Title: MINING INDUSTRY OF ROMANIA MAI 2006
1MINING INDUSTRYOF ROMANIA MAI 2006
MINISTRY OF ECONOMY AND COMMERCE General
Directorate for Mineral Resources
2THE AREAS COAL MAINING SPREADING
1 CNH SA PETROSANI 2 SNLO Tg. Jiu 3 SNC
Ploiesti 4. SC BANAT Anina 5 COMPLEX EN.
ROVINARI 6 COMPLEX EN. TURCENI 7 COMPLEX EN.
CRAIOVA
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4
2
5
3
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3THE AREAS OF ORES , SALT, MINERAL WATER SPREADING
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1 CN MINVEST DEVA 2 CN REMIN BAIA MARE 3 SC
CUPRUMIN ABRUD 4 SC MOLDOMIN MOLOVA NOUA 5 SC
MINBUCOVINA V. DORNEI 6 SC BAITA STEI
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6
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2
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4THE PRESENT STRUCTURE OF THE MINING SECTOR
There are 17 mining companies/societies, as
follows
- for cool 1 national company, CNH Petrosani
- 2 national societies, SNLO Tg. Jiu and SNC
Ploiesti - 1 commercial society, Miniera Banat Anina
- 3 energetical complexes Rovinari, Turceni si
Craiova - for nonferrous ores 2 national companies, C.N.
MINVEST S.A. Deva si C.N. REMIN S.A. Baia Mare - 4 commercial societies, S.C. MOLDOMIN S.A.
Moldova Noua, S.C. CUPRUMIN S.A. Abrud, S.C.
Baita S.A. Stei si S.C. Bucovina Min Vatra Dornei - for uranium 1 national company, CNU Bucuresti
- for salt 1 national
society, S.N. Sarii Bucuresti - for mineral waters 1 national society,
SNAM Bucuresti - For closing maining 1 commercial society SC
CONVRESMIN SA Bucuresti
The current mining activity is ongoing in 88
mines, open pits and processing plants
5THE STAGE OF REFORM IN MINING SECTOREvolution of
coal and salt production
6THE STAGE OF REFORM IN THE MINING SECTOR
Evolution of nonferrous concentrates production
7THE STAGE OF REFORM IN THE MINING
SECTOREvolution of employees number
-persons nr.-
8THE STAGE OF REFORM IN THE MINING SECTOR
Evolution of redundant people from the beginning
of the restructuring process in the mining sector
9THE STAGE OF REFORM IN THE MINING SECTORThe
situation of the mines approved by the Government
for the ceasing activity
10STRATEGIC OBJECTIVES OF THE MINING SECTOR
- TO DEVELOP MINING PRODUCTS ACCORDING TO THE
MARKET DEMANDS - CUTTING DOWN DIRECT INVOLVMENT OF THE GOVERNMENT,
IN SUSTENABILITY MINING ACTIVITIES, BY GRADUALLY
REDUCING OF THE STATE ALD - UNDERTATE OF MINING ACTIVITIES IN COMPLIANCE WITH
MINING PROTECTION CRITERIA - ALLOTING THE FUNDS FOR MINING CLOSURE AND
ENVIRONMENTAL REHABILITATION (FROM BUGETARY AND
EXTERNAL SOURCES) - MITIGATION OF THE SOCIAL IMPACT DUE TO MINING
CLOSURE AND REDEVELOPMENT OF THE MINING AREAS
11 RESTRUCTURING OF THE MINING SECTORMAIN
OBJECTIVES
- REASSESS OF THE MINING PERIMETERS AND
CONCENTRATION OF THE ACTIVITY IN THE MOST
FAVOURABLE AREAS - ALLOTING OF THE BUGETARY CAPITAL EXPENSES ONLY
FOR THE MINING OBJECTIVES HAVING A GOOD VIABILITY
AND PRIVATIZATION CHANCES - CUTTING DOWN SUBSIDIES AND SOCIAL TRANSFER FUNDS
IN THE ORE AND UNDERGROUND MINES FOR LIGNITE,
STARTING WITH YEAR 2007 - ALLOTIONG OF THE SUBSIDIES FOR HARD COAL
PRODUCTION TILL YEAR 2010, ACCORDING TO THE
PROVISIONS OF THE CE DIRECTIVE 1407/2002.
REGARDING THE STATE AID FOR COAL SECTOR - FINANCIAL RESTRUCTURING OF THE MINING COMPANIES /
SOCIETIES, BY - - SEPARATION OF THE NONVIABLE UNITS, IN ORDER TO
BE CLOSED - - LEGAL LIQUIDATIOIN OF THE MINING UNITS
APPROVED BY THE GOVERNMENT TO BE CLOSED - - COMPENSATION TILL YEAR 2006 OF THE LOSSES AT
THE MINIES WHERE REVENUES ARE LESS THAN
EXPENSES - SOCIAL PROTECTION FOR REDUNDANT PERSONNEL FROM
THE MINING ACTIVITY
12RESTRUCTURING OF THE MINING SECTOR(CONTINUATION)
- RESTRUCTURING OF PRODUCTION CAPACITIES AND
IMPROVEMENT OF TECHNOLOGICAL PERFORMANCES, CEASE
OF ACTIVITY AND CLOSURE OF NON-VIABLE MINES - PRIVATIZATION OF VIABILE MINES AND OF THOSE WITH
REVIVAL POTENTIAL TO BECOME VIABLE. ENSURE THE
FINANCING SOURCES NEEDED FOR THEIR DEVELOPMENT
AND MODERNIZATION - UNDERTAKE OF MINING ACTIVITIES IN COMPLIANCE WITH
MINING PROTECTION CRITERIA - - MAKING THE INVENTORY OF THE ENVIRONMENT
DISTURBANCES PRODUCED SO FAR - - ESTABLISH THE OBLIGATION FOR THE MINING
COMPANIES / SOCIETIES - - AND FOR THE PRIVATE LICENSE HOLDERS, FOR
ENVIRONMENT REHABILITATION - - PROMOTE AN ENVIRONMENTAL MANAGEMENT AT
EUROPEAN STANDARDS
13SOCIAL PROTECTION OF THE PERSONNEL AFFECTED BY
RESTRUCTURING PROCESS
- BASIC ORIENTATIONS
- FOR THE MINES THAT ARE OR COULD BE VIABLE, THE
PROTECTION MEASURES WILL BE A PART OF
REHABILITATION PLAN OF THE MINE - FOR THE MINES THAT WILL BE CLOSED, THE MEASURES
OF THE SOCIAL PROTECTION WILL BE OBJECT OF THE
PLANS IMPLEMENTED BY MINISTRY OF LABOUR SOCIAL
SOLIDARITY AND FAMILY AND NATIONAL AGENCY FOR
OCCUPY OF LABOUR FORCE - MAIN MEASURES
- PROMOTION OF INDIVIDUAL AND COLLECTIVE DIALOGUE
FOR THE INFORMATION OF EMPLOYEES WITH REGARD TO
THE CURRENT AND FUTURE SITUATION OF THE COMPANY - PROFESSIONAL TRAINING FOR THE STAFF EMPLOYED IN
THE MINING INDUSTRY TO INCREASE HIS CHANCES ON
THE LABOR MARKET - SOCIAL PROTECTION OF MINERS LAID OFF
- SUPPORT COMMUNITY WORKS PROGRAMS, HAVING AS
OBJECTIVE TEMPORARY EMPLOYMENT OF LAID OFF
PERSONS IN ORDER TO KEEP THEM ACTIVE AND
FACILITATE ACCESS TO THE LABOR MARKET - STIMULATING EMPLOYERS TO HIRE PEOPLE LAID OFF
FROM THE MINING ACTIVITY, WITH A VIEW TO THEIR
REDEPLOYMENT, TRAINING AND KEEPING ACTIVE, IN
ORDER TO MAINTAIN THE ABILITIES TO FIND A NEW JOB - ESTABLISHING VIABLE ALTERNATIVES FOR YOUTH
GENERATION TO PROVIDE CONDITION FOR THEIR
DEVELOPMENT IN THE SAME AREAS
14THE STRATEGY OF THE MINIG INDUSTRYThe economic
reconstruction of the affected mining arreas
- Ensuing the local and commentary consensus for
changing the mining closure process and the
ecological rehabilitation, into an action aimed
to attracting investments - Transforming the localities from areas where the
existing mining facilities should be closed into
favourable zones for private sector - Improvement of the environment and of the
infrastructure by execution of public works - Reusing of the available spaces, assets and
surfaces for development of alternative economics
activities - Ensure the economic frame in order to facilitate
the financing processes and actions for
development of new businesses - Making use of local resources from agriculture,
forestry fishery and touristy sectors - Improvement the living conditions by
rehabilitation of the housing and public
services - Promoting a positive image of the mining regions,
in order to attract investors and investments - Reviving the viable mining units and making free
economic activities in the region
15THE STRATEGY OF THE MINING INDUSTRYFinancial
resources for the acomplishment of the strategys
objectifs
Mill.
USD
16THE STAGE OF REFORM IN THE MINING SECTORThe
impact of the mining restructuring on the mining
zones economy and on their habitants
- Results from the poverty evaluation study in the
mining zones, financed by the BIRD -
- Decline of the economic activities comparing to
1997 was of above 35. In some zones as Jiu
Valley, Motru, Balan, Borsa, Baia de Aries,
Zlatna the decline was of over 55. - Reducing of the employed people in the affected
areas with over 40 compared to 1997. - Reducing of the populations income in the
affected areas with 25 compared to 1997. - Increasing by 28 of the number of families whose
condition are bellow the minim standards.
17THE STAGE OF REFORM IN THE MINING SECTORThe
impact over redundant people
- 7 have not job
- 30 can find a temporary job (without working
contract) - 5 have developed their own business
- 46 have a stabile job
- 12 have been normally retired, with anticipation
or for the illness cases
18THE PERSPECTIVE FOR DEVELOPMENT OF THE MINING
INDUSTRYThe tendencies in the development of
mining industry at the international level
- COAL INDUSTRY
- Will cover 23 from the global energy needs
- Will generate 38 of the world electricity in
the period 2007 - 2025 - For the hard coal marked its estimated a medium
growth of about 2 annually - The marked for lignite will remain constant until
2020 - The delivery prices until 2020
- For energetical hard coal 2,8-3 USD/GJ price
at the beneficiary - For lignite 2,6-2,8 USD/GJ price at the
beneficiary
19THE PERSPECTIVE FOR DEVELOPMENT OF THE MINING
INDUSTRYThe tendencies in the development of
mining industry at the international level
- Mining ores industry will be under a strong
influence till year 2020, by - Transforming of European Union into the biggest
region for processing and consumption - Transforming of Eurasia region (of former Soviet
Union) in the most important producer and
exporter of minerals - Renouncing at nonferrous metals mining in Western
Europe - Privatisation of ores open-pits in Easter Europe
- Putting into exploitation the gold deposits
(Poland, Romania, etc.) economically viable - Nonferrous metals market
- Its estimated an increasing tendency for demand,
of about 3 - 4/year - Only 30 of this demand could by covered by
increasing of the mining production. - Price levels at the international market
- -cooper in concentrates 1550 /t in year 2000
3850 /t in year 2005 - -zinc in concentrates 650/t in year 2000
1490 /t in year 2005 - -gold in concentrates 319/ounce in year
2000 519 /ounce in year 2005
20THE PERSPECTIVE FOR DEVELOPMENT OF THE MINING
INDUSTRYProduction
if will be a successful privatization process
21CONCLUSIONS
- RESTRUCTURING OF THE MINING INDUSTRY IS A VERY
IMPORTANT OBJECTIV OF THE GOVERNMENT, IN THE
CONTEXT OF HIS GENERAL SOCIAL AND ECONOMIC
POLICIES REGARDING THE ACCESSION OF OUR COUNTRY
TO THE EUROPEAN UNION - RESTRUCTURING PROCESS IN THE PERIOD 2004 2010
HAS TAKING IN CONSIDERATION THE OBJECTIVES OF
THE MINING STRATEGY APPROVED BY THE GOVERNMENT
DECISION NR. 615/2004 - THESE OBJECTIVES ARE ORIENTED TO THE PRINCIPLES
OF A SUSTAINABLE ECONOMY DEVELOPMENT, ESPECIALLY
REGARDING PROVIDING OF RAW ENERGETICAL RESOURCES
FOR THE ENERGY SECTOR - STATE INVOLVEMENT SUPPORTING THE MINING INDUSTRY
WILL BE - - TOTALLY ELIMINATED STARTING WITH YEAR 2007,
FOR THE MINING UNITS FROM ORE SECTOR AND
UNDERGROUND LIGNITE MINES - - TOTALLY ELIMINATED STARTING WITH YEAR 2011,
FOR THE HARD COAL SECTOR (ACCORDING TO THE
EC DIRECTIVE 1407/2002 - - DESTINED FOR THE MINING CLOSURE PROGRAMMES OF
NON VIABILE MINES AND FOR ENVIRONMENTAL
REHABILITATION OF THE AFFECTED AREA, ACCORDING TO
THE REGULATIONS OF EUROPEAN UNION
22CONCLUSIONS(CONTINUATION)
- VIABLE MINES AND OPEN PITS WILL BE MODERNIZED, BY
THEIR OWN SOURCES, BY ATTRACTING PRIVATE FUNDS
AND / OR BY PRIVATIZATION PROCESS - FORMER MINING AREAS WILL BE REHABILITATED IN
ORDER TO ASSURE THE BEST INFRASTRUCTURE
CONDITIONS FOR NEW INVESTMENT PROJECTS - FOR THE MINING PERSONNEL LAID OFF, WILL BE
IMPLEMENTED PROGRAMMES, FOR SOCIAL PROTECTION,
FINANCED BY THE STATE AND BY ATTRACTED EXTERNAL
SOURCES - WILL BE ACCELERATED THE ACTIONS FOR PRIVATIZATION
OF - - ENERGETICAL COMPLEXES ROVINARI , TURCENI,
CRAIOVA - - SC CUPRUMIN ARBUD AND SC MOLDOMIN SA
MOLDOVA NOUA, MAIN PRODUCERS OF COOPER
CONCENTRADES - - SUBUNITS OF NATIONAL COMPANY MINVEST SA
DEVA - - LIGNITE OPEN PITS FROM THE STRUCTURE OF
NATIONAL SOCIETY OLTENIA SA TG. JIU AND
NATIONAL SOCIETY PLOIESTI - - SUBUNITS OF NATIONAL SALT SOCIETY.