The InvestBulgaria Agency has awarded for a sixth year in a row Bulgaria's top investors for 2011 in five different categories at a special ceremony in Sofia. Hewlett-Packard is Bulgaria's No. 1 investor in the category for creating high-added value jobs. In 2011, HP Bulgaria opened a total of 1 150 jobs as part of the expansion of its HP Global Delivery Center Bulgaria – HP GDC in Sofia, originally announced in 2010. The average monthly salary at HP GDC is over BGN 2 400, and the average insurance income is BGN 1 942 – well above Bulgaria's average figures. Lufthansa Technik has grabbed the prize in the asset investment category for large companies. In 2011, Lufthansa Technik invested a total of BGN 25.5 M in its repair facility in Sofia serving aircraft from all over Europe. The asset investment category for small and medium-sized enterprises has been topped by Finnish investor Amer Sports, one of the largest global producers of sports gear. In 2011, Amer Sports Bulgaria invested BGN 7.7 M in its ski production factory in the mountain town of Chepelare. Asarel Medet Jsc, a copper mining and processing company based in the town of Panagyurishte, won the Investor of the Year award in the "Green Investment" category for investing BGN 140 M in two innovative projects for copper processing. Power utility EVN Bulgaria received the prize in the category for innovations by investing BGN 69.8 M in the new co-generation plant of the Plovdiv-North thermal power plant, inputting technologies that are novel not only for Bulgaria but for the entire Balkan region.
Source: Capital (12.01.2012)

Some BGN 39 mln from concession fees remain for municipalities Nearly BGN 39 mln remained as revenues of municipalities after the adoption of amendments to the Mineral Resources Act in the middle of last year, announced the Ministry of Economy, Energy and Tourism during the official handing of checks for the money from concession fees in the five municipalities with the biggest concessions. The amount is 20% more than planned, said the Economy Minister, Traicho Traikov. According to legislative amendments, 50% of the concession fees would remain for municipalities, whereas previously this percentage was 30. If the respective municipalities are small, 100% of the concession fees shall be remitted to their budgets, the amendments stipulate. Last year, local governments received BGN 24 mln, and another BGN 15 mln since the beginning of this year, out of which BGN 12 mln from the top concessionaires of Maritsa Iztok Mines, Elatsite Med (Copper), Asarel Medet, Chelopech Mining and BGN 3 mln – from smaller ones. Revenues from concession fees for 2011 amount to BGN 63,247,846, out of which BGN 23,907,378 will be remitted to municipalities. A total of 130 municipalities receive money from concession fees, but the most sizable proceeds for to Chelopech, Radnevo, Panagyurishte, Galabovo and Etropole. Their mayors said they would use the funds to create conditions for sustainable economic growth, to continue after the expiry of the concessions as well. More than 159 permits for prospecting for mineral resources were granted last year and contracts were signed for more than 100 new concessions. Companies that were licensed to develop the deposits will invest over BGN 200 mln in facilities for exploration and production. They will hire 1,500 workers, read provisions in the clauses of the concession contracts.
Source: Class (02.03.2012)

Bulgarian municipalities' concession revenues for 2011 amounted to close to BGN 39 M, according to Traicho Traikov, Minister of Economy, Energy and Tourism. In a Thursday statement during the official cheques award ceremony, Traikov said that the biggest sums would be transferred to five municipalities within the next few days. The list of top performers includes Chelopech (Chelopech Mining), which will receive BGN 2.4 M, Radnevo and Galabovo (Maritsa Iztok Mines), which will get BGN 2.3 M and BGN 1.7 M, respectively, Panagyurishte (Asarel – Medet), which will add BGN 1.9 M to its budget and Etropole (Ellatzite-Med AD), which will get BGN 1.7 M. In the beginning of July 2011, amendments to the Mineral Resources Act entered into force increasing the share of concession revenue transferred to the municipal budget from 30% to 50%. Traikov explained that Bulgaria's total concession receipts for 2011 came in at BGN 63.2 M.
Source: Capital (02.03.2012)

Asarel Mede expansion gets green light The Supreme Ecological Expert Council of the Ministry of Environment and Water has approved the investment proposal of Asarel Medet to expand the industrial area of largest copper enterprise in Bulgaria. The project will extend the mine’s life by at least 20 years and will increase the amount of processing ore by 15 million tons annually from 13 million tons now. Each year Asarel Medet invests at least BGN 100 million in production technologies. The project is expected to lead to more efficient capacity utilization, lower costs and reduce grinding scrap mine. The extension of the mine "Asarel" will greatly extend its period of operation, as it is expected 353 million tons of ore to be extracted for the entire period. The decision of eco experts must be approved or rejected by the Minister of Environment and Water within 14 days.
Source: Capital Dàily (20.04.2012)

The biggest metal extracting company in Bulgaria Asarel –Medet bought Trace resources, a company that holds the rights for exploration of gold-silver deposits Breznik and Rakitovo. The contract was signed on 19 April with the company’s sole owner Omax International Limited, registered on the Cayman Islands, which is part of the Canadian holding EurOmax Resources Ltd. The deal is estimated for nearly BGN 5.3 million. The exact value of the deal is CAD 3 489 560, in return of which Asarel Medet acquires 100 % of Trace resources’ capital. The agreement provides also, that seller will receive revenue from the sale of ore to the amount of 1.5% of gross revenue from the sale of the first 330 thousand ounces of gold and 970 thousand ounces of silver produced by the "Breznik"
Source: Capital (10.05.2012)

The biggest metal extracting company in Bulgaria Asarel –Medet bought Trace resources, a company that holds the rights for exploration of gold-silver deposits Breznik and Rakitovo. The contract was signed on 19 April with the company’s sole owner Omax International Limited, registered on the Cayman Islands, which is part of the Canadian holding EurOmax Resources Ltd. The deal is estimated for nearly BGN 5.3 million. The exact value of the deal is CAD 3 489 560, in return of which Asarel Medet acquires 100 % of Trace resources’ capital. The agreement provides also, that seller will receive revenue from the sale of ore to the amount of 1.5% of gross revenue from the sale of the first 330 thousand ounces of gold and 970 thousand ounces of silver produced by the "Breznik"
Source: Capital Dàily (10.05.2012)

Asarel Medet was awarded the big prize for green business The copper smelter Asarel Medet was awarded the big prize for its large-scale eco-friendly investment – a programme for reforestation and elimination of illegal dumpsites. The mobile operator Globul was ranked second for its Globul Green project and Elatsite Med (yet another copper company) won the third prize for its reforestation programme. Deputy Prime Minister Simeon Djankov awarded the prizes in the medium-sized business category, in which Aroma JSC was the big winner, followed by West TVVTV and Multiprint Ltd. The ceremony took place on Tuesday at the Lozenets residence. The Green Business awards are part of the national Green Bulgaria campaign, financed by Operational Programme Environment 2007-2013. The prizes were handed by Minister of Environment and Water Nona Karadjova, Deputy PM and Minister of Finance Simeon Djankov and Minister of Economy, Energy and Tourism Delian Dobrev. “Small-sized companies demonstrate that it is not necessary to be big in order to think about environmental protection and do more than what is required by legislation,” Minister Delian Dobrev said before awarding the prizes to the small-scale businesses. ”When I joined this Government, I intended to complete two ‘purely green’ tasks. One of them was to ban the smoking in public places and the second - to restrict the use of polyethylene bags,” said Djankov. The commission, ranking the projects, is independent from the Ministry of Environment and Water.
Source: Class (20.06.2012)

Fourteen out of 22 wishing to buy from Nuclear Power Plant Kozloduy’s electricity, which is provided for the free market, will succeed to do so. Last week an auction was held, on which 40 MW were offered. At the same time offers considerably surpassed declared quantities, reaching 600 megawatts, on the account that the energy provided by the headquarters to the market needs 350 megawatts. For the first time NPP Kozloduy helad an auction, where on equal footing both electricity retailers and end users - large industrial enterprises could have appeared. The final effect was more intense competition and higher prices. Bidders in the auction commented that they are pleased with the new conditions. Among the first companies to rate were Lukoil Neftochim, Zagora energy and Duropack Trakia paper.
Source: Capital (28.06.2012)

Copper company Aurubis executes an eco-project worth BGN 7.3 mln Copper extracting plant in Pirdop Aurubis Bulgaria executes a project under operative programme Competitiveness of Bulgarian economy to them amount of BGN 7.3 million. The project includes recycling of waste materials and introducing new product. Purchase of modern equipment for processing of waste and fayalit is enviasaged, too. The subsidy represents half of the project’s value. Auburis is the second minimg company granted with European funding in Bulgaria.
Source: investor.bg (13.08.2012)

Extraction industry on the rise in 2011 Extraction industry in Bulgaria continues its growth in 2011, though it couldn’t reach its pre-crisis levels. Yield of minerals reached 91.95 million of tones, which is by 13% more, as compared to 2010. Yet, it is still below the record 102.56 million reached in 2008. Value of produce increased by 21% to BGN 2.8 billion, which amounts to nearly 4% of gross domestic product (GDP). This is evident form data of The Bulgarian Chamber of Mining and Geology. Recovery in construction materials’ output is a good sign. Coal and metallic minerals remain leading for the sector. They insured 74% of extracted quantities. There is highest increase in volume of extracted liquid fuels- by 47.8%. Melrose resources and Oil and Gas Exploration and Production are the two companies that operate in the branch. Companies produced a total of 443 cubic meters natural gas and 22 thousand tones of oil. The considerable rise in gas is due to Melrose recourses’ work. Best production results are registered for Overgas Inc, owner of five of gas distributing companies, in the sub sector of liquid fuels. There is considerable increase in extraction of coals (mostly lignite). According to NSI’s preliminary data, extracted quantity went up by 21%. As a whole, extraction of coals is the second sub sector in value of production- a total of BGN 808.3 million for 2011. Production of metallic ores continues to have most impressive contribution to the country’s GDP. It provided for half of the total volume, registered by mining companies in the country. Last year companies of this sub sector ended up with produce, assessed to BGN 1.5 billion, or by 25% more, as compared to 2010. At the same time extracted ore increased by 4%, meaning that big part of the increase is due to prices. Ore-extracting companies are leading in revenues in the sector. Last year The Bulgarian Chamber of Mining and Geology awarded Elatsite-med as a top company. Revenues from gold extracting companies went up by more than 65% in 2011, and thus reached BGN 299.1 million.
Source: Capital (20.08.2012)

Established in 2006, the Bulgarian Federation of Industrial Energy Consumers (BFIEC) combines large enterprises, consumers of electricity and natural gas. Its goal is to represent their interests in communication with state structures. The organization members are companies like Actavis, Alcomet, Amylum Bulgaria, Asarel Medet, Aurubis, Berg Montana Fittings, Biovet, Gotmar, Druzhba Glassworks, Elatsite Med, Kaolin, KCM , Roca Bulgaria , Sviloza , Solvay Sodi, Stomana Industry, etc. Almost two months after the price hike of electricity by 16%, which was unexpected for business, we sought comment from the chairman of the Federation Konstantin Stamenov about the effects on the largest energy users and the measures offered by businesses to offset their losses. - What are the business calculations of the effects of electricity on the expensive production costs and that another rise in fuel prices is not further compounded the situation for businesses in the federation? As energy-intensive, production companies of the federation are dependent mainly on the prices of electricity and natural gas. I expect that there will be a decrease in production, and some companies even stop and go bankrupt. Fuel prices affect mainly the transport of raw materials supply and implementation of our products, but this is not so dramatic. The increase in energy prices, however, was a serious issue for enterprises and its effects will be felt most clearly in the final production results for 2012. Preliminary forecasts show decline in production this year will reach 30-40%, although I strongly hope this sort of decline is not reported by all companies. At this stage, however, the data is troubling. The big problem is that we feels a repetition of the 2008 crisis, which began with a decline in orders, which we observed in the beginning of this year. The difference between then and now is that while before 2008 we had several consecutive years of growth and profits, now we have several years of losses. - So the current appreciation is another shock to the industry, another "nail in the coffin," as they say? A little too strong a word, because unlike small business, industry is always able to operate with loans which it gets significantly easier. The problem is that this resource is exhausted, because if the past three years most companies have optimized their costs, it becomes increasingly difficult to finance the activities without positive result. Although in 2011 a considerable number of enterprises managed to restore production levels as pre-crisis volumes in 2008, their earnings were much smaller. Consumption was crouching and prices of realized production last year were far below the levels of four years ago. And last year, most companies in our federation reported losses. The expected reduction in production volumes this year by 30-40% will likely lead to levels in 2009, or to summarize - a difficult year for heavy industry. - Does investment in energy efficient systems, that some companies have done in recent years, not help? Yes, these investments were made, but in a crisis they did not help. All entities of the federation are first class investors. Most of these investments are related to loans that must be attended to. When your product is not for sale and you drop in revenue, these costs outweigh further. - In this situation, what crisis measures do you offer? Our Federation is a member of the Advisory Council on industrial stability to the Minister of Economy, Energy and Tourism, with whom we have regular meetings each month. At this point, we have proposed several austerity measures, which are being applied successfully in several European countries. For example, in many large countries such as Germany, France, Austria are applied models that reduce the fee "green and brown energy" that companies from heavy industry pay as major energy consumers. Our proposal is that this fee be reduced to offset the appreciation of the electricity. Now the fee is fixed at Megawatt/hour and the more energy is consumed, the more companies pay. Although our companies have invested heavily in energy efficiency, the very operations are such that electricity costs are important. Companies are subject to restrictions on the quantity of emissions expended, they pay excise duty on energy investments, integrated permits and pay expensive electricity because of cogeneration and energy from renewable sources. So we insist on lowering the cost of green and brown energy. We want Bulgarian industry, which generates the highest added value to the economy of Bulgaria, to survive. A job with us correspond four jobs in service sectors such as energy, finance, logistics, etc. It makes much more sense economically for Bulgaria to produce and export more products with high added value. If we export raw materials and energy we loose turnover and jobs in our economy. The best model for us is the Austrian, where the charge of "green energy" is two-component - fixed annual sum plus a variable part. The variable is calculated as a percentage of the fee for the transfer of power, rather than used kilowatt hours of energy. It constitutes 17% of the transfer fee, which is a significant advantage because the transmission of high voltage electricity cost considerably less than the transmission of medium voltage and low voltage. As this preference applies only to large energy users, other requirements are placed that weed out companies that can pay a lower fee "green energy". These models are presented to the European Commission and approved. - Are there indications that Minister Dobrev will commit to introducing a similar model in Bulgaria? We have submitted the proposals. After making the necessary calculations, we expect the response from the administration. Another suggestion we made to the finance ministry regarding excise duty on natural gas used for heating and fuel, first introduced by June this year. Last week we had a meeting on this subject in the Ministry of Finance. Since the European Directive establishes itself scenario in which individual Member States can introduce these new excise taxes since the beginning of 2014, we are now considering the possible effect that the postponement of the new rates would have on the budget and the possibility of delay. The Directive allows the tax increase to be made in two stages, initially it was minimal and only from 2014 to the final rate. Now this duty at the full rate is 10 cents per gigajoule for heating gas and BGN 0.85 for fuel for cars. We discuss excise duty for electricity, which is 1 EUR/MWh for commercial consumption from 1 January 2010. By Directive 2003/96/EC the minimum rate is 0.5 EUR/MWh. After the Finance Ministry checks whether and how the delay of this duty will affect revenue and whether it will be affordable for the budget next year, then we will know whether our proposal will be accepted by the Cabinet. In the longer term we expect the decision of the European Commission, which debated the new costs for the purchase of GHG emissions that would further burden the cost of electricity. We are in the final stage of debate for the permissible state aid to industry, related to the prevention of carbon leakage. This is the expected negative effect of restrictions on emissions in the EU - moving investment to countries that do not apply restrictions such as Turkey, China, etc. The aim is to compensate energy-intensive industries to the extent of the appreciation of electricity as a result of emissions from purchased power. In the end, it is important for us to implement a mechanism to compensate for appreciation in the pricesfrom the beginning of next year because of commitments to the purchase of carbon emissions, which are lay on the shoulders of heavy industrial companies, identified as major polluters.
Source: investor.bg (23.08.2012)

Asarel Medet AD won a project under operative programme Development of human resources. The value of the project with the name Improvement of working conditions in Asarel Medet AD is to the amount of BGN 183 640.50. The project will be executed for a period of 12 months. Ensuring safe and healthy working conditions is main priority of the company. The project envisages equipping a training office for health and safety at work and introduction of standard ISO 31000:2009. Development of an innovative computer system for assessment of risk and monitoring of working conditions is also planned within the project.
Source: Maritsa (02.10.2012)

Miners at odds with environmentalists A rally in Sofia against environmental organizations will be held today by miners from mines at Chelopech, Asarel and Elatsite. "We want to keep our jobs, which are in danger of unwarranted attacks against mining, made by alleged environmentalists", explained the trade federations of the miners at CITUB and Podkrepa. According to the ecology organizations of "Coalition for sustainable development" residents near the three copper-mines are subjected to the harmful effects that are not controlled by no one. They give the example of transport of poisonous concentrates and tailing ponds, which pollute the rivers.
Source: Standart (01.11.2012)