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INDEPENDENT COMMISSION FOR MINES INDEPENDENT COMMISSION FOR MINES AND MINERALSAND MINERALS

REPUBLIC OF KOSOVOREPUBLIC OF KOSOVO

Prishtine, 20 January 2010Prishtine, 20 January 2010

Azem RexhajAzem RexhajDirector of ICMM

Mining Sector Regulatory Framework

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Content Competent institutions for mineral sector Competent institutions for mineral sector

in Kosovain Kosova ICMM Powers and ResponsibilitiesICMM Powers and Responsibilities Licence typesLicence types KEK licenses Geoscientific maps of Kosova Recommendations

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Competent institutions for mineral Competent institutions for mineral sector in Kosova are:sector in Kosova are:

Ministry of Energy and Mining of KosovaMinistry of Energy and Mining of Kosova Independent Commission for Mines and Independent Commission for Mines and

MineralsMinerals

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RegulationRegulation 2005/2, as amended 2005/2, as amended by Law No. L-03/81by Law No. L-03/81

The ICMM was established on 21 January 2005 The ICMM was established on 21 January 2005 as an independent body with its HQ in Pristina.as an independent body with its HQ in Pristina.

Following declaration of independence (2008), Following declaration of independence (2008), ICMM remains an independent body ICMM remains an independent body accountable to the Assebly of Kosovoaccountable to the Assebly of Kosovo

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Powers and Responsibilities are:Powers and Responsibilities are: Independent Commission for Mines and Minerals is an independent Independent Commission for Mines and Minerals is an independent

regulatory body responsible for regulating and monitoring the mining regulatory body responsible for regulating and monitoring the mining industry in Kosovo; industry in Kosovo;

The issuing, transfer, suspension and revocation of exploration and The issuing, transfer, suspension and revocation of exploration and exploitation licenses and permits;exploitation licenses and permits;

The issuing, suspension and revocation of permits and licenses related to The issuing, suspension and revocation of permits and licenses related to the use of explosives in mining operations;the use of explosives in mining operations;

The optimal utiliThe optimal utilissation of mineral resources at all mining operations and ation of mineral resources at all mining operations and minimiminimissing the environmenting the environmentalal impact of mining operations impact of mining operations

The implementation of international standards for operations in mines and The implementation of international standards for operations in mines and quarries;quarries;

The safety of operations in all minerals extraction and processing facilities The safety of operations in all minerals extraction and processing facilities in accordance with the applicable law and required safety standards; andin accordance with the applicable law and required safety standards; and

To inspect the general compliance of mining operations with the terms of To inspect the general compliance of mining operations with the terms of licenses, permitslicenses, permits,, agreements and other authorisation instruments. agreements and other authorisation instruments.

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The The IICCMMMM structurestructure

Governing Board with five Board members Governing Board with five Board members including a Chairmanincluding a Chairman

AA Director of ICMM Director of ICMM AA Deputy Director of ICMM Deputy Director of ICMM ICMM regulates and oversees the mining ICMM regulates and oversees the mining

sector through:sector through:• Mines InspectorateMines Inspectorate• Geological DepartmentGeological Department• GIS/ Mining CadastreGIS/ Mining Cadastre• Revenue Collection UnitRevenue Collection Unit• Geological ArchiveGeological Archive

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LICENCE TYPES:LICENCE TYPES:

EXPLORATION LICENCEEXPLORATION LICENCE

Construction mineralsConstruction minerals: Valid for two years and may be extended : Valid for two years and may be extended for additional two years. There is a maximum area of 250 ha per for additional two years. There is a maximum area of 250 ha per individual licence. individual licence.

All other minerals:All other minerals: Valid for two years and may be extended up Valid for two years and may be extended up to three times at two years per extension, accompanied by a 50% to three times at two years per extension, accompanied by a 50% reduction in licence area. There is a maximum area of 100 km2 per reduction in licence area. There is a maximum area of 100 km2 per individual licence. individual licence.

RETENTION LICENCERETENTION LICENCE

Construction mineralsConstruction minerals: A maximum of one year from expiry of : A maximum of one year from expiry of the exploration licence. the exploration licence. Any other mineralsAny other minerals: A maximum of five years from expiry of the : A maximum of five years from expiry of the exploration licence.exploration licence.

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EXPLOITATION LICENCEEXPLOITATION LICENCE

Construction minerals: initial term of no more than 25 years, Construction minerals: initial term of no more than 25 years, extendable for up to another 25 years. extendable for up to another 25 years.

Any other minerals: valid for not more than 40 years and Any other minerals: valid for not more than 40 years and cannot be extended.cannot be extended.

SPECIAL OPERATIONS PERMITSPECIAL OPERATIONS PERMIT

Special operation permits issued by the ICMM include: crushing and milling permit, crushing and milling permit, processing plant permit (asphalt or concrete),processing plant permit (asphalt or concrete), use of excavators and any other mining machineryuse of excavators and any other mining machinery blasting permit, etc.blasting permit, etc.

The term of a permit is in principle valid for three years and may be extended by the Commission upon application by the permit holder.

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ARTISANAL MINING LICENCEARTISANAL MINING LICENCE

For construction minerals: For construction minerals:

Valid for two years and may be extended for a further Valid for two years and may be extended for a further two years. two years.

A maximum exploitation is permitted of 12,000m3 in A maximum exploitation is permitted of 12,000m3 in any calendar year. any calendar year.

An artisanal mining licence may be issued only to a An artisanal mining licence may be issued only to a municipality. municipality.

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In principle, there are three ways for obtaining an In principle, there are three ways for obtaining an exploration/exploitation license in Kosovo:exploration/exploitation license in Kosovo: Authorization procedureAuthorization procedure Competitive TenderingCompetitive Tendering Mine Development AgreementMine Development Agreement

Licenses Subject to Competitive Tender are: An Exploration or Mining License that relates to an

Energy Mineral; and Any other Exploration or Mining License the award and

issuance of which has been designated by the competent Public Authority as subject to requirements of a competitive tender procedure.

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Exploitation License Bardh and Mirash Licence No: 559Exploitation License Bardh and Mirash Licence No: 559

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Exploration License Sibovc

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Mining License Sibovc

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Exploration and Mining License Sibovc

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Technical programs:Technical programs: Geo-Scientific MapsGeo-Scientific Maps Explosives Security SystemExplosives Security System Kosova Quarry PlanKosova Quarry Plan Geochemical SurveyGeochemical Survey Airborne Geophysical SurveyAirborne Geophysical Survey Geographical Information SystemGeographical Information System Geological laboratoryGeological laboratory WebsiteWebsite ( (www.kosovo-mining.orgwww.kosovo-mining.org))

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http://www.kosovo-mining.org/

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GeoScientific MapsGeoScientific Maps

A series of 1:200,000 scale maps that A series of 1:200,000 scale maps that show:show:

Geological Map of Kosova.Geological Map of Kosova. Tectonic Map of Kosova.Tectonic Map of Kosova. Map of Minerals of Kosova.Map of Minerals of Kosova. Metalo-genetic map of Kosova. Metalo-genetic map of Kosova. Hydro-geological Map of Kosova.Hydro-geological Map of Kosova. Map of Mineral – And Thermal Map of Mineral – And Thermal

water of Kosova.water of Kosova. Morpho-Orographical Structure Morpho-Orographical Structure

of Kosova.of Kosova. Soil Map of Kosova.Soil Map of Kosova. Satellite Imagery Map of Kosova.Satellite Imagery Map of Kosova.

Ministry of Energy and Mining 16

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Kosova Quarry Kosova Quarry PlanPlan

A series of 1:50,000 scale A series of 1:50,000 scale maps that show:maps that show:

Base Map of the Base Map of the captured Construction captured Construction Raw Materials.Raw Materials.

Map of Non-Blocked Map of Non-Blocked Construction Raw Construction Raw Materials.Materials.

Map of Deposit Map of Deposit Mineability.Mineability.

Map of Deposit Map of Deposit Licence Status.Licence Status.

Map of Deposit Map of Deposit Protection Value.Protection Value.

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Airborne Geophysical SurveyAirborne Geophysical Survey

Survey across Kosova to measure:Survey across Kosova to measure:

Magnetics (Magnetics (Earth’s magnetic fieldEarth’s magnetic field)) Four-frequency Electro-MagneticsFour-frequency Electro-Magnetics Radiometrics (Radiometrics (Potassium, Thorium, UraniumPotassium, Thorium, Uranium))

Ministry of Energy and Mining 18

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Prishtine, 20 January 2010Prishtine, 20 January 2010Ministry of Energy and Mining 19

Magnetic Survey

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The Mining Cadastre of KosovaThe Mining Cadastre of Kosova

Numerous modules to cover the geology and minerals of Numerous modules to cover the geology and minerals of Kosova along with Exploration and Mining Licences, Kosova along with Exploration and Mining Licences, maps, satellite imagery, aerial photographs, and other maps, satellite imagery, aerial photographs, and other information are in digital format.information are in digital format.

ICMM’s website ICMM’s website www.Kosova-mining.orgwww.Kosova-mining.org Access to the website gives access to the GeoDatabase Access to the website gives access to the GeoDatabase

Kosova (GIS).Kosova (GIS). Mining companies can perform their research into Mining companies can perform their research into

Kosova’s minerals potential remotely and Kosova’s minerals potential remotely and for freefor free

http://www.kosova-mining.org/

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ConclusionsConclusions Kosova is rich in mineral resources, particularly Kosova is rich in mineral resources, particularly

lead, zinc, lignite, ferronickel, bauxites, etc. lead, zinc, lignite, ferronickel, bauxites, etc. Existing mining industry represents great Existing mining industry represents great

potential for private investment. Mining industry potential for private investment. Mining industry is one of our traditionsis one of our traditions

Kosova is open to further explore its mineral Kosova is open to further explore its mineral resourcesresources

Kosova’s mining and minerals sector is very Kosova’s mining and minerals sector is very attractive for private investorsattractive for private investors

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