State keeps losing billions for minerals mining, geologist says
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“The state did not get any money for any of the deposits it had transferred to private owners,” geologist Milan Tréger said.
Bratislava 30 January (TASR) – The state does not appraise its valuable minerals deposits and therefore loses billions. none of the administrations had found the political will to harmonize the provision of Art. 4 of the Slovak Constitution with the Mining Act, especially so after its amendment 498 of 1991. Geologist Milan Tréger said this in an interview for TASR. “The amendment aimed at according equal rights to state-owned enterprises with private mining companies. However, it has probably been influenced by people who were preparing for privatization of the mineral resources. They pushed through that the payments for allocation of explored deposits the state had previously invested hundreds of millions into, would be very low,” Tréger emphasized.
Tréger says it is necessary for the Mining Act to be amended, as it also does not respect the public procurement legislation and the deposits are being allocated without public tenders and without any remuneration. “The state has not received any money for any of the deposits it has given to private owners,” Tréger added. The geologist also criticizes the fact that although the state is the owner of the mineral resources, there is no obligation for it in any statute to appraise its deposits using the modern UNO’s draft classification methods of valuation of mineral resources. “Firstly it needs to be determined whether a deposit with economic resources is concerned. These are calculated through a feasibility study which shows what profit we would get after exploitation of the deposit. It is therefore a mistake that for more than 15 years we had not been able to change these provisions of the Mining Act and start valuating the mineral resources,” Tréger said.
Also the single most valuable deposit in Slovakia, the Gemerská Poloma talc deposit, is owned by a private investor. Tréger and his team assessed the reserves at this deposit to at almost 85 million tons. The Mineral Reserves SR 2013 yearly states the average price of talc imported to Slovakia was 764€ per ton, which means there is a value of almost 65 billion euros hidden under the ground.
According to the provisions of the present Mining Act, however, the proceeds from deposits such like the talc deposit near Gemerská Poloma, belong to the private investors who in case of exploitation pay the state fees up to the maximum of five per cent.