Department of Mining & Geotechnics...Exports – 570kt Imports – 195 kt Exports minus imports –...

Technical University of KošiceDepartment of Mining & Geotechnics

TAIEX WORKSHOPINFRA 22944

EU Legislation as it affects MiningTallinn – Estonia 30th November – 2nd December 2006

Paper presentation :

The Best practices in Mining and Environmental Legislation in Slovakia.

prof. Ing. Viliam BAUER, CSc.Technical University of Košice, Faculty of BERG, Košice, Slovakia

EU Legislation as it affects Mining Tallin 30th November – 2nd December 2006

1. Country profile and specific of Slovak Republic2. Brief description of raw material policy

- Mineral Planning Policies3. General description of Minerals Industry4. Country specific legislation and structures governing minerals

industry5. Existing legal network covering all aspects securing supply of

Minerals and minerals extraction6. Best practices for cost effective administrative legislation

procedures

Paper of contents


EU Legislation as it affects Mining - Tallin 30th November – 2nd December 2006

General Information


• Neighbouring countries: Czech Republic, Poland, Ukraine, Hungary, Austria

• Area: 49 035 km2

• Population: 5 379 455 (51.4% women) • Population density: 109/km2

• Membership of international organisations: UN,UNESCO, OECD, OBSE, CERN, WHO, etc.

• Production (Mt) – 11,8• Consumption (t/inhabitant) – 2,2

http://www.czech.cz/index.php?section=0&menu=0&page=10

http://www.poland.pl/

http://www.ekormanyzat.hu/english/

http://www.austria.at/

http://www.un.org/

http://www.unesco.org/

http://www.oecd.org/

http://www.osce.org/

http://public.web.cern.ch/public/

http://www.who.int/en/

• Government decree No. 246/91Program of the decrease of metallic ores extraction.The decrease of mining meant the prompt termination of all mining and prospecting activities in Slovakia.

• In 1995 "The Approach of the State Mineral Policy of Slovak Republic" was formulated.

Generally condition of raw material policy in Slovakia


• No legislative measures for realisation of RMP were carried out till now.

• In the scope of the approach of economical policy of Slovak Republic were prepared several proposals of the state mineral policy in the last ten years. They were not accepted by the Government for different reasons.

Raw material policy in Slovakia


• Dominant geological structuresThe geological structure of the Slovakia is composed of Paleozoic, Mesozoic and Tertiary rocks building the Western Carpathian Mts.

• Mineralogically, there are many mineralogical deposits in the Slovakian part of the Western Carpathians. However, the qualities as well as quantity are in average too small.

Minerals Industry in SlovakiaEU Legislation as it affects Mining - Tallin 30th November – 2nd December 2006

Production and Employment in Minerals Industry


Commodity Annual production

[kt]

Employment Number of operations

Brown coal & lignite 2 399 6 511 2

Magnesite 1 168 1 600 2

Rock salt 103 84 2

Building materials 11 821 1 850 59

Industrial minerals 9 533 349 48

Ores & precious metals

670 580 1

• Underground as well as surface mining are performed on the deposits of ore, non-ore and coal minerals.

• From year 1992 the mining industry weakened • Slovak Mining Industry had no character of big mining but

was considered as a small exploitation.• At present it represents only approximately 25% from the

amount in the 1989.

Structure of industry


Underground Mining in Slovakia

• The first place in the mineral industry structure holds underground coal and lignite mining, which is organised by 2 mining facilities which belong to Mining Company HBP, a. s. – Hornonitrianske Bane Prievidza.

• Very important mineral exploited is magnesite, which is subsurface mined on facility belonging to the mining company SMZ, a. s. Jelšava – Slovenské MagnezitovéZávody a. s.



• The most dramatic decline in Slovakia was in ore mining and ore concentrate production. Today's production is in 97% provided by siderite ore mining by the mining company SIDERIT, a. s. Nižná Slaná.

• Gold Mining representing Mining Company Slovenská Banská, s.r.o. Banská Hodruša withaverage 0.5 t of fine gold per Year.



• All mining companies are private owned except one company Rudné Bane š.p. in the liquidation (RB š.p.) which performs the financial and organisational support of the abandoned closure mine workings.

• To the underground mining belong also companySOLIVARY, a.s. Prešov with rock salt mining –average 98 kt per year.


Generally condition of Surface Mining in SlovakiaEU Legislation as it affects Mining - Tallin 30th November – 2nd December 2006

•The non-energy extractive industry•The building stone production prevails by the non-ore minerals mining.Each from the five biggest surface mining facilities produce more than1,5 mil. tons per year.•Construction minerals are aggregates

- sand and gravel and crushed rock (limestone, sandstone, igneous rock etc.)

- building stone (dimension stone).

Generally condition of Surface Mining in Slovakia

• Industrial minerals sector provides minerals such as calcium carbonates, dolomite, magnesitebaryte, borates, diatomite, feldspar, fluorspar, graphite, kaolin, mica, plastic clays, bentonite, silica and talk, and salt.


Generally condition of Surface Mining in Slovakia

• Production of sand & gravel and crushed rockProduction (thousand tonnes) – 9,700 ktExports – 570 ktImports – 195 ktExports minus imports – 375 ktNet exports as a % of production – 3.9 %


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Imports and exportsThe total value of yearly production in Slovakiaexceeds cca. 6 900 mil. Sk that is approximately 192 mil. EUR. About 30 % of extracted mineral-based raw materials with the value 2 067 mil Sk (57,5 mil. EUR) are exported. Non-ore minerals prevail in export mainly to Czech Republic and included with building minerals creates 39,4 % of the export with the value approximately 1700 mil. Sk.


Research and Technological Development

The large research centres were closed and the requirements for the mineral research can be provided by existing facilities, mainly academic research facilities of technical universities and technological faculties as well as facilities of Slovak Academy of Science.

Technical University of Košice, the Faculty of Mining, Ecology, Process Control and Geotechnology (F - B.E.R.G.) belongs with its professional institutions to the universities with the research focused on the area of minerals acquisition and processing.

The Geological Service of SR (Geologická služba) is also the important research facility for geological research and exploration.


Current List of Laws valid for extraction of industry minerals in Slovakia


Country specific legislation

Name of law Date of issue

Mining Act No. 44 of 1 July 1988

Act about Mining Activity, Explosives and the State Mining Authorities

No. 51 of 1 July 1988

Geological Act No. 313 of 1 January 2000

Government Decree about the Non-Reserved Mineral Deposits Utilisation

No. 520 of 1 January 1992

Building Act No. 50 of 1 October 1976

Country specific legislation


Nature and Country Protection Act No. 543 of 1 January 2003

Environmental Impact Assessment Act No. 127 of 1 September 1994

Forestry Act No. 61 of 1 January 1978

Agricultural Soil Fund Protection Act No. 307 of 25 June 1992

Air Protection Act No. 309 of 1 October 1991

Water Act No. 138 of 1 April 1975

Extension - Current List of Laws valid for extraction of industry minerals in Slovakia

Government Agency responsible for minerals industry

■ The main body responsible for decision-making concerning mineral industry issues in general is the Ministry of Economics of the Slovak Republic.

■ As far as minerals industry-related aspects of atmosphere are concerned, the specific competence is given to the Ministry of the Environment of the Slovak Republic.


There are two main acts in SR concerning the mining:

■ the Mining Act which is valid to the stage of granting the permits and partially handles the specification of the Mining Area, the Protected Territory Deposit etc.

and

■ the Act about Mining Activity, Explosives and the State Mining Authorities, which handles in detail all permits required for individual activities by the exploitation of deposits and mineral extraction.

Existing legal network covering all aspects securing supply of Minerals and minerals extraction


National legislation

The Mining Act No. 44 of 1 July 1988 regulates mining in Slovakia.The Mining Act regulates the acquisition of the permits for mining, but other acts as the Geological Act, the Building Act, the Air Protection Act, the Water Act etc. also relate to mineral extraction.

The licence for the extraction of the Reserved Mineral Deposit specified by the Mining Area according to the Mining Act and the Mining Licence which can be obtained by entrepreneur or corporation in accordance with the Act about Mining Activity, Explosives and the State Mining Authorities.


State mining authorities

The Mining Act is administrated in all mining authorities:

1. The Ministry of the Economics of SR – MH SR, which is the central body of state mining authorities.

2. The Main Mining Office - HBÚ, which is the self-budgetary organisation since 1998.

3. The Local Mining Office – OBÚ, there are 5 Local Mining Offices in Slovakia controlled by the Main Mining Office.


The Building Act relates to the Mining Act in way that by the selection of the Mining Area of reserved minerals the part of the documentation has to be the opinion of the state administration for environment protection. These administrations are the Region Offices of the Environmental Protection. This Act is closely connected to the EIA (the Environmental Impact Assessment) regulation.The Building Act is administrated at the town and village levels. From the deposit extraction's level of non-reserved minerals which are the part of the land point of view. The Decree of Land Utilisation has to be issued. (The Decree of Land Utilisation is the main document for the non-reserved minerals extraction).

The Building Act relates to the Mining Act


National system governing ownership of mineral resources

The reserved minerals are in the state ownership and the non-reserved minerals are the part of the land, they belong to the landowner - the entrepreneur or corporate.

Free reserved or non-reserved minerals' deposit utilisation or "freedom to mine" do not exist in SR. The permit of the local mining office is required for the deposit extraction. All conflicts of interest have to be solved by the legal mineral extraction, e.g. roads, telecommunication, electrical wires, monuments' zones, private lands etc. No permit can be issued if conflicts of interest are not solved.


Processes and procedures existing in place to obtain mineral rightsThe first phase is the permit to conduct the geological works. The Ministry of the Environment of SR - the geological department, issues the permit. The entrepreneur or corporate who wants to conduct the geological works has to be in possession of the Geological Licence.

Only after obtaining the both permits the entrepreneur or corporate can ask to specify the Exploration Area. The shape of the area is a polygon with the maximum size of 250 km2. For liquid or gas minerals (oil and gas) the size of the area is maximum 1000 km2.


Processes and procedures in mining and geology

The Exploration Area for performing the selected geological works is specified by the geological department of the Ministry of the Environment of SR. The individual works are specified by law independently for every type of exploration for :

1. The geological exploration of the reserved minerals;

2. The hydro-geological exploration of thermal water;

3. The geological exploration of mineral water;

The geological exploration for special purposes as underground storage etc.



If the geological exploration is successful, the company performs the calculation of the mineral deposit and asks the Ministry of the Environment of SR to issue the Decree about the Reserved Mineral Deposit. Based on this decree the Local Mining Office can declare this exploration area or only the part of it for the Protected Territory Deposit.

The Decree about the Reserved Mineral Deposit, i.e. the selection of the Mining Area, is the first pre-requisition in the process of deposit preparation and acquiring for the production of the reserved or non-reserved minerals.



The Permit for Reserved Mineral Deposit Exploitation, i.e. the Mining Area selection is issued for the unlimited period, but within 3 years after issuing the permit, i.e. selection of the Mining Area the company must start deposit´s exploitation. In the case that it does not start the deposit exploitation the Local Mining Office can cancel the Mining Area or based on tender assign it to another company.

The owner of the land has no legal rights to the the holder or the Mining Area decree in the period of granting the permit, because no exploitation has started yet by the selection of the Mining Area.


Regulations in force controlling mineral exploration activities

1. The Geological Act and the Mining Act regulate the activities connected with the exploration of the reserved deposit. The Geological Act is the primary document and the Exploration Area is specified in accordance with it. The Mining Act is the secondary document applied in the specified Mining Area of the reserved mineral deposit.

2. The Geological Act and the Mining Act list all requirements that have to be meet from the side of the operator.

3. According to the Geological Act the operator is obliged to solve all conflicts of interest with the owners of the land on which geological works are performed. The conflicts of interest are solved by the payment, returning the property to the original state or by the land rehabilitation.


Regulations and procedures controlling access to mining land

1. The operator must always make an arrangement with the landowner for the extent of the access to the land. In case the owner does not agree with the required extent or period of access the exploration company can appeal to the Department of Geology at the Ministry of the Environment SR to decide in the matter.

2. If the landowner agrees with the land access and its utilisation but does not agree with the amount of the compensation the court decides about the amount of the compensation.The similar right is applied by the deposit of reserved mineralexploitation in accordance with the Plan of the Opening, Preparation and Exploitation (POPD).

This legal process is specific for mining business in SR.!!


National system governing -Exploration

1. Based on the above-mentioned principles the deposit exploration has to be permitted for the reserved minerals. In case of the non-reserved minerals it is not necessary to specify the Exploration Area, i.e. it need not exist.

2. Slovak Republic ensures the execution of geological and geophysical exploration by the Department of Geology at the Ministry of the Environment. The exploration provides geo-information, geo-data and geological maps. The mentioned geological exploration is processed through the State Geological Institute of Dionýz Štúr(ŠGÚ DŠ).Today the exploration is focused on the location of Au-Ag ores deposits and ispartially financed by state. The existing private exploration organisations have very little financial support from state.


National system governing - Extraction1. The principal legislative control of extraction activities in Slovakia is the Mining Act and the Act about Mining Activity, Explosives and the State Mining Authorities. No form of deposit's ownership, i.e. state or private is preferred in SR.

2. The both acts specify how the appropriate Local Mining Office has to supervise activities connected with exploitation and business on the deposit. The operators are obliged to send to the Local Mining Office report about performed mining activity in the annual intervals.

3. The minerals extraction from the reserved mineral deposits can be performed only on the basis of the permit issued by the appropriate Local Mining Office.


National system governing - Extraction

1. By the non-reserved mineral deposits the problematics of the exploitation is regulated by Government Decree No. 520/1991 about the Non-reserved Mineral Deposit Utilisation.

2. The Ministry of the Economics (MH SR) and the Ministry of the Building and Regional Development (MVRR SR) which have in their competence the reserved and non-reserved minerals including the building stone do not serve as the executive power in the production industry after the year 1990 but co-ordinate the processing of the production development concept and the state mineral policy.


National system governing - Extraction1. The Territorial Plan of cities and villages as well as the Territorial

Plan of the Higher Territorial Units (VUC) must before their approval ask the appropriate Local Mining Office for its view, mainly from the aspect of the reserved and non-reserved mineral deposits protection and utilisation.

2. For issuing the Permits for the Mining Activity or the Permits for the Activity Performed in the Mining Way one of the conditions is the opinion of appropriate environmental body as is the Regional Office of the Environment (KÚ ŽP). This opinion is necessary in accordance with the Nature and Country Protection Act No. 543/2002 and no mineral production can be allowed by the Local Mining Office without this opinion.



1. The producer of minerals is obliged to submit the Plan of the Opening, Preparation and Exploitation (POPD) of the reserved mineral deposit or the Plan of the Deposit Utilisation (PVL) for the non-reserved mineral deposits in which is also included the issue ofthe water and air protection against pollution.

2. Based on the type and size of the production project, the Environment Impact Assessment documents must be developed and submitted for certain types of the production projects in the POPD.

3. The fundamental limit or threshold values serving for the assessment of the production activity are the yearly amounts of production. In SR the threshold values are listed in the Appendix of the Environmental Impact Assessment Act No. 127/1994 Coll.



1. If the Environmental Impact Assessment is not performed in the meaning of the verification procedure or compulsory assessment, the Local Mining Office can not allow the production activity or activity connected with the reserved or non-reserved mineral deposit exploitation.

2. With SR entering the EU in 01.05.2004, all directives of the EU will have to be incorporated into the national legislation concerning the mineral exploitation. At the present time the Act about the Mining Activity, Explosives and the State Mining Authorities No. 51/1988 Coll.is being novelised.


Restoration and aftercare

1. The exploitation permit/licence issued by the Local Mining Office is a legal document based on which is the production activity specified together with the supervising of mining activity including the mine workings liquidation and closure mine process.

2. After the production termination the Local Mining Office permits the operator based on the Plan of Production Facility Securing and Liquidation (PZLB) the liquidation of quarries and mine workings . The Local Mining Office still performs supervision at this stage.

3. After the liquidation there is a place for the land recultivation, which is approved by the appropriate building authority. The landrecultivation is realised based on the special recultivation plans.


Restoration and aftercare

1. Due to a fact that the production activity was in the past performed mostly by state companies the negative impact of the production lies mainly with the state. These negative impacts are being handled by the Ministry of the Economics of SR and the Ministry of the Environment of SR.2. The competencies are divided in the way that the Ministry of theEconomics of SR is focused on the problematics of mining facilities liquidation of all registered mine workings in the area of ore and coal mining (that were created approximately in the last 40 years).

3. On the other hand the Ministry of the Environment of SR is dealing with all abandoned mine workings by which the operator or owner are not known.


Monitoring and enforcement

1. Every operator in SR is obliged and responsible to act during the approved exploitation in accordance with the orders of other state authorities concerning the air, water and environment protection.They are obliged to respect the results of the monitoring of these authorities.

2. The appropriate state authorities - e.g. the local and regional offices of the environment, perform the monitoring and supervision of dust emissions, harmful emissions and noise. The special agencies have been established for this purpose in the recent time as the Slovak Agency of the Environment (SAŽP).

3. Environmental damage/rehabilitation - the environment degradation at whole Slovak Republic territory!


MINERAL –BASED RAW MATERIALDEPOSITS

RESERVED DEPOSITS(owned by state )

NON-RESERVED DEPOSITS ( do not belong to state, partially owned by state )

RESERVED DEPOSITSReserved minerals VN

RESERVED DEPOSITSNon-reserved minerals NN

LAND AND DEPOSITestablishing proprietary relationship

DEFINE MINING CLAIM it is concession (Mining authorization) byMining Act have right mining deposit

just the organization able mining activity and Activity cary out by mining

PERMISSION MINING ACTIVITY

NON-RESERVED MINERALSNon-reserved minerals NN

LAND AND DEPOSITLand is owned by owner

Deposit partnership owner of land

PUBLICATION OF LAND DEVELOPMENT ADJUDICATION (UR)By Building Act for right exploitation land

organization have autorization Activity cary out by mining form no

PERMISSION MINING ACTIVITYand have mining autorization

PERMISSION FOR Activitycary out by mining form

Presentation of request forthe Plan of the Opening,

Preparation and Exploitation

PERMISSION FOR the organization able mining activity and Activity cary

out by mining form

When arranging the utility minerals, the system of state control is applied,

■ system of control and administration of mineral resources ownership,

■ system of minerals ownership,

■ course and procedures existing at the location of obtaining the rights tomineral extraction,

■ applicable regulations controlling the activities during research of minerals,

■ instructions and administrative procedures controlling the access to the plot,

■ state system of control for arrangement of minerals supplies.

Arranging supplies of minerals and Land Use Planning


Mining industry organisation

1. First of all there is the Slovak Mining Chamber (SBK) which has up to 45 members who represent the important Slovak mining companies.The members of the chamber are also the research organisations, institutes and academic institutions.

2. The second biggest association is the Slovak Association of Stone Producers (SZVK) with almost 50 members that organises producers of non-ore and building stone as well as producers of dimension stone.

3. The independent professional associations in SR are - the Association of Metallurgy, Mining Industry and Geology of SR (ZHŤPG SR)and national Slovak Mining Society (SBS) which is focused on theproblematics of blasting and demolition work.


Best practices for cost effective administrative legislation procedures

Time required for obtaining approval for a new mining venture.The average time required for obtaining a licence for deposit exploitation is in SR approximately 12 months. During this period it is necessary tohandle any related conflicts of interest and obtain the opinions of relevant state authorities. This applies in the case, that exploitation will not require any special investments connected with mineral extraction, e.g. for wastewater treating facility. Management of the administrative processThe State Mining Authority (Štátna banská správa) controls by the means of the Local Mining Offices inspections and the Main Mining Office audits if the conditions are fulfilled. The part of the inspection is also the assessment in accordance of EIA.


Best practices for cost effective administrative legislation procedures

Role of the mining authority in the process and appeal procedures.

• The Local Mining Offices provides consultations to the operatorsconcerning the execution and appeal processes by granting the permission.

2. The Local Mining Office is obliged to assess the documentation required for granting the permit for deposit exploitation or specify the period when the documentation should be completed.

The Local Mining Office will also inform the operator about possible granting procedure termination.


Best practices with regards to police orientation, legal and administrative systems

Economic aspects - CompetitivenessSlovakia does not belong to the economically and strong mineral-based industry countries. Due to this fact it will be necessary make an changes in state mineral policy (law amendments, enforce new economical tools) in order to maintain the supplies of minerals.

Environmental aspects - Codes of conduct and mission statementsThe Slovak Mining Chamber and the Slovak Association of the Stone Producers issue periodicals where the documents concerning the main environmental laws and their relation to mineral production are published.



Environmental aspects - Environmental management system

Duties and relevant procedures of operator concerning the EIA are covered by individual law (Act No. 127/1994 Coll.)

The environmental control system is handled separately from the safety and health protection law in SR.

The system ISO 14000 has already been applied by some mineral producers e.g. Holcim, a.s. Rohožník - the surface limestone extraction.



Environmental aspects - Environmental performance indicators

All indicators of the production activity are included to the environmental indicators and regularly monitored (e.g. water consumption per tonne of extracted mineral, energy consumption per tonne of extracted mineral, etc.)

In the case that the operator exceeds the threshold limits of individual environmental indicators (water and air pollution, etc.) it is penalised.


Thank you for your Attention!

Technical University of KošiceFaculty of Mining, Environment, Process Control and Geotechnologies (BERG)prof. Ing. Viliam BAUER, CSc.Department of Mining & GeotechnicsHead of DepartmentLetná 9 , 04 200 Košice, Tel: ++421 55 602 2981Fax: ++421 55 602 3128E-mail: [email protected]

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