Independent Commission for Mines and Minerals ICMM

1
Independent Commission for Mines and Minerals
(ICMM)

• Comments on the Refurbishment of Kosovo A Plant

2
Legal

• Regulation 2005/2 Promulgated on the 21st January
  2005
• The ICMM is established as an independent body
  pursuant to section 11.2 of the Constitutional
  Framework with its HQ in Pristina.

3
Mandate

• ICMM is responsible for regulating and monitoring
  the mining industry in Kosovo.

4
The ICMM structure

• Governing Board (the Board) with five Board
  members including a Chairman
• A Director of Mines (the Director)
• A Deputy Director of Mines (the Deputy
  Director)
• Other professional and clerical staff

5
Powers and Responsibilities

• (a) The orderly exploration and exploitation of
  mineral resources in Kosovo in accordance with
  the applicable law
• (b) The optimal utilisation of mineral resources
  at all mining operations and minimising the
  environmental impact of mining operations

6
Powers and Responsibilities

• (e) The general compliance of mining operations
  with the terms of licenses, permits, agreements
  and other authorisation instruments.

7
Functions

• (a) The issuing, transfer, suspension and
  revocation of Exploration and Mining Licenses and
  Permits

8
Licensing

• UNMIK Regulation 2005/3 on Mines in Kosovo
  provides for licensing of energy related minerals
• in addition to the requirements of Part III
  Exploration Licence and Part V Mining Licence
• the following

9
Licensing

• Section 17
• Licenses Subject to Competitive Tender
• 17.1 The following Licenses shall only be awarded
  and issued after the requirements for a
  competitive tender award in accordance with
  applicable law have been complied with
• (a) An Exploration or Mining License that relates
  to an Energy Mineral and

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Licensing

• (b) 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.
• 17.2 The prohibition of subsection 1 shall not
  apply to the extension or transfer of an existing
  License.

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Licensing

• Section 16
• Mine Development Agreements
• 16.1 For the purpose of promoting the development
  of and securing large-scale investment in the
  mining sector in Kosovo, the Commission may
  negotiate a Mine Development Agreement with a
  Licencee or a proposed Licencee.

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Licensing

• 16.2 When negotiating a Mine Development
  Agreement, the Commission shall at all times
• (a) Ensure that the terms of the Mine Development
  Agreement are consistent with the terms of the
  present Regulation and normal and customary
  international legal and mining practice, and
• (b) Endeavour to advance the overall public
  interest of Kosovo.

13
Licensing

• Section 14
• Use of Wasteful Practices
• Where the Commission determines that a Licencee
  or a Permit Holder is using wasteful practices,
  it shall give written notice to such Licencee or
  Permit Holder of such determination. Such notice
  shall specify the nature of the practices
  objected to and require the concerned Licencee or
  Permit Holder to provide an explanation as to why
  such practices are necessary.

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Licensing

• If the Commission is not satisfied with the
  explanation or no explanation is received, the
  Commission shall order the concerned Licencee or
  Permit Holder to cease using such practices. As
  wasteful practices shall be considered practices
  that are not consistent with good commercial
  mining practice or with international mining
  standards.

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Mining Alternatives
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Comparison of Mining Alternatives
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Cost Analysis (from Sibovc)
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Time Lines

• Timing cant be determined without closer study,
  but the following factors need addressing
• Date funds are available
• Feasibility study, including technical
  specifications for tendering
• Tender for equipment

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Time Lines

• Manufacture and commissioning of equipment
• Preparation and overburden removal

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Comments to Alternatives

• Bardh and Mirash Mines are exhausted
• Sibovc
• Expropriation and Resettlement
• Not only Hade Endangered Zone
• D Field
• KEK owns most of the field
• Close to Kosovo A
• Removal of A dump

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Comments to Basic Element Group Letter 25.04.05

• Overall good opportunity
• Success would also supply Ferronikeli
• Requested coal supply too high
• 335 MW require 3 mil tpy, not 5.5
• Total coal requirement about 45 mil t for 15 years