09 Oct Mining Sector/ Rama: We will incorporate it in the right track in order to secure progress, we are dividing from the past.
Within the function of global initiative for transparency in extractive industries, EITI, in which Albania is a member, has the right to ask and take information from the companies which own mining permits, from the tax, custom and local administration. It is obligatory for EITI to publish to its annual report data information on the fiscal obligations payments done by the mining subjects.
The Prime Minister Edi Rama, express it’s convenience that the mining sector will be incorporated in the right track, in order to assure the progress.
During his discussion in Parliament of the project low about the changes in the mining sector, Rama highlighted that this project low marks a turn and break from the past for mining sector.
“The epoch that begins with the approval of this project, which has in his base first, the obligation for safety, than the necessity for innovation and as a result the guarantee for progress.
I want to thank, here in front of the Parliament the Minister of Energy and Industry, and all his staff for the determination, with which they had advanced a difficult process introducing themselves to a cavity of snakes.
“To approve the difficulty of this process it is quite enough to know, the revocation of mining permits to 160 subjects”, Rama said.
According to him the mining wealth will be returned to the people and the concessional parties are set into binding positions.
“I add without any sense of euphoria, but only to argue some facts that are just the beginning, – the belief that we are at the point of separation from the past and putting our country’s wealth at the disposal of all the Albanian people.
At first, setting of some concessionaires into a binding position, which had been given off by the State, that led to the abuse and also creation of a gap between the profits, safety conditions and the profits from exploitation of this wealth. Setting of the most important concessionaire into the binding position to start the second phase investment foreseen in an agreement, has brought opening of a process which will activate 45 million ton of chrome and will prolong the mining life for 20 years. This whole investment costs 13.5 million dollars”, said the Prime Minister.
Rama highlighted once more that the industry is taking the road of progress.
“Figures derived from chromium enrichment factory are meaningful bringing the processing capacity of 240 thousand tons of mineral processing. Putting into operation the chrome plant selection in Klos, this had 20 years that did not work. Setting binding contractual positions of the actors in the field has brought in operation also the Burrel plant, with capacity 10 thousand tons per year. These are sufficient numbers at this stage to see a turning, that this project makes faster and more clearly defines the way ahead”, Rama said.
From the podium of the Parliament, Rama highlighted the importance of increasing technical capacity in this sector.
“The obligation of the companies to rehabilitate the environment in a periodic manner should be part of the cooperation between the Ministries of Environment and Health. In order to be in the right track with this sector is that the law brings innovation, is the emphasis on technical capacity building”, Rama said.
According to Rama, the mining sector will start a new chapter of development.
”Despite not being part of this project, but is part of the overall restructuring of the state and the private sector, the opening of the first professional school to provide skilled labor, will open a new chapter from slavery to the new terms, is just the beginning. Hence, all those areas that are tortured all these years, have the right to enjoy the time, opening a new chapter, difficult but necessary”, Rama added.
The Minister of Energy and Industry, Mr. Damian Gjiknuri during the presentation of the new project law in Parliament, highlighted that this new law will put an end to the overlapping of mining permits.
He said that the government’s priority is the safety at work. The Minister highlighted that controls have been conducted in all country to verify the working conditions.
“This law will put an end to the overlapping of mining permits that will be revoked case by case. For many years work in the mines was carried out without rules and safety standards. Another problem was the low level of processing of minerals. Our first priority was safety at work. We took control of all mining sector. We checked the applicability of the rules at work. We invested to increase production of copper. Will add job vacancies, will increase production of chromium for the coming years”, Gjiknuri said.
Changes of law
The amendment predicts that the mining permit holder is responsible to the respective structures for implementing the terms and requirements of the mining permit and to fulfill other obligations defined in the legislation in force. The holder of the mining permit and the subcontractor are liable to the responsible structures for implementing the technical safety conditions and regulations in the area, where the subcontracted mining activity is performed.
Other changes relate to the clarification of the criteria for determining the mining areas of exploration permits, changing the periodicity of financial guarantees for the realization of the investment plan, the granting of mining quarry permits not only in the interest of the local community, but also for national projects.
For the first time with these legal changes the subcontracting is formalized, after mining law is harmonized with some concession laws that provide for subcontracting.
Procedures, criteria and rules for granting approval for use in surface and underground close to the contours of the permit shall be determined by the Council of Ministers.
Exploration permit for metallic minerals group, non-metal, coal and bitumen may be for 3 years, which may be extended 2 times, at the request of the permit holder, where each extension has 1-year term. With the approval of the use mining permit for the group of metal minerals, non-metal, coal and bitumen, the allowing exploitation area is removed from the forest and pasture fund, state property, the item “Occupied land, land with forest vegetation” and recorded in “Occupied land, object exploitation for mining activity” according to the legislation on cadastral voice changing forest and pasture. Within 10 days of approval, the permit holder shall prepare and submit documentation to the Ministry responsible for mining activities, which within 10 days prepare the application and sends it to the Ministry responsible for the environment.
Guarantee is deposited within 20 calendar days with the contents “the value of the financial guarantee for the realization of the investment program for the exploitation permits is estimated from the relevant structure and approved by the Minister”.
The value of the financial guarantee for the realization of investment returns for the exploitation permits is returned to the permit holder at the end of the investment period specified by development program of the mining activity, the value of the investment is realized over 90% and within the time prescribed, after drafting a detailed report from responsible structures approved by the ministry.
Full return of financial guarantee investment is made when the investment is realized 100% and within the time prescribed. Partial return of financial guarantee investment is made when the value of the investment is realized within the time prescribed and at over 90%. In this case, the partial return of financial guarantee investment is made in accordance with the percentage of realization of the investment.
Accuracy of the legal servitude concept, especially underground workings, creating legal conditions to increase safety in mines, clarification of mining areas and terminology used in the law, are also important differences.
Binding legal servitude in underground mining works horizontal or vertical, belonging to another existing area allowed for mining, is done only by agreement between the parties. The holder of the mining permit benefiting from the servitude based on agreement is liable together with legal and technical documentation for approving the annual program of the mining activity, submit to the responsible structure also responsible the servitude agreement. If no agreement is reached between the parties, the establishment of mandatory servitude is done by the minister.
The project law prohibits the establishment of voluntary or mandatory servitudes, in the face of ground and underground mining works horizontal or vertical, in hazardous mining areas. Responsibility for maintaining and respecting the technical safety regulations in underground passage areas defined in the agreement signed between the parties or in the act of creating mandatory servitude.
The project law reflects the spirit of some actions at European level as the European declaration for transparency of all contracts and licenses of underground use, including clarification of easements, mineral blocks, subcontractors, any agreement signed for exploitation of resources, taking into consideration local interests, related to the environment, employment, mitigating the effects of mining.
Within the function of global initiative for transparency in extractive industries, EITI, in which Albania is a member, has the right to ask and take information from the companies which own mining permits, from the tax, custom and local administration. It is obligatory for EITI to publish to its annual report data information on the fiscal obligations payments done by the mining subjects.