70194 FINAL REPORT GOVERNANCE PARTNERSHIP FACILITY FUNDED STUDY ON SMALL SCALE MINING SSM IN ALBANIA IMPROVING TRANSPARENCY ACCOUNTABILITY AND DEVELOPMENT IMPACTS CHROMITE ORES MINING IN THE ZONE BATRA-BULQIZA Tirana October 1 CONTENTS FOREWORD CHROMITE ORE DEPOSITS IN THE BATRA BULQIZA ZONE NUMBER AND SIZE OF EACH AND EVERY SMALL-SCALE MINING OPERATION ACTIVE IN CHROMITE ORE EXTRACTION, PROCESSING AND TRADING, AND THEIR PRODUCTION Chromite ore production and processing between and 3.2. Investment in the chromium extraction and processing industry Export and revenues from chromite ore extraction and processed products in Albania (chiefly in the Batra-Bulqiza zone) Government s effective control of production processing workings and selling and reporting activities as well as revenue collection Albanian Mining Industry Strategy and Legislation ENVIRONMENTAL IMPACT OF CHROMITE ORE EXPLOITATION AND PROCESSING ON THE BATRA BULQIZA ZONE AND SAFETY ASPECTS SURROUNDING MINING WORKINGS WORKPLACE CONDITIONS AND HEALTH Environmental Protection in the Mining Industry Designing and implementing projects Technical safety and training for health safety and mining techniques • First meeting on July • Second meeting on August • Third meeting on September • Meeting with METE authorities October • Meeting with Empire Mining Company October CONCLUSIONS AND RECOMMENDATIONS 2 FOREWORD Albania is rich in basic metals including chromium copper nickel and zinc and industrial minerals including sand gravel limestone gypsum kaolin and quartz However both the metallic mineral sector and the industrial mineral sector include a considerable number of small scale mining operations and mining operations run by small groups of private entrepreneurs It is estimated that the number of small scale mining operations in the metallic mineral sector alone ranges between and with the number of mining workings for industrial minerals exceeding In such workings elementary ore extraction and processing methods are employed and more often than not miners work under difficult and highly hazardous conditions In addition such workings are not environmentally friendly 3 1. CHROMITE ORE DEPOSITS IN THE BATRA BULQIZA ZONE The chromite ore geologic reserves within the Bulqiza Ultrabasic Massif are estimated at 18.29 million tons, or less than half the total quantity across the country. Of which: - Containing over 42% Cr2O3 – 5.24 million tons, or 87% of country’s reserves of same quality. - Containing 38-42% Cr2O3 –2.36 million tons, or 75% of country’s reserves of same quality. - Containing 30-38% Cr2O3 –2.90 million tons, or 75% of country’s reserves of same quality. Total of chromite ores containing over 30% Cr2O3 - 10.514 million tons – and containing 18-30% - 7.77 million tons By (main) deposits at the Bulqiza Ultrabasic Massif: Deposit Bulqiza – 6.75 million tons Deposit Batra – 3.73 million tons Deposit Qafë Buell (16 October) – 1.11million tons Deposit Thekën – 0.525 million tons Deposit Tërnova – 0.441 million tons Deposit Krasta – 2.82 million tons containing 18-30% Cr2O3. The extractable or mineable chromite ore reserves account roughly for 0.56 of geologic reserves. This is the outcome of long years of experience (around 60 years – between 1948 and 2008) with the exploitation of the chromite ore, particularly, in the biggest mine at Bulqiza, which has been and is the richest ore. 4 NUMBER AND SIZE OF EACH AND EVERY SMALL SCALE MINING OPERATION ACTIVE IN CHROMITE ORE EXTRACTION PROCESSING AND TRADING AND THEIR PRODUCTION As pointed out in the Terms of Reference that despite difficulties for the Government to control the mining sector exploitation by small scale mining operations active in the chromium sector is taking place and is being administered relatively well In the Batra Bulqiza zone under consideration in this study private subjects companies out of subjects companies holders of prospecting discovery and exploitation permits are involved in underground mining These companies altogether register around employees workers technicians engineers administrators and owners of which are employed with the ACR at the Bulqiza Mine and around others with the private small scale operations Chromite ore production and processing between and PRODUCTION thousand tons No Header Aug Bulqiza Mine Chromite ore ACR extraction Private companies Chromite Feed ore Bulq Prod enrichment Bat Feed Prod Carbonic Burrel FeCr Elbasan production The products of the chromite ore industry chromite ore rich in Cr O chromite concentrate containing Cr O and carbonic ferrochrome have 5 been traded by exporting companies mainly acting on behalf of the private small scale mining operations What they sell is fully identifiable by the Albanian Customs at the Albanian main sea port at Durrës Investment in the chromium extraction and processing industry Table 2 Investment, million USD 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 No. Header FeCr 1 Plant - 1.0 4.0 2.4 0.7 2.7 0.56 - 40.0 65.9 Elbasan Conc. Bulqiza - - 0.1 0.22 1.33 0.01 - - - 2 Bulqiza Mine Enrich. - 0.06 0.10 0.22 0.26 0.27 51.6 10.4 85.3 Plant Bulqiza FeCr - - - 0.11 0.95 - - - 8.52 Plant - Burrel Private - - - - - - 1.94 5.39 10.6 3 subjects 1 Support 2.07 2.72 1.71 0.99 2.05 1.21 0.86 1.13 1.25 4 Invest. for mines Budget Support 2.39 2.06 2.21 3.23 2.54 3.38 2.26 2.62 2.35 for geoscienc es Export and revenues from chromite ore extraction and processed products in Albania chiefly in the Batra Bulqiza zone Table 3 Items by years No. Header 2005 2006 2007 2008 Quant Price Value Quant Price Value in Quantit Price Value Quant Price Value in ity in in in ity in in thousand y in in in ity in in thousand thous thousan thous thousan thousan thous and d and d tons d and tons tons tons 1. Chromite ore and 92.8 57.9 5 374 205 65.8 13 513 366.4 99 36 304 205.9 218 45 066 concentrat e 2. Ferrochro 33.04 726.9 24 022 16.2 521 8 467 1. 396 691 965 13.49 1 580 21 337 me Total 125.8 29 396 221.2 21 980 367.79 37 269 219.4 66 403 6 * Data in Tables 1, 2 and 3 have been provided by the Ministry of Economy, Trade and Energy – METE Besides meeting the country’s needs for chromite ore, the mining industry has largely helped to bring in revenues from exporting mineral ores, including chromium, bauxites, and iron-nickel, processed products, including blister copper and copper wires and cables, and carbon ferrochrome. Over the recent years, prolonged low market prices for metals, including chromium, nickel, and copper, have caused the chromite ore and iron-nickel ore production to fall off, and between 2005 and 2008, the considerable increase in the prices led to a considerable increase in the production of these mineral ores in Albania. The ever greater effectiveness of traditional ore extraction in Albania, enhancing capability of coping with the market competition, is directly related both to the production costs and the levels of mineral ore processing, to which both by the foreign investors (for copper and chromium) and the local investors (for chromium), are paying more attention. Local producers dealing with chromium and copper have also started to consider this. Irrespective of the fact that, actually, the Albanian mineral ore products do not have a considerable weight in the foreign market, with their prices as minerals and metals being also determined by the market price levels, the accrued revenues have proved considerable to the local communities around these mining areas, thus allowing greater employment opportunities for the inhabitants and relative increase of their standard of living. Government s effective control of production processing workings and selling and reporting activities as well as revenue collection Despite improvement in the performance of concessionary companies, OSHA, the authorised state-run body, has had trouble monitoring the Concessionary Agreement, and basically, with regard to the following: • Periodically collecting data on the realisation of investment, production, number of employees, average salary, standards of use, and sales of products. 7 • Checking realisation of investment in chromite concessions, given that the investment programme submitted by the concessionaire falls short of comprehensively specifying, in terms of nature, value and time-limits, the core mining workings, machinery and equipment. • Guesstimating and settling of penalties through failure to realise planned investment. • Administering the facilities left over by concessionaire, or through termination of concession. • Ensuring the concession facilities. • Turning over (restitution) a number of facilities not made active by the concessionaire. • Paying off local government taxes. Albanian Mining Industry Strategy and Legislation Strategy A meeting with Mr Zef LLESHI Eng expert in the Ministry of Economy Trade and Energy and in charge of the mineral extraction and processing sector geology mining beneficiation and metallurgy the Department of Industrial Policies under the Directorate General for Policies was held with a view to addressing the issues surrounding small scale chrome mining He focussed in detail on the Albanian Mining Industry Strategy that is presented in the frame of the Strategy of Business and Investment Development for compiled by the Ministry of Economy Trade and Energy 8 The strategy is designed to ensure building a sustainable State business partnership and creating an encouraging environment for pursuing investment and export policies through industrialisation and channelling of investment towards high technology based sectors The said Strategy is intended to ensure a sustainable economic growth and higher productivity and competitiveness through the energetic development of entrepreneurship promotion of investment and better utilization of the natural human and financial resources The Albanian economy is considered to be entirely open Trade is entirely liberalised there is a moderate customs tariffs an easy licensing system and nearly total lack of non tariff barriers The directions on which to focus include the following • Economic integration of the country Through further liberalisation of trade monitoring and inter institutional coordination so as to ensure compliance of the economic and commercial legislation with the WTO and EU standards the implementation of CEFTA and the Interim Agreement with the EU • Correct implementation of the policies for regulating the free movement of goods and in full compliance with the European Union standards allowing the Albanian exporters maximum access to the markets across the region and Europe • The privatisation of the strategic sectors is the most important stage in the privatisation process which ensures the consolidation of the new market of capitals and creates conditions for promoting foreign investment in the important sectors of the domestic economy • Guaranteeing and strengthening effective Government business 9 A number of identified elements outlined in the following have given rise to the current need for reforming mining industry further on ¾ Bringing the Albanian mining legal framework into line with the EU directives and standards In view of the major priorities for the Albanian economy and the Government s programme also in the framework of the European integration processes the development of the mining industry in Albania and the development of tourism should be placed on solid ground through measures to be taken for the environmental rehabilitation following mining exploitation Facilitating the current fiscal package would be the only one way to promote investment This principle is one of the main EU standards Strong rules for the environmental protection and rehabilitation and in compensation for that and facilitating the fiscal package obligations towards the State for the administrators of mining assets This becomes even more necessary given that the mining industry administrators should see to it that manpower is trained in accordance with the EU standards including safety at work social assistance and pensions In short spurring development of the mining industry at home while focussing on the maximum environmental conservation and rehabilitation and the protection of the community working in the neighbourhood would mean facilitating of the obligations towards the State however with an attractive profit for the administrators and an acceptable profit for the State ¾ The ever increasing demand for mining raw materials In Albania they have started to cope with demands of the internal market and chiefly of the foreign market and they should continue to do so while exploring the most effective potential of our mineral ores the possibility of opening to the regional market and in particular the European market These initiatives 10 should be preceded by mid and long term programming instrumental in developing geological prospecting activities for the Albanian traditional mineral ores and discovery workings at known deposits currently being exploited thus giving rise to the mining area map ¾ The study of the domestic market demand particularly for the construction materials bricks roof tiles cement and lime with their comparison to the local potentials remaining an important issue for the development of mines ¾ Unstable and often unfavourable passing circumstances for prices Enhancing the level of mineral dressing at a national level and in cooperation with the region is viewed as one the important tools for coping with the periodic price fluctuations on the international market ¾ Increased production cost should be coped with through enhanced production and processing capabilities the application of advanced technologies mechanisation automation remote controlling and introduction of rubber wheeled vehicles on account of the low production and processing capability ¾ Greater competition Free market for the mining industry products with players including international competitors monopoly tendencies in this areas should be fought The tendency for blocking the useful mineral ore deposits beyond the time provided for under the Mining Law with no prospecting discovery and or exploitation workings going on should be avoided right away ¾ Land ownership conflicts Efforts for obtaining prospecting permits and particularly mining exploitation have early on come across conflicts among 11 the stakeholders including the land owners the local community and advocate groups for the conservation of the natural heritage environment ¾ Constantly improving the legal and fiscal landscape considering it as a dynamic European integration process allowing meeting the current needs and the specific mid and long term objectives for the development of the mining industry and of the country ¾ Ensuring normal parameters under the Law On environmental conservation and rehabilitation Designing and adopting the relevant subordinate acts perhaps specific for the mining industry will help meet this challenge By supervising and monitoring mining activities ¾ Improving the research assessment designing monitoring and consultation work as well as the professional technical management and supervision of the mining activities ¾ Avoiding mining hazards and safe land use Adopting the legislation package regulating monitoring of the shut down mines and the active ones of which rehabilitation ensures avoiding the mining hazards and the availability of industrials areas for constructions of higher economic effectiveness ¾ Training human resources capable of managing the mining industry Attention should be paid to the training of the future expert be it an engineer an economist and a manager who is able to undertake technical and economic analyses and assess the environmental impact ¾ Environmental conservation protection and rehabilitation Legislation regulations overseeing monitoring of the mining permits and complying 12 with the concessionary contracts in the future all of them should become the dominant terms in the mining activity tourism binomial ¾ Technical safety and workers training In the course of work the human factor as the most important aspect of the mining activities should receive protection and treatment in line with the contemporary standards including prevention of accidents training for safety at the workplace and the living and working conditions And this factor s economic level will definitely be important to the success of the mining activity 13 Legislation Issuance of permits for the mining facilities and exploitation (ore extraction, enrichment and smelting) is regulated by the following legal documents: • Law no. 7796, dated 17 February 1994, “Mining Law of Albania,� and its relevant amendments. The new “Mining Law of Albania� (as amended) was taken up for discussion and was endorsed by Council of Ministers, and is expected to go through the Parliament of Albania. • Law no. 9663, dated 18 December 2006, “On concessions.� • Decision by the Council of Ministers no. 27, dated 19 January 2007, “On approving the concession assessment and granting rules.� • Law no. 7664, dated 23 January 1993, “On environmental protection.� • Law no. 7623, dated 13 October 1992, “On forests and forest service police.� • Decision by the Council of Ministers no. 1109, dated 30 July 2008, “On life insurance Law.� • Other subordinate legislation acts. Early 2009, the active mining permits totalled 802, of which: ƒ 409 exploitation permits for limestone ƒ 262 exploitation permits for chromite ore ƒ 38 exploitation permits for clays ƒ 25 exploitation permits for iron-nickel and nickel-silicate ore. In an effort to amend the relevant legislation designed to improve and facilitate work for the private subjects operating mining facilities, and ensure that they have access to licensed technical management, the following have been drafted: • Subordinate legislation acts pursuant to Law no. 9261, dated 22 July 2004, “On several additions and amendments to Law no. 7796, dated 17 February 1994�. • Decision by the Council of Ministers no. 54, dated 28 January 2005, “On establishing the criteria for issuing professional issues to experts involved in 14 designing, estimation, consultation, monitoring and technical management of mining workings,� and, • Regulation endorsed by Minister, “On the special committee handling professional licenses.� With the aim of improving licensing overall, including licensing in the mining area: • The National Licensing Centre is established. • The Law “On the National Licensing Centre� has been adopted; and, • The mining licensing acts and regulations have been drafted. The National Licensing Centre has not yet started to issue mining licenses. ENVIRONMENTAL IMPACT OF CHROMITE ORE EXPLOITATION AND PROCESSING ON THE BATRA BULQIZA ZONE AND SAFETY ASPECTS SURROUNDING MINING WORKINGS WORKPLACE CONDITIONS AND HEALTH 3.1. Environmental protection in the mineral mining and processing industry Being a relatively important producer of mineral ores, which are further processed through enrichment, metallurgy and refining, in terms of the production of metals the Balkan region contributes to increasing the risk of environmental pollution in a number of ways. Relying on a centralised the economy, the Balkan countries used to have low expectations regarding environmental protection. In the early nineties, as a result of use of poor coals for generating electricity, considerable emissions of SO2 and NOx are twice as much as expected under the EU standards. Likewise, the prolonged regional conflict in former Yugoslavia during the nineties killed the interest in protecting the environment from pollution. Actually, Albania is facing important issues relating to environment, erosion, illegal cutting and extinction of forests and vegetation resources, urban waste, industrial pollution and fast population growth, which have led to environmental degradation. The latter is especially evident in coastal areas. Population shifting has exerted strong pressure on environment. Coastal vegetation is being replaced by inappropriate farming 15 practices for maintaining the population, thus contributing considerably to corrosion and environmental degradation. Between 1945 and 1991, Albanian industry, a formerly centralised economy, relied on the extraction and enrichment of the chromite ore, copper, iron-nickel and steel. An inefficient industry, the Albanian industry (mines, smelting, refining, metallurgical plant at Elbasan, refineries, thermal-power plants and chemical industry) has contributed significantly to the environmental pollution. Building on the extraction and enrichment of the copper and chromite ore, the extraction of coals, the extraction and processing of oil and gas, and the production of construction materials, the mineral ore extraction and processing activity contributes to turning out the largest amount of industrial waste, next to the daily waste by urban centres. In terms of the environment, the closed-down undertakings are largely tackling with the problems caused by the waste accumulated in them over the years, as, for instance, in the chromium (and copper) industry. The chromite ore industry waste: Table 9 No. Header Quantity Notes I Mine Tailings and chromite ore waste 18.8*106 m3 Bulqiza-Batra-Thekën-Krasta- Kalimash, Tropoja, etc. II Enrichment Tailings on dams in the chrome ore 2.5*106 m3 enrichment plants Bulqiza, Batra, Kalimash III Metallurgy Tailings and scoria from the ferro- chrome production plants Burrel-Elbasan Mining industry facilities, which are the greatest contributors to environmental pollution, both in Albania and in the other countries across the region, include chiefly the copper industry (mining, enrichment and metallurgy), the steel industry, Elbasan, and less so, the chrome ore industry (mining, enrichment and smelting). 16 The greatest care should be taken to ensure that these facilities reduce their waste. In 2008 and 2009, a considerable effort is being made to ensure protection of environment in the mining industry and the clearing of waste, with this effort being funded and supported by international bodies. Care is also being taken to reduce to the minimum the emission of hazardous substances into the air, as is the case with the steel industry, the copper production (concentrates from the enrichment plants), and ferrochrome smelting at Elbasan and Burrel. In the meantime, efforts have been made to identify hotspots and their clearing of waste. Monitoring the closed-down mining facilities Given that, with the closing down of the state-owned mining companies and undertakings (when no administrative structure is in place to control and monitor this process in the mining areas), the surrounding environment and the local inhabitants will be exposed to hazards arising from former mines, there is need for monitoring the former mining areas, which used be exploited and are now shut-down. To that end, a monitoring structure has been established with the Albanian National Agency of Natural Resources. This is considered another leap forward towards bringing the domestic mining legislation into line with the EU legislation. Designing and implementing projects Addressing workplace safety issues is high on the agenda of the private companies This is the responsibility of the technical supervisor s including the mining engineer and the respective mining technicians geologists and surveyors While following the project for the opening and exploitation of a mine they handle the implementation of the project and its adjustment to the concrete conditions This is preliminarily reflected in the business orders and the respective instructions issued by a company s technical supervisors of the mine under their responsibility 17 In this framework for all the sectors foreseen to be involved in new facilities where no exploitation has been registered in the past technical passports for the exploitation of the chromite ore bodies are drafted Technical passports for the exploitation of chromite ore bodies are more important especially for facilities exploiting chromite ore residues found in the mines opened a long time ago including Batra Bulqiza Thekën and Tërnova Effective schedule of exploitation and coordination of work among subjects so as to avoid potential risks for them to affect one another poses a problem here as in certain cases like in Batra and Bulqiza they work at levels overlying one another Regarding the above what is required is not merely good understanding and cooperation among the private operating companies but also legal responsibility materialised through verification work by the state bodies and in this case by the Albanian National Agency of Natural Resources AKBN the Mining Department the Mining Inspection and Rescue Department RISHM so as to technically and responsibly administer these companies around in the Batra Bulqiza zone alone with both an actual considerable potential of chromite ores see the deposits shown above and an open perspective to go wider and deeper in these deposits Likewise the chromite ore exploitation companies of high or poor performance should be required to show preliminary relative accuracy truthfulness in producing the technical passports for the sectors with chromite ore deposits to be exploited This would call for close technical and economic financial cooperation among state bodies the Albanian National Agency of Natural Resource deposit s Mining Department and the supervision of these passports in the course of their designing and their application by the afore mentioned mining authorities 18 the Albanian National Agency of Natural Resources the Mining Inspection and Rescue Department Technical safety and training for health safety and mining techniques During on site meetings with the administrators and technical supervisors of the companies involved in mining exploitation debates were focussed on issues including health and safety at workplace the working conditions equipment outfits food treatment life insurance guarding of mining sites pensions suggestions for retirement age workplace environment environment friendly mining sites fiscal issues loaning mining royalty rate local and central government taxes grounding of the mining expert workers and training of technical engineering staff First meeting on July Meetings were initially held with small scale mining operations active in the Batra Bulqiza area Members of the study group attending the meeting included Eng Martin Cukalla Eng Nikolla Seferaj and Eng Jani Bakallbashi as well as Eng Ismail Mema the study group contact person at the Mining Department the Albanian National Agency of Natural Resources In the meeting the study group submitted the platform of study conducted by the World Bank It helped put the participants in the picture regarding the main issues facing small scale mines in Albania These issues basically concern increased transparency reporting and selling of products health normal working and safety conditions and maximum plausible prevention of hazards and accidents of any type Special focus was put on the above issues given that the majority of the companies involved in the chromium extraction feature underground mine 19 workings and small scale mining sectors only exploit and extract chromite ore in open pit mines and quarries chiefly at the limited surface outcrops of chromite bodies The following is a report on the activities of a number of small scale mining operations involved in underground workings and mainly in the chromite ore exploitation in the Batra Bulqiza area Here is an account of their specific problems and concerns in two aspects • Obligations to be met by private companies so as to ensure smooth running of things • Obligations to be met by the Albanian Government through its administrative tax and supervisory technical bodies BULQIZA Company Klevi Brisk sh p k Mining technician Ardian Hida is technical supervisor at underground facility Gallery Bulqiza with exploitation permit no Based on a discovery project this Company has invested and carried out underground discovery by making use of a drilling rig so as to ensure further perspective for the exploitation of chromite ore bodies especially containing Cr O eastwards of the Almarina Bulqiza sector It registers staff of which miners and wagoners and blast men All workers have health and social insurance coverage Minimum salary ranges between lekë and lekë a month 20 Workers are offered working outfits transportation by two vehicles from home to their workplace at the mine For the Company has produced nearly tons of chromite ores containing around Cr O The costs for the extraction of ton of chromite ores are estimated at around lekë ton or around USD ton and the transportation costs plus port expenditure at the Durrës Sea port at around USD ton Currently the export price of chromite ore is USD ton including also expenditure incurred by companies involved in contracting the export of chromite ores Under a simple but important project designed for the management of the surface environment of the facility tailings and other necessary stuff for the mine are properly arranged The principal mine horizon Gallery is located at absolute quote m above sea level a s l The following problems were identified in the course of the meeting and were brought forward by the Company s technical supervisor • The Government should endorse and check observation of the schedule of exploitation The reason behind this concerns overlapping across licensed surface areas In this case the respective state bodies including the Ministry the Albanian National Agency of Natural Resources and the Mining Inspection and Rescue Department should step in and exercise continuous checks so as to establish a schedule of exploitation horizontally and vertically and ensure that this schedule is observed • The borders of mining areas intended for exploitation should be subject to a mandatory agreement to be concluded among adjacent companies for 21 the purpose of preventing plausible future hazards and calamities This agreement should be endorsed by the relevant afore mentioned institutions which should check its implementation on a constant basis • Upon issuing exploitation permits either for facilities registering underground mining or those registering open pit mining the Government and its relevant institutions should require technical disciplining of mining workings This should start as early as the preliminary stage of the drafting of the documentation required when applying for an exploitation permit and particularly during the drafting of the yearly draft programs for the carrying out of mining workings and exploitation of chromite bodies Company in Gallery Zone D Bulqiza Eng Agim Myrtellari The Company pointed out that they had not worked during During they opened around m of new roads with expenditure amounting to around Now they are focussed on picking up the basic mining workings Hence they are not producing and consequently not selling Chromite ore deposits containing Cr O are estimated at around tons Their staff is skilled in chromite ore washing and hand picking As far as the other companies are concerned we will dwell on details related to the main problems they have been dealing with and those put forward by these companies Company Egi K sh p k administrator Eng Eduart Keta and technical supervisor Eng Sulejman Meta Gallery Zone D Bulqiza exploitation permit no and Gallery A in Central Zone permit no 22 Containing Cr O products from both facilities have been estimated at tons Extraction cost USD ton Transportation cost USD ton including port expenditure Selling price USD ton The Company has covered expenses for employees five day stay at the beach Problems • Upon issuing an exploitation permit containing coordinates x y z arrangements should be made to check whether companies are sticking rigorously to the approved borders • Exploitation companies fail to observe the schedule of exploitation in the areas • Through its relevant institutions the Government should intervene with the aim of both checking and settling technical issues for the preparation and exploitation of mining facilities Company Isaku sh p k administrator Edmond Isaku and technical supervisor Ilmi Shehu Galleries and Southern Zone above Gallery Zone D The Company has restored a new Gallery Gallery ml long with its cost being estimated at USD ml and a total investment at around USD The Company produced tons of chromium November December and has registered no selling Cost of production USD ton Average salary lekë month Manpower persons 23 Problems • A mining permit outlines the licensed surface without specifying coordinate Z • Dangerous area on account of plausible shifting of the surface area in Zone D and its surroundings and settlement of conflict with the Russian Austrian Company ACR so as to move from first zone towards Zone D • Workings without an exploitation permit on all old stocks of tailings • Unauthorised destruction of galleries in order to grab some more tons of chromium is also noticed • Unauthorised uncontrollable and undocumented exploitation of chromite ores in underground mining workings by the companies Subject Runja sh p k exploitation permit no administrator and technical supervisor Eng Remzi Pupli area of Gallery levels pit no Bulqiza The Subject offers health and social insurance coverage to its workers They have their own individual working equipment and have access to transportation to their workplace In they produced tons of chromite ores containing Cr O No selling was registered During the first half of they produced tons of chromite ores containing over Cr O Cost of ore extraction USD ton Cost of transportation on the route Bulqiza Durrës USD ton Port expenditure at Durrës USD ton Its manpower includes mining experts blast men reinforcement supporters and their assistants as well as motocompresor operators 24 Average salary lekë month for minors lekë month Problems • In the case of similar companies with the above the old documentation existing technical geological documentation is not made available • There is no description of how employees workers and technicians are trained TËRNOVA Company Tërnova administrator Lahim Gjika and technical supervisor Eng Remzi Pupli exploitation permit no for Galleries and Dishëndëria In the Company turned out tons of chromite ores containing over Cr O In it sold around tons containing over Cr O at USD ton Cost of production USD ton Transportation and port expenditure USD ton The Company offers insurance meals accommodation and transportation to its workers Average salary is lekë month and maximum salary lekë month The Company reports no problems in supporting the workings The formations are solid with wood piling During winter workings are interrupted for a period of four months Accurate technical documentation is available Problems • Workers training according to specialties technicians training • Problems with the local government regarding taxes amounting to around lekë year aside from central government taxes 25 BATRA Company Heronjtë Batra administrator Eng Agim Çevani and technical supervisor Eng Dhurim Kurti exploitation permit no dated March The facility includes Galleries and former galleries of the Batra Mine At present they are seeking to get hold of the mine ex pillars They work one shift The workers and technical staff all told have social and health insurance coverage The Company offers meals accommodation and transportation The average salary is lekë month and maximum salary lekë month A business order and instructions are prepared for each mine development and mining sector In the Company manufactured tons of chromite ores containing Cr O They have opened ml of cutting and prospecting workings Transportation within the mine is ensured by elctrolocomotives Extraction cost for one ton of chromite ores is estimated at around USD ton Cost of transportation and port expenditure at Durrës are estimated at USD ton In tons of chromite ores of the above quality were sold at USD ton For July ml of mining workings have been opened and tons of chromite ores containing Cr O have been produced No selling has been registered Problems • No problems with the adjacent companies regarding schedule of exploitation were reported 26 • No major environmental problems were identified except for the need to clean the mine site and the enrichment plant do some flattening out and provide the territory with enclosure and decoration • Mastering of effective technology for the enrichment of poor chromite ores in the new chrome concentrator built in the square in front of the Company s galleries Company Klosi sh p k exploitation permit no administrator Nazif Klosi and technical supervisor Eng Dhurim Kurti The Company is working at horizon m m n d New Zone Batra The geological formations are not good are instable and have water running and powerful supporting Here they exploit the chromite bodies left over from previous intensive exploitation protective pillars and poorer parts of the chromite ores They work one shift with a total number of workers all of them covered by insurance They apply a day working week They pay salaries of lekë month with the maximum salary being lekë month In the Company manufactured around tons of chromite ores containing Cr O and extended mining workings for a length of ml They sold tons at USD ton Cost of ore extraction USD ton long gallery For they have extracted tons of chromite ores containing Cr O So far they have sold around tons of chromite ores at USD ton Transportation is ensured by electrolocomotives Working norms are lower than the previous ones prior to Company Neli sh p k exploitation permit no dated July administrator and technical supervisor Isuf Neli 27 In the Company produced tons of chromite ores containing Cr O in open pit mining quarry Cost of ore extraction around USD ton They have hired workers all of them covered by insurance Average salary lekë month They register a total number of working days in a month For they have turned out tons because the depth of chromite ore bodies is reduced to m The Company offers meals accommodation and transportation for workers They work days a week No accidents have been registered Problems • Working safely at quarries is questionable because of the very steep escarpment of exploitation there are no stairs the relevant intermediate landing platforms are not in place THEKËN Company Albanisa sh p k administrators Flamur Krypi Pëllumb Perkola and Gani Hoxha and technical supervisor Shyqyri Peshku exploitation permit no This Company is working on the facility at the old Gallery going as far as profile Gallery and Gallery as high as quote m mnd They work one shift days a week registering a total of workers all of them with social and life insurance coverage Salaries range between and lekë month They offer individual working equipment and transportation for workers In the Company turned out tons of chromite ores containing Cr O Cost of chromite ore extraction is estimated at USD ton and cost of 28 transportation together with the port expenditure at Durrës at USD ton In they sold tons of chromium at USD ton For the Company has manufactured extracted tons of chromite ores containing Cr O No selling is reported Problems • Borders of exploitation areas permits with the adjacent companies Company Koka sh p k exploitation permit no dated July administrator Rakip Koka and technical supervisor Jakup Gura The Company is focussed on Gallery with a panel of m which borders on Gallery They have established a new working area of around m They work one shift days a week They provide insurance coverage to their workers They offer equipment and transportation Salaries range between and lekë month Cost of chromite ore extraction is estimated at USD ton and cost of transportation and port expenditure at Durrës at around USD ton In they turned out tons of chromite ores containing Cr O No selling was reported For they have produced tons of chromite ores containing Cr O which they keep as stock in the mine Mining workings are basically without support Support is provided at not very solid areas only Problems • Borders of exploitation areas permits with adjacent companies Company Koka sh p k exploitation permit no dated June administrator Rakip Koka and technical supervisor Jakup Gura 29 The Company s facility includes Gallery with a panel of m They have restored mining workings and constructed new mining workings for a length of ml mainly in poor formations The Company has hired workers who have health and social insurance coverage They work days a week The Company offers individual equipment outfits boots helmets and lamps and transportation for workers In they produced tons of chromite ore containing Cr O No selling was reported Fon the Company has turned out tons of chromium containing Cr O They have not yet started to sell The mineral is stocked in the mine site No accidents and technical safety issues have been registered Problems • Dividing borders of the exploitation areas permits among adjacent companies • The situation of surface area in the mining facilities especially where outcrops of ore bodies have been exploited through quarries remains a problem for all the companies The stairs are either not in place or the existing ones are placed so high that there is a risk for large blocks of sterile rocks to fall over creating dangerous conditions for people s lives Company Gjoni sh p k exploitation permit no dated February administrator Jashar Gjoni and technical supervisor Jakup Gura The Company is working at Gallery with a panel of m They have restored mining workings and new mining workings are constructed for a length of ml mainly on solid formations propped by a metallic and wood support piling 30 The workers are covered by health and social insurance Their salaries vary between and and lekë month In the Company produced tons of chromite ores containing Cr O They have sold tons at USD ton For they have reported production of tons sold at USD ton The Company offers individual working equipment and transportation for workers Every two weeks the Company hosts orientation meetings where cocktails are served or offer s a lunch once a month Subject Ateani sh p k exploitation permit no dated administrator Eng Agim Hysa and technical supervisor Shemsi Ballabani The Company is working in Zone One Batra Galleries A B and Gallery B is being fully renovated Part of the workings is without supporting and a part of them with wood and metallic support piles They work one shift with the workers having health life and social insurance coverage They offer individual working equipment helmets outfits and transportation for workers with full meals being estimated at lekë per person a month Technical supervision of the mine is ensured by mining technicians and brigade leaders In they produced tons of chromite ores containing Cr O They sold tons at USD ton Cost of ore extraction USD ton plus cost of transportation and port expenditure at Durrës estimated at USD ton 31 For they have produced tons of chromite ores containing Cr O They have sold tons of chromium at USD ton Business is run by a mining engineer on the basis of a daily business order Company Ateani sh p k exploitation permit no dated March administrator Eng Agim Hysa and technical supervisor Shemsi Ballabani The Company is working at the depth of deposit Liqeni i Sopeve Lake of Sope They have designed and constructed core mining workings for a length of ml with a cross section of m advancing at rate of ml month Costs are estimated at USD ml They have hired staff which has life and social insurance coverage They work one shift days a week The Company offers meals accommodation working outfits and transportation for them Salaries are in the range of and lekë month Workers are duly instructed and a business order is issued to that end The management is made up of mining engineers and technicians who are brigade leaders There is need for partial supporting because the formations are basically solid By late they expect to turn out around tons of chromite ores Company Alba Co sh p k exploitation permit no dated April administrator and technical supervisor Shemsi Ballabani The Company is working on chromite ore body no Fushë Lopë Gallery They work one shift days a week All the workers have life and social insurance coverage They are ensured meals accommodation working outfits and transportation 32 In the Company manufactured tons of chromite ores containing Cr O They sold tons at USD ton For they have turned out tons containing Cr O of which tons have been sold at USD ton Cost of chromite ore extraction is estimated at USD ton and cost of transportation and port expenditure at Durrës at around USD ton Company Herbi sh p k administrator Bajram Lleshi and technical supervisor Hamza Nuzi The Company is working on horizon m New Zone Batra They are focussed on Galleries F F and E where they are making use of pillars They have a total manpower of persons who have life and social insurance coverage The Company offers meals accommodation and transportation for them In they produced tons containing Cr O of which tons were sold at USD ton Cost of production of one ton of chromite ore is estimated at USD ton plus cost of transportation and port expenditure at Durrës estimated at USD ton For they turned out tons containing Cr O Company Alb Canaj sh p k administrator Urim Canaj and technical supervisor Mehmet Ramlikaj The Company is working on Galleries A A and Gallery C They are working to open Gallery F Cost of production is estimated at USD ton They have a staff of with all of them having life and social insurance coverage They are offered meals accommodation outfits and transportation 33 In the Company manufactured tons containing Cr O of which tons were sold at USD ton For the Company has turned out tons containing Cr O They have sold tons at USD ton Company Kurti sh p k administrator Gëzim Porja and technical supervisor Halil Velisula Exploitation Permit no dated January The Company is working on horizon m New Zone Batra for the purpose of exploiting the remaining pillars Investment for opening a gallery m long came to around Euro They have hired workers who have life and social insurance coverage The Company offers meals accommodation outfits and transportation for the workers Salaries are between and lekë month In the Company produced tons of chromite ores containing over Cr O They sold tons at USD ton For they do not foresee any production as they are renovating the facilities Problems • Exploitation permits are issued to exploit old stocks of tailings so that some quantity of chromite ore is extracted contradictions with their holders • The Company has applied for bank loans and has received none Company Kurti sh p k administrator Gëzim Porja and technical supervisor Halil Velsula exploitation permit no dated April The Company is working in Southern Batra for the purpose of exploiting the remaining pillars 34 They have renovated a gallery nearly m long applying open pit mining They have workers who have life and social insurance coverage The Company offers meals accommodation outfits and transportation for them Salaries are in the range of and lekë month In the Company manufactured tons of chromite ores containing Cr O with all of them being sold at USD ton Cost of production USD ton plus cost of transportation and port expenditure USD ton transportation USD ton and port expenditure USD ton For they have turned out tons of chromite ores containing Cr O Problems • Exploitation permits are issued to exploit old stocks of tailings and some quantity of chromite ores contradictions with their holders • The Company has applied for bank loans and has received none Company Ervini sh p k administrator Sulejman Kurti and technical supervisor Hamdi Leti exploitation permit no dated August The Company s facility includes Gallery Thekën The gallery was fully renovated along a segment of m Pillars were used In the Company produced tons of chromite ores containing Cr O which is not sold Cost estimated at USD ton till Durrës For they have turned out tons So far tons containing Cr O have been sold at USD ton Salaries vary between and lekë month The Company offers meals accommodation outfits and transportation 35 Problems • For the subjects involved in chromite ore extraction to develop effectively they should be provided with loans from banks There is reluctance among banks to give out loans • Increase in mining royalty rate is not based on an in depth study • In terms of environment they need to deal with the tailings spread all over the mine site and along the newly opened roads Company Bledi sh p k administrator Behar Kënga and technical supervisor Jakup Gura The Company is working in Galleries and Thekën with a length of m mainly without supporting In the Company produced tons of chromite ores containing Cr O They sold tons at USD ton Cost of production plus cost of transportation and port expenditure USD ton They have hired persons who have insurance coverage The Company offers meals accommodation outfits and transportation Salaries are between and lekë month For they turned out tons of chromite ores containing Cr O Problems • For the subjects involved in chromite ore extraction to develop effectively they should be provided with loans from banks There is reluctance among banks to give out loans • Mining royalty rate should not be applied evenly across the chromite industry 36 • Surface areas for which exploitation permits are issued should be expanded • In terms of environment cleaning of surface areas and arrangement of tailings in mine sites • No problems with adjacent companies and local government are reported Company Keisi sh p k administrator and technical supervisor Shefki Beta The Company is working in Gallery m New Zone Batra m long The chromite ore is extracted at a height of m and is manually transported In the Company produced tons of chromite ores containing Cr O Cost of production plus cost of transportation and port expenditure USD ton The Company offers insurance coverage and treatment for its employees Salary is lekë month For the Company has produced tons plan is tons containing Cr O The prognosis for the ore deposits is around tons They have sold tons at USD ton The Company holds a stock of around tons of chromite ores Problems • For the subjects involved in chromite ore extraction to develop effectively they should be provided with loans from banks at a reasonable rate There is reluctance among banks to give out loans • Increase in royalty rate is not supported by law and there is no leeway to undertake actions We think that it should be lowered We think that it should be paid by the Ministry of Economy Trade and Energy given that it is the officially recognised owner 37 • A geological discovery quota should be paid which should benefit the Albanian Geological Survey and the Albanian National Agency of Natural Resources • The surface area tax should be paid to local government • Surface areas for which mining exploitation permits are issued should be expanded • In terms of environment cleaning of surface areas and arrangement of tailings in mine sites • It is necessary for the ore production and transportation processes to be mechanised • Workers training should be arranged Second meeting on August ACR sh p k Bulqiza The most important meeting was held with the biggest private Russian Austrian mining Company ACR sh p k which manages the richest and biggest deposit in Albania Bulqiza We were received by General Manager of the mine complex Mr Petrit DUVA mining engineer who briefed us on the situation in the mine and the questions they would have This is an underground mine of high grade chromite ore from the year when it was opened till now around million metric tons of Cr O have been extracted from this mine alone At present the mine production is estimated at around thousand tons of Cr O per year which is intended mainly for the ferrochrome production in the Elbasan smelter Albania and for export across the main Albanian sea port Durrës Bulqiza underground and surface facilities register an overall manpower of According to the last developments in the mine depth a private company is focussed on implementing a project for the construction of core mining workings in the depths of mine so as to ensure that the main vertical shaft no with a 38 diameter of m helps facilitate all the mining processes in the depths of this important deposit It was possible to obtain data on the average salaries the chromite ore deposits around million tons explored so far the underground drilling programme carried out by the Company the cost of ore extraction run of mine the cost of transportation to the sea port and the current selling price August averagely USD tons The following were some of the questions raised by the Company s managers • Increased older age for the mine manpower • Preparation of the young generation manpower young workers particularly technicians and engineers who should be ready to cope with future challenges in the mine • Government authorities should consider limiting workers retirement age to not more than years allowing a specific number of working years in underground mining • Provision of meals to workers the guarding of the facility etc • Endless contradictions over mining permits issued to adjacent companies small scale mining operations almost all of them Interference with the companies risks threaten the application of safety rules • Ensuring support for this Company and similar companies on the important issue of getting their equipment and machineries through the customs • Ensuring electric energy supplying from the national grid with the price being specifically differentiated for such productive companies • Paying off the VAT • Ensuring modification of legislation and the royalty rate issue increased as of the last time and support with credits and a fiscal frame Even though it may not be ranked among the small scale mining operations active in the chromite extraction and processing industry given that it has a considerable number of workers around and has made considerable 39 investment in mining and the Elbasan ferrochrome plant this Company is included in the group of the small scale mining operations because exploitation of chromite ore bodies is related to the activities conducted by the other adjacent small scale mining operations Hence the issues that were taken up by these small scale mining operations and the ACR itself call for tripartite cooperation among the small scale mining operations Government ACR These issues have been outlined in the report in the section devoted to the ACR sh p k and in the contributions by the adjacent companies Third meeting on September BULQIZA Invitations for attending this meeting were extended to a part of the small scale mining operations This meeting was held for the purpose of soliciting their opinions and hearing from them about their problems and how to improve performance so as to ensure that companies live up to their obligations the state institutions help increase effectiveness of and transparency in production selling of products and payment of mutual obligations by both the private companies and the Government Speaking on behalf of Company Klevis sh p k Mr Ardian Hida outlined the following issues • Informality surrounds chromite ore production and selling Unlicensed companies operate round about deposits licensed mines which extract chromite ore and old tailing stocks They steal chromite ore from the 40 new stocks where licensed companied have not enclosed their territory and sell them to intermediary companies with or without a license • The Government and the banks should support allocation of soft loans for investments so that local companies may increase chromite ore production • In the Bulqiza deposit mine zone there are problems with Zone D where mine s surface area is at risk of collapsing and the unlicensed companies pose a risk • The public order bodies police should step in to fight informality in chromite ore extraction which is seriously laying the lives of the licensed companies employees and Bulqiza citizens on the line • The exploration and or exploitation licenses reveal overlapping in the surface areas therefore the relevant state structures the Ministry of Economy Trade and Energy the Albanian National Agency of Natural Resources the Mining Inspection and Rescue Department and the Albanian Geological Survey should get involved Eng Sulejman Meta • On the basis of a project and agreement among parties companies the Government should specify and check the chromite ore exploitation process There is need for reconciliation of the activities carried by the companies operating next to above or under one another so as to avoid exposure through each company s independent effort • Final determination of the exploitation surface area claimed by whatever company applying for a permit should be a joint decision of all the concerned participatory subjects 41 Edmond Isaku spoke on behalf of Company Isaku sh p k • We have put technical safety and working conditions issues high on our agenda • State bodies need to ensure disciplining of the illegal activities carried out by groups of unlicensed people who extract amass and sell chromite ores The state bodies should respect and give priority to the licensed subjects because the latter are paying taxes on a regular basis and employ a considerable number of workers whom they offer all the relevant treatment • The state bodies should see to it that they supervise production transportation and selling in an organised manner • There is overlapping in the surface areas specified in the permits issued thus preventing observance of distances contained in the projects endorsed by the Technical Council of the Albanian National Agency of Natural Resources which is duly authorised by the Government as the supervisory body for this issue • The royalty rate should be determined in line with a project s implementation stage For instance a lower royalty rate should be applied during the early period of investment where no return on investment has yet recorded • Local taxes are very high • The Government should intervene to help establish contractual relationships among powerful companies including the ACR operating in the chromite extraction and processing industry in the Bulqiza area A most typical example exploitation of openings and the very galleries by 42 adjacent companies without jeopardising and causing danger to companies such as the ACR and others Myfit Durici The Government should give a thought to the small scale companies like ours the small scale mining operations with a view to developing road infrastructure ensuring access to the chromite ore extraction facilities Suri Hoxha Company Drini Bulqizë sh p k The Company ACR has entered the territory assigned to other companies for instance Gallery KRASTA BATRA Shefki Beta Company Kejsi sh p k New Zone Batra • The mining royalty rate is much higher It should be lowered to the rate of as it used to be • The Government is required to intervene with the banks to ensure that they provide soft and long term loans • Customs duties on imported equipment and machinery should be waived • Planned profit tax should not be applicable • Income tax should be reviewed • The Government should contribute to increasing suitability of the roads for the transportation of chromite ores from the extraction zones to Durrës The Mat Bridge located near entrance to Burrel is not fitting to 43 carry the chromite ore loaded vehicles it has a limited capacity not exceeding tons Through its institutions including the Ministry of Economy Trade and Energy the Ministry of Labour Social Affairs and Equal Opportunities the Ministry of Education and Science and the Albanian National Agency of Natural Resources be it also through support by the World Bank the Government should develop a plan of measures for the training of manpower initially and then the training of mining technical supervisors geologists and markscheiders Rexhep Zguri Company Zguri sh p k • We are faced with the issue of the renewal of manpower mining experts and support workers especially when they are at a young age They would not stay long with us Jonuz Dika Cani sh p k • The mining royalty rate has been increased to from and it is high • We produce chromite ore and export it across the Durrës Sea port It is here that the tricky intermediaries group come forward • We need support in setting up a small producers rights protection association • We want to see a regulated training system for the new workers even if it entails some financial contribution by the companies • Advanced profit tax will inhibit and block our small scale mining operations dealing with chromium • The Government should review the local taxes They are high 44 • Port expenditure has now gone up to USD ton as compared to around USD ton Shyqyri Peshku Albanisa sh p k • There is need to regulate in writing the contractual observance of the schedule of exploitation by companies among themselves Shyqyri Kënga Algei sh p k • We have complied with our Company s obligations o Workers are covered by insurance o Airing has been ensured at all work levels and places • Training of workers and particularly miners and support workers and their retention is ensured by creating o Normal working conditions o Living conditions o Higher salaries • Contracts should be concluded with the mine rescue team the team should be paid by the companies which should be kept available along with their vehicle s for quick intervention Individuals chosen from among the best trained workers trained on a constant basis should comprise the core of the mine rescue team • We request that a bank chapter is opened in the town of Krasta • The mining royalty rate should be brought back to Ramazan Koka Rushi sh p k • Workers training should be run jointly with the local government 45 Behar Kënga Bledi sh p k • Social insurance contributions should be lowered Agim Delia Krasta sh p k • The Government of Albania also through support by international institutions including the World Bank should design a programme intended to support increased chromite ore production workers training and reduction in tax wedge during the investment period in particular • Banks should give loans with easy terms The banks will not be willing to give out loans even if there is a stock of chromite ore products • A bank chapter is required to open in Krasta so as to give workers assurance on the money movement Meeting with the METE authorities Meeting with the Empire Mining Company 46 CONCLUSIONS AND RECOMMENDATIONS Workings for the opening process and particularly the exploitation process are not carried out in compliance with a project or tripartite agreement company Government company The reason behind this concerns overlapping in the licensed surface areas In this case the respective state bodies including Ministry Albanian National Agency of Natural Resources and the Mining Inspection and Rescue Department should step in and exercise continuous checks so as to establish a schedule of exploitation horizontally and vertically and ensure that this schedule is observed Contradictions or claims raised by the small scale mining operations companies or the ACR vis a vis one another The Government should endorse and check how the schedule of exploitation is observed Reconciliation of effort for the opening of underground workings and the exploitation of chromite ore bodies according to a schedule established on the basis of an agreement among the adjacent companies and in the event of disagreement the facilities should be run by a single technical management and revenues should be distributed in proportion to each partner s company s share The relevant state institutions should settle the disagreements among adjacent companies and particularly between the companies and the ACR sh p k Bulqiza In the absence of normally mechanised work processes most of which are conducted manually Improvement in the working conditions through possibly effective mechanisation of the main work processes including drilling loading and transportation 47 Lack of effectively mechanised opening of mining workings transportation exploitation sites and the preliminary ore processing on mine sites selecting of stones from the extracted ore is done primitively with hands on the mine surface area by workers hired among the local community chiefly women who are seeking a job has led to increased cost for the opening of core preparatory workings and chromite ore production Reduced extraction cost per unit of the workings opened and the chromite ores produced by effectively mechanising the afore mentioned work processes There is a tendency across all the chromite ore deposits mines in the Bulqiza Batra area to extract mainly rich chromite ores containing Cr O overlooking poor chromite ore deposits containing Cr O Urging and planning extraction and processing of rich chromite ores within the existing mine territories they are the majority which have previously exploited the rich chromite ores only and in the deposits of poor chromite ores which were not exploited in the past Many companies rather groups of people have carried out illegal activities in removing chromite ores from the territory of former mines or abandoned galleries Besides building up informality not transparency and accountability such activities endanger people s lives and the surrounding environment The central and local government should verify the informal activities carried out by unlicensed persons or group of persons and ensure that these activities are done away with in the shortest time possible 48 For such informality to stop, greater transparency and accountability should surround chrome mining in this zone. Tables warning against risks to should be posted at all the mining ore facilities, both abandoned and not shut down, the geology facilities, and the areas revealing collapse. All the licensed subjects handling chromium should officially be required to avoid buying minerals from unlicensed producers, and providing the latter with explosives. Public order forces and road police should be asked to assist in checking the vehicles carrying chromium towards Durrës or other destinations. The Prefectures, local government bodies, chairmen of communes and aldermen should be asked to contribute to arranging awareness-raising campaigns against such activity hazardous to life. The tax and customs bodies should be asked to reinforce checking on the subjects licensed for selling chromium. There is no organised support consultancy effort paid chiefly by the private companies and partly by the Government and the international institutions which would stimulate the opening of the private companies mining facilities so as to increase the chromite ore production and the training of workers technicians administrators and engineers The Albanian Government and the international institutions including the World Bank should in a rational way support and design plans intended to foster chromite ore production through reviewing Resource deposit s geological mining stuff arranging workers training and easing fiscal imposition during the investment period in particular 49 There is almost total lack of trust in banks willingness to give out loans for investing in opening core mining workings or setting up chromite ore processing concentrators basically simple enrichment plants and hand picking plants Provision of loans with normal easy terms to subjects involved in chromite ore extraction and processing across Albania and particularly in the area potentially richest in chromium Batra Bulqiza The new workers training system according to the main specialties in underground and open pit mining is not regulated So far such jobs have been filled by workers who had acquired their skills in the past and have been trained by experienced technicians and engineers coming from this chromium producing zone The current advanced age of all engineers technicians and workers is a prevailing feature that needs to be addressed on the basis of a clear training programme Care should be taken to regulate a common training system for new workers by opening schools courses of variable duration for the required specialties by creating conditions to retain them at work as well as normal working and living conditions by offering them higher salaries with all costs being covered by the companies themselves Different alternatives should be considered starting from simple short term and cost effect training and equipment to the opportunities for comprehensive and in depth training depending on the existing possibilities for funding such other services The Terms of Reference should include advice on integrating geologic information into other services the highly educated engineering technical staff mine geologists 50 accountants surveyors mechanics and electricians the administrator manager staff brigade leaders shift supervisors expert workers including drilling operators and blast men drivers and equipment and machinery operators for the breaking fractioning units The mine rescue teams are not organised at a regional level for instance for Batra Bulqiza alone No exercises to cope with situations similar to real life failures in the mines including collapse abrupt gas emissions flow of waters and rescue of workers in the event of an accident are carried out • Mine rescue teams should be set up and[au1] their staff should be trained Contracts should be concluded with the mine rescue team the team should be paid by the companies which should be kept available along with their vehicle s for quick intervention Individuals chosen from among the best trained workers trained on a constant basis how to deal with failures should comprise the core of the mine rescue team There is overlapping in the licensed surface areas and the sectors schedule of exploitation is not observed The respective state bodies including the Ministry the Albanian National Agency of Natural Resources and the Mining Inspection and Rescue Department should step in and exercise continuous checks so as to establish a schedule of exploitation horizontally and vertically and ensure that this schedule is observed Companies unauthorised uncontrollable and undocumented exploitation of the chromite ores in underground mining workings Borders for safety 51 distances between one sector of a company and the other sector s of another company are not clearly defined The borders of mining areas intended for exploitation should be subject to a mandatory agreement to be concluded among adjacent companies for the purpose of preventing plausible future hazards and calamities It should be adopted by the relevant afore mentioned institutions which should check its implementation on a constant basis Technical disciplining in managing the opening preparation and chromite ore exploitation workings both underground and at the quarries is not observed Upon issuing exploitation permits either for facilities registering underground mining or those registering open pit mining the Government and its relevant institutions should require technical disciplining of mining workings This should start as early as the preliminary stage of drafting the documentation required to apply for an exploitation permit and particularly during the drafting of the yearly draft programmes for carrying out mining workings and exploiting chromite ore bodies The basic existing geological mining documentation is sometimes not available to the companies Following a part of the former mining enterprises destroyed almost all the geological mining documentation pertaining to the facility facilities or it was taken away by irresponsible persons formerly technical supervisors Through its competent bodies the Government should identify the location of the existing documentation pertaining to former mines and former geological enterprises 52 and make it mandatory that the existing geological and mine documents plans geological reports projections with all the details necessary for the conduct of activity at the deposits for which an application for exploitation permit or a geological discovery permit has been filed be submitted The Government should instruct that one copy of them is deposited with the Albanian National Agency of Natural Resource deposit s or the Albanian Geological Survey and in the event that such a copy is not deposited it should issue instruction that an activity is interrupted until comprehensive geological and mining documentation is obtained or prepared afresh No genuine technical and scientific work has been carried out in order to study and apply effective technologies for the processing enrichment of poor chromite ores An effective technology for the enrichment of the poor chromite ores in the existing new and future chrome concentrators should be mastered A problem that concern all subjects includes the situation surrounding the mining sites which do not comply with the technical safety regulations especially if they have exploited the outcrops of the ore bodies at quarries Stairs are either nonexistent or the existing ones go up very high and the relevant intermediate landing platforms are not in place They lead to collapse of large blocks of unproductive rocks thus endangering the lives of people working in the facility and around it Following check on and assessment of the situation the relevant state bodies should determine the measures to ensure an immediate recovery of the situation The 53 production activity should be interrupted until completion of the rehabilitation process and a technical project for bringing the facility back to normal technical norms should be developed Exploitation permits are issued to exploit old stocks of tailings so that some quantity of chromite ores is extracted without a clear programme and technical project for the normal and risk free exploitation of these stocks being in place Exploitation permits for these chromite ore residue stocks should be supported by clearly defined technical projects which ensure total lack of risk to the lives of people around them during their exploitation Prepared by Prof Dr Eng Jani BAKALLBASHI Discussed with Eng Nikolla SEFERAJ Prof Ass Dr Eng Martin CUKALLA Batra Bulqiza Tirana October 54