Mining in Serbia

Mining and geological exploration represent one of the most important sectors of the economy of the Republic of Serbia. Since medieval Serbia, this branch has been extremely important in contributing to the state treasury. At the end of the 20th century, during the economic and political sanctions and the isolation of Serbia, the country survived thanks to agriculture – food production and mining, primarily the exploitation of energy minerals. It is important to say that mineral raw materials are non-renewable resources, so great care is needed in their exploitation.

For this reason, the Law on Mining and Geological Exploration (“Official Gazette of RS”, No. 101/2015 and 95/2018 – another law, “Law“) is very important because, among other things, it regulates the issuance of permits for exploitation.

By the way, Serbia has a very suitable environment for investors interested in the mining and mineral sector. Currently, about 20 international companies operate in the Serbian mining sector. Among them are the American company McMoran, which manages the copper and gold mine in Bor, Rio Tinto, the Canadian company that explores Jadar – a unique world-class lithium borate deposit near the town of Loznica in western Serbia (Jadar is ranked as one of the most high-quality lithium deposits on the world) and Mineco, an English company that entered Serbia in 2004 and operates three lead and zinc mines in the country.

What attracts investors from the mining sector to Serbia?

One of the advantages is certainly a skilled workforce combined with relatively low labour costs. Also, basic costs, especially electricity, are low compared to other EU countries.

The last few years have shown that Serbia has serious potential for development in the field of mining. At the moment, for example, Serbia expects to open two world-class mines in the next five years, which will double the current contribution of mining to GDP.

However, understanding the role of mining in the economy of the state and the future of mineral and metal production is crucial. In order to achieve significant long-term goals, it is necessary to pay more attention to mining education, which needs to be improved and transferred to another, higher level.

To contribute to this, with this text we particularly want to help anyone who is interested in starting exploration and opening a mine, with a practical approach to regulation and bureaucracy, which is why many give up without trying.

The essence is that dealing with this branch is not reserved only for millionaires, and our goal is to attract both domestic and foreign investments. Therefore, the goal is not for Serbia’s mineral wealth to be available and left only to foreign capital, but also for us to be a closed economy, and our regulations enable such a comprehensive approach.

  • Which areas are regulated by law?

In principle, the Law includes, inter alia:

  • Conditions and manner of conducting geological exploration of mineral and other geological resources.

Otherwise, mineral resources or mineral raw materials of strategic importance for the Republic of Serbia are:

  1. oil and natural gas;
  2. coal;
  • copper and gold ore;
  1. lead and zinc ore;
  2. boron and lithium ores;
  3. oil slates (oil shales or shales);
  • other mineral resources, as determined by a separate Act of the Serbian Government on a proposal of the Ministry responsible for geological explorations and/or mining (hereinafter: the Ministry);
  • Conditions and manner of exploration of the geological environment;
  • Geological exploration for the purpose of spatial and urban planning, design, construction of facilities and rehabilitation and reclamation of the terrain;
  • Exploitation of reserves of mineral raw materials and other geological resources;
  • Construction, use and maintenance of mining facilities, plants, machines and devices;
  • Execution of mining works;
  • Mining waste management;
  • Procedures for rehabilitation and reclamation of abandoned mining facilities.

 

  • Who can do mining and geological exploration?

 

The holder of the exploration is a company, domestic or foreign, ie another legal entity and an entrepreneur who has been approved to perform the applied geological exploration by the competent authority.

The holder of exploitation is a company, domestic or foreign, or other legal entity and entrepreneur who has been approved the exploitation field and / or exploitation of mineral reserves by the competent authority.

  • How to get approval?

 

We distinguish between approval for exploration and approval for exploitation of already explored resources.

  • Geological exploration approvals

 

  • The applied geological explorations of mineral resources for obtaining natural building materials

The applied geological explorations of mineral and other geological resources are carried out on the basis of a permit – Decision on approval for geological exploration issued by the Ministry, ie the competent authority of the autonomous province if the exploration is performed on the territory of the autonomous province, at the request of a company or other legal entity and entrepreneur.

The request for the issuance of approval shall contain data on: the entrepreneur / legal entity that is the applicant, the type and purpose of the explorations, site of the exploration, ie the coordinates and cadastral parcel number of the planned execution of explorations. The request shall be accompanied by proof of payment of the republic or provincial administrative fee when the exploration is carried out on the territory of the province.

If the competent authority regarding the submitted request on the basis of the register of exploration areas and Cadastre of mining fields established that the exploration area is free, the same shall inform the applicant, which shall be responsible, within 30 days of receipt the response on the access to cadastre, to submit to the competent authority:

  • an excerpt from the business register on the registration of entrepreneur – applicant;
  • a surveying plan in the scale of 1: 1,000 or a topographic view map in the appropriate scale with the drawn border and coordinates of the exploration area, as well as the number of the cadastral parcel on which the exploration is planned;
  • the geological exploration project, in two copies;
  • the report and certificate on performed technical control of the project;
  • proof of the land ownership or easements on land for the planned exploration;
  • proof of paid republic, ie provincial administrative fee when the exploration is conducted on the territory of the province.

The competent authority shall reject the request for exploration if the exploration area is not available, if all the necessary documents are not submitted with the request or if based on the inspection of the official records of protected natural resources it determines that there are limitations for conducting exploration in relation to protection of: landscapes of exceptional natural characteristics, source of groundwater for public supply, endemic plant and animal species, cultural heritage sites or geoheritage, religious objects, etc.

The length of the exploration period determined by the decision shall be one year and cannot be extended.

The exploration is conducted according to the project subject to technical control in accordance with the Rulebook on conditions, criteria and content of projects for all types of geological exploration (“Official Gazette of RS”, No. 45/2019) and the Rulebook on conditions and manner of technical control of geological exploration projects (“Official Gazette of RS”, No. 41/2019). Technical control includes control of application of modern achievements and methods of geological science and technology and compliance of the project with: Law and other regulations in the field of geology and mining, conditions of competent institutes for nature protection and protection of cultural heritage, compliance of the project with applicable technical regulations, safety and health at work measures, fire protection measures, safety of people and facilities and environmental protection. The legal entity that performed the technical control is responsible for the quality of performing the technical control of the geological exploration project.

During the performance of geological exploration, the holder of the exploration is obliged to provide professional supervision over the performance of geological exploration. Professional supervision includes: control of whether the exploration works are performed according to the geological exploration project and the projected dynamics of the exploration realization is achieved; checking the quality of exploration work and application of regulations in the field of geological exploration and technical regulations; control of the application of safety and health measures at work, fire protection measures and environmental protection. The holder of the exploration may directly supervise the performance of geological exploration or entrust the performance of the same to another legal entity. The report on expert supervision is attached to the annual / final report on the results of geological exploration.

Upon completion of the geological exploration envisaged by the project, a report on mineral resources for obtaining natural construction materials is prepared.

  • The applied geological explorations of mineral and other geological resources

The applied geological explorations of mineral and other geological resources are carried out on the basis of the Decision on approval for geological explorations issued by the Ministry or the competent authority of the unit of the autonomous province, at the request of the company, or other legal entity and entrepreneur.

The request for the issuance of approval shall contain information on: the entrepreneur / company, the type of geological explorations and the size of the exploration area, as well as the duration of the exploration. The request shall be accompanied by proof of payment of the republic or provincial administrative fee when the exploration is carried out on the territory of the province.

If the competent authority regarding the request on the basis of insight into the cadastre of exploration areas and the cadastre of exploitation areas and fields determines that the exploration area is available, the same shall inform the applicant, who shall be responsible to submit to the competent authority within 90 days:

  • excerpt from the business register on the registration of the applicant;
  • a topographic map in the scale of 1: 25,000 or smaller, with the drawn border and coordinates of the exploration area;
  • geological exploration project, in two copies;
  • report and certificate on performed technical control of the project;
  • proof of payment of the republic or provincial administrative fee when the exploration is conducted on the territory of the province for the issuance of approval;
  • proof of the right to use data and exploration results that are the result of geological exploration of another legal entity or are the result of basic and applied geological exploration, if they were used during the project development.[1]

Prior to the preparation of the geological exploration project, the applicant is obliged to obtain the act on the conditions for project development and planned geological exploration, issued by the competent institute for nature protection and the competent institute for protection of cultural heritage or other competent authority. The acts on the conditions of the competent authorities are an integral part of the geological exploration project.

The competent authority shall reject the request for issuance of approval in the case if a procedure has been initiated regarding the request for exploration in the same exploration area by another legal entity, if complete documentation has not been submitted with the request, if the area for which the exploration approval is requested for has already been issued for: exploration, retention of rights to exploration area, exploitation field or exploitation of the same mineral or geological resource, if the applicant has debts, if he finds that the submitted documents contain incorrect data.

If the request for issuance of approval for exploration of the same mineral or other geological resource in the same exploration area was submitted by two or more legal entities, ie entrepreneurs, the legal entity, ie entrepreneur, who first submitted the request for exploration has priority in obtaining the approval.

The approval for conducting applied geological explorations of mineral resources determines the exploration period in accordance with the request of the holder of exploration for up to three years, with the possibility of extending the exploration period twice in continuity, where the length of the first exploration period can be up to three years and the second up to two years, provided that the investigation period begins to run from the date of delivery of the decision on approval to the holder of exploration (exceptionally: approval for exploration of groundwater and geothermal resources, exploration period 2 + 1 + 1 year and approval for exploration of non-metallic mineral raw materials for construction materials used as: technical-construction stone; architectural-construction (decorative) stone; raw materials for the production of clay, ceramic and refractory materials; for the production of cement and lime and as sand and gravel in industry and construction, investigation period 2 + 1 year).

  • The applied engineering geological geotechnical exploration

The applied engineering geological-geotechnical explorations shall be obligatorily performed for the needs of spatial and urban planning, design and building of construction, mining and other facilities in order to define engineering geological-geotechnical conditions of construction and / or rehabilitation, as well as other characteristics of the geological environment.

The applied engineering geological-geotechnical exploration for the needs of construction of infrastructure facilities (high dams, hydropower plants, thermal power plants, regional roads and railways, oil pipelines, gas pipelines, airports, etc.) of strategic importance for the Republic of Serbia, as well as engineering geological-geotechnical exploration for the needs of construction and rehabilitation of mining infrastructure facilities, are carried out on the basis of the decision on approval of geological exploration issued by the Ministry, at the request of the company, or other legal entity.

Monitoring and control of engineering geological-geotechnical exploration, undertaken with the aim of defining the engineering geological-geotechnical conditions of construction and / or rehabilitation, as well as other characteristics of the geological environment for the needs of spatial and urban planning, construction of buildings, protection of natural and cultural goods and geoheritage objects, rehabilitation and reclamation of the terrain is performed by the local self-government unit.

The company, ie another legal entity and the entrepreneur conducting the exploration is obliged to report the beginning of the exploration to the competent local self-government body for urban planning affairs and the competent institute for the protection of cultural monuments and submit basic information on the type, purpose and dynamics of the exploration, the name of the site, as well as the performer of explorations.

The application is accompanied by:

  • a geodetic plan in the scale of 1: 1,000 (or the appropriate scale) with a clearly marked border and numbers of cadastral parcels on which the exploration is planned;
  • project of engineering geological-geotechnical exploration, done by a legal entity that meets the requirements of the Law;
  • photocopy of the payment of the municipal administrative fee.

The results of the performed exploration are presented in the study on engineering-geological-geotechnical conditions of construction of facilities. The study is subject to technical control-audit performed by a legal entity with the appropriate license in accordance with the Law. The user of the exploration is obliged to submit one copy of the study to the competent body of local self-government for urban affairs in written form and in electronic pdf format, in the language in official use in the Republic of Serbia no later than 30 days after the exploration is done.

  • Approval for determining the exploitation area and the amount of reserves and / or resources of groundwater and geothermal resources

Determination of exploitation area and the amount of reserves and / or resources of groundwater and low enthalpy geothermal resources is carried out on the basis of the Decision on approval for exploitation area and the amount of reserves and / or resources, issued by the Ministry, ie the competent authority of the autonomous province, at the request of a company, or another legal entity and entrepreneur.

Determining the area and amount of reserves and resources of groundwater and geothermal resources is done on the basis of studies on the conditions of exploitation of groundwater or hydrogeothermal resources, ie petrogeothermal resources.

The request for approval of the exploitation area and the amount of reserves and / or resources shall be submitted no later than the end of the deadline determined by the exploration decision or the decision on retaining the right to the exploration space.

The request for the issuance of an approval shall be accompanied by:

  • geodetic plan in the scale of 1: 1,000 or an overview topographic map in the appropriate scale with the drawn boundary and coordinates of the breakpoints of the exploitation space, as well as drawn and entered numbers of cadastral parcels for which there is a right of ownership or a right of easement on the land;
  • certificate on resources and reserves of groundwater or geothermal resources issued on the basis of the study on resources and reserves of groundwater, ie the study on petrogeothermal resources for the purpose of obtaining geothermal energy;
  • study on the conditions of groundwater exploitation or hydrogeothermal resources, ie petrogeothermal resources and certificates on the performed technical control of the study;
  • act of the competent institution for nature protection on measures and conditions under which the use of groundwater or geothermal resources, ie petrogeothermal resources may be carried out;
  • act of the Ministry responsible for sanitary protection of water supply sources which confirms that the applicant has done an appropriate study on the zones of sanitary protection of groundwater reservoirs;
  • proof of the right of ownership, ie the right of easement on the land on which the facilities in the function of using groundwater or geothermal resources are located;
  • proof of paid republic, ie provincial administrative fee, when the exploitation area is located on the territory of the autonomous province.

The competent authority shall reject the request by a decision if:

  • complete documentation was not submitted with the request;
  • the applicant has outstanding obligations regarding the fee for geological exploration and / or retention of the exploration area;
  • if liquidation or bankruptcy proceedings have been initiated for the applicant.

The validity period of the decision on exploitation area is up to five years, and it can be extended.

  • What are the responsibilities of the exploration holder?

The holder of exploration is obliged to:

  • provide the necessary financial resources for conducting approved geological explorations and undertake all other necessary measures and activities and access to conducting surveys in accordance with the approved project;
  • obtain proof of the right to use, lease, consent of the owner, ie easement on the land, as well as the conditions for undertaking technical protection measures by the competent institution for protection of cultural monuments, where it intends to carry out projected exploration works (exploration drill hole, trenches, excavations, exploration levels, exploration mining activities, etc.), before the start of performing the same works;
  • perform the type and scope of exploration works according to the geological exploration project, with the maximum permitted deviation in terms of the approved scope and type of works up to 25%;
  • report the beginning of exploration work;
  • provide professional supervision over the performance of geological exploration;
  • pay a fee for approved geological exploration, as well as a fee for the extracted amount of oil and natural gas, in the case of approved trial operation of exploration drill holes;
  • submit the annual report and the final report on the results of the exploration, continuously during the exploration in the official language of the Republic of Serbia;
  • implement the prescribed measures of safety and health at work, the necessary measures to ensure property, human health and environmental protection;
  • restore to the original condition the land on which the exploration works are performed;
  • record other mineral raw materials and geological resources, if they are found within the approved exploration area and to inform the body that issued the approval for conducting geological exploration;
  • keep reports and studies on the results of geological exploration and other geological documentation during the exploration in the prescribed manner, as well as the core of exploration drill holes and samples and analyses from all exploration works and to present them to the Ministry, ie the competent authority of the autonomous province to verify exploration results;
  • comply while exploring the cores of geological prospecting holes and other samples with the positive geological practice for such testing and thus ensure check ability of the obtained testing results.
  • extracted amounts of mineral raw materials intended for technological tests on an industrial scale to secure and protect them from decay, and the amounts of extracted oil and gas, obtained by test run of the exploration drill holes, store in a project intended manner and keep tidy records of the available quantities;
  • to allow the geological inspector to enter the business and site premises or inspection the projects and plans, reports and other documentation on the state of geological works.

The holder of explorations the mineral resources and other geological resources obtains from the  competent  authority of urban  planning  at  the  local  level  the  information  on  the  possible restriction to carry out such explorations in relation to the spatial or urban plan or other limitations.

  • Obligation to pay a fee for applied geological research (item 6)

The payer of the fee for applied geological research is the holder of the research to whom the competent authority has approved the performance of the applied geological research. The basis of the fee for applied geological research is the area of ​​the exploration area expressed in square kilometres (km²). The amount of the fee for the applied geological research is prescribed by the Law on Fees for the Use of Public Goods (“Official Gazette of the RS”, no. 95/2018 and 49/2019) and is shown in the table. The fee for applied geological research is determined by the payer on the prescribed form for the calendar year, starting from the day of submitting the decision on approval for conducting applied geological research.

The form is submitted to the competent authority and the determined obligation is paid within 15 days from the day of submitting the decision on the approval for performing the applied geological research. If the decision on approval for conducting applied geological research approves the performance of applied geological research for a period covering several calendar years, the fee for the first calendar year is determined and paid as explained, and for each subsequent calendar year the fee is determined and paid by January 31st of the year for which the determination and payment is made. If the period for which the application of applied geological surveys is approved is shorter than the calendar year, the fee shall be determined in proportion to the period of use. The competent authority means the authority that issued the approval for conducting the applied geological research.

No. Description Fee amount

(RSD)

Fee amount

RSD/km2

1. For an exploration area less than or equal to 0.5 km2 5.050
2. For exploration area larger than 0.5 km2 10.100

 

  • Exploitation approvals

After the conducted research, and if there is a possibility for exploitation, the holder of exploration of mineral and other geological resources may submit a request for retention of the right to the exploration area in order to prepare documentation for exploitation approval, ie approval for exploitation field, no later than 30 days before the expiration of the investigation period determined by the decision approving the research.

The request is accompanied by:

  • the program of activities that the holder of the exploration approval plans to perform in the period for which he requests retention of the right to the exploration area;
  • overview situational map in the appropriate scale with the drawn border and coordinates of the field for which the retention of the right to the exploration area is requested;
  • proof of paid compensation on the basis of previously approved research;
  • proof of paid republic, ie provincial administrative fee if the research is conducted on the territory of the province.

 

  • Fee for retaining the right to the investigative space

The compensation for retaining the right to the investigative space payer is the holder of the research to whom the competent authority has approved the retention of the right to the research area. The basis of the fee for retaining the right to the exploration area is the surface of ​​the exploration area expressed in square kilometres (km²). The amount of the fee for retaining the right to the research area is prescribed by the Law on Fees for the Use of Public Goods (“Official Gazette of the RS”, No. 95/2018 and 49/2019) and is shown in the table. The fee for retaining the right to the exploration area shall be determined by the payer on the prescribed form for the calendar year, starting from the day of delivery of the decision on retaining the right to the exploration area. The form is submitted to the competent authority, and the determined obligation is paid within 15 days from the day of delivery of the decision on retaining the right to the investigative space. If the decision on retention of the right to the exploration area approves the retention of the right to the exploration area for a period covering several calendar years, the fee for the first calendar year is determined and paid as explained, and for each subsequent calendar year the fee is determined and paid by January 31st of the year for which the determination and payment is made. If the period for which the retention of the right to the exploration area has been approved is shorter than the calendar year, the fee shall be determined in proportion to the period of retention of the right to the exploration area. The competent authority means the authority to which the request for retention of the right to the investigative space is submitted.

No. Description Fee amount

(RSD)

Fee amount

RSD/km2

1. For an exploration area less than or equal to 0.5 km2 5.050
2. For exploration area larger than 0.5 km2 10.100

 

The request is approved by a decision issued by the Ministry, ie the competent authority of the autonomous province, where the deadline for retaining the right to exploration area is set at up to two years and cannot be extended, and in the case of minerals of strategic importance, it can be up to three years and it cannot be extended.

Within the period determined by the decision, it is possible to:

  • perform all necessary studies, as well as economic analyses;
  • collect data on the already established monitoring network for monitoring the hydrodynamic regime of groundwater, as well as information on the so-called “zero” state of the environment (on the composition / quality of water, air, soil);
  • prepare and / or certify the study on reserves and resources, if it has not been done in the previous period.
    • Exploitation of mineral reserves and exploitation of non-metallic mineral raw materials for obtaining construction materials

Exploitation of reserves of mineral raw materials and exploitation of non-metallic mineral raw materials for obtaining construction materials (hereinafter: “Exploitation”) is performed on the basis of a decision, which issues:

  • approval for the exploitation field or approval for Exploitation;
  • approval for construction of mining facilities and / or execution of mining works;
  • approval for the use of mining facilities.

The holder of the permit for the exploitation field and / or Exploitation shall receive the permit for the construction of mining facilities and / or the performance of mining works in accordance with this Law, provided that the application for the permit for the exploitation field may be submitted simultaneously with the application for the permit for construction of mining facilities and / or the performance of mining works or exploitation permits.

Approvals are issued by the Ministry, and for the Exploitation of mineral reserves, which is performed on the territory of the autonomous province, the approvals are issued by the competent authority of the autonomous province.

The holder of Exploitation is obliged to provide professional supervision during the exploitation of mineral raw materials and supervision during the execution of mining works. Professional supervision includes: control regarding the execution of works according to the project documentation, monitoring of the projected dynamics of works; checking the quality of work and application of regulations in the field of mining and technical regulations; control of the application of safety and health measures at work; fire protection measure; environmental protection; cultural assets and water bodies. The holder of Exploitation may entrust the tasks of professional supervision over the construction of mining, as well as over the work in certain technological units in the process of Exploitation to another company that has a license in accordance with this Law.

  • Fee for the use of resources and reserves of mineral resources

Fee for the use of resources and reserves of mineral resources is charged for the use of:

  • all types of coal and oil shale;
  • hydrocarbons in liquid and gaseous state (oil and gas) and other natural gases;
  • radioactive raw materials;
  • all metal raw materials;
  • technogenic raw materials that are the result of exploitation and processing of mineral raw materials;
  • non-metallic raw materials;
  • all types of salt and salt water;
  • groundwater from which useful mineral raw materials are obtained, as well as groundwater related to mining technology and gases that occur with them;
  • carbon dioxide.

The payer of the fee for the use of resources and reserves of mineral raw materials is the holder of Exploitation who has been approved to perform mining works. The basis of the fee for the use of resources and reserves of mineral resources is:

  • income that the payer realizes from used or sold mineral raw materials, determined on the basis of income realized from the sale of unprocessed mineral raw materials or income realized from the sale of technologically processed mineral raw materials;
  • net income representing income from the sale of the final product less the costs of smelting, refining, transport, transhipment, insurance and sales. Net income cannot be reduced on the basis of depreciation, capital costs or tax deductions;
  • for the use of hydrocarbons in liquid and gaseous state (oil and gas) and natural gases, the income that the payer realizes from the sold unprocessed mineral raw materials, ie the value of mineral raw materials if they are used for the needs of the taxpayer, valued in accordance with costs incurred for their production according to accepted international accounting standards;
  • quantity of excavated non-metallic raw material for obtaining construction material expressed in tons;
  • utilized carbon dioxide expressed in 1,000 m³.
1) for all types of coal and oil shale 3% of revenue

 

2) for hydrocarbons in liquid and gaseous state (oil and gas) and other natural gases 7% of revenue

 

3)

 

for radioactive raw materials

 

2% of revenue

 

4)

 

 

for metallic raw materials

 

– unrefined (straight) or purified by preparation

 

 

5% of revenue

 

– subjected to pyro, hydro or electro metallurgical process

 

5% of net income

 

5)

 

technogenic raw materials that are the result of exploitation and processing of mineral raw materials

 

1% of revenue
6) for non-metallic raw materials, except for non-metallic raw materials for obtaining construction material

 

– unrefined (straight) or purified by preparation

 

5% of revenue

 

– subjected to pyro, hydro or electro metallurgical process 5% of net income

 

7)

 

 

for all types of salt and salt water

 

1% of revenue

 

8)

 

 for groundwater from which useful mineral raw materials are obtained, as well as groundwater related to mining technology and gases that occur with them 3% of revenue

 

The amount of compensation for 1,000 m³ of used carbon dioxide is prescribed in the following table:

No. Description Fee amount

(RSD / 1,000 m3)

1. For carbon dioxide used 89,89

 

The fee for the use of resources and reserves of mineral raw materials is determined by the payer for each type of used, ie sold quantities of mineral raw materials individually for a three-month period, ie for a calendar year on the prescribed form, starting from the day of obtaining mining approval. The form for the three-month period shall be submitted to the competent authority, and the determined obligation shall be paid within 15 days after the end of the quarter, and the form for the determined final annual obligation shall be submitted to the competent authority, and the determined obligation shall be paid no later than the last day of February. If the amount paid in quarterly periods is less than the amount determined in the final calculation for that calendar year, the difference shall be paid no later than the last day of February of the current year for the previous year. If in the final calculation a lower obligation is determined than the obligation determined and paid by quarterly periods, the higher amount paid is used for the payment of determined fees for the next three-month period, ie it is returned to the payer at his request in case the payer in the current period terminates the approval for mining operations.

The competent authority means the ministry in charge of mining and geological research, ie the competent authority of the autonomous province. The fee for the use of resources and reserves of mineral resources is not paid for samples of resources and reserves of mineral resources used for technical-technological tests in industrial conditions. Revenues generated from fees in the amount of 60% belong to the budget of the Republic of Serbia, and in the amount of 40% belong to the budget of the local self-government unit on whose territory the exploitation is performed.

If the exploitation is carried out on the territory of the autonomous province, the revenues generated from fees in the amount of 50% belong to the budget of the Republic of Serbia, in the amount of 40% belong to the budget of the local self-government unit on whose territory the exploitation takes place, and in the amount of 10% belong to the budget of the autonomous province.

  • Exploitation field approval

Along with the application for the issuance of a permit for the exploitation field, the following shall be submitted:

  • proof of paid republican administrative fee, ie provincial administrative fee when exploitation is performed on the territory of the autonomous province;
  • situation map in the scale of 1: 2500 or in the appropriate scale with the drawn borders of the exploitation field and the contours of the determined reserves of mineral raw materials, public roads and other facilities located in that field and clearly visible borders and markings of cadastral parcels in written and digital form;
  • certificate on resources and reserves of mineral raw materials issued on the basis of performed research in accordance with the valid regulations on classification of resources and reserves;
  • a certificate of registration and a copy of the relevant act stating the activity codes for which the applicant is registered, the company registration number and the relevant license;
  • feasibility study of exploitation of mineral deposits;
  • the act of the local self-government unit responsible for urban affairs in terms of compliance of exploitation with the appropriate spatial or urban plans and the possible need to develop a planning document of lower rank.

Before submitting the feasibility study, the applicant is obliged to obtain:

  • an act on the conditions for the preparation of a study on the assessment of the impact of exploitation on the environment issued by the competent authority or organization for nature protection;
  • an act on the conditions of the competent institute for the protection of cultural heritage;
  • act on the conditions of the competent ministry for water management.

 

The conditions of the competent authorities are an integral part of the feasibility study.

The competent authority shall reject the request for the exploitation field by a decision if:

  • complete documentation was not submitted with the request;
  • the feasibility study is not harmonized with the bylaw on the content of the feasibility study, other technical regulations or if it contains incorrect data;
  • if the area for which the approval for the exploitation field is requested is located on the area of ​​the previously issued exploitation field for the same mineral raw material;
  • if the applicant has outstanding debts based on the obligation to pay fees;
  • if liquidation or bankruptcy proceedings have been initiated for the applicant.

In the case referred to in items 2) to 4), the competent authority shall previously request that the applicant correct or supplement the request within 30 days from the day of receipt of the notification.

  • Approvals for the exploitation of non-metallic mineral raw materials for the production of construction materials and mineral resources for the production of natural construction materials

Exploitation of non-metallic mineral raw materials for obtaining construction materials and exploitation of mineral resources for obtaining natural construction materials is performed on the basis of a decision on approval for exploitation issued by the Ministry, i.e. the competent authority of the autonomous province if exploitation is performed on the territory of the autonomous province.

Along with the request for the issuance of a permit for exploitation, the following shall be submitted:

  • proof of paid republican administrative fee, i.e. provincial administrative fee if the research is conducted on the territory of the province;
  • situation map in the scale of 1: 2500 or in the appropriate scale with the drawn boundaries of the exploitation field, public roads and other facilities and contours of determined resources and reserves of mineral raw materials or mineral resources for obtaining natural construction materials located in that field and clearly marked borders and markings of cadastral parcels in written and digital form;
  • main mining project of exploitation of non-metallic mineral raw materials for obtaining construction materials with report and certificate on technical control of the project, and in case of exploitation of natural construction materials technical mining project of exploitation of mineral resources for obtaining natural construction materials with report and certificate on technical control project;
  • consent of the investor to the project;
  • certificate on resources and reserves of mineral raw materials issued on the basis of performed geological research, and in accordance with applicable regulations on classification of resources and reserves of mineral raw materials or reports on mineral resources in case of exploitation of natural construction materials;
  • statement of the unit of local self-government responsible for urban affairs in terms of compliance of exploitation with the valid spatial or urban plans and the possible need to develop a planning document of lower rank;
  • an act of the body responsible for environmental protection which approves the study on the assessment of the impact of exploitation on the environment or a decision which determines that it is not necessary to prepare a study on the impact assessment;
  • an act of the body responsible for water management affairs which determines the conditions for performing exploitation;
  • an act of the body of the institution responsible for the protection of cultural heritage which determines the conditions for exploitation;
  • proof of ownership or right of use, lease and / or consent, ie easement for the area where construction of mining facilities and execution of mining works is planned for at least ten years according to the dynamics defined in the project, ie proof of ownership or use, ie easements for the entire area where the execution of works under the technical mining project of exploitation of mineral resources for obtaining natural construction materials is planned, except in the case of exploitation on forest land in public ownership when proof of the right of use, ie the right of easement is submitted before the beginning of mining works.
  • excerpt from the business register on the registration of the applicant, with the appropriate license, except in the case when the exploitation of natural construction materials is performed when only an excerpt from the business register on the registration of the applicant is submitted;
  • the first bank guarantee or promissory note or corporate guarantee for rehabilitation and reclamation of degraded terrain due to exploitation must be at least 30% of the amount provided by the main mining project for rehabilitation and reclamation, and must be valid for at least three years from the date of issuance of the guarantee. Each subsequent bank guarantee or promissory note or corporate guarantee for the rehabilitation and reclamation of degraded terrain due to exploitation must be at least 30% of the remaining amount for the rehabilitation and reclamation of degraded terrain due to exploitation and must be valid for at least two years. The last guarantee of the bank or promissory note or corporate guarantee for the rehabilitation and reclamation of degraded terrain due to exploitation must be valid for 60 days longer than the planned completion of the exploitation of the mine under the main mining project. If the holder of exploitation loses the right to exploitation according to the conditions of the Law, he also loses the bank guarantee or promissory note or corporate guarantee for reclamation of degraded terrain due to exploitation, unless he performs reclamation himself (entrepreneurs engaged in exploitation of mineral resources to obtain natural construction materials, are not subject to the obligations under this point).

The first bank guarantee or promissory note or corporate guarantee should be issued with the clause unconditional, irrevocable, payable on the first call and without objection, provided that the promissory note is accompanied by a bank confirmation of the promissory note registration (original or certified photocopy by a commercial bank) and the original or certified card of deposited signatures and the corresponding promissory note authorization.

The competent authority checks the fulfilment of the conditions determined by law and bylaws and does not engage in the assessment of the concept of exploitation defined in the technical documentation, which was submitted with the request.

The competent authority shall reject by a decision the request for the issuance of a permit for the exploitation of non-metallic mineral raw materials and the exploitation of mineral raw materials for the production of natural construction materials if:

  • complete documentation was not submitted with the request;
  • the feasibility study is not harmonized with the bylaw on the content of the feasibility study, other technical regulations or if it contains incorrect data;
  • if the area for which the approval for the exploitation field is requested is located on the area of ​​the previously issued exploitation field for the same mineral raw material;
  • if the applicant has outstanding debts based on the obligation to pay fees;
  • if liquidation or bankruptcy proceedings have been initiated for the applicant.

Non-metallic mineral raw materials for the production of construction materials and non-metallic mineral resources for the production of natural construction materials may be included in the market only if they are excavated in an exploitation field approved in accordance with the Law.

The guarantee of origin of mineral raw material, ie resource is issued by the Ministry, ie the competent body of the autonomous province, with a certificate issued at the request of the holder of exploitation. The request for the issuance of a certificate of guarantee of origin shall be accompanied by information on: the carrier of exploitation, type, quantity and planned use of the mineral raw material that is the subject of the trade. The guarantee of origin certificate shall contain in particular:

  • business name, seat and identification number and tax identification number of the holder of exploitation;
  • name and location of the exploitation field from which the raw material was excavated;
  • data on the type and possibility of use of mineral raw materials or resources determined by the certificate of resources and reserves, ie the report on mineral resources, for construction materials that are the subject of trade.

 

The holder of exploitation is obliged to issue to the buyer a photocopy of the certificate of guarantee of origin certified by the holder of exploitation and a certificate of the quantity of sold mineral raw material, ie mineral resource that is placed on the market as construction material. The certificate of guarantee of origin ceases to be valid after its use, ie after the realized trade of the mineral raw material for which it was issued. The guarantee of origin certificate is transferable.

The amount of the fee for non-metallic raw materials for obtaining construction material per ton of excavated mineral raw materials is prescribed in the following table:

No. Description Fee amount

(RSD/t)

1.

 

Technical-building stone – sedimentary and metamorphic rocks:
1) limestone 24,24
2) dolomite 24,24
3) dolomitized limestone 24,24
4) marbled limestone 24,24
5) marbled dolomite 24,24
6) marble 24,24
2. Technical-building stone – igneous rocks:

 

1) granite 34,85
2) granodiorite 34,85
3) trachyte 34,85
4) dacite 34,85
5) andesite 34,85
6) andesite – basalt 34,85
7) basalt 34,85
8) diabase 34,85
9) amphibolite 34,85
10) gabbro 34,85
3. Architectural and building stone:

 

1) granite 59,09
2) granodiorite 59,09
3) basalt 59,09
4) marble 59,09
5) limestone breccia 59,09
6) marble breccia 59,09
7) travertine 59,09
8) bigar – siga 59,09
9) marble onyx 59,09
10) limestone 59,09
4. Clays and raw materials for the brick and ceramic industry:

 

1) ceramic clay 28,28
2) brick clay 17,17
3) les 17,17
4) refractory clay 23,23
5) kaolinitized granite 28,28
6) feldspar 28,28
5. Raw materials for the cement industry and the lime industry:

 

1) marl 34,85
2) marly limestone 24,24
3) limestone 24,24
4) plaster 23,23
5) all types of tuffs 23,23
6.

 

Calcium-carbonate raw material as a filler for the paint and varnish industry, facade and thermal insulation materials in other industries:
1) marble 59,09
2) calcite 59,09
3) dolomite 59,09
4) dolomitized limestone 59,09
5) marbled limestone 59,09
6) limestone 59,09
7. Quartz sand and sandstone, construction sand and gravel:

 

1) quartz sand 28,28
2) construction sand 20,20
3) construction gravel 20,20
4) quartz sandstone 23,23
8. Raw materials for refractory and other industries:

 

1) magnesite 59,09
2) bentonite clay 30,30

 

  • Approval for construction of mining facilities and / or execution of mining works

 

Construction of mining facilities and execution of mining works are performed according to the main and additional mining project and are performed on the basis of the decision on approval for construction of mining facilities and / or execution of mining works, issued by the Ministry or the competent authority of the autonomous province at the request of the holder of approval for exploitation and / or exploitation field.

The approval for the construction of mining facilities and / or the performance of mining works shall cease to be valid:

1) at the request of the holder of the approval and by submitting an application for permanent suspension of works;

2) upon the expiration of the validity of the decision approving the construction of mining facilities and / or the performance of mining works.

The decision on the termination of the approval is issued by the Ministry, ie the competent authority of the autonomous province, if it is previously determined by the inspection report that the reclamation was performed in accordance with the approved project documentation.

  • Approval for the use of mining facilities

A mining facility built according to the main and additional mining project may be used when the approval for the use of the mining facility (hereinafter: use permit) is obtained, issued by the competent authority, at the request of the holder of exploitation.

A use permit can also be issued for a mining facility that represents a technical-technological unit and can be used as such independently. If a special law prescribes the obligation to obtain the prior consent or permit of other bodies or organizations for the issuance of an approval for the use of a mining facility, that consent or permit shall be submitted with the request.

A use permit is issued if it is determined:

  • that the mining facility or its part was built in accordance with the mining project on the basis of which the permit for construction of mining facilities and / or mining works was issued, in accordance with the regulations whose application is mandatory in the construction of mining facilities;
  • that the prescribed conditions regarding safety and health at work measures, water protection, fire protection, environmental protection and other prescribed conditions for the construction and use of that type of facilities have been met;
  • that the consents of other bodies have been obtained in accordance with special regulations, on the basis of the conditions issued in the procedure for obtaining approvals for exploitation;
  • that the decision of the competent body for fire protection has determined the suitability of the facility for use in terms of the implementation of fire protection measures provided in the technical documentation in accordance with a special regulation.

The fulfilment of the conditions is determined by the technical inspection of the facilities. Technical inspection of a mining facility includes, according to the purpose of the mining facility, technical inspection of mining, mechanical and construction works, electrical plants (devices and installations), fire protection plants and environmental protection plants, water protection, as well as technical inspection of mining equipment and plants.

The Ministry, i.e. the competent provincial body, entrusts the technical inspection of a mining facility to a legal entity that has employed persons with an appropriate license.

Technical inspection of a mining facility may not be performed, i.e. legal entities and persons who developed or participated in the preparation of a mining project for that facility and legal entities that performed technical control of that project, as well as persons employed in the Ministry, i.e. the body of the autonomous province may not participate in the inspection. The costs of the technical inspection shall be borne by the operator. If, in order to determine the suitability for use of a mining facility, which was built according to the project documentation for which approval was obtained for mining works and / or for construction of mining facilities by the Ministry or the competent authority of the autonomous province, prior inspection of installations, devices and plant, stability or safety of the facility, as well as other tests or when foreseen by the mining project, the trial commissioning of the facility may be approved. The decision on the approval for trial commissioning of the facility is issued by the competent authority that issued the approval for exploitation and / or the exploitation field. The approval determines the beginning and duration of the for trial commissioning of the facility, which cannot be longer than six months. Before putting the facility into for trial commissioning, the holder of exploitation and / or approval for the exploitation field is obliged to inform the competent mining inspector about the beginning of for trial commissioning and to form an expert commission that will monitor the result of that work. Upon completion of the trial commissioning, the holder of exploitation and / or approval for the exploitation field is obliged to request a technical inspection of the facility and to present the documentation on the results of the trial commissioning.

 Obligations of the holder of exploitation

  • Obligations with the aim of protecting people and the environment

 

In order to protect the life and health of employees, the legal entity is obliged to:

  • regulate the safety and health of employees at work, in accordance with the specifics and dangers that may arise;
  • organizes the performance of safety and health at work, in accordance with the Law and regulations on safety and health at work;
  • provide personal protective equipment and personal protective equipment to employees;
  • provide protection against fires, accidents, chemical and other accidents and to organize rescue operations;
  • organizes training of workers in the field of safety and health at work and rescue operations, in cases of sudden dangers to life and health and safety of facilities according to the established plan and program, throughout the year and to check knowledge once a year.

In order to protect water and the environment, the economic entity is obliged to:

  • plan measures to prevent endangerment of the water and environmental regime, ie reclamation and rehabilitation measures and to ensure the execution of prescribed measures;
  • keep data on the types and quantities of hazardous and harmful substances used in the performance of activities, i.e. to keep data on the types and quantities of hazardous, harmful and waste substances discharged or disposed of in the environment;
  • implement measures and conditions for the prevention of endangerment of the water and environmental regime contained in the analysis of the impact of performing activities on the environment and the water regime in accordance with a special law.

The director of the legal entity that is the holder of the exploitation, as well as the persons with special authorizations determined by the act on organization and systematization of jobs in the same legal entity are responsible for the organization, implementation and improvement of jobs of safety and health and water and environmental protection and for the implementation and improvement of safety and health measures and water and environmental protection measures. The holder of exploitation, according to the specifics of the technical-technological process, organizes rescue operations and protection against fires, accidents, and other accidents performed by employees who are trained for that.

The holder of exploitation is obliged to keep a book of mining supervision in which the orders of the mining inspector issued on the spot are entered in case of imminent danger to the life and health of employees and major material damage. Orders of directors and other persons with special authorizations, which refer to safety and health at work and are issued on the spot, are also entered in the book. The book of mining supervision is kept for each pit, open pit mine, drilling and repair plant, exploitation field for oil and gas production, as well as for mineral preparation facilities.

  • Obligations regarding permanent cessation of exploitation

If, for any reason, there is a complete and permanent cessation of exploitation in pits or individual districts or parts of pits, surface mines or in fields for oil and gas exploitation, the holder of exploitation and / or approval for the exploitation field is obliged to notify the issuing authority for exploitation and / or approval for the exploitation field, i.e. approval for performing mining works, no later than 30 days before the cessation of works.

In case of permanent suspension of works, the holder of exploitation is obliged to take all measures to protect the mining facility and land on which the works were performed and measures to protect and rehabilitate the environment to ensure life and health of people and property, all according to the main mining project.

Mining projects, plans and sketches, measurement books and other documentation on the state of mining works and the state of resources and reserves of mineral raw materials at the time of suspension, the company with majority state capital as the holder of exploitation is obliged to submit for safekeeping to the authority that issued approval for exploitation / mining operations. The documentation is available to any legal entity that is interested in the renewal of works on the abandoned exploitation field, for which a new exploitation permit is issued in accordance with the Law.

The holder of exploitation is obliged to perform reclamation of the land during and after the completion of works on exploitation, and no later than within one year from the day of completion of works on the areas where mining works have been completed, according to the technical project of technical and biological reclamation, which is an integral part of the main or additional mining project, and the Ministry, i.e. the competent body of the autonomous province and the ministry in charge of agriculture and water management, i.e. the ministry in charge of environmental protection, shall be informed about it. If the liquidation or bankruptcy procedure is opened against the holder of exploitation, the costs of rehabilitation and reclamation of the land on which the exploitation was performed shall be paid as a priority from the liquidation or bankruptcy estate.

[1] The same is required for applied engineering geological-geotechnical exploration.