Bulgaria’s ruling coalition will come out with a position on the share of the state in the exploitation of goldfields after an objective analysis of all economic parameters, the environmental impact and the legal aspects of the concession contracts under which the goldfields are exploited.
The reaction came from Prime Minister Sergei Stanishev on August 10 in response to a reporter’s question about the position of the incumbents on a statement by Environment and Waters Minister Djevdet Chakurov, who said that the state should have a share in the exploitation of Bulgaria’s goldfields.
Chakurov had said on August 2 that a 30-year gold mining concession deal with a Canadian company needed revision because it did not suit Government interests.
Canada’s Dundee Precious Metals Inc, through its Bulgarian subsidiary, Chelopech Mining, acquired a 30-year concession three years ago to mine gold in the region of Chelopech, near the capital Sofia.
The company is also trying to get Government approval for two investment projects – to expand the Chelopech mine and to exploit another gold deposit near the southern town of Kroumovgrad.
Both projects won the approval of the Economy and Energy Ministry, but Chakurov has so far refused to grant final approval, saying he wanted to consider “all aspects of the case”.
Laurence Marsland, Dundee’s vice president, however, has said the company would rather withdraw its investment projects at Chelopech and Kroumovgrad than bow to pressure. The projects are worth a total of $250 million (196 million euro), AP said.
The company also lodged court action against the Chakurov’s failure to clear the two gold mining projects. Hearings in Bulgaria’s Supreme Administrative Court have been scheduled for the autumn.
Describing the matter as very important for the development of this country, Stanishev said on August 10 that the parties in the ruling coalition should agree on a common position on which the basis of which negotiations with the candidates willing to sign concession contracts would be held in the future.
In his words, it will take some time to clarify all aspects of the problem and formulate a position that will convince the public that the Government is guided by Bulgaria’s economic interests on the one hand, and on the other to show foreign partners that this country has a predictable business climate and is committed to the rule of the law.
At a news conference on July 30, members of the Green Balkans Federation of Nature Conservation NGOs argued that Bulgaria loses a billion dollars every year due to “lopsided deals” for the operation of its subsoil resources.
A study carried out by the federation found that serious administrative and legal violations were committed when companies were licensed to prospect for natural resources and concession contracts were awarded for extraction of precious metals.
Reacting to the claims of the environmentalists, Chakurov said that Bulgaria was entitled to derive profit from its own natural resources and needed to protect its environment by studying the potential impact of mining technologies. Chakurov expressed the opinion that the role of the state should be increased in the field of mining and sale of subsoil resources.
In a declaration published on August 8, the Confederation of Employers and Industrialists in Bulgaria and the American Chamber of Commerce in Bulgaria expressed deep concern in relation to reports that the Environment and Waters Ministry would reconsider concession contracts for mining subsoil resources.
According to the two organisations, the role of the state is to pursue a purposeful and consistent policy for development of the mining industry and to provide a competitive environment for mining companies.
