Copper smelter to build wastewater plant Assarel Medet, the copper mining and processing company based in Panagyurishte, Southern Bulgaria, has invited a competition for contractors to build a purification plant for drainage waters. The project is part of the company's program for the remediation of environmental damage from uses predating the privatisation of the company. The facility should be ready by Sept '07. Bids will be accepted until Feb 2. This is also the deadline for the purchase of all required papers for participation in the auction procedure for the price of BGN 650. All participants will also have to pay BGN 12 000 guaranty fee each. The offers will be opened on the next day, Feb 6, and than they will be rated. The offered construction price will have a 30% influence on the final decision rating, 15% the stated deadline for the completion of the project and contractor’s experience in similar projects, and 10% influence over the final rating will have the following factors: the technical and professional experience of the workers, the technical equipment of the contractors, the guaranteed deadline and the way of payment.
Source: Dnevnik (11.01.2007)

Deadline for the metallurgy to improve until fall The metallurgical companies have invested almost BGN 2 bln in ecology projects. Furthermore they are planning to invest another BGN 1.5 bln over the next 3 years. The companies operating in the sector have the greatest achievements in environment protection as they started to follow all ecology regulations some 4-5 years ago, said Polimiti Paunova from the Branch chamber of ferrous and non-ferrous metallurgy in Bulgaria. Ecological rules and regulations for metallurgical companies are very tough and in order to be followed some major investments have to be made. Only Kremikovtzi JSC managed to negotiate and get a transitional period to reach ecology protection regulations until 2011. Over the next three years the steel factory will invest BGN 0.5 bln in order to limit the wastes and pollution. The other companies will invest until 2010 as some of the projects are already in an implementation stage. Copper producer Asarel Medet – Pirdop has already organized an auction for the construction of a purification station for the drainage waters at the Asarel mine. Some major investments will also be made for the electrolytic unit of the Pirdop-based copper producer Cumerio Med. According to its 3-year investment plan Sofia Med will invest in dust reducing installations, while Stomana Industry will invest about BGN 250 mln in product development.
Source: Pari (11.01.2007)

Copper smelter to resolve pollution issues Asarel Medet, the copper mining and processing company based in Panagyurishte, Southern Bulgaria, said it will spend BGN 5.7 mln in 2007 to remove all environmental damage from past uses. The company has implemented a total of 7 projects tackling pollution predating the privatisation of the company. Earlier this month a state commission approved the biggest ever project of Asarel Medet valued at about BGN 10.5 mln including a re-cultivation of 1 100 decares land area at the Eastern mound within 3 years. The company also announced a competition for a subcontractor for the construction of a purification system for the drainage waters at the mine. The eco program is backed by the World Bank and must be completed till the end of the year. A key factor for all investments in eco protection that Asarel Medet should make is the adoption of the European directive concerning mining wastes that must be adopetd by the Bulgarian legislation over the next few months. Following this directive will cost the companies from the mining sector about BGN 2 bln, announced Lachezar Tsotsorkov – an executive director of Asarel Medet some time ago. Managers believe that some of the funds will be provided by EU programmes.
Source: Dnevnik (24.01.2007)

About EUR 550 mln required for improvements About EUR 550 mln are required for repair works, re-cultivation and construction of tailings ponds in Bulgaria that are in full correspondence to the EU standarts. Until May 2008 Bulgaria and all the other EU members have to vote a new euro-directive treating mine wastes. Currently there are 4 tailings ponds in Bulgaria that are subjected to the new euro-standarts: in Asarel, Elatsite, Chelopech and Marica Iztok TPP, said Mr. Petar Petrov.
Source: Sega (30.01.2007)

Natura 2000 may obstruct mining Investors worry they may be denied permits for development of new deposits Nearly 400 mineral deposits may be included in the scope of Natura 2000. Concessions have been granted on another 43 deposits in the environmental network. Placing them under special protection as habitats of rare plants and animals worries investors, who have made substantial investments in exploration and development. Minister of environment Djevdet Chakarov has unofficially told the Bulgarian Chamber of Mining and Geology that mines and quarries would not be affected by the network. That, however, does not offer comfort to companies, since most of them have investment plans for other areas. Natura 2000 may foil their intentions to obtain permits for mining and processing of minerals there and cost them considerable amounts already invested in exploration. It is more than natural for an enterprise to develop the adjoining areas, because new deposits are very likely there and the necessary infrastructure has been built already, the CEO Of Asarel Medet and chamber chairman, Lachezar Tsotsorkov, said. It would be unwise to block the development of nearby mines. There should be no restrictions on areas targeted by investors before the start of Natura 2000, according to the enterprise. Actually, there is no clarity about the future of deposits covered by the environmental network. According to the draft, the whole area of the East Rhodope Mountains is included in Natura 2000. Most affected is the region of Ivaylovgrad, where all investment plans may be thwarted.
Source: Pari (02.02.2007)

Asarel Medet to develop new field The Government allowed Asarel medet to develop a new field for metal ores and minerals extraction for a set period of 3 years. The company has already chosen a sitein the Sivata gramada – Panovo byrdo area, next to Panagyurishte Municipality. Asarel Medet will invest almost USD 240 mln for the development of the site that will be spread on a land area of 14 sq. km. Balkan Minera and Mining also got a 3-year permission for the site Koshuta located in Smolyan Municipality. The company will invest USD 125 000 for a site spread on 29 sq. km. The Montana-based Patengineering-M gained a concession contract for 25 years for the limestone site Vladimirovo. It is located in the Vladimirovo village, Boychinovtzi Municipality and it is spread on 300 000 sq. m. The concessionaire will invest over BGN 1 mln at this site. The average annual output from it will 25 000 cubic m. rocks. The Municipality will get 30% of the income.
Source: Dnevnik (23.03.2007)

Mining companies' fees to jump four-fold The concession fees for the companies operating Bulgaria's biggest metal ore mines - Elatsite, Chelopech and Asarel Medet - will rise two- to four-fold. This emerges from the new methodology for fee formation. The draft has been sent for agreement to the respective ministries. According to the document, the fees for mining of metal ores in Bulgaria will range between 0.8% and 4% of the net sales revenue. Currently companies pay between 0.2% and 6%. In future, concession fees will depend on the profitability of mines. The highest rate, 4%, will be charged for profitability of 50% and more. The working group in charge of the draft did not take into consideration the proposal of the industry chamber that the fee should be calculated as a fixed percent of the value of metals produced. According to companies, the new methodology will affect mainly the lead-and-zinc mines, where the fees will jump more than 10-fold.
Source: Pari (02.04.2007)

Record output at Asarel Medet mine The largest electricity-powered excavator in Europe was put to operation at Bulgaria's Asarel Medet mine. The excavator is manufactured by Liebherr and was assembled over a three-week period at the mine prior to its launch. A total of BGN 75 million will be invested in new mining equipment at the Asarel Medet mine in 2007, Lachezar Tsotsorkov, executive director of the company, told the Pari daily. Some BGN 60 million were invested in the modernisation of labour conditions in 2006. Asarel Medet excavated a record-high 42.4 million tonnes of rocks and produced 13 million tonnes of processed copper ore in 2006. The new equipment is expected to help the company excavate 10 million tonnes of rocks more in 2007, which in turn would help raise processed copper ore output.
Source: Pari (13.07.2007)

Asarel Medet assembles Liebherr excavator German company Liebherr has delivered an electric-powered crawler excavator to Bulgarian open pit copper mine Asarel Medet. The purchase of the new equipment is part of the company's USD 100 mln modernisation plan aimed at extending the life-span of the mine, better utilisation of the copper deposits and cutting the cost of extraction and processing.
Source: Dnevnik (18.07.2007)

Elatsite Med to invest 50 mln euro annually Local copper producer Elatsite Med will ingest 50 mln euro in annual investment through '12 in a bid to extend the life of its mine resource to '20, executive director Kostadin Naidenov told news agency SeeNews. A project has been drafted that, if approved, will ensure Elatsite Med stays in operation until '32. A go/no-go decision on the project will be taken by the end of '08. A strategy currently being implemented by the company will increase copper extraction to 140 mln tons annually by '20. In '07, the copper producer has earmarked 100 mln levs for new equipment and eco projects.
Source: Dnevnik (23.08.2007)

Bulgarian enterprises, power distributors litigate electricity hike Several local enterprises and regional power distribution companies have lodged complaints with Bulgaria's Supreme Administrative Court against the revision of domestic electricity tariffs enforced on July 1, 2007. The complaints were filed by Stilmet, Asarel Medet, Agropolychim, Radomir Metali, Kremikovtzi, E.ON Bulgaria Sales, E.ON Bulgaria Grid, EVN Bulgaria Power Distribution, EVN Bulgaria Power Supply, CEZ Electro Bulgaria and thermal power plants Bobov Dol and Varna. The hearings on the complaints submitted by the industrial enterprises are scheduled for October 29. The hearings on the complaints filed by the power distributors are slotted for November 5 and 7. The industrial consumers have asked the court to overturn the new tariffs as unlawful. They contend that the new tariffs contravene the Energy Law and the pricing regulations. The price increase, which ranges from 31% for some consumers to 51% for others, stunt the development of the free market and competition and entrench the foothold of national power grid operator NEK. The power distributors argue that there were no grounds for the hike in the price at which they buy electricity from NEK. The major power consumers point out that the 45% increase in the transmission charge was also groundless. In a separate development, the Bulgarian association of the metallurgical industry has filed an anti-trust complaint against NEK and has asked the Commission for the Protection of Competition to investigate possible abuse of dominant market position. The companies are in the opinion that the watchdog has broken the principles of just contribution of the economic consequences after market liberalization when the new tariffs were defined and has not ensured equal conditions for deals with free-negotiable tariffs as provisioned in the energy law. Industrial customers buy 31-51 percent more expensive electricity from the beginning of July. State Commission for Energy and Water Regulation has transferred its commissions to the electricity company, states Asarel Medet complaint, and has wrote down that the tariff cannot be lower than the tariff for the end customer. The regulator has not pointed out the assessment method. Power distribution companies also think that the higher price of electricity is not well grounded. In big clients’ complaints is pointed out that the distribution fee, higher by 45 percent, is not grounded. Currently it is BGN 8.2(no VAT) per MW. Two years ago, big customers appealed against the distribution fee in court and won the case against the watchdog. Power plants Bobov Dol and Varna do not accept the new tariffs as well. They motivated their demand with the higher prices of local and import coal.
Source: Dnevnik (25.10.2007)

Bulgaria State Assets Privatisation Nearing End The privatisation of the state-owned assets is nearing its end, with only 8,5% held by the government in 1993 still in its hands, statistical data released on Tuesday by Bulgaria's privatisation agency showed. Bulgaria has received a total USD 11 B from the sale of state assets over the past 14 years, including USD 4,2 B in investment committed by new owners. Overall, the agency sold 2927 majority stakes and 4074 minority stakes over that period. The biggest privatisation deals were for steel mill Kremikovtsi, dominant fixed-line telecom BTC and Neftochim refinery. A total 173 deals were carried out with foreign investors, including for BTC, Neftochim and the seven regional power distribution firms. The agency still has to sell a majority stake in state shipping company Navibulgare and eight hydro-power plants.
Source: Darik Radio (31.10.2007)

Construction companies dominate BCCI ranking Construction companies occupied the top spots in this year's ranking of the companies and holdings with best financial results, compiled by the Bulgarian Chamber of Commerce and Industry (BCCI). BCCI ranked the Top 100 companies in terms of growth revenue for 2006 and the Top 300 companies in terms of profit growth for the same year. The criteria in this year's rankings were changed and companies were ranked in terms of year on year growth in revenue and profit, respectively. The new ranking criteria reflects the good corporate management of the companies, making way for enterprises which have not been included in the rankings so far, Bozhidar Bozhinov, BCCI chairman, said. Companies that booked losses and companies that generated less than BGN 100,000 sales revenue in 2006, were not included in this year's ranking. One in every three companies, ranked among the Top 30, operates in the construction sector. The services sector, however, has most representatives in the rankings, which outlines a trend for the future. MobilTel topped the additional ranking of the companies with the highest profits for 2006. The mobile operator booked BGN 389 million profit for that year. The Bulgarian Telecommunications Company (BTC), Assarel-Medet and Enel Maritsa Iztok followed with BGN 283 million, BGN 113.6 million and BGN 80 million profit, respectively. Nearly 5,000 companies, which had their 2006 financial reports published by July 2007, were included in this year's ranking. The combined sales revenue of the companies included in the ranking amounted to BGN 67.426 billion. These companies accounted for BGN 27 billion or 55% of the GDP in 2006.
Source: Pari (02.11.2007)

The deputy Minister of Economy and Energy Mr. Lachezar Borisov will sign voluntary long term agreements for energy efficiency with interested companies and three business and branch associations. Some of them are Inter Pipe JSC – Sofia, Elatsite-Med JSC – Mirkovo, Asarel Medet JSC – Panagyurishte, etc. The ceremony will take place in the Ministry of Economy and Energy at 10 a.m. The mechanism Voluntary Agreements for Energy Efficiency is included as main instrument for increasing energy efficiency according to EU Directive 2006/32/EU for end energy consumption and energy services. In order to apply it Bulgarian Ministry of Economy and Energy prepared First National Energy Efficiency Action Plan 2008-2010.
Source: Agency Focus (23.11.2007)

Six companies of the most energy consuming industries, Metallurgy, Chemistry and Mining Industry, signed the first voluntary long term agreements for energy efficiency in Bulgaria. The documents are part of the Ministry of Economy and Energy project on the First National Energy Efficiency Action Plan 2008-2010, made jointly with the Netherlands government. The first Bulgarian companies to join the project are Inter Pipe JSC – Sofia, Elatsite-Med JSC – Mirkovo, Asarel Medet JSC – Panagyurishte, Bulned-Vratsa SPLTD – Vratza, Zebra JSC - Novi Iskar and Aroma PLC JSC – Sofia.
Source: Darik Radio (26.11.2007)