22
MINING INDUSTRY OF ROMANIA MINISTRY OF ECONOMY AND COMMERCE General Directorate for Mineral Resources
MINING INDUSTRY
OF
ROMANIA
MINISTRY OF ECONOMY AND COMMERCE
General Directorate for Mineral Resources
THE AREAS COAL MAINING SPREADING
1 CNH SA PETROSANI
2 SNLO Tg. Jiu
3 SNC Ploiesti
4. SC BANAT Anina
5 COMPLEX EN. ROVINARI
6 COMPLEX EN. TURCENI
7 COMPLEX EN. CRAIOVA
4
1
25
6
7
3
THE AREAS OF ORES , SALT, MINERAL WATER SPREADING
1
6
2
3
4
8 97
5
1 CN MINVEST DEVA
2 CN REMIN BAIA MARE
3 SC CUPRUMIN ABRUD
4 SC MOLDOMIN MOLOVA NOUA
5 SC MINBUCOVINA V. DORNEI
6 SC BAITA STEI
THE PRESENT STRUCTURE OF THE MINING SECTORThere are 17 mining companies/societies, as follows:
�for cool : 1 national company, CNH Petrosani
2 national societies, SNLO Tg. Jiu and SNC Ploiesti
1 commercial society, Miniera Banat Anina
3 energetical complexes: Rovinari, Turceni si Craiova
�for nonferrous ores: 2 national companies, C.N. MINVEST S.A. Deva si C.N. REMIN S.A. Baia Mare
4 commercial societies, S.C. MOLDOMIN S.A. Moldova Noua, S.C. CUPRUMIN S.A. Abrud, S.C. Baita S.A. Stei si S.C. Bucovina Min Vatra Dornei
�for uranium :1 national company, CNU Bucuresti
�for salt : 1 national society, S.N. Sarii Bucuresti
�for mineral waters: 1 national society, SNAM Bucuresti
�For closing maining: 1 commercial society SC CONVRESMIN SA Bucuresti
The current mining activity is ongoing in 88 mines, open pits and processing plants:
4
1
-
3
Uranium
103827988Total
213-117processing plants
1722131open pits
718 5740mines
SaltOresLigniteHard coal
of which:
TotalSpecificatie
THE STAGE OF REFORM IN MINING SECTOR
Evolution of coal and salt production
329,729,328,729,130,031,029,826,020,123,329,153,3mil. tLignite
225,512,413,716,518,721,119,116,117,219,623,647,5mil. tSalt
282,38,811,817,422,63028,626,226,525,729,411,2mil. tHard coal
184,76,510,31315,418,417,116,217,415,117,161,5mil. tCoal - total
TotalPROGRA
M 20062005200420032002200120001999199819971989MU
OUTPUT
SPECIFICATION
0
10
20
30
40
50
60
70
1989 1997 1998 1999 2000 2001 2002 2003 2004 2005 PROGRAM
2006
Total carbune din care mil t Huila mil t Lignit mil t Sare mil t
THE STAGE OF REFORM IN THE MINING SECTOR
Evolution of nonferrous concentrates production
225,512,413,716,518,721,119,116,117,219,623,647,5Thous
tonsCooper in
concentrates
282,38,811,817,422,63028,626,226,525,729,455,3Thous.
tonsZinc in
concentrates
184,76,510,31315,418,417,116,217,415,117,138,2Thous.
tonsLead in
concentrates
TotalPROGRAM
20062005200420032002200120001999199819971989MU
OUTPUT
Specification
0
10
20
30
40
50
60
1989 1997 1998 1999 2000 2001 2002 2003 2004 2005 PROGRAM
2006
Plumb in concentrate mii t Zinc in concentrate mii t Cupru in concentrate mii t
THE STAGE OF REFORM IN THE MINING SECTOR
Evolution of employees’ number-persons nr.-
10.4318.2228.0217.0455.1821.7162.0456.8648.30983.067TOTAL REDUNDANT PEOPLE
38.71749.19856.92268.69673.87875.59477.63984.50392.812175.879TOTAL EMPLOYEES
1.6781.6781.678*******Complex Energetic Craiova
4.0764.0764.164*******Complex Energetic Turceni
3.9283.9284.001*******Complex Energetic Rovinari
2.4092.4092.4462.8502.8502.8503.1403.4783.5944.572SNS
1.6941.7941.8442.0002.0282.2102.5603.0704.0865.805CNU
3289781.1021.438******SC BUCOVINAMIN
1.0014.3155.5598.47710.85410.99211.35512.65013.17227.500SC REMIN
7619311.1001.470******SC CUPRUMIN
318368487531******SC BAITA
7838831.2611.9262.0502.050****SC MOLDOMIN
2803.2724.6217.75010.41210.51612.60014.24715.37925.633CN MINVEST
2579291.0271.2901.3001.3021.330***SC Anina
5111.1943.4105.9306.4286.9237.6569.32310.20116.184SNC
8.8989.44810.00317.99920.25020.49020.65021.00023.14051.044SNLO
11.79512.99514.21917.03517.70618.26118.34820.73523.24045.141CNH
PROGRAM
2006200520042003200220012000199919981997
ACHIEVEMENTS
SPECIFICATION
THE STAGE OF REFORM IN THE MINING SECTOR
Evolution of redundant people from the beginning of the
restructuring process in the mining sector
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1997 1998 1999 2000 2001 2002 2003 2004 2005 Program
2006
Disponibilizati Total cumulat disponibilizati Total personal
THE STAGE OF REFORM IN THE MINING SECTOR
The situation of the mines approved by the Government for the
ceasing activity
401720201927312--NrClosed mines
49---------NrMine in the
closure process
46040840834432427923016276-Nr
Nr. Of mines
plurality of
offices
52-64204549688676-NrNr of mines
--184692689860249317/720816-Gov. Decision
Program
2006200520042003200220012000199919981997MU
SPECIFICATION
STRATEGIC OBJECTIVES OF THE MINING SECTOR
� TO DEVELOP MINING PRODUCTS ACCORDING TO THE MARKET DEMANDS
� CUTTING DOWN DIRECT INVOLVMENT OF THE GOVERNMENT, IN SUSTENABILITY MINING ACTIVITIES, BY GRADUALLY REDUCING OF THE STATE ALD
� UNDERTATE OF MINING ACTIVITIES IN COMPLIANCE WITH MINING PROTECTION CRITERIA
� ALLOTING THE FUNDS FOR MINING CLOSURE AND ENVIRONMENTAL REHABILITATION (FROM BUGETARY AND EXTERNAL SOURCES)
� MITIGATION OF THE SOCIAL IMPACT DUE TO MINING CLOSURE AND REDEVELOPMENT OF THE MINING AREAS
RESTRUCTURING OF THE MINING SECTOR
MAIN OBJECTIVES
�REASSESS OF THE MINING PERIMETERS AND CONCENTRATION OF THE ACTIVITY IN THE MOST FAVOURABLE AREAS
�ALLOTING OF THE BUGETARY CAPITAL EXPENSES ONLY FOR THE MINING OBJECTIVES HAVING A GOOD VIABILITY AND PRIVATIZATION CHANCES
�CUTTING DOWN SUBSIDIES AND SOCIAL TRANSFER FUNDS IN THE ORE AND UNDERGROUND MINES FOR LIGNITE, STARTING WITH YEAR 2007
�ALLOTIONG OF THE SUBSIDIES FOR HARD COAL PRODUCTION TILL YEAR 2010, ACCORDING TO THE PROVISIONS OF THE CE DIRECTIVE 1407/2002. REGARDING THE STATE AID FOR COAL SECTOR
�FINANCIAL RESTRUCTURING OF THE MINING COMPANIES / SOCIETIES, BY:
- SEPARATION OF THE NONVIABLE UNITS, IN ORDER TO BE CLOSED
- LEGAL LIQUIDATIOIN OF THE MINING UNITS APPROVED BY THE GOVERNMENT TO BE CLOSED
- COMPENSATION TILL YEAR 2006 OF THE LOSSES AT THE MINIES WHERE REVENUES ARE LESS THAN EXPENSES
�SOCIAL PROTECTION FOR REDUNDANT PERSONNEL FROM THE MINING ACTIVITY
RESTRUCTURING OF THE MINING SECTOR(CONTINUATION)
� RESTRUCTURING OF PRODUCTION CAPACITIES AND IMPROVEMENT OF TECHNOLOGICAL PERFORMANCES, CEASE OF ACTIVITY AND CLOSURE OF NON-VIABLE MINES
� PRIVATIZATION OF VIABILE MINES AND OF THOSE WITH REVIVAL POTENTIAL TO BECOME VIABLE. ENSURE THE FINANCING SOURCES NEEDED FOR THEIR DEVELOPMENT AND MODERNIZATION
� UNDERTAKE OF MINING ACTIVITIES IN COMPLIANCE WITH MINING PROTECTION CRITERIA:
- MAKING THE INVENTORY OF THE ENVIRONMENT DISTURBANCES
PRODUCED SO FAR
- ESTABLISH THE OBLIGATION FOR THE MINING COMPANIES / SOCIETIES
- AND FOR THE PRIVATE LICENSE HOLDERS, FOR ENVIRONMENT REHABILITATION
- PROMOTE AN ENVIRONMENTAL MANAGEMENT AT EUROPEAN STANDARDS
SOCIAL PROTECTION OF THE PERSONNEL AFFECTED BY RESTRUCTURING PROCESS
� BASIC ORIENTATIONS:� FOR THE MINES THAT ARE OR COULD BE VIABLE, THE PROTECTION MEASURES WILL BE A PART
OF REHABILITATION PLAN OF THE MINE� FOR THE MINES THAT WILL BE CLOSED, THE MEASURES OF THE SOCIAL PROTECTION WILL BE
OBJECT OF THE PLANS IMPLEMENTED BY MINISTRY OF LABOUR SOCIAL SOLIDARITY AND FAMILY AND NATIONAL AGENCY FOR OCCUPY OF LABOUR FORCE
� MAIN MEASURES:� PROMOTION OF INDIVIDUAL AND COLLECTIVE DIALOGUE FOR THE INFORMATION OF
EMPLOYEES WITH REGARD TO THE CURRENT AND FUTURE SITUATION OF THE COMPANY � PROFESSIONAL TRAINING FOR THE STAFF EMPLOYED IN THE MINING INDUSTRY TO INCREASE
HIS CHANCES ON THE LABOR MARKET� SOCIAL PROTECTION OF MINERS LAID OFF� SUPPORT COMMUNITY WORKS PROGRAMS, HAVING AS OBJECTIVE TEMPORARY EMPLOYMENT OF
LAID OFF PERSONS IN ORDER TO KEEP THEM ACTIVE AND FACILITATE ACCESS TO THE LABOR MARKET
� STIMULATING EMPLOYERS TO HIRE PEOPLE LAID OFF FROM THE MINING ACTIVITY, WITH A VIEW TO THEIR REDEPLOYMENT, TRAINING AND KEEPING ACTIVE, IN ORDER TO MAINTAIN THE ABILITIES TO FIND A NEW JOB
� ESTABLISHING VIABLE ALTERNATIVES FOR YOUTH GENERATION TO PROVIDE CONDITION FOR THEIR DEVELOPMENT IN THE SAME AREAS
THE STRATEGY OF THE MINIG INDUSTRY
The economic reconstruction of the affected mining arreas
• Ensuing the local and commentary consensus for changing the mining closure process and the ecological rehabilitation, into an action aimed to attracting investments;
• Transforming the localities from areas where the existing mining facilities should be closed into favourable zones for private sector;
• Improvement of the environment and of the infrastructure by execution of public works;
• Reusing of the available spaces, assets and surfaces for development of alternative economics activities;
• Ensure the economic frame in order to facilitate the financing processes and actions for development of new businesses;
• Making use of local resources from agriculture, forestry fishery and touristy sectors ;
• Improvement the living conditions by rehabilitation of the housing and public services;
• Promoting a positive image of the mining regions, in order to attract investors and investments;
• Reviving the viable mining units and making free economic activities in the region
THE STRATEGY OF THE MINING INDUSTRY
Financial resources for the acomplishment of the strategy’s objectifs
Mill. USD
414570Total from investors capital
3035Private capitalEnsuring the condition for health and security of works
5985Private capitalAchieving the environmental parameters
325450Private capitalModernization and technical reconstruction of the mines
7921.642Total from state’s budget
186508State’s budgetEconomical reconstruction of the affected mining areas
86115State’s budgetSocial protection and reemployment of the persons redundant
73215State’s budgetSustaining the privatisation process
44150State’s budgetEnvironmental rehabilitation of the mines that shall be offered for privatisation
317454State’s budgetSubsidies the mining units, until their closure or until their privatisation
86200State’s budgetClosure mines and ecological rehabilitation State’s budget
1.2062.212Total of which:
Of which:
for the sale period 2003 - 2006
Total
ValueSourceDestination of the resources
THE STAGE OF REFORM IN THE MINING SECTOR
The impact of the mining restructuring on the mining zones
economy and on their habitants
Results from the poverty evaluation study in the mining zones, financed by the BIRD:
• Decline of the economic activities comparing to 1997 was of above 35%. In some zones as: Jiu Valley, Motru, Balan, Borsa, Baia de Aries, Zlatna the decline was of over 55%.
• Reducing of the employed people in the affected areas with over 40% compared to 1997.
• Reducing of the population’s income in the affected areas with 25% compared to 1997.
• Increasing by 28% of the number of families whose condition are bellow the minim standards.
THE STAGE OF REFORM IN THE MINING SECTOR
The impact over redundant people
• 7% have not job
• 30% can find a temporary job (without working contract)
• 5% have developed their own business
• 46% have a stabile job
• 12% have been normally retired, with anticipation or for the illness cases
Impactul restructurarii asupra persoanelor
disponibilizate
7%
30%
5%46%
12%
Nu au ocupat nici un loc de munca
Gasesc loc de munca ocazional
Au dezvoltat propria afacere
Au loc de munca stabil
S-au pensionat la limita de varsta, anticipat si majoritatea pe caz de boala
THE PERSPECTIVE FOR DEVELOPMENT OF THE MINING
INDUSTRY
The tendencies in the development of mining industry at the
international level
COAL INDUSTRY
• Will cover 23 % from the global energy needs;
• Will generate 38 % of the world electricity in the period 2007 - 2025;
• For the hard coal marked it’s estimated a medium growth of about 2% annually;
• The marked for lignite will remain constant until 2020;
• The delivery prices until 2020;
– For energetical hard coal: 2,8-3 USD/GJ – price at the beneficiary
– For lignite : 2,6-2,8 USD/GJ – price at the beneficiary
THE PERSPECTIVE FOR DEVELOPMENT OF THE MINING
INDUSTRY
The tendencies in the development of mining industry at the
international level
Mining ores industry will be under a strong influence till year 2020, by :
• Transforming of European Union into the biggest region for processing and consumption ;
• Transforming of Eurasia region (of former Soviet Union) in the most important producer and exporter of minerals;
• Renouncing at nonferrous metals mining in Western Europe;
• Privatisation of ores open-pits in Easter Europe;
• Putting into exploitation the gold deposits (Poland, Romania, etc.) economically viable;
Nonferrous metals market:
• It’s estimated an increasing tendency for demand, of about 3% - 4%/year;
• Only 30 % of this demand could by covered by increasing of the mining production.
Price levels at the international market :
• -cooper in concentrates 1550 $/t in year 2000 3850 $/t in year 2005
• -zinc in concentrates 650$/t in year 2000 1490 $/t in year 2005
• -gold in concentrates 319$/ounce in year 2000 519 $/ounce in year 2005
THE PERSPECTIVE FOR DEVELOPMENT OF THE MINING
INDUSTRY
Production
--55Thous. toneZinc in concentrates
--46Thous. toneLead in
concentrates
655952Thous. tone Cooper in
concentrates*
353532Mill. tone Lignite
3,53,53,5Mill. tone Energetical hard
coal
20252010
PognosisMarket demand
2006
M.U.PRODUCTION
*if will be a successful privatization process
CONCLUSIONS:�RESTRUCTURING OF THE MINING INDUSTRY IS A VERY IMPORTANT OBJECTIV OF THE
GOVERNMENT, IN THE CONTEXT OF HIS GENERAL SOCIAL AND ECONOMIC POLICIES
REGARDING THE ACCESSION OF OUR COUNTRY TO THE EUROPEAN UNION
�RESTRUCTURING PROCESS IN THE PERIOD 2004 – 2010 HAS TAKING IN
CONSIDERATION THE OBJECTIVES OF THE MINING STRATEGY APPROVED BY THE
GOVERNMENT DECISION NR. 615/2004
� THESE OBJECTIVES ARE ORIENTED TO THE PRINCIPLES OF A SUSTAINABLE ECONOMY
DEVELOPMENT, ESPECIALLY REGARDING PROVIDING OF RAW ENERGETICAL RESOURCES
FOR THE ENERGY SECTOR
�STATE INVOLVEMENT SUPPORTING THE MINING INDUSTRY WILL BE:
- TOTALLY ELIMINATED STARTING WITH YEAR 2007, FOR THE MINING UNITS
FROM ORE SECTOR AND UNDERGROUND LIGNITE MINES
- TOTALLY ELIMINATED STARTING WITH YEAR 2011, FOR THE HARD COAL
SECTOR (ACCORDING TO THE EC DIRECTIVE 1407/2002
- DESTINED FOR THE MINING CLOSURE PROGRAMMES OF NON VIABILE MINES
AND FOR ENVIRONMENTAL REHABILITATION OF THE AFFECTED AREA, ACCORDING TO
THE REGULATIONS OF EUROPEAN UNION
CONCLUSIONS:(CONTINUATION)
� VIABLE MINES AND OPEN PITS WILL BE MODERNIZED, BY THEIR OWN SOURCES, BY ATTRACTING PRIVATE FUNDS AND / OR BY PRIVATIZATION PROCESS
� FORMER MINING AREAS WILL BE REHABILITATED IN ORDER TO ASSURE THE BEST INFRASTRUCTURE CONDITIONS FOR NEW INVESTMENT PROJECTS
� FOR THE MINING PERSONNEL LAID OFF, WILL BE IMPLEMENTED PROGRAMMES, FOR SOCIAL PROTECTION, FINANCED BY THE STATE AND BY ATTRACTED EXTERNAL SOURCES
� WILL BE ACCELERATED THE ACTIONS FOR PRIVATIZATION OF:- ENERGETICAL COMPLEXES ROVINARI , TURCENI, CRAIOVA- SC “CUPRUMIN” ARBUD AND SC “MOLDOMIN” SA MOLDOVA NOUA,
MAIN PRODUCERS OF COOPER CONCENTRADES- SUBUNITS OF NATIONAL COMPANY “MINVEST” SA DEVA- LIGNITE OPEN PITS FROM THE STRUCTURE OF NATIONAL SOCIETY “OLTENIA” SA TG. JIU AND NATIONAL SOCIETY PLOIESTI- SUBUNITS OF NATIONAL SALT SOCIETY.
