Bulgaria Govt Extends Copper Mining Concession of Asarel Medet

Business | February 19, 2014, Wednesday // 16:17|  views

Bulgaria's government has extended the concession contract with copper mining company Asarel Medet by 15 years.

The contract was signed in end-1998, according to the government's press office.

The terms of the contract remain unchanged and the company is expected to invest a total of BGN 85 M during the 15-year extension of the concession agreement.

The concessionaire is to spend BGN 63 M on environmental conservation activities and the annual concession payment stands at BGN 3.6 M.

Half of that sum will be transferred to the budget of the Panagyurishte municipality, where the mine is located.

The company was given permission to examine mining waste at the Iztochno nasipishte site near Panagyurishte for a period of two years. The company is to invest a total of BGN 240 000 and to spend BGN 10 000 on environmental conservation activities.

During Wednesday's sitting, the government also terminated the tender for the selection of a permit holder for oil and gas exploration at the 'Block 1-23 Sveta Marina' located in Bulgaria's Black Sea continental shelf and exclusive economic zone. The tender was announced in January 2013 and the decision was promulgated in the State Gazette and the Official Journal of the EU. The tender was terminated because it failed to attract any candidates.

The government also approved the proposal to grant a concession for the extraction of rock lining materials at the Buniloto site. The quarry is located in the village of Hrabrino, Rodopi municipality. For a period of 35 years, the concessionaire, Eolit, plans to invest BGN a total of 176 000, while the receipts for the state budget are to amount to BGN 972 000, of which 50% will go to the Rodopi municipality.

The government also allowed the transfer of all rights and obligations under the concession contract for the extraction of building materials from the Idrinizitsa site in the Samokov municipality to the Bekastroi company. The terms of the concession contract remain unchanged.

The government also issued six permits for the prospecting and/or exploration of underground natural resources.

Three of the permits are for building materials and are be granted to the companies Zlatna Panega Tsiment, Yaguar 02, and Inertni materiali –Yambol.

Zlatna Panega Tsiment and Yaguar 02 were issued one-year permits for the Dobrevtsi site in the Yablanitsa municipality and the Kamaka site in the Ihtiman municipality, while Inertni materiali –Yambol was granted a permit for six months for the Pitovo site in the Nova Zagora municipality.

The minimum amount of investments in the development of the quarries amounts to over BGN 205 000 and the environmental conservation activities have been estimated at around BGN 17 000.

Balkan Minerals Development was awarded a permit for the exploration and prospecting of mineral resources. For three years, the company will operate on the Iglika site on the territory of the Bolyarovo and Elhovo municipalities. The exploration activities are to absorb investments of BGN 666 000 and the environmental conservation activities are worth BGN 12 000.

The Gugalanovi company was awarded a two-year permit for the exploration of rock lining materials on the territory of the village of Chinka in the Krumovgrad municipality.

On the site Chinka-2, exploration activities will absorb investments of at least BGN 24 000 and the value of environmental conservation activities have been estimated at BGN 2470.

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Tags: underground natural resources, mineral resources, oil and gas exploration, concession fee, concessionaire, Bulgarian government, Asarel Medet, copper mine


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