a master’s degree and are pursuing doctoral studies, 80 are engineers of all technical professions, while the remaining employees are laboratory staff and technicians. As a scientific research institution, IRM has its own science and research & development, project and laboratory centres. The Institute offers engineering and consulting services that cover all segments of mineral resources - metals, non-metals and coal - from geology, mining, metallurgy, and environmental protection to categorization of mining waste, remediation and reclamation of degraded areas. It has the latest equipment for chemical testing of mineral raw materials - metal ores, alloys, precious metals, concentrates, coal, non-metals, water, soil, air, waste, the state-of-the-art software for modelling and design of all types of ore deposits, their optimization for surface and surface exploitation, processing of mineral raw materials landslide mass and modelling, laboratory for geomechanics and preparation of mineral raw materials, semi-industrial plants for ore flotation, hydrometallurgical processing of precious metals, plants for pro-
cessing special precious metal alloys, non-ferrous metal alloys, and production of precious metal networks for reactors in nitrogen plants and laboratories. Which projects are you especially proud of ? Which were the most demanding? — The Institute closely follows global trends in technological and scientific development, and is at the top of technological development, shoulder-to-shoulder with the most developed companies in the world today which perform similar activities. This is the only institution in this part of Europe that provides at least 90% of engineering and consulting services and solutions in mining and metallurgy - from ore exploration, exploitation, processing and environmental protection to the processing of commercial semi-finished or finished products.
In the last nine years, the Institute has invested a total of 12.5 million euro in laboratory equipment and design software, with all the money generating from the Institute’s work Today, IRM Bor has strong cooperation with scientific institutions in the country, the region, Europe and the world. It provides laboratory, project design and scientific services to numerous companies such as Zijin Copper and Zijin Mining, Kolubara, Kostolac, Eliksir, Pljevlja Mine, Gacko, Ugljevik, Metalfer, Metro Belgrade, Rudnik Brskovo, Šuplja Stijena, and others. How did you manage to position the Institute on the market and to transform it into a very profitable institution considering how indebted it was? — After IRM separated from Smelting and Mining Basin Bor (RTB Bor) in 2007, due to the re-
structuring and preparation for the sale of RTB, it had huge debts and financial obligations, and it was only a step away from being liquidated. At that time, the Institute owed close to 7 million euro to creditors and in public liabilities. It also owed huge amounts of money towards covering interest rates that accrued because RTB Bor had not been settling its financial obligations, plus it owed five back salaries to its employees and decades-worth of payroll contributions of unrelated, as well as had very outdated technical equipment. Back then, the average salary at the Institute was equivalent to 250 euro and there were so many financial liabilities that we had to settle. Thanks to the great effort, good management skills and hard work of all our employees, to the surprise of many, including us at IRM, we managed to transform the Institute into what it is today. Year-on-year, the Institute continued to develop and invest, both in equipment and staff, and that is a sure guarantee of sustainable development. Many believe that mining creates a great opportunity for Serbia. What potentials does Serbia have and what else needs to be done for these potentials to be valorized? — Mining is one of the most important economic branches of Serbia and it creates a great opportunity for future development. Serbia has huge copper and gold potentials, which, considering today’s level of exploration of mineral resources, in the Bor district alone, are estimated to be worth about 200 billion USD at the current prices and with a lifetime of exploitation between 30 and 40 years. Today, the price of copper and gold is extraordinary and it enables progressive investments in sustainable development and growth of copper ore production. Environmental protection is an absolute must in the production of mineral resources, and with the application of modern technologies and their disciplined management, sustainable production of mineral resources is not questioned because all legal standards will be met.
SPECIAL EDITION
45
CLICK ON ICON
WEBSITE
MINING & ENERGY by NEVENA KUVELJIĆ
Energy is the Backbone of Economic Development Energy is expected to rely as much as possible on renewable energy sources and as little as possible on depleting resources S T R AT E G Y
ccording to the Energy Development Strategy of the Republic of Serbia until 2025, during the last two and a half centuries, energy has been and remains the driving force and key factor of economic change, as well as the backbone of economic development. If energy is made into a stable, modern and well-organized sector, it will certainly generate benefits for the entire economy of the country. Also, if energy is not given enough attention from the point of view of strategic planning, a poor position and weak prospects of the economy as a whole are certain. The Republic of Serbia's energy resources and potentials consist of fossil, conventional fuels, such as coal, oil and natural gas, unconventional fuels (oil shale) and renewable energy sources. For a relatively long period, the energy sector will have the task of providing the economy and society with significant amounts of energy and energy sources, but with a tendency to
A
46
SPECIAL EDITION
reduce energy intensity, i.e. consumption per unit of money product. Further global development implies an economy based on the efficient use of relatively "clean" and available energy from various sources. It is crucial to expect energy to rely as much as possible on renewable energy sources and as little as possible on depleting resources. The strength of the Serbian energy sector lies in the potential of renewable energy sources, but at the same time, insufficient use of this potential is the country's weakness. Serbia has made progress since 2015, primarily following the construction of seven wind farms with a total capacity of 398 MW. According to the projections of the Energy Development Strategy of the Republic of Serbia, the total potential of renewable energy sources in our country is 5.65 million tonnes of oil equivalents (toe) per year. The use of the potential, according to the latest data from 2019, is 2.06 million tonnes of RES oil. Also, in the structure of the
Although the Republic of Serbia has renewable energy sources, they are still underused
planned total domestic production of primary energy for 2020, renewable energy sources participate with only 20 per cent. Also in this structure, the largest share is that of solid biomass is 56%, followed by hydro potential 37% and wind energy 5%, while biogas, solar energy and geothermal energy participate with 1%. Although the Republic of Serbia has renewable energy sources, they are still underused. Aspects of saving and conserving natural resources are numerous if the emphasis is placed on the use of renewable energy sources. About 30% of greenhouse gas emissions come from the use of fossil fuels in the energy sector. Today, renewable energy sources have a growing importance in the electricity grid, which is why developed countries give them a priority because their use reduces emissions of harmful gases into the atmosphere, increases the safety of energy supply, reduces dependence on imported energy and also significantly develops domestic industry and creates new jobs. Certainly, the installation of renewable energy plants requires initial investments, but after installation, they are cheap to operate, i.e. operating costs are significantly lower. In the long run, this can lead to more stable energy prices because energy independence in use is quite pronounced.
Raiden Resources Limited (ASX:RDN / DAX:YM4) is a copper-gold exploration company focused on discovering large scale Cu-Au porphyry and high-grade epithermal deposits in the world class Western Tethyan Belt in Eastern Europe, as well as, major gold deposits in the emerging province of Pilbara in Western Australia. Raiden operates in unique jurisdictions which host the potential for tier-one, world class discoveries and that are located in mining friendly jurisdictions with excellent infrastructure but have remained relatively underexplored. In both Europe and in Australia, the Company has set itself up as one of the leading strategic land holders in each district and is geared for exploration success.
RAIDEN RESOURCES LIMITED Exploring the Prolific Western Tethyan Copper Belt · Mining & Metals West Perth, Western Australia https://raidenresources.com.au
MINING & ENERGY by NEVENA KUVELJIĆ
Power of Water and Wind Energy In the structure of total domestic energy production, renewable energy sources participate with 20%, of which hydro potential makes 37% and wind energy 5%
R ECOU RC E S
he growing need for energy, but also the preservation of the environment, is a basic problem that most countries in the world have been facing. Energy from renewable sources, such as water, wind, solar or biomass, can facilitate access to clean and safe energy for all of humanity. According to the Energy Balance of the Republic of Serbia for 2020, in the structure of the planned total domestic production of primary energy for 2020, renewable energy sources participate with 20%, of which hydro potential makes 37% and wind energy 5%.
T
WATER ENERGY
Water is the most common and oldest renewable energy source. However, if it is not developed in a way that takes into account the needs of the environment, so generating electricity from hydropower can lead to significant environmental damage. Serbia has a great tradition in the field of hydropower. According to the projections from the Republic of Serbia's Energy Development Strategy, the total theoretically available hydropower potential of waters flowing into watercourses on
48
SPECIAL EDITION
the territory of Serbia is about 25,000 GWh/year. The technically usable potential is about 19.5 TWh/year. About 80% of electricity from renewable sources in Serbia comes from hydro potential. Serbia has hydropower plants of 2,466 MW of installed capacity. Large hydropower plants operating in the system of the Electric Power Industry of Serbia (EPS) have renewable producer status with a capacity of 2,355 MW and annual production of close to 10 TWh. Hydroelectric power plants produce about 30% of the total electricity generated by PE EPS, of which HPP Djerdap produces over two-thirds. Due to the impact of hydropower plants on the environment, the Draft Law on Renewable Energy Sources envisages a ban on the construction of small hydropower plants in protected areas, unless the Government allows their construction because it is in the public interest. The data is provided by the Association "Renewable Energy Sources of Serbia", and published on the site oie.rs.
WIND ENERGY
In recent decades, in all developed economies of Europe and the world, investments in the construction of
About 80% of electricity from renewable sources in Serbia comes from hydro potential
wind farms have been on the up. As stated on the site oie.rs, the development of wind farms in Serbia began at the end of the first decade of this century, but the appropriate conditions for their construction were created only in 2015 and 2016. The construction of the largest wind farms, such as Čibuk1, Kovačica, Alibunar and Košava, was financed by loans from international financial institutions and commercial banks. Except in the South Banat District, known for its strong Košava wind where all existing wind farms are located, wind energy potentials can also be found in eastern Serbia, as well as in the area of Zlatibor and Pešter plateau. So far, 8 wind power plants with a total capacity of 398 MW have been connected to the electricity system of the Republic of Serbia. Wind projects with a total capacity of 4 GW are under development. According to the energy balance of the Republic of Serbia, in 2020, a total of 1,079 GWh of wind energy was used, which is 30% higher than the estimations from 2019. Some of the advantages of using aeolian energy include renewability, availability, competitiveness in the energy market, environmental justification, and the absence of waste and harmful gases, while the main disadvantages are the uneven wind direction and strength, noise, landscape disturbance and negative impact on birds and insects.