Serbia mining: Exception for Gazprom, same mineral rent because of the energy agreement

19. November 2013. / Mining

Speaking of mineral rent for oil and gas exploitation, which NIS pays in the amount of three percent, minining minister Milan Bacevic said he agreed that this was a low mineral rent, but that the whole story had another side as Serbia, thanks to the energy agreement with Russia, had large GazpromNeft NIS investments and did not pay penalties to the contracted and non used gas.

“Has anyone asked how much been the investments in NIS that it could exploit as much as exploits? It is true that this is a low mineral rent and I’m against the fact that the mineral rent is three percent, but currently it cannot be changed “, he says.

This mineral rent was agreed in 2008th , in accordance with the intergovernmental agreement that Serbia and Russia signed on 25th  January 2008th ,  Bacevic recalled, adding that the NIS, thanks to that mineral rent has invested until now near one billion euros in Serbia, and it will invest about two billion euros more.

“Mineral rent for NIS was established yet in 2008th and it would be foolish that we now change state and contractual agreements that were signed long before my tenure”, Bacevic said, adding that in the opposite the conditions of their business in Serbia would be drastically worsened.

There is no larger investor in Serbia than NIS, said Bacevic.

Because of low mineral rent Serbian budget loses up to 25 MEUR per year, on the other hand it is much more important that Serbia, thanks to the interstate agreement with Russia does not pay near 200 to 300 MEUR  to Russians, for the penalties of not reserved, and not withdrawn gas quantities, explained Bacevic.

“Oil and gas are only part of the raw materials which are exploited in Serbia in ways that are not unacceptable to me, that is why we move to the draft of new Law on geological exploration and mining”, Bacevic said and pointed out the mineral rent for lithium of five percent, which is more expensive than oil and gas, but as he says, that is not a result of this government.

Source; Serbia Energy

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