Future of Bulgarian Mining Industry Looks Bright

Business | July 30, 2010, Friday // 17:01| Views: | Comments: 0
Bulgaria: Future of Bulgarian Mining Industry Looks Bright Maritsa East and other mining companies in Bulgaria are projected to prosper. Photo by klassa.bg

After an 11.2% contraction in 2009, the Bulgarian mining industry is expected to grow by 1.4% in 2010 to be worth BGN 1.18 B (USD 760 M).

The New Materials market report from Business Monitor International (BMI): "Bulgaria Mining Report 2010," concluded that “positive indicators for the sector include an upward move in global prices for key commodities such as gold, copper, lead and zinc, while residential construction in Bulgaria is also beginning to pick up, according to the Bulgarian Chamber of Mining and Geology.”

Furthermore, Bulgaria's Maritsa East Mines is aiming to produce 26 million tonnes of coal in 2010 and hopes to produce up to 30 million tonnes in 2011. Maritsa East has also invested in new mining equipment to help it reach its goals.

Canadian mining firm, Dundee Precious Metals is also on the road to an expansion to 2 million tonnes of gold and copper per year.

“The European Bank for Reconstruction and Development may provide Bulgaria's largest zinc smelter KCM a EUR 47 M (USD 63.86 M) loan for a project to reconstruct and modernise its lead production line and upgrade its zinc process ... The project will increase yields, reduce energy consumption, reduce the need for maintenance and decrease a number of production costs,” according to the report.

“As the economy rebounds, however, BMI believes that growth in Bulgaria's mining industry will accelerate to 6.5% in 2011 to be worth BGN 1.29 B (USD 820 M). Growth levels will be maintained at 6.7% in 2012 before edging down to just below 6% in the subsequent two years. By 2014, the sector will be growing by 5.8% and will be valued at BGN 1.66 B (USD 1.07 B).”

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Tags: mining, Maritsa East, coal, zince, gold, copper, lead, Bulgarian Chamber of Mining and Geology
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