Prishtine, 17 May Xhevdet Kastrati Member of the Board ICMM Mining resources in Kosova and economic interest of Mining

Prishtine, 17 May Main Minerals of Kosova Kosovo is wary rich with mineral reassures Lead, Zinc, Silver, etc. Lignite Nickel and Cobalt Ni Chromium Cr Copper Cu Magnesium Mg Bauxite Al 2O3 Iron Fe Manganese Mn Precious Metals, Industrial Minerals Etc.

Prishtine, 17 May Competent institutions for mineral sector in Kosova are: –Ministry for Economy Development –Independent Commission for Mines and Minerals  Competent institutions for mineral sector in Kosova  ICMM Powers and Responsibilities  Licence types  Licence Procedures  Technical Programs

Prishtine, 17 May Institutional and Regulatory Setup Kosovo Assembly Government of Kosovo Ministry for Economy Development Independent Commission for Mines and Minerals

Prishtine, 17 May Primary Legislation Law on Mines and Minerals nr. 03/L- 163 The ICMM was established on 21 January 2005 as an independent body with its HQ in Pristina. 5

Prishtine, 17 May Powers and Responsibilities are: –Independent Commission for Mines and Minerals is an independent regulatory body responsible for regulating and monitoring the mining industry in Kosovo; –The issuing, transfer, suspension and revocation of exploration and exploitation licenses and permits; –The issuing, suspension and revocation of permits and licenses related to the use of explosives in mining operations; –The optimal utilization of mineral resources at all mining operations and minimizing the environmental impact of mining operations –The implementation of international standards for operations in mines and quarries; –The safety of operations in all minerals extraction and processing facilities in accordance with the applicable law and required safety standards; and –To inspect the general compliance of mining operations with the terms of licenses, permits, agreements and other authorization instruments. –The ICMM shall provide technical assistance to the Government in all matters related to mines and minerals in Kosovo when requested by the Government

Prishtine, 17 May The ICMM structure –Governing Board with five Board members including a Chairman –A Director of ICMM –ICMM regulates and oversees the mining sector through: Mines Inspectorate Geological Department GIS/ Mining Cadastre Revenue Collection Unit Geological Archive Administrative Departments

Prishtine, 17 May LICENCE TYPES: –EXPLORATION LICENCE Construction minerals: Valid for two years and may be extended for additional two years. There is a maximum area of 250 ha per individual licence. All other minerals: Valid for three years and may be extended up to three times at two years per extension, accompanied by a 50% reduction in licence area. Apply to an area no larger than one hundred (100) square kilometers. –RETENTION LICENCE Construction minerals: A maximum of one year from expiry of the exploration licence. Any other minerals: A maximum of five years from expiry of the exploration licence.

Prishtine, 17 May EXPLOITATION LICENCE –Construction minerals: initial term of no more than 25 years, extendable for up to another 25 years. –Any other minerals: valid for not more than 30 years extendable for up to another 15 years. SPECIAL OPERATIONS PERMIT –Special operation permits issued by the ICMM include: crushing and milling permit, processing plant permit (asphalt or concrete), use of excavators and any other mining machinery blasting permit, etc. –The term of a permit is in principle valid for three years and may be extended by the Commission upon application by the permit holder.

Prishtine, 17 May ARTISANAL MINING LICENCE –For construction minerals: Valid for two years and may be extended for a further two years. A maximum exploitation is permitted of 12,000m3 in any calendar year. An artisanal mining licence may be issued only to a municipality.

Prishtine, 17 May In principle, there are two ways for obtaining an exploration/exploitation license in Kosovo: –Authorization procedure – (First come first served). –Competitive Tendering –Licenses Subject to Competitive Tender are: –An Exploration or Mining License that relates to an Energy Mineral; and – to a mineral located within an area that is designated as an “Area of Special Interest”

Prishtine, 17 May “Zones of Interest” In 2008, Ministry of Energy and Mining, based on previously (1980’s) carried out: (i) Geophysical exploration, (ii) Geochemical sampling and (iii) Core Drilling, has identified nine (9) areas or “Zones of Interest” that now intends to launch for a competitive tendering / licensing process. Following the 2006/2007 Airborne Geophysical Survey it can be confirmed that these areas corresponds with zones with geophysical anomalies. It can also be stated that the areas surrounding the “Zones of Interest” are found to be highly prospective. Procedures for competitive tendering are currently being developed, based on model used for the “Sibovc” lignite mining area, that is an ongoing lignite mining/power project undertaken by Government of Kosovo and supported by The World Bank, European Commission and USAID.

Prishtine, 17 May Karace: Commodity: Pb-Zn; Baks: Commodity: Ni; Terstenik: Commodity: Ni; Bushince Bolevc: : Commodity: Pb-Zn Koretishes: Commodity: Pb-Zn Zhegovcit: Commodity: Pb-Zn Debelde: Quartzite Vllahi-Zjace: Commodity: Pb-Zn; Medvec-Halilaq: Magnesite Zones of special interest typically have “hot” geophysical characteristics and drilling or other geophysical survey data.

Prishtine, 17 May Technical Programs To ensure that Kosovo’s mineral potential is adequately promoted and developed, the ICMM has undertaken numerous technical programs, where most important are viewed to be: GeoScientific Maps Explosives Security System Kosova Quarry Plan Geochemical Survey Airborne Geophysical Survey Geographical Information System

Prishtine, 17 May GeoScientific Maps ICMM Geoscientific map technical program resulted with a series of 1:200,000 scale maps that show following features: Geological Map of Kosova. Tectonic Map of Kosova. Map of Minerals of Kosova. Hydrogeological Map of Kosova. Map of Mineral – And Thermal water of Kosova. Morpho-Orographical Structure of Kosova. Soil Map of Kosova. Satellite Imagery Map of Kosova.

Prishtine, 17 May Kosova Quarry Plan A series of 1:50,000 scale maps that show: –Base Map of the captured Construction Raw Materials. –Map of Non-Blocked Construction Raw Materials. –Map of Deposit Mineability. –Map of Deposit Licence Status. –Map of Deposit Protection Value. 16

Prishtine, 17 May Airborne Geophysical Survey The Joint Airborne-Geoscience Capability (JAC) established between the Geological Survey of Finland (GTK) and British Geological Survey (BGS), carried out the survey under contract to the ICMM. December 3, 2008 The airborne geophysical data were collected in 2006 (Phase 1), and 2007 (Phase 2) by the co-operative team JAC, using a Twin-Otter fixed- wing aircraft. The survey is being conducted at high resolution. East-West flight lines were 200 metres apart and a nominal drape of 30 metres is maintained wherever possible. The project involved flying >50,000 line- km. There were three sets of data collected: 1.Magnetic data 2.Electromagnetic data 3.Radiometric data

Prishtine, 17 May Magnetic Data In overview, the magnetic data (MAG) respond to both at- surface and concealed magnetic rocks at all depths (a wavelength dependence). The variation in magnetic texture can be used to assist in identifying different rock types, because the magnetic signature mirrors mineral texture and fabrics or fracturing style of the source rock. 2. Electromagnetic data The electromagnetic (EM) data comprise coupling ratios, which are converted to provide a measure of the bulk subsurface conductivity. The bulk conductivity in near-surface materials is largely dependent on geology (i.e. mineralogy) and the electrical conductivity of pore fluids. The system provides sensitivity to conductivity changes to depths of (typically) between 60 and 100 m. 3. Radiometric data The radiometric data (RAD) respond to about 30 – 50 cm of the radiometric content of the surface material and reflect the lithological variation and the background response of natural radioactivity. Three individual natural radionuclide elements Potassium (K-40), Thorium (Th- 232) and Uranium (U-238) may be examined.

Prishtine, 17 May GeoDatabase Kosovo (GDK) Starting in 2003, the ICMM has developed the GeoDatabase Kosovo (GDK) information management system. The information system can only be described as “state of the art”, and is a system of which Kosovo is justly proud. The system among many other issues, deals with the following issues and can be accessed on line: Mining Law administrative issues (handling of exploration and exploitation licences, blasting permits, processing plant operation permits, persons and companies). Document handling (‘paperless office’) – all relevant documents have to be visible onscreen. Storage of all mineral relevant information (eg, deposits and occurrences). Management of factual geoscientific data (boreholes, samples, geochemical analyses, geophysical data, contaminated sites). Preparation of geoscientific maps – interactive digital geological maps, soil maps andminerals maps. We strongly encourage potential investors and exploration companies to visit the ICMM web site and offices to assess this mining and geological management information system.

Prishtine, 17 May Use the GIS View & print docs Map printing www-application: interactive maps Report &docs Pers.& comp. Depo- sits Librar y Licen- ses Sam- ples MinesFarmsDrill holes Client Server Application Use the GIS Administratio n tools Data base

Prishtine, 17 May THANK YOU