Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

KOSOVO
Energy & Mining
more generally. During 2007, a total of 70 exploration and
mining licenses were issued with the country’s explosive
security system (ESS) fully up to NATO standards and
under the control of the ICMM’s mining inspectorate.
The revenue generated from these licenses is crucial
to the country’s budget. In 2007, mining royalties and
other fees amounted to an estimated €2 million.
However, this is not a short-term revenue stream.
“According to the law a company gets an exploration
license for the first 2 years, and then they can apply
for an extension for another two years. However, then
the licensed area will be reduced by 50%. They [the
company] have the possibility to extend the license
three times,” explains Azem Rexhaj. “Within these six
years they will have to get the mining license and start
mining or they will lose the license. This is so nobody
loses their money because exploration costs are very
high. Because of these rules we think that in the next
five years we will have a minimum of three new mines in
the beginning stages of operation and this will for sure
continue,” he adds.
There has already been a significant level of interest
in licenses. A series of international companies have
entered the Kosovo market on an exploratory basis.
For example, Lydian Resources of the UK has three
exploration licenses for projects in Drazne amongst
other places. North American companies have also
received exploration licenses with the initial exploration
being so promising that many international companies
have applied for the full mining licenses.
Beyond this, the government has worked on a number
of privatisations. The mining sector has seven Socially
Owned Enterprises (SOEs) that will be presented for
privatisation. The Ferronikel Company, which stopped
mining as a consequence of conflict in the area,
provides a highly profitable opportunity for investment.
The ferronickel reserves are significant and the mine is
connected to the railway giving good access to import
additional ore concentrates through Thessaloniki port
and Albania. It also provides good opportunities for
export and employment generation.
The country is therefore well placed to position itself as
a leading producer and exporter of minerals and metals
for the whole region. Beyond lignite, which will play a
vital role in powering the local energy market, Kosovo can
draw on its substantial reserves of base metals which are
continuing to command significant prices on the interna-
tional market. Therefore, the government is confident of
building effective synergies with the private sector which
will benefit the country and investors alike.
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