Legal Framework 

• Law no.10081, dated 23.2.2009 “On Licensees, Authorizations and Permits in the Republic of Albania”;

• Law no. 7796 dated 17.02.1994 “Albanian Mining Law” as amended;

• Guideline no. 1028, dated 10.12.2009 “On the content of the documentation to grant a mining permit” from the Minister of Economy, Trade and Energy According to the Albanian Mining Law the legal entities and individuals have the right to conduct mining activities.

These entities for acquiring mining permits for minerals of group 1,2,3,4 must present a request to the National Registration Centre according to the procedure predicted in Articles 17, 31, 32, and 33 of the Law “ On licenses, Authorizations and Permits in the Republic of Albania. “ According to Guideline No. 1028, dated 10.12.2009 “On the content of the documentation for granting mining permits” documentation should include:

• Request for granting a mining permission, defining exactly the coordinates of the area and the surface asked for exploitation. Brief description and a map of the mining area of scale 1: 25 000 (defined by its coordinates in plan and its surface).

• Verification Act conducted by the National Agency of Natural Resources (AKBN), according to the format prepared by the Agency for each type of required mining permit.

• The Decision of National Registration Centre as a legal entity, where the object of activity in registration form have to be approved as development of mining activities with work in surface or underground, according to the type of permit requested.

• Financial resources needed for investment that are predicted to be completed The juridical persons who apply for a mining permit, where they themselves declare that had not exercise before any business activity, must submit their financial sources through one of documents as below:

• A statement from the Bank to confirm that the legal entity has opened account

number, which should have deposited at least 30% of the projected investment. A declaree from the Bank that confirms that the legal person has an account and where are deposited at least 30% of the predicted investment value and/or:

• A document certifying that the legal person has secured a loan from a bank or any other financial entity with a value which covers the value of investments predicted to be completed, and/or

• A contract with an investor who provides financial support for implementation of

investment program. In this case the company must submit a notarized document, in which are expressed willingness of investors to support this investment, as well as documents to provide the financial resources of investors. (bank guarantee, or balance sheet of the company in which the investor is sole or majority shareholder).

For the legal persons that apply for mining permits, that have previously developed a mining activity or any other business activity, as documents for the accomplishment of financial sources will be considered:

• Accounting Investments done. Physical Inventory with main investments as

buildings, machinery, office equipments, etc. Financial balance sheet of the last year. Types of permits and the required documents

For Exploration Permits of minerals of group 1, 2, 3, the application must contain the conditions set out in Article 25 of the AlbanianMining Law :

The demand for an Exploration Permit must have:

a) Name and address of the applicant.

b) Specification of financial resources and technical skills that are needed to the license applicant, and his experience in the mining industry.

c) A description of the requested area, including a map.

d) Specifications of the proposed research program to be performed, the proposed working methods, an assessment of costs and terms of carrying out the program. “

The term of this Permit is defined by point 23 of this Law where is cited: “The maximum term will be a year and it is not an object to a time extension.”

• For the Prospecting Permit of minerals in Group 1, 2 and 3, the request must contain the conditions set out in Article 31 of the Mining Law of Albania, where it is cited as below”:

The demand for a Prospecting Permit shall include:

a) identity and address of applicant;

b) statement of relevant experience;

c) statement of financial and technical resources available to the applicant for purposes of the requested concession;

ç) proposed area of concession, including map;

d) mineral or minerals (Group 1, 2 or 3) for which the concession is sought;

dh) proposed method of explorations proposed work program and anticipated schedule and expenditure for carrying it out.

An exploration concession shall specify the minimum worse program to be undertaken by the concessionaire. Performance of produced minimum worse program shall be guarantied by a guarantor acceptable to the Minister. The form and substance of produced guarantee shall also be subject to the Minister’s prior approval. According to Article 34 of Albanian Mining Law , the initial term of an exploration concession shall be for two years, subject to up to three extensions of one year each if requested by the end of the then current period.

For the Exploitation Permit for minerals in Groups 1, 2 or 3, the request must include the

conditions as predicted by Law in article 45 of Albanian mining Law, as it is cited below “The request for en exploitation Permit shall:

“The request for an Exploitation Permit shall include:

a) identity and address of applicant;

b) specify the area over which the mining concession is sought (including map);

c) specify the mineral or minerals in Groups 1, 2 or 3 for which the mining concession issought;

ç) give details of the mineral deposits in the area over which the mining concession is sought, including details of all known minerals proved, estimated or inferred, ore reserves and mining conditions;

d) be accompanied by a technical report on mining, treatment and value added possibilities within Albania and the intention of the applicant in relation thereto;

dh) provide a proposed development and investment program and schedule;

e) give particulars of the proposed mining operations, including:

(i) estimated capacity of production and scale of operations,

(ii) nature of the products,

(iii) proposals for the prevention of pollution, the treatment of wastes, the safeguarding of natural resources, the progressive reclamation and rehabilitation of land disturbed by mining and for the minimization of the effects of mining on surface water and ground water and on adjoining or neighbouring lands,

(iv) the anticipated residual effects on the environment of the mining operations and proposals for their minimization on and mitigation, and any particular risks (whether to health or otherwise) involved in mining the mineral and proposals for their control or elimination;

give a detailed forecast of capital investment, operating costs and revenues and the anticipated type and source of financing;

give particulars of the applicant’s proposals with respect to the employment and training of citizens of Albania, and shall give particulars of expected infrastructure requirements and arrangements

According to Article 49 of Albanian Mining Law “The duration of a mining exploitation permit shall be till to twenty years from its effective date, subject to up to four renewals of till to five years each if requested by the Owner of the Permit not less than one year before the expiry of the previous term.

• To permit the prospecting and exploration of minerals in the 4th Group the request must contain the specified conditions according to Article 64 of the Albanian Mining Law as below:

The application for a prospecting and exploration permit for group 4 of minerals

shall include:

a) identity and address of applicant;

b) statement of financial and technical resources available to the applicant for purposes of the requested concession, statement of relevant experience in prospecting and exploration for group 4 of minerals;

c) proposed area of concession, including map;

ç) mineral or minerals (Group 4) for which the concession is sought;

d) proposed method of explorations and proposed worse program and anticipated schedule and expenditure for carrying it out.

The duration of a the Permit shall be till to two years from its effective date, the maximum area for a prospecting and exploration concession is thirty contiguous square kilometers.The extension of the permit depends on the specifics of the activity the person wants to accomplish” - The second paragraph of Article 63 of the Mining Law.

• To permit the exploitation of minerals in the 4th Group, the application must contain the conditions set out in Article 70 of the Albanian Mining Law, cited as below:

An application for quarry permit shall include:

a) name and address of the applicant;

b) indicate the minerals or materials of the 4th Group for which the permit is sought;

c) specify the initial duration for which the permit is sought;

ç) provide particulars of the financial resources available to the applicant to pay for the minerals and materials to be extracted;

d) In the case of a type 1 quarry permit, indicate the minimum and maximum quantities on an annual basis and the specifications of each mineral or material for which the permit is sought.

dh) in the case of a type 2 quarry permit,

(1) specify the exact location of the applicant’s proposed quarry,

(2) give details of the deposit over which the quarry permit is sought,

(3) provide a proposed development and investment program and schedule,

(4) give a detailed forecast of capital investment, operating costs and revenues and the anticipated type and source of financing,

(5) give particulars of expected infrastructure requirements and arrangements for

provision,

(6) provide a detailed list of construction materials and minerals to be produced from the quarry, estimated capacity of production and scale of operations, and planned markets for the production,

(7) detail the experience of the applicant in operating quarries and in marketing

minerals and materials of the type to be produced from the quarry;

(8) give particulars on environmental aspects of the proposed quarry operation,

including:

i) proposals for the prevention of pollution, the treatment of wastes, and the safeguarding of natural resources,

ii) the anticipated residual effects on the environment of the quarry operations and proposals for their minimization, and

iii) any particular risks (whether to health or otherwise) involved in mining the materials and minerals and proposals for their control or eliminations and

9) give particulars of the applicant’s proposals with respect to the employment and training of citizens of Albania.

Under Article 69 of this Law “Is authorized to provide two types of permits quarries”:

a. Type 1 quarry permit, is a permit that permits the exploitation of minerals and construction from a public quarry on payment of produced fee as may be imposed by the Minister in the given permit and the value of this payment ispredicted in Regulation. The maximum initial duration of a type 1 quarry permit is one year, subject to renewal for successive periods of six months as requested by the holder.

b. Type 2 quarry permit, being an exclusive permit to develop and mine a quarry for minerals or construction materials in consideration of paying the fee specified in

permit as may be imposed by the Minister in the given permit and the value of this payment is predicted in Regulation

The maximum initial duration of a type 2 quarry permit is ten years, subject to renewal for successive one year periods if requested by the holder.

• In exceptional cases, when the term of the grant of permission required usage mining up to 99 years, the Relevant Ministry negotiates with the individual/subject who asks for a Permit , approval of which is done by Council of Ministers. This Agreement shall enter into power once approved by Parliament.

• To permit the exploitation of minerals in Group 1, 2, 3 and 4 the request must also contain:

• Local Government opinion of the Commune or the Municipality, for the permition of g mining activity development and mineral exploitation in the object that is required. In cases when the land is a private property owned by a legal person should be submitted the agreement with the owner of land for the exploitation permition.

• Opinion of the Forest Service Directorate of the District to allow the development of mining activity in the object sought to be used, for the case when the object is in the forest fund.

• Environmental Permit issued by the National Licence Centre. Environmental permit can also be given to an area smaller than that required for the mining permit, but that is part of it, provided that;The mine exploitation to be started from this area. Before the exploitation start outside this surface, must be taken the new environmental permit, which must be submitted to AKBN.

The contract with the technical director who shall be a mine engineer except when it is

not going to be used explosives could be an geologist engineer. The Albanian legal framework related to the mining industry is constituted by the following laws:

• The Law “Mining Law of Albania”, No.7796, date 17.02.1994, amended by Law No.9261, dated 22.07.2004 and Law No.9667, dated 29.12.2006;

• The Law “On civil using of explosives in the Republic of Albania”, No.9126, dates 29.07.2003;

• The Law “On Concessions”, No. 9663, dates 18.12.2006;

• The Law “On National Taxes”, No. 9975, dates 28.07.2008.

The draft of a new law on mining, after being consulted with all groups of interest, is already in pipe and soon it will be discussed and approved by the Albanian Parliament.