2016-09 Balkans Mining Roadshow Webinar€¦ · Asarel Medet –open pit mine and copper ore processing –looking at expansion Serbia Rio Tinto –Jadar Lithium underground mine

WEBINAR

Mining Sector Opportunities:

Balkans Mining Road Show to

Serbia and Bulgaria

3-7 October 2016

Balkans Mining Roadshow 2

Agenda

• Regional Overview by Ms Ros Lund, Specialist Mining &

Infrastructure, Department for International Trade

• Serbia: Presentation by Mr Dragan Milosevic, President,

Geological & Mining Association of Serbia (GRAS)

• Bulgaria: Presentation by Mr Kostadin Sirleshtov, Partner,

CMS Bulgaria

• Bulgaria: Presentation by Ms Anna Ilieva-Vaklinova, Senior

Manager, Advisory, KPMG in Bulgaria

• Q&A session

Regional Overview: Mining Sector

3

The CEN is a mining region. The region has a rich coal heritage but in the

southern countries particularly, there is also significant non-coal activity.

The countries of Serbia, Bulgaria

and Romania are particularly

active, with several projects each

at the key feasibility, development

and expansion phases.

Data from S&P

Target opportunities


Across the region there are a number of opportunities in metallic mines

•Serbia has the highest number of opportunities, we have good contacts and supply-chain led

interest

•Bulgaria & Bosnia Herzegovina have significant resources and are open to UK suppliers

•Romania, Slovakia, Macedonia and Albania also present future opportunity

Project opportunities:

Bulgaria

Dundee Precious Metals – Krumovgrad $6.2bn gold development project

•Planning construction to start production in 2018, open pit gold with Crushing, Flotation, Grinding

Euromax Resouces – Tran and Rakitivo recent large, high grade gold/ silver discoveries

Asarel Medet – open pit mine and copper ore processing – looking at expansion

Serbia

Rio Tinto – Jadar Lithium underground mine feasibility underway

Serbia has been the focus of much M&A activity with Dundee Precious Metals recently acquiring Avala and

Freeport’s share of Timok, NevSun Resources buying Reservoir Minerals

Local companies Victoria Group and Farmakomb are also involved with development/ expansion projects

Overview of the Balkans Mining Road Show

Serbia

3rd October: Briefing

4th October: Conference on

Mineral Resources

Reception at the Residence

5th October: Meetings:

Ministry of Mining & Energy

Mining Institute

Geology & Mining Association

Transfer to Sofia


Bulgaria

5th October: Reception at the

Residence

6th October: Forum with key

institutions:

Ministry of Energy

Parliamentary Energy Committee

Bulgarian Chamber of Mining

Energy and Mining Forum

University of Mining and Geology

Bulgarian Academy of Sciences

Institute of Geology

EBRD

7th October: Site visit to Dundee

Precious Metals

We have constructed a programme that provides an effective overview of the

mining environment and key decision makers in Serbia and Bulgaria.

www.serbiamining.rs

SERBIA GEOLOGY AND MINING POTENTIAL

8.9.2016.

www.serbiamining.rs

SCOPE OF PRESENTATION

• GEOLOGY AND MINING POTENTIAL

• Serbia – Political Framework

• Why to invest in Serbia?

8.9.2016. 7

www.serbiamining.rs

REPUBLIC OF SERBIA (RS)

AREA 88 361 km2

Population 7,2 million

GDP 4245 USD per capita

Mining in GDP 1,4 -2 (USGS)% GDP

Mining development potential HIGH

Geological potential Very good

Historical exploration works GoodBase geological map for entire Serbia

8

8.9.2016.

MINERAL POTENTIAL OF SERBIA

IS BELIEVED TO BE MORE SIGNIFICANT THAN

ITS

PAST AND PRESENT PRODUCTION !

GEOLOGY AND MINING

POTENTIAL

www.serbiamining.rs8.9.2016. 9

2000 METALLIC MINERAL DEPOSITS AND MINERAL OCCURRENCES

2500 NON-METALLIC MINERAL DEPOSITS (INDUSTRIAL MINERALS) AND MINERAL OCCURRENCES

46 COAL BASINS

13 bituminous coal (2 in exploitation)

33 brown coal (11 in exploitation)

250 OIL AND GAS DEPOSITS, 90 OIL AND GAS FIELDS,

4 OIL SHALE BASINS - 14 OIL SHALE DEPOSITS

GEOLOGICAL INFORMATION SYSTEM OF SERBIA

http://geoliss.mre.gov.rs/

www.serbiamining.rs

ESTIMATION OF MINERAL RESOURCES

8.9.2016. 10

Primary economic significance:

Cu (Au), Pb, Zn (Ag)

Secondary economic significance:

Group A: Ni, Co, Mo, Sb,

Group B: Fe, Cr, Mn, W, Sn, Hg and U.

Tertiary economic significance:

Ti, rare earths, etc.

SERBIA - RESOURCE ESTIMATIONIn 1.000 t

Mineral Grade Resuorces/ReservesCopper 0.38% Cu

2.612.000Gold 0.14 g/t

Lead 4% Pb

18.960Zinc 3% Zn

Silver 90 g/t

Molybdenum 0.035% Mo 380.000

Antimony 1,2% 2.280

Nickel 0,75% 240.000

Iron ore <30% 120.000

Uranium 320 g/t U3O8 4.340

Wolfram 0.24% WO3 330

R. Jelenković - Metalic mineral resources of Serbia


Measured + Indicated Resources Inferred ResourcesTonnage Grade Metal Tonnage Grade Metal

Cu1

Au1

Ag1

1250 Bt 0.38 %

0.138 g/t

1.04 g/t

4.75 Mt

173 t

1295 t

1350 Bt 0.37 %

0.11 g/t

0.95 g/t

4.99 Mt

149 t

1285 t

Cu2

Au2

300.5 Mt 0.27 %

0.26 g/t

811.4 t

78.13

Cu3

Au3

63 Mt 2.6%

1.5 g/t

1.638 Mt

94.5 t

Au4 46.3 Mt 1.56 g/t 72.3 t 8.7 Mt 1.3 g/t 11.31 t

Pb

Zn

Ag

16.27 Mt 4%

3%

95 g/t

0.65 Mt

0.49 Mt

1545 t

2.69 Mt 4%

3%

82.8 g/t

0.11 Mt

0.08 Mt

223 t

Pb5

Zn5

Ag5

31.26 Mt 4.1 %

3 %

110 g/t

1.28 Mt

0.94 Mt

3438 t

24.47 Mt 4%

3%

70 g/t

0.98 Mt

0.73 Mt

1713 t

Ni 19.92 Mt 0.75 % 149400 t 18.73 Mt 1.14 % 213522 t

Co 19.92 Mt 0.08% 15936 t 18.73 Mt 0.07% 13111 t

Sb 0.98 Mt 1.53 % 14994 t 1.2 Mt 1.3 % 15600 t

Mo 150 Mt 0.044 % 66000 t 164.5 Mt 0.07 % 115150 t

Fe

Ni63.97 Mt

-

37.53 %

-

1.49 Mt

-

115.4 Mt

90 Mt623.99%

0.7%

27.68 Mt

0.63 Mt

Mn - - - 9.5 Mt 20 % 1.9 Mt

Cr 89000 15.7% 13973 t 0.02 Mt 15 % 3000 t

Ti - - - 56000t 42% TiO2

Al 2.69 Mt 44-48% Al2О3 - 1,2 Mt 35-40% Аl2О3 -

SnO2 5.49 Mm3 286.3 g/m3 1572 t 20Mm3 167 g/m3 3340 t

Ta-Nb 4.96 Mm3 86.01 g/m3 427 t 20 Mm3 10 g/m3 200 t

W 0.33 Mt 3.5% WO3 11500 t WO3 0.025 Mt 1.65% WO3 412.5 t WO3

Hg 0.083 Mt 0.33 % 27390 t - - -

U 2.154 Mt 338 g/t 728.1 t 1.5 Mt 310 g/t 465 tExplanation: 1-RTB Bor. 2-Kiseljak deposit. 3-Čukaru Peki. 4-Potaj Čuka-Tisnica. 5-Kosovo. 6-Mokra Gora basin.

Secondaryeconomic

significance

METALLIC

MINERAL

RESOURCES

OF

SERBIA

Ministry of Mining end Energy


Industrial minerals

and rocks

Measured +

Indicated, Mt

Inferred,

Mt

Ceramic clay 18.20 16

Refractory clay 5.25 32

Flint-clay 1.72 5.5

Bentonite 2.56 10.5

Building industry

granulates

230 500

Graphite 0.386 0.12

Marble 25 30

Quartz – veins

Quartz – pegmatites

Quartz – alluvial

0.48

0.034

0.5

0.23

0.2

Barite 0.246 0.16

Borates 8 124

Asbestos 2.15 3

Gypsum 0.0285 0.42

K-feldspar

Na-K-feldspar

3.125

1.15

7.5

5.85

Fluorspar 0.72 0.5

Industrial minerals

and rocks

Measured +

Indicated, Mt

Inferred,

Mt

Mica - 0.025

Phosphates 85.85 158

Zeolites 0.49 2.65

Dunite (petrolurgy) 8.13 24

Gravel+sand 75 Mm3

Diatomites 0.62 25

Alunite - 11

Andalusite

distene

silimanite

0.056 0.11

0.2

0.04

Sepiolite 0.0067 0.33

Alamandine - 0.42

Talc - 0.23

Vermiculite - 0.56

Wolastonite - 1.28

Pigments 0.3 0.12

Gem stones 0.485

NON METALLIC

MINERAL

RESOURCES

OF

SERBIA

Ministry of Mining end Energy


FOSSIL

FUEL

RESOURCES

OF

SERBIA

Coal Oil and gas Oil shale


EU

CRITICAL

RAW

MATERIALS

Critical

raw material

Major suppliers (>20%) Critical

raw material

Major suppliers (>20%)

ANTIMONY* China, 87% MAGNESITE* China, 69%

Beryllium USA, 90% MAGNESIUM* China, 86%

BORATES*Turkey, 38%

USA, 30%Natural Graphite

China, 69%

ChromiumSouth Africa, 43%

Kazakhstan, 20%Niobium

Brazil, 92%

COBALT* DRC, 56% PGM’sSouth Africa, 61%

Russia, 27%

Coking Coal China, 94% Phosphate RockChina, 38%

Fluorspar China, 56% REE (Heavy) China, 99%

Gallium China, 69% REE (Light) China, 87%

Germanium China, 59% Silicon Metal China, 56%

Indium China, 58% Tungsten China, 85%

* - potential for exploration in Serbia


EXPLORATION ACTIVITIES– PAST AND PRESENT

2003-2013: >50 exploration companies

Adriatic Mines, Albite Nemetali, Appalachian Resources, Archelon, Avala Resources, Balkan Exploration and Mining,

Balkan Gold, Bemex Corporation, Bosil Metal, Deli Jovan, Dinara Nickel, Dunav Minerals, Dunav Resources, Dundee

Moly, Dundee Plemeniti Metali, Empire Mining, Energoteks, Farmakom MB, Ferro Met, Freeport McMoRan, Geo

consulting studio, Geosfera, Geoing, GeoExplorer, Georad ing, Geo inject, Goldennuggets, Grot A.D., Hereward

Ventures, Igma, Institut za bakar Bor, Ivanhoe Ventures, Jantar-grupa, Kepeli-Glogovica, Lafarge, Lithium Li, Metalfeer,

Mineral Drilling, Mureks, Novakovića metali, Pasha, Rakita Exploration, Rare Mineral Resource, Reservoir Capitаl, Rio

Tinto, Rockstone, RTB Bor grupa, Rudnik a.d., SEE, Serbian Nickel, South Danube Metals, Stara Planina Resources,

Suva Ruda, Tilva, Ultra Balkans, USA EMG, Veliki Majdan, Victoria Phosphate, Zajača a.d., Nevsun Mining ...

Foreign exploration companies: >20

Exploration licenses: 125

Non-metallic mineral resources: 46 (excluding building

raw materials)

Metallic mineral resources: 79

Ministry of Mining and Energy

http://gis.merz.gov.rs:81/Serbia

http://gis.merz.gov.rs:81/Serbia


Dominant metallic mineral raw materials

79 active exploration licences : Au + Cu → 66 ≈ 84%

05

101520253035404550

2003-

2009

Commodity 2003-2009 2010-2013

Au (+Cu) 50 40

Cu (+Au) 16 26

Pb-Zn 7 7

Mo 4 3

Sb 6 3

Ni 1 -

Dominant non-metallic mineral raw materials

46 active exploration licences : Lithium + Boron → 23 = 50%


Total 2003-2013: ≈ $300 M $ 25-35 M / year

> 600 employees

Company Commodity Period $, M Employees

Avala Resources Au, Cu 2005–2013 117 70 – 230

Rio Sava Exploration Li, B 2005–2013 60 20 – 70

DunavResources & Minerals

Cu, Au, Mo 2005–2013 45 40 – 80

Rakita ExplorationFreeport McMoRan: 55%

Reservoir Capital: 45%

Cu, Au 2010–2013 15 45 – 140

237 175 – 490

The most significant investors...


Company Discovery - Deposit Remark $ M

Avala Resources

(Dundee PM)

Au deposit (SHG)

Au deposit (SHG)

Au deposit (SHG)

Au-Ag (Pb-Zn)

Cu porphyry

Bigar Hill

Kraku Pešter

Korkan

Korkan East

Valja Strž

other

72 t Au

47 Mt, certified

76

29

12

Dunav Resources

(Dundee PM)

Mo porphyry

Cu-Au porphyry

Au-Cu porphyry

Mačkatica

Kiseljak

Degreman,

other

230 Mt, certified

20 Mt → 305 Mt

17.4

19.7

...

7.2

Rio Sava Exploration (Rio Tinto) Li-B deposit Jadar 125,3 Mt >60

Rakita Exploration

(Freeport McMoRan)

Cu-Au deposit Čukaru Peki 65,3 Mt >50

>270

Results...

www.serbiamining.rs

SIGNIFICANT MINERAL POTENTIAL OF SERBIA

8.9.2016. 19

Porphyry copper and massive sulphide (Čukaru Peki / Rakita Exploration)

Sediment-hosted gold deposit (Potaj Čuka – Tisnica / Avala Resources)

Lithium-Boron deposit (Jadar basin / Rio Sava)

Its require significant financial investments in geological exploration,

systematic work of companies that have significant financial resources,

technical resources and experience.

www.serbiamining.rs

WORLD CLASS ONGOING PROJECT IN SERBIA

JADAR PROJECT – RIO TINTO

ČUKARU PEKI – FREEPORT-MCMORAN

8.9.2016. 20

www.serbiamining.rs

JADAR PROJECT – RIO TINTO

Rio Tinto Minerals’ Jadar Project is a pre-feasibility stage lithium-borate development project in Serbia with considerable economic potential. The company is investing in exploration, recovery and refining testing.

In 2007, the geologists discovered the mineral jadarite. Incidentally, jadarite has the same chemical composition as the fictional kryptonite of Superman fame.

Serbia’s Jadar basin continues as only place in the world where the mineral can be found.

Rio Tinto has declared an inferred resource of 125.3 million tonnes with a weighted average Li2O concentration of 1.8% and 16.2 million tonnes B2O3 for the lower zone only.

At this time, Rio Tinto Minerals is focusing its studies on the highest grade and largest Lower Jadarite Zone.

Invested so far: > 65 M€

8.9.2016. 21

www.serbiamining.rs

ČUKARU PEKI – NEVSUN MINING

Cukaru Peki is 5 km from the Bor mining complex infrastructure

where a new flash smelter is being commissioned.

Discovery of significant copper-gold high sulphidation and

porphyry copper-gold mineralization at the Cukaru Peki deposit.

Inferred Mineral Resource (NI43-101 Compliant) for Cukaru Peki

deposit:

65.3 Mt @ 2.6% Cu and 1.5 g/t Au, including

6.8 Mt @ 9.6% Cu and 5.9 g/t Au

Invested so far >50 M€

8.9.2016. 22

www.serbiamining.rs

BENEFITS FROM THE NEW LAW

Exploration timeframe is 8+2 years (3+3+2 years + 2 for significant

find in last exploration year)

Reservation of exploration area for next phase up to 2 years

Expropriation of the land for private investors is enabled

SECURITY OF TENURE

Fastest permitting procedures

8.9.2016. 23

LAW ON GEOLOGICAL EXPLORATION AND MINING HAS ADOPTED

AT THE END OF 2015

NEW MINING CODE

www.serbiamining.rs

POLITICAL FRAMEWORK

• On-going EU accession negotiations, full membership expected in 2020.

• On January 2014 Serbia has officially started the EU membership negotiations. It is well proven as one of the leading investment locations in CEE with key strengths in highly capable human capital and customs free access to the 15% of the world market.

• New government determined to improve the business climate. Support for investments, focus on new employment, economic reforms, fiscal and budget consolidation.

• New set of laws including Labour Law, Law on Bankruptcy, Law on Privatization, Law on Planning and Construction, Law on investments Law of geological exploration and mining…

8.9.2016. 24

Government Stable and Proactive

www.serbiamining.rs

WHY TO INVEST IN SERBIA

8.9.2016. 25

• Good infrastructure, existing mine industry, skilled workforce, low crime rate, nice climate…

• Around 47,000 university and college graduates, and 75,000 high school graduates every year.

• Top quality technical education at both high school and university level.

• Strong command of the English language - Serbia was ranked 4th out of 76 countries in Business English proficiency by BEI*. Young graduates speak other languages, primarily French, Italian, German, and Russian.

*Business English Index, Source: Global English Corporation, 2012


INFRASTRUCTURE

www.serbiamining.rs

WHY

TO

INVEST

IN

SERBIA

8.9.2016. 27

Corporate Profit Tax • 10-year tax holiday for investments over €8.5 milion, 100 new jobs;


• Serbia is one of the most competitive locations in Europe, according toEurostat.

• Among 37 European countries the lowest cost of electricity, gas, other fuels,postal services, landline telephony, fax service, and maintenance of motorvehicles costs.

• Serbian cities always on Financial Times´ list of the Most Cost Effective Cities of the Future.

WHY

TO

INVEST

IN

SERBIA

www.serbiamining.rs

THANK YOU FOR YOUR ATTENTION

Dragan Milosevic, mining engineer

Terragold&co doo Belgrade

[email protected]

30

Kostadin Sirleshtov, Partner at CMS

Head of Energy in CMS for Bulgaria and CEE

Kostadin is based in Sofia.

CMS is the largest law firm in the EU headquartered in London,

with extensive network across CEE

CMS is advising many mining companies across CEE and in

particular – in Serbia and Bulgaria. CMS won CEE Law firm of

the Year award by Chambers & Partners for 2015 and is

constantly ranked among the leading law firms in the field.

The client list of the firm include the largest UK investor in the oil

& gas & mining sector in Bulgaria – Petroceltic, Dragon Group

(UK), Alaska Metals (UK), a leading Canadian gold exploration

company, Shell – on their recent successfully won tender for

Silistar block offshore Bulgaria, etc.

Expert Speaker from Bulgaria: introduction and

biography

Kostadin Sirleshtov

Partner

CMS Cameron McKenna

LLP – Bulgaria Branch

Tel: +359 2 921 9942

kostadin.sirleshtov@cms

-cmck.com

mailto:[email protected]

Mining Sector Opportunities in Bulgaria

31

• M&A opportunities based on ongoing exploration projects;

• Acquisition of assets with production concessions;

• Green field investments – initiation and participation in tenders;

• JoA opportunities;

• Opportunities for providing of services and supplies for ongoing

projects;

• Feasibility studies and expert advice;

• Listing of existing mining companies on AIMS and related

services;

• Advising the Bulgarian Government and Bulgarian companies

in the mining field

https://www.google.co.uk/url?url=https://en.wikipedia.org/wiki/File:CMS_Cameron_McKenna_logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwims7G5mv3OAhUBvxQKHewHBtsQwW4IGDAB&usg=AFQjCNGit--aAMoGzQpmDh8foyUAEJdLPw

https://www.google.co.uk/url?url=https://en.wikipedia.org/wiki/File:CMS_Cameron_McKenna_logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwims7G5mv3OAhUBvxQKHewHBtsQwW4IGDAB&usg=AFQjCNGit--aAMoGzQpmDh8foyUAEJdLPw

Expert Speaker from Bulgaria: introduction and

biography

32

Professional Experience

Anna Ilieva-Vaklinova is a Senior Manager in the Advisory practice of

KPMG in Bulgaria with more than 12 years of professional experience in

the firm.

During the recent years Anna assisted mining companies in projects aiming

at enhancing regulatory compliance, assessments of risks, and

development of policies and procedures for improvements of the internal

controls environment.

She has served clients operating in various industries including advising

clients operating in Energy and Natural Resources, Mining and Metals and

Industrial Manufacturing sectors.

Qualifications

• Fellow of the Association of Chartered Certified Accountants (ACCA)

• Master of Science in Banking and Finance, Sofia University, Bulgaria

• Bachelor of Science in Economics, Sofia University, Bulgaria

Anna Ilieva-Vaklinova

Senior Manager, Advisory,

KPMG Bulgaria

45/A Bulgaria Blvd.

1404 Sofia, Bulgaria

Tel.: +359 2 9697 454

Email: [email protected]

Mining Sector Opportunities in Bulgaria

Industry Trends

33

Looking for New Opportunities

Investment Plans

Regulatory Environment

Market overview: Key Financials for Bulgaria

Thank you!34

Balkans Mining Road Show3-5 October 2016 – Belgrade

5-7 October 2016 – Sofia

Ros Lund, [email protected]

DIT Serbia: Zlatan Milosevic, [email protected]

DIT Bulgaria: Sashka Evtimova, [email protected]




Questions?

Western Balkans Coal Mining Business Exchange,

Sarajevo, 26 October 2016

36

Provisional Programme

•Conference programme including presentations of UK companies’ offer

and Western Balkan coal mining companies’ investment/procurement plan

•Business networking opportunities to allow UK delegates to meet with

relevant Western Balkan delegates (coal mining companies and local

importers and distributors of mining equipment)

•Leading coal mining companies from other regional countries (Kosovo,

Macedonia and Serbia) will be invited as well

•Evening reception at the British Residence

Next Steps

Register for the webinar which will be held on 26 September 2016.

It will provide detailed information about the event and an insight into the

opportunities in the coal mining sector.

https://attendee.gotowebinar.com/register/3064191948539659267

https://attendee.gotowebinar.com/register/3064191948539659267

Documents

2016-09 Balkans Mining Roadshow Webinar€¦ · Asarel Medet –open pit mine and copper ore processing –looking at expansion Serbia Rio Tinto –Jadar Lithium underground mine