ALBANIAN MINING TODAY

LBANIA, ...a wealth of opportunities!

ALBANIAN MINING TODAY

Albania is a rich country in minerals. The most frequent ones are groundwater resources, carbonate minerals, industrial minerals, mineral rocks, sedimentary industrial minerals, chromites etc.Albania is well known for chromium, copper, nickel and copper reserves. Quantity and quality of chromium is high. Before 1990 Albania was the 3rd country in Europe for chromium reserves and now it ranks as the country with the highest level of reserves in Europe.

Mining industry in Albania, is currently being privatized and the government is also offering concession for construction and operation in this sector.There are different activities given in concession to domestic and or foreign companies for exploitation of chrome, nickel-silicate, copper, bitumen, cement, kaolin, alabaster, marbles, clays for brick production, river-bed gravels production, and rock building materials.In 2000 the government signed a 30-year concession with the Italian company DARFO to exploit 50% of chromium reserves and 100% of Ferro- Chromium.Coal and Nickel mines are privatized. The three largest cooper mines are being operated for a 30-year concession by a Turkish company: Ber-Oner.These quantity and quality mineral reserves provide an ideal situation for foreign investors to step in and expand their business in Albanian mining sector, with future export potentials to other countries in the region.The number of mining permits is increasing year after year and in 2008 more than 738 small, medium and very few large private companies exercise their activity in Albania . On year 2008, despite of 738 mining permits issued, only 590 were exploitation mining permits.

Out of 738 mining permits, mostly are from chrome and limestone mining permits, respectively 220 and 259 exploitation permits.

CERTIFICATION OF MINING PRODUCTS

LBANIA,

Samplingbasedonapprovedstandards,productpresentation

Testingonthebasisofapprovedprocedures

Productinspection,verificationontestbases,certificationofquality,chemicalandphysicalpropertiesforallminingproductsinAlbanianmarketsuchas:chromiumore,chromiumconcentrate,ferrochrome,iron-nickelore,nickelsilicateore,copperconcentrate,coal,kaolin,limestone,gravel,gyps,decorativestones,clays,constructionmaterials,titan-magnetite,tailings.

Conformityassessmentformineralsandproductsaftertheirtreatmentinordertobecompetitiveintheworldmarket.

...a wealth of opportunities!

FASTFACTSONTHEALBANIANMININGINDUSTRY

OVERCAME THE CRISIS IS ENTIRELY PRIVATIZED IS ON THE WAY OF DEVELOPING IN ACCORDANCE WITH MARKET ECONOMY REQUIREMENTS DIFFERENT STRUCTURE FROM THE TRADITIONAL ONE STILL PRESERVING TRADITIONAL ELEMENTS HAS A CLEAR PERSPECTIVE AND WILL BE RE-ASSESSED IN THE MARKET WITH ITS POTENTIAL IS IN ONGOING REFORMING PROCESS THE STATE GAVE UP THE ADMINISTRATION OF PRODUCTION AND TOOK OVER THE MANAGEMENT OF THIS BRANCH OF ECONOMY THROUGH COMPILING PRIORITY POLICIES AND PROGRAMS RE-ASSESSED NATURAL RESOURCES OF MINERAL-MINING CHARACTER ACCORDING TO INTERNATIONAL CONCEPTS AND STANDARDS OPTIMUM CONDITIONS FOR REGIONAL AND WIDER COORDINATION EXCHANGE OF MUTUAL INVESTMENTS IN THE FIELD OF GEOLOGY-MINING IMPROVED CLIMATE FOR FOREIGN INVESTMENTS

ThreeLargestAlbanianMinesLaunchedforConcessionThe Ministry of Economy Trade and Energy, (METE), based on DCM Nr. 1355 dated 10.10.2008 is accepting bids for the three largest mines and fabrics in Albania, respectively: Chrome Mine of Kalimash, Chrome Mine of Vlahna, Fabric for the Enrichment of Chrome Kalimash, and Fabric for the Enrichment of Copper Golaj.

CERTIFICATION OF MINING PRODUCTS

MINERAL WEALTH

IN ALBANIA

Bridging Investment

Opportunities!

LBANIA, ...a wealth of opportunities!

GROUNDWATER RESOURCES

Albania is rich in water resources. About 57% of country surface is hydro. There are about 152 rivers and torrents which create 8 big rivers. The average annual flow of our rivers is about 1245 m3/s and all our rivers pour into the sea about 40 billion m3 of water per year.

Facts showed that efficient infiltration, which is part of precipitation recharging groundwater, accounts for about 45-55% of the average annual precipitation. The average annual infiltration in Albania is 1500 to 2000 mm and the most frequent areas are Mali i Gjere, Mali me Gropa, Mali i Thate.

Karstic water discharges almost equal karstic springs which vary greatly in productivity. There are about 110 karstic springs with average discharges exceeding 100 l/s. 17 of them discharge more than 1000 l/s. The average annual discharge of the biggest karstic spring, Blue Eye, is 18.4 m3/s.

The maximum discharge of wells varies between 10-15 l/s. The total of dissolved solids varies between 400-650 mg/l and ground water has a high percentage of iron concentration (about 0.3-1 mg/l).

Sulphuric mineral waters are mineral waters which increase the concentration of sulphur gas more than 10 l/s. Deep wells have released mineral waters in some buried Mesozoic carbonate structures in Ionian and Kruja areas.

Methane mineral waters were found in numerous gas and oil wells. These waters have increased the total amount of mineral presence which varies between 10-60 g/l.Cold waters have high percentage of sulphates and chlorides. The most well-known areas containing cold water are Glina and Kolonja near Gjirokastra, and Bashaj spring in Smokthina.

HYDROCARBON SOURCES

Albaniahasconsiderablepotentialsforfutureoilandgasdiscoveriesbothinlandandatsea,whichmayencourageforeigninvestorstostartdiggingandsearchingfornewoilandgasfields.

InterpretationofgeologicaldataandevidencehasshownthatinthefuturethePeripheral-AdriaticDepressionwillremainanimportantexplorationareainAlbania.

LBANIA, ...a wealth of opportunities!

From the geological point of view, Albania is an important hub for hydrocarbon resources in the Mediterranean alpine zone. Hydrocarbon accumulations are unrepeatable subterranean natural resources by means of which Albania has generated and will continue to generate important financial funds.Many oil and gas fields are discovered and put on production more than 2.118.516 meters of explanatory-drillings, 4.836.204 meters of production and development-drillings are drilled and more than 50 million tons of crude oil and 10 billion m3 of accompanying natural gases are produced.Albania has considerable potentials for future oil and gas discoveries both in land and at sea, which may encourage foreign investors to start digging and searching for new oil and gas fields.For the time being, exploration of hydrocarbons in these targets is difficult due to high depths and presence of over thrusting and salt diapirism tectonics. Interpretation of geological data and evidence has shown that in the future the Peripheral-Adriatic Depression will remain an important exploration area in Albania.The rehabilitation, improvement and further development of existing fields, but also exploration and development of potential future hydrocarbon resources in Albania may lead foreign companies and industrialized countries to invest in our country.As of 01/01/2006, cumulative oil production represents only 11.59% of the total estimated reserves or 27.57% of reserves in carbonate deposits and 6.88% of reserves in sand and stone deposits. The cumulative oil and gas production represents some 7.42% of predicted or potential reserves.It is important to emphasize that bituminous sands should also be considered an important part of hydrocarbon reserves in Albania. Bituminous sands with colossal reserves in Albania have such geologic-mineral and technologic parameters that have allowed them to be treated and processed for several years for the recovery of heating fuels.

HYDROCARBON SOURCES

INDUSTRIAL & BUILDING MATERIALS MINERALS

Carbonate rocks are the most widespread sedimentary formation in Albania, covering 7300 km2. The thickest sections of carbonates belong to the Mesozoic age and are located in Albanian Alps, in Sazan-Karaburuni and Kruja platforms, and in Ionian, Krasta-Cukali, Mirdita, and Korabi pelagic troughs.

Carbonate rocks are the most widespread sedimentary formation in Albania, covering 7300 km2. The thickest sections of carbonates belong to the Mesozoic age and are located in Albanian Alps, in Sazan-Karaburuni and Kruja platforms, and in Ionian, Krasta-Cukali, Mirdita, and Korabi pelagic troughs.

LBANIA,

Carbonate rocks arethemostwidespreadsedimentaryformationinAlbania,covering7300km2.ThethickestsectionsofcarbonatesbelongtotheMesozoicageandarelocatedinAlbanianAlps,inSazan-KaraburuniandKrujaplatforms,andinIonian,Krasta-Cukali,Mirdita,andKorabipelagictroughs.

...a wealth of opportunities!

INDUSTRIAL & BUILDING MATERIALS MINERALS

Albania is rich in mineral resources of sedimentary, magma and metamorphic origin. In industrial aspect the production is going on in 300 deposits of 25 different kinds of industrial minerals and rocks.

1. Carbonateformationofsedimentaryorigin related to shallow water and pelagic platforms fall in the following groups:

Biochemical formations (limestone, dolomites, reach phosphorous, siliceous rocks)

Chemical formation (gypsum, anhydride, alabaster, salts)

Mechanical sedimentary formation (marl, different kinds of clay, sands and quartz, river and sea cost alluvium, ground colors)

Weathering formation

2. Industrialmineralrocksofmagmaorigin related to ultra basic and basic ophiolite sequences are divided in the following 3 groups.

Industrialmineralsandrock related to plutonic ophiolites (olivine, hazburgite, lhercolite, gabbors, pyroxsenite, granite, plagiogranite).