Serbia mining: Huge mining rent fees depts from mining companies, mining rent levels reform in progress

4. November 2013. / Mining

Ministry of Natural Resources, Mining and Spatial Plan has filed hundreds of requests and warnings that charges for the mining rent should be reconciled. Departmental minister Milan Bacevic says that at this point it comes to approximately 450MEUR. He explained that the jurisdiction of the Ministry only to determine the amount of mining rent, because it is illogical that it costs the same for gold and gravel or clay and lithium.

Bacevic, at the meeting of the Parliamentary Committee for the Environment, said that the biggest debtors are companies in restructuring, and private companies, including the leader “Farmakom” and that the problem is that the ministry except warnings and requires has no other tools to force debtors to fulfill their obligations.

“The biggest debtors are precisely the companies in which we can do nothing, which are in the restructuring -” Bor ” and other, and then we have “Farmakom” which, as a private company, is the largest debtor, and here too, we can nothing – it owns 40 mines in our country”, explained Bacevic.

He pointed out that here is the case of abuse of rights, and that the resource is given to someone to use, he does not use it, but it acts like a boss.

He explained that the jurisdiction of the Ministry only to determine the amount of mining rent, because it is illogical that it costs the same for gold and gravel or clay and lithium.

“We are precisely defined in the new law which are strategic resources and mineral resources, and what will be the mineral rent for them in relation to the other which are not it. However, as regards the collection procedure, it is the authority of the Ministry of Finance, said Bacevic .

Billing issues of mining rent launched DS MP Gordana Comic, who said that the council could organize a public hearing on the issue, to make difference because the damages for not paying are enormous.

Minister Bacevic agreed with this proposal, stating that the Ministry suffers therefore enormous damage.

“We suffer great damage, and we will suffer more, because the day by day interest in detailed geological research is growing. In our country, they do not come out to explore the area which is not explored at all, but rather the one that is already explored, “said Bacevic.

He pointed out that the way must be found that all who come must know that they have to pay.

Delegate of the Democratic Party asked whether there would be changes in the amount of mining rents for processing oil and gas, since it is now just three percent, which, she says, is low.

Bacevic said that mining rent is low, but that Serbia, on the other hand, has some other benefits, such that we do not have to pay the penalty for what we did not fulfill.

In addition, he cited the example – if Serbia in one year agreed three billion cubic meters of gas, and pulled one billion, it would, following various treaties and standards that apply to other nations in Europe, had to pay a penalty between 300 and 400 million.

On the other hand, he explained, this difference of three percent to five percent annually of mining rent of processing and exploitation of oil and gas never exceeds 25 million.

“It’s nice to have a budget of 25 million more, but better is to keep the 200, 300 or 400 million in the same budget, because no one is prosecuting us to pay the penalties which might have to be paid if there was not the agreement in 2008, said Bacevic.

He pointed out that he fully supports the project “South Stream”, and that this is the biggest project before the appearance of the project “Morava” and “one should not inhibit it,” because Serbia that has benefit.

The Board adopted the Information on the Ministry of Natural Resources, Mining and Spatial Planning for the period from May to July 2013.

Source; Serbia Energy

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