MINISTRY of ECONOMY, TRADE and ENERGY

1. MINISTRY of ECONOMY, TRADE and ENERGY Mining Policy SARM-a Prepared from Prof. Sokol MATI

2. General Objective is to guide and develop industrial sector, encourage investment in high technology, growth and competitiveness, modernization, diversification and specialization in open markets, to promote a dynamic steady growth and sustainable development of the industrial sector, Vision Sustainable development throught improving productivity and competitiveness, product internationalization, foreign investment promotion and the better use of financial, human and natural resources Mission to guarantee foreign and domestic investors to meet their investment targets to guarantee profitable and competitive products to offer alternatives based on its diversity, to consequently work for better life to coordinate and cooperate with sectoral strategies and programmes of the country with those regional and more Slogan “Industrial devlopment for a sustainable economy development”, saving the professionalism and transparency. Business Development Industrial Strategy of Albania (BIDS) 2007-2013,( Gov.Decree,No.795, date 11.07.2007 “ Official Gazette of Republic of Albania no.170, page 5109),

3. Guidelines of the Strategy Action Plan • Dynamic action to improve bussines climate; • Aprox.of EU legislation; • Improvement on regullatory for simplifying and cost reduction on registering and licensing process; • Decrease the informality, increse competitiveness; • Privatisation process; • Improving of the credit and financial system; • Improving quality infrastructure; • Innovation and technology transfer; • Improving education and training programms; • Development of SME and programs in support to youth and women gender especially in rural areas; • Interaction with national and other sectoral strategies; • Prioritisation of the action and concrete measures.

4. Business Development Industrial Strategy • Business Climate a general Overview; • Incitement and development of SME Investment in nonfood industries; • Development of mining activities; • Development of export; • Direct foreign investment; • Cost of the action plans; • Monitoring indicators of the strategy ( business climate, performance of SME, Exports, Direct Foreign Investments).

5. Business Development Industrial Strategy The sustainable development on the industrial policy is treated in legislation programs and action plans as a balance on three pillars: • i.) investment development throughbetter legal frame work and regulation, to reduce the administrative barriers, finishing the process of privatization, promotion of industrial business with higher value added, strengthening of the institutions dealing with business, ensuring well-management of natural and human resources for a sustainable development, by inciting, supporting and encourage the development and increment of domestic production and education and training for entrepreneurship, coordination and cooperation of the developing programs of the country with those regional and more, improvement of the climate for foreign investments, saving the professionalism and transparency • ii) investment development friendly to the environment,through enforcing the mitigation measures, rehabilitation process and strengthening of the supervision on remediation and monitoring and post monitoring process; to ensure level of work safety, less damages and pollution to environment by application and implementation of advanced technologies to minimize as much as possible the effects on life of communities, and nature. • iii) social aspects, through the involvement and understanding of community, transparency, civil society involvement in a wider way taking in consideration profits and damages to the community as an approach to fight poverty by creating new jobs, creating possibilities for infrastructure improvement, help in health system and education particularly for the areas with poor economic activity.

6. General Policy • Startegic objective is to formulate policies and projects in order to guide and stimulate investments in technology, increase competitivness, modernisation , diversification and specialisation for open markets. Industrial policy which covers sectors of, non food industries and mining, is a priority of the government because this sector cover 13 % of the GDP of the country. Industry mostly is developed from the private sector which is the main contributor for economic growth, and constitutes about 80% of GDP. The implementation of the strategy is helping on: • liberalization process in the domestic market, new export products, technological cooperation and innovation; • facilitates the process of developing market institutions, • increasing the flow of foreign investment, efficiency of services offered by public administration, development of a suitable environment for the culture of entrepreneurship support toward development of networks, business cooperation and technological innovation.

7. General Policy • Rapid and sustainable economic and human resource development • Opening of trade, free and fair competition • Attracting foreign investments • Fiscal administration and policies • Development priorities and budget expenditure • Economic development and supporting policies • Strengthening the institutional capacity and human resources for law enforcement • Information and documentation system (including land and property registry) • Transparency and Prevention of Corruption • Developing infrastructure • Environmental protection and the sustainable use of natural resources • Reduction in unemployment • Poverty reduction and social care • European integration

8. Mining activity in Albania Mining Strategy and Industrial policy in Mining Activity

9. Mining activity in Albania Restructuring Reforming of mining industry towards the free market economy to incite, support and encourage the development and increment of of domestic production. Mining right Concession The closure of non-efficient mines

10. Mining Activity in Albania Mining STRATEGY Criteria In territorial planning

11. Mining Activities • The miningindustryhas overcame the crisis, • The miningindustryisentirelyprivatized, • The miningindustryison te wayofdeveloping in accordancewith the requirementsofmarketeconomy, • The miningindustryhas a structuredifferentfromtraditionalone, savingits’ essence. • The miningindustry has a clearperpective and will be re-assessed in the marketwithitspotential. • The processofreformingwillcontinue to respond the requirements and challengesof the future. • The Stategaveup the productionadministrating and took the attributesofmanagementofthisbranchofeconomy, through the compilingof the policies and programmeswithprioritaryobjectives • Wascommencedre-assessmentof the naturalresourcesof mineral-miningcharacteraccording to the internationalconcepts and standards • Already are created the optimumconditionsforregionalcoordination and more, as in the institutionalaspect and exchangeofinvestmentsbyreciprocalcharacter in the geology-miningfield • Was improved the climate of foreign investments

12. Mineral Production

13. Investment Development Mining activities

14. Values in Euro main mineral products

15. Legislation Mining Activities • Under a project financing from JICA “THE STUDY FOR THE MASTER PLAN FOR PROMOTING THE MINING INDUSTRY OF ALBANIA which cover three aspects • a new master plan forpromoting the miningindustry in albania, • strategicdevelopmentofprioritizedminerals • enhancedgis・information

16. MINING ACTIVITY LEGISLATION • Mining Law of Albania is approved on 1994, and is amended on 2001 and 2006. • The new draft law concern issues of : • New concept of territory planning ( including the offering of Mining areas to investor and competition process) • Addressing of environment and social issues • Facilitating of the licensing procedures ( concept of one stop shop) • Strengthening of the institutions • Minerals promotion • Monitoring and supervision • Health and Safety in mining activity • Monitoring of post mining activities-mining closure • GIS and Data Base of Mining Industry • Participation of local authorities and community • Professionalism and Transparency ( participation on EIT Initiative) • On this initiative is organized the workshop under TAIEX, Program on Reforming of mining industry of Albania towards free market rules, through application of the new legislation and long term mining strategy

17. MINING in ALBANIA YESTERDAY AND TODAY

18. Mining Activity Structure of mining activity today in quantity

19. Environment Protection Mining Activities Rehabilitation of the areas of industrial state enterprises during and after liquidation process. The project was realized and finished last year. • Environmental Clean-Up and Disposal of Hazardous Waste in the metallurgical plant of RUBIK (CARDS 2004) • This project include the rehabilitation of the metallurgical plant site by removal of all hazardous waste and making a proper landfill for their depositation.

20. Environment Protection Mining Activities • Closing and Rehabilitation of the areas of state mine enterprises realized by a state company ALBMINIERA responsible for all the old mine activities. • Supervision and monitoring of new mining activities from NANR (National Agency of Natural Resources.

21. Social Issues • EITI • The establishment of the inter-institutional working group consisting of representatives from several state institutions, as well as groups of interest and the civil society, by the Order of Prime Minister Nr. 156, date 27.12. 2008 “For constitution and functioning of the inter-institutional working group for undertaking of the procedures of the Albania candidacy at the extractive industries transparency initiative (EITI)”. This ensures that the Albanian government is committed to work with all stakeholders, groups of interests and civil society. • The appointment of an individual who will be leading the working group and the implementation process. The Deputy Minister of Economy, Trade and Energy was given the responsibility of leading the working group within Government, and the Ministry has committed senior staff to coordinate and to carry out this work. • On 17 March 2009, is approved EITI Implementation Work Plan Albania is working in the fulfillment of the action of the working plan • The documents realized under the EIT Initiative are posted on the Ministry of Economy, Trade and Energy (METE) website, http://www.mete.gov.al