MINING IN BULGARIA - OVERVIEW AND OPPORTUNITIES
As one of the newest members of the European Union and the 15th largest country in Europe, the potential for economic growth and possibility for doing business in Bulgaria is endless. Mining is of great importance for the Bulgarian economy and is among the fastest developing sectors in the recent years. Situated in the Western Tethyan belt, Bulgaria is a developing European mining player, with significant reserves of gold, silver, copper, lead and zinc. This is an exciting time for the regional mining industry as technological advances at key properties and facilities, and investment from significant international players is bringing a new dynamism to the industry. Mining Industry provides direct employment to approximately 30,000 people, and through related industries to about 120,000. Mining is also the sector where Bulgaria is closest to the EU levels of labour productivity. More than 300 companies are active in the sector, working in areas of exploration, extraction and processing and all related to these services.
Market overview
• Mining represents 4-5% of GDP and supports 40% of electricity generation.
• Bulgaria is one of the top 30 global coal producing countries.
• Bulgaria holds a leading position in European mining. The country ranks third in copper, fourth in gold, fifth in lignite mining.
• Metallic resources represent 25% of output, of which copper is 98%, lead/zinc 2%. The main raw materials produced in Bulgaria are lignite, lead-zinc, copper and polymetallic ores, gypsum, limestone, bentonite, kaolin, quartz sands, refractory clays, marble. 80% of mining activities are carried out through open cast mining.
• As of August 2017, there were 128 exploration concessions, and 526 concessions for extraction of underground resources.
• The mineral and raw materials industry is important for Bulgaria and one of the best developing sectors in recent years. The Bulgarian Sustainable Mining Standard developed in cooperation with industry, academic and non-government organisations is currently being adopted by the neighbouring countries e.g. Romania, Serbia and Northern Macedonia.
Why Bulgaria?
1. EU Single Market enables free movement of people, services, goods and capital
2. 10% corporate tax (lowest in the EU)
3. Highly-skilled and multilingual labour
4. Low operating base (staff, rents, utilities)
5. GDP growth at 3-4% in the mid-term
Key Mining Players
Ellatzite-Med
Ellatzite-Med AD is one of the largest copper mining companies in Bulgaria, dealing mainly with extraction and processing of copper porphyry gold-bearing ores from Ellatzite deposit. The extracted ore is transported from Ellatzite open-pit mine located near the town of Etropole to the Flotation Complex in Mirkovo village on a 6.5 km underground rubber-belt conveyor line which was driven beneath Stara Planina Mountain. It is a structural-determinant enterprise in Bulgarian economy and one of the largest investors and taxpayers. The company employs about 1,770 staff, most of whom are local residents.
Geotechmin one of the leading business groups in the Bulgarian economy, having made significant contribution to the country’s dynamic and sustainable development. The history of Geotechmin began at the end of 1990 by establishing a private company offering consulting and engineering services in the sphere of mining industry. Since then, the company has expanded its range of activities in new lines of business. Today Geotechmin GROUP has taken leading positions in mining and construction industries.
Dundee Precious Metals is a Canadian-based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals. DPM principal operating asset is the copper-gold-pyrite Chelopech underground mine in Bulgaria with a century-old history of mining. Mined ore is processed to mineral concentrates - copper and pyrite, shipped to DPM Tsumeb smelter in Namibia due to its complexity. Dundee’s second operation in Bulgaria is the Ada tepe open pit mine, located in Krumovgrad. This is the first green mine to be constructed in Bulgaria for the last forty years. Earlier in 2019 the first concentrate was produced from the new process plant facility at the mine site. Modern mining faces companies with a lot of challenges. Being able to successfully drive change, we at Dundee introduce innovations and empower people to grow in skills and knowledge, leadership and management. This is what is taking the company to new industrial horizons.
Asarel Medet - a company for open pit mining and processing of copper ores
• Provides 50% of the national production of copper ore
• Processes about 13 million tons of ore per year.
Mundoro Capital is a Canadian listed public company focused on mineral exploration and development for copper and gold mineral resources. Company is well positioned with a land package of copper and gold projects in the Timok region of Serbia, which is a region well known for the Bor mines and the Cukaru Peki deposit (Zijin/Freeport). In Bulgaria the company has establish projects in Rhodopes and is evaluating further exploration opportunities in Bulgaria. The Company has established three earn-ins where Mundoro is operator of exploration programs:
– Earn-in with Japan Oil, Gas and Metals National Corporation (“JOGMEC”) in the Borsko project in Serbia.
– Earn-in with Freeport-McMoran Exploration Corporation (“Freeport”), in which Mundoro has granted to Freeport an earn-in option on two of Mundoro’s Serbian exploration licenses.
– Strategic alliance with JOGMEC to generate targeting in Bulgaria
Specific opportunities include:
Dundee Precious Metals, Krumovgrad: £136m investment in open pit gold mine.
Asarel Medet, Breznik: £60m investment in open pit gold/silver mine, operations expected 2021
Asarel Medet, Panagyurishte: ongoing investments in large-scale open pit copper mine
Opportunities for international companies in Bulgaria
International expertise and capability in mining equipment (crushing, grinding, flotation processing); health and safety, environmental and social impact assessment; and mine closure, restoration and recycling is all relevant to the opportunities in the Bulgarian market.
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Source: Mining Sector in Bulgaria (September 2017) The Department for International Trade
As one of the newest members of the European Union and the 15th largest country in Europe, the potential for economic growth and possibility for doing business in Bulgaria is endless. Mining is of great importance for the Bulgarian economy and is among the fastest developing sectors in the recent years. Situated in the Western Tethyan belt, Bulgaria is a developing European mining player, with significant reserves of gold, silver, copper, lead and zinc. This is an exciting time for the regional mining industry as technological advances at key properties and facilities, and investment from significant international players is bringing a new dynamism to the industry. Mining Industry provides direct employment to approximately 30,000 people, and through related industries to about 120,000. Mining is also the sector where Bulgaria is closest to the EU levels of labour productivity. More than 300 companies are active in the sector, working in areas of exploration, extraction and processing and all related to these services.
Market overview
• Mining represents 4-5% of GDP and supports 40% of electricity generation.
• Bulgaria is one of the top 30 global coal producing countries.
• Bulgaria holds a leading position in European mining. The country ranks third in copper, fourth in gold, fifth in lignite mining.
• Metallic resources represent 25% of output, of which copper is 98%, lead/zinc 2%. The main raw materials produced in Bulgaria are lignite, lead-zinc, copper and polymetallic ores, gypsum, limestone, bentonite, kaolin, quartz sands, refractory clays, marble. 80% of mining activities are carried out through open cast mining.
• As of August 2017, there were 128 exploration concessions, and 526 concessions for extraction of underground resources.
• The mineral and raw materials industry is important for Bulgaria and one of the best developing sectors in recent years. The Bulgarian Sustainable Mining Standard developed in cooperation with industry, academic and non-government organisations is currently being adopted by the neighbouring countries e.g. Romania, Serbia and Northern Macedonia.
Why Bulgaria?
1. EU Single Market enables free movement of people, services, goods and capital
2. 10% corporate tax (lowest in the EU)
3. Highly-skilled and multilingual labour
4. Low operating base (staff, rents, utilities)
5. GDP growth at 3-4% in the mid-term
Key Mining Players
Ellatzite-Med
Ellatzite-Med AD is one of the largest copper mining companies in Bulgaria, dealing mainly with extraction and processing of copper porphyry gold-bearing ores from Ellatzite deposit. The extracted ore is transported from Ellatzite open-pit mine located near the town of Etropole to the Flotation Complex in Mirkovo village on a 6.5 km underground rubber-belt conveyor line which was driven beneath Stara Planina Mountain. It is a structural-determinant enterprise in Bulgarian economy and one of the largest investors and taxpayers. The company employs about 1,770 staff, most of whom are local residents.
Geotechmin one of the leading business groups in the Bulgarian economy, having made significant contribution to the country’s dynamic and sustainable development. The history of Geotechmin began at the end of 1990 by establishing a private company offering consulting and engineering services in the sphere of mining industry. Since then, the company has expanded its range of activities in new lines of business. Today Geotechmin GROUP has taken leading positions in mining and construction industries.
Dundee Precious Metals is a Canadian-based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals. DPM principal operating asset is the copper-gold-pyrite Chelopech underground mine in Bulgaria with a century-old history of mining. Mined ore is processed to mineral concentrates - copper and pyrite, shipped to DPM Tsumeb smelter in Namibia due to its complexity. Dundee’s second operation in Bulgaria is the Ada tepe open pit mine, located in Krumovgrad. This is the first green mine to be constructed in Bulgaria for the last forty years. Earlier in 2019 the first concentrate was produced from the new process plant facility at the mine site. Modern mining faces companies with a lot of challenges. Being able to successfully drive change, we at Dundee introduce innovations and empower people to grow in skills and knowledge, leadership and management. This is what is taking the company to new industrial horizons.
Asarel Medet - a company for open pit mining and processing of copper ores
• Provides 50% of the national production of copper ore
• Processes about 13 million tons of ore per year.
Mundoro Capital is a Canadian listed public company focused on mineral exploration and development for copper and gold mineral resources. Company is well positioned with a land package of copper and gold projects in the Timok region of Serbia, which is a region well known for the Bor mines and the Cukaru Peki deposit (Zijin/Freeport). In Bulgaria the company has establish projects in Rhodopes and is evaluating further exploration opportunities in Bulgaria. The Company has established three earn-ins where Mundoro is operator of exploration programs:
– Earn-in with Japan Oil, Gas and Metals National Corporation (“JOGMEC”) in the Borsko project in Serbia.
– Earn-in with Freeport-McMoran Exploration Corporation (“Freeport”), in which Mundoro has granted to Freeport an earn-in option on two of Mundoro’s Serbian exploration licenses.
– Strategic alliance with JOGMEC to generate targeting in Bulgaria
Specific opportunities include:
Dundee Precious Metals, Krumovgrad: £136m investment in open pit gold mine.
Asarel Medet, Breznik: £60m investment in open pit gold/silver mine, operations expected 2021
Asarel Medet, Panagyurishte: ongoing investments in large-scale open pit copper mine
Opportunities for international companies in Bulgaria
International expertise and capability in mining equipment (crushing, grinding, flotation processing); health and safety, environmental and social impact assessment; and mine closure, restoration and recycling is all relevant to the opportunities in the Bulgarian market.
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Source: Mining Sector in Bulgaria (September 2017) The Department for International Trade
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