Heavy Industry: Contamination from China Difficult 2015 and pessimistic expectations for this year. This is the opinion of the mining and metallurgical industry in the country. Depreciation of metals on world commodity exchanges, which began in 2012, continued last year. The downward trend was prompted mainly by the slowing down economy of China. Only last year the prices of basic metals decreased by about 30%, while those of copper for example are already below critical levels. This requires the implementation of emergency measures aimed at maximum cost optimization in order to maintain competitiveness and in some cases the survival of businesses, said of the Bulgarian Chamber of Mining and Geology (BCMG), which brings together 118 companies in the sector. The metallurgical industry warns of shrinking investment and possibly reducing production costs. Part of the global market According to national statistics for the first ten months of 2015 metal ore mining in the country has declined by more than 6% annually. Turnovers decreased by 3%. Production in the industry as a whole remained almost unchanged, as it is due to other subsectors. Coal production reported growth of nearly 12% and an increase of just below 4% is observed in non-metallic minerals. It should be noted, however, that companies from these sub-sectors mainly sold on the local market. At the same time in terms of ores, Bulgarian companies are not isolated from global trends, as the cost of production is determined on the world market. Little advantage for Bulgarian mining companies is that unlike global companies their costs are denominated in, which partially alleviates the situation to them. The main producers of copper ores in Bulgaria are Assarel-Medet and Elatsite Med and copper-gold ores are mined by Dundee Precious Metals Chelopech. Production of lead-zinc ore is concentrated in enterprises Minstroy Holding, owned by Nikolay Valkanov, and KCM. The companies did not comment on individual results. There is information only for Dundee Precious Metals, which is owned by a Canadian public company Dundee Precious Metals. Data for the first nine months of 2015 show maintained production at Chelopech, but decline in revenue by about a quarter because of cheaper metals. Inevitable measures Actions taken by Bulgarian mining companies follow these of global giants, although currently there do not mention cuts and stopping power. Companies' efforts are now focused on keeping production and market share, as well as strategic relationships with customers and suppliers, the chamber said. The natural first step in the bearish market trend is a decrease in investments. Following the cycle of world market prices, companies invest very heavily in periods of good prices, reinvest most of their profits for replacement, modernization and improvements of machinery and equipment and optimization of technological processes in mining technical and mining technological condition of mines themselves and in implementation of scientific research and innovation. The results are lowering the cost of production on the one hand and on the other - ensuring the sustainability of companies in different types of crises, BCMG said. In periods of adverse market prices, companies need to reassess the planned strategic investments. They either postpone or restructure and carry parts of their plans. All companies must make spending review of all departments and branches and optimize.
Source: Capital (04.01.2016)

The price of copper collapsed, Asarel-Medet started the anti-crisis program In the last quarter of 2015 and from the beginning of this year Asarel-Medet implements a program of anti-crisis measures because of the collapse in metal prices on international markets, said the company's CEO Eng. Delcho Nikolov, presenting the balance of 2015 and outlining the priorities for this year. He stressed on the significant drop in the prices of all metals, which reached their lowest levels in recent years. Serious crisis is mainly due to slower economic growth in the largest consumer China is characterized by depth, duration and uncertainty and puts companies in severe tests. But the goal for companies in the sector is survival and preservation of their potential, analysts say at global and national level. Only last year the prices of basic metals fell by about 30 percent, according to statistics. As a result of declining global demand in recent weeks, the big world leaders in mining such as Rio Tinto, Anglo American and Glencore, also announced a number of measures related to the situation. Ceasing the work of many mining companies and lay off tens of thousands of jobs, stoppage of investments and dividends, and companies are impaired. "We expect the downward direction of metal prices to continue in this and the next few years. But we believe that thanks to our experience and our large investments in innovation, which we presciently made over the years, we will overcome this difficult period. We have dealt with similar disasters before," said Eng. Delcho Nikolov. He commented that the company has its own policies for monitoring and management of price and currency risk, as well as pre-developed set of measures to be applied in such adverse market situations. In the years of better times, Asarel-Medet made the necessary investments that led to the optimization of technological and organizational processes and reduced the production cost. While management toke actions to reduce or delay some planned investments in previous periods. Performed impairment and restructuring costs in all departments and areas. Priority for the company remains the desire to preserve jobs and wages of employees, despite the unfavorable conditions, added the CEO. The analysis of the results for 2015 stressed that all natural, technological and financial-economic indicators are fulfilled according to the ones anticipated in the business plan of the company, they are comparable to those in 2014. He highlighted was that last year, Asarel-Medet implemented two large-scale investment projects. After in 2011 opened Cyclic assembly production line for transport of overburden worth BGN 100 million, in 2015 was put into operation the Cycle-assembly production line - CPA-3 for grinding and transporting the ore from the Asarel mine to mill "Crushing" of the flotation plant. The new CPA-3 has a capacity of 3000 tons per hour. By putting it into operation was achieved economic effect of shortening the transport distance and the significant reduction in the volume of manufactured tonkilometres of the trucks. This directly reflects the lower cost of transportation of the mined resources, as is also reflected in a significant environmental effect of the reduction of exhaust emissions from the trucks. Investment costs for design, retrofit, relocation, construction work and commissioning of the CPA-3 was in the amount of about BGN 20 million, shows the balance. At full speed in 2015 started the fully modernized operational first section of the flotation compartment of a processing plant, as in this project were invested BGN 25 million. Before its realization was studied the world experience and were delivered the latest generation of equipment from leading manufacturers. There are new blower and compressor sector that ensure the work of all the flotation units. Introduced was new control and automation system whereby through visualization covers all processes in the flotation. With a reconstruction and modernization to improve technological performance and reduces power consumption.
Source: Company information (19.01.2016)

Gold from Breznik-after seven years and BGN 120 million The newest gold-extracting company in the country-Thrace resources, which is part of Asarel-Medet group-Panagurishte, may start work on its project near Breznik. In the end of January the company signed concession contract for extraction of gold and silver ores of Milin kamak deposit near the town. Now the company may start preparation work and construction of the facility. If all is going under the plan extraction will start in six to seven years. The investment is assessed to BGN 120 million. The direct owner of Thrace resources-Asarel investment has six more deposits. Vis its investment subsidiary the Panagurishte-based company, which has annual turnover of BGN 400-600 million, entered the extraction of gold in 2012. It’s the first project of the largest ore-extraction company in the country-Asarel-Medet, which is developed out of the town. The first stage of the project which starts now will last around three years. During the stage, construction of infrastructure, buildings and the very mine will start gradually. The extraction will start not earlier than 2023 i.e. seven years from the start of the concession. Thrace resources plans to construct complex with underground mine, enrichment plant and additional facilities at the area of near 2200 acres. Annually 300 thousand tons of ore will be extracted. The concentrate received at the place, will be then sold for processing to metal, probably in Bulgaria.
Source: Capital (04.02.2016)

Asarel Medet became investor of 2015 Mining and Processing Complex Asarel Medet and its joint venture with doctors of the municipal hospital and Panagurishte municipality Asarel Panagurishte zdrave are granted the prize Investor of the year 2015 by Invest Bulgaria agency. The awards, which were presented at a special ceremony on Wednesday evening, are awarded to companies for made by their sustainable investment, creating of new jobs and introduction of high technologies. Asarel Medet and Asarel Panagurishte zdrave in which the mining company is a shareholder got the prize for their project for a medical complex with 268 beds in the town. The project is assessed at about BGN 55 million of which Asarel Medet will invest BGN 28.3 million. In December the joint venture was awarded with a certificate for investment of class A. Holder of the award for innovative business for 2015 is producer of climbing walls Walltopia. German producer of automotive components Kostal Bulgaria got the prize in the category Investment in business expansion. Prize for Investment in human capital was bestowed to Stara Zagora-based company for production of rubber gaskets for the automotive industry Standard profile Bulgaria.
Source: Capital (11.02.2016)

Assarel became an investor of the year "The hero of this evening is Assarel Medet,” said Deputy Prime Minister Tomislav Donchev at the the 10th consecutive annual awards Investor of the Year. He handed the biggest investor award to the head of Asarel - Lachezar Tsotsorkov, because of the investments in the hospital in Panagyurishte Assarel Panagyurishte Health. Tsotsorkov thanked the team of Assarel and the government because of the adopted strategy for development of the mining industry. Deputy Prime Minister Donchev asked the head of the InvestBulgaria Agency, Stamen Yanev, to establish a new award -Investor of the Decade. Runners-up in this category are Ber-Hella Termocontrol and ABB Bulgaria. The award for Investor in Innovative Business was received by Walltopia. It is followed by Eldominvest Varna and PPD Bulgaria. The Golden Bull awrd for Investment in Business Expansion was handed to Kostal Bulgaria. Second and third place in this category took Mebeli-Stil and Festo.
Source: 24 chasa (11.02.2016)

BGN 87.6 million is revenues from concessions of underground resources in 2013 Nearly BGN 87.6 million is revenues from concession activity for extraction of mineral resources in 2013. From the total sum BGN 71.5 million is revenues from concession payments, while the rest comes from VAT, bonuses in signing of contracts for prospecting and exploration of mineral resources, interest and penalties, etc. the largest relative share of revenues (15.95%) is held by Dundee precious metals Chelopech, followed by Elatsite med (13.03%), Petroceltic (11.79%), as well as Asarel medet (7.8%) and Oil and Gas Exploration and Production (3.5%). As of 31st of December 2013 in Bulgaria a total of 485 concessions for extraction of mineral resources as active, as they are distributed in the following way: 19 - for metal underground resources, 71 - for non-metallic minerals (industrial minerals), 17 – for oil and natural gas, 18 - for solid fuels and 360 - for construction and stone materials. During the year concluded 27 new concession contracts are concluded and 12 new mining concessions are granted.
Source: money.bg (31.03.2016)

Mining Chamber and Asarel Medet presented in Panagyurishte model for professional training of staff Workshop for the presentation of the model for professional training of cadres was held in the hotel Kamengrad (Panagyurishte), on 31 May. Organizers of the forum, which was attended by business representatives from all over Bulgaria, schools, local authorities, industry and NGOs were Bulgarian Chamber of Mining and Geology (BCMG) and Asarel Medet. The purpose of the meeting was to show the results of active business actions in Panagyurishte and successful cooperation between employers and institutions in vocational education. Executive Director of BCMG Eng. Ivan Andreev welcomed the participants in the meeting and said that the forum was organized at the request of the companies in the mining industry. "Education makes sense only if we do so that every child receives quality knowledge. Thanks to the support that we encounter from Asarel Medet we can afford to introduce new approaches and not wait sluggish action of national reform in education," said the deputy mayor of the municipality of Panagyurishte Galina Matanova. / pa-media.net
Source: Standart (03.06.2016)

Bulgarian copper smelter Asarel Medet unit opens EUR 46 mln oncological hospital Bulgaria's Asarel Panaguyrishte Zdrave, majority-owned by copper mining company Asarel Medet, opened an încological hospital in Panagyurishte, in southern Bulgaria, following a BGN 90 million upgrade of an existing hospital, Asarel Medet said on Monday. The 310-bed Uni Hospital will employ highly-qualified staff in 36 medical specialties, Asarel Medet said. Uni Hospital's majority owner with a 90% stake is Asarel Panaguyrishte Zdrave, with the remainder held by the municipality. For its part, Asarel Panaguyrishte Zdrave is 67%-owned by Asarel Medet, a 28% stake is in the hands of a locally-registered company - Business Sustainable Development 06, and 2.7% are controlled by the Panagyurishte municipality, according to data published by Trade Registry by end-September 2015. Asarel Panaguyrishte Zdrave and the Panagyurishte municipality plan to invest a further BGN 5-7 million levs in a centre for robotic surgery with the hospital by the end of the year.
Source: Capital (13.06.2016)

Srednogorie is the first Bulgarian cluster with Silver quality label Association Srednogorie is the first Bulgarian cluster to receive a Silver quality label as an organization. This is the second level of accreditation, which is given by the European Secretariat for Cluster Analysis (ESCA) based on audit. On the lower level - Bronze label, Bulgaria has seven clusters. Romania is ahead with eight winners of silver. The labels are internationally recognized certificates for cluster management. Accrediting organization was established as a continuation of the European Initiative for improving clusters of the European Commission to support and encourage the development of business associations in Europe. Labels have already come outside the continent, as ESCA has accredited organizations in the US, Canada and other countries. The mere certificate was awarded to the chairman of the board of industrial cluster Srednogorie - Georgi Nikolov, who is also a member of the Board of Directors of Aurubis Bulgaria.
Source: Capital (16.06.2016)

Assarel-Medet completed investment of BGN 60 million Panagyurishte-based copper producer Assarel-Medet completed several projects for the renewal of equipment totaling BGN 60 million. Funds are invested in a new cyclical-line for transportation of ore, heavy equipment and machinery in the flotation plant. With the investments emissions from car exhaust, the cost of repair of roads and electricity consumption will be reduced. About BGN 1 million was used to repair the dining room and kitchen of workers at the factory. The new cyclical-production line is a conveyor belt, which can carry 3000 tons of ore per hour. Investment in it is assessed at BGN 20 million. The line replaces the use of cars that narrows emissions of exhaust gases by about 40% and reduces the cost of construction and maintenance of roads in the open-cast mine. Analysis of the first results after its release indicates that the effectiveness of mining transport has improved by 18.4%. It is a third object of the assembly line, but the first one is used for the transport of ore. New vehicles are purchased for the mine, as well.
Source: Capital (27.06.2016)

Investment in the mining industry grow Every third company in the mining industry plans to invest more and increase production in 2016, shows a survey among members of the Bulgarian Chamber of Mining and Geology. 13% will maintain their production level from 2015. Only 1% of companies will reduce their activity and 5% - its investment program. 14% percent expect an increase of staff. The relatively high share of companies that are directed to search for new sales channels is preserved - 16%. Most investments will be made in new equipment to improve working conditions and qualification of personnel. The results speak for strategic planning to retain staff and increase the level of safety in mining companies, BCMG commented. In terms of personnel, companies that have hired new employees reach 13% (3% more than in 2015). Nearly 1/5 of respondents have increased wages last year. This is the highest figure from 2013 onwards.
Source: Trud (27.06.2016)

Bulgaria's Prohorovo Mining gets eco permit for two copper mines - report Bulgarian company Prohorovo Mining has received a five-year environmental permit for a BGN 150 million project for two copper mines near the town of Nova Zagora, in the south of the country. The two mines will have an area of 31.6 ha, as their combined annual output will be 4.5 million tonnes of ore. The ore will be processed at an on-site enrichment plant into copper concentrate. The new project will create 180 jobs, as another 120 people will be employed in transport, catering and other related services. (Kmeta.bg)
Source: Other (13.07.2016)

BGN 71 mln concession revenues received by energy ministry in 2014 By 31.12.2014 there were a total of 498 concessions on ores and minerals extraction administrated by the Ministry of Energy on the territory of the country, the press office of the Bulgarian Government announced. The revenues received from the concession payments for 2014 amount at BGN 70,975,707. The Council of Ministers approved today the reports of the commissions on control on the concessions ores and minerals extraction for 2014. The main reason for the decline is delayed payments of Mini Maritsa Iztok. The most serious decline in revenues in 2014 was registered in the concessions of energy mineral resources – by nearly BGN 7 million or 31%. The decrease in metals was by BGN 5.4 million or by 18%, as and non-metallic minerals (including construction and stone materials) it is by BGN 1.1 million or by 6%. The concessionaire, who pays most to the state for mining, continues to be Dundee Precious Metals Chelopech with imported BGN 11.4 million, which is BGN 35,721 less compared to 2013. For the period 2011 - 2013 Dundee submitted to the treasury BGN 34 million under the form of concession payments. The second largest concessionaire in terms of payments to the Treasury with BGN 10 million is Elatsite med. Petroceltic that produces natural gas from the field Galata in the Black Sea, contributed BGN 5.5 million. The fourth position is held by Asarel with BGN 4.7 million revenues and the fifth position is taken by Oil and Gas Exploration and Production with BGN 2.2 million
Source: mediapool.bg (04.08.2016)

BGN 1 billion investment in Asarel Medet Executive Director of Asarel Medet Eng. Delcho Nikolov said the company welcomed its company holiday as the undisputed leader in the Bulgarian mining. In the period from 1999 to 2015 it has made investment worth BGN 892 mln. They were made by the seven corporate programs for long-term sustainable development, as the environmental projects alone saw investments of BGN 78 mln. The financial estimates for 2016 provide BGN 125 mln investment so soon the total amount will exceed BGN 1 bln. In the mining and processing of copper ore execution of the plan is 101.7%, in the production of mining mass - 104.37%, while in the mining of overburden - 105.6%, according to results for the first seven months of the year. Because of the undeniable achievements across the mining sector on August 18 Asarel Medet received the awards for the Miner's Day in the categories "Caring for Nature", "Safety and Health at Work" and "Best Production Results” by the Bulgarian Mining Chamber.
Source: Standart (29.08.2016)

US giant buys project Asarel near Pazardzhik One of the world leaders in copper in production the American Freeport-McMoRan is buying Bulgarian Asarel Exploration, which holds the rights for prospecting and exploration of metallic minerals in the area Borimechkovo in the area between Pazardzhik and Panagyurishte. The direct buyer is Dutch Freeport-McMoRan Bulgaria B.V., which is part of the US group and the Bulgarian company is solely owned by the copper producer Assarel-Medet. For the moment the price is not announced. Asarel Exploration was founded in early 2013 and deals with geological activity, mining and processing business, prospecting, exploration, mining and trading minerals. Its capital is BGN 178.4 thousand. Overall foreign investors in the mining sector in Bulgaria are few. The biggest project is that of the Canadian company Dundee Precious Metals, which operates the copper-gold mine in Chelopech and has begun the development of a new mine near Krumovgrad.
Source: Capital (20.09.2016)

Freeport-McMoRan buys 51% of Asarel Exploration US Freeport-McMoRan buys 51% of Asarel Exploration from its sole owner Assarel-Medet. This became clear after the CPC said the transaction is not subject to control by the Commission. The Bulgarian company is relatively new and so far with limited activity, but holds the rights for prospecting and exploration of metallic minerals in the area Borimechkovo. The purchase will be done by the registered in the Netherlands Freeport McMoRan Bulgaria B.V., which is owned by the US company. Asarel Exploration was registered in early 2013 for activities such as geological and mining business, prospecting, exploration, mining and trading minerals and a capital of BGN178.4 thousand. The American buyer is one of the largest companies in the sector worldwide with revenues of nearly USD 16 billion for last year. US Freeport-McMoRan now has a company in Bulgaria - Balkan metals and minerals, which was founded in May 2004.
Source: Capital (07.11.2016)

Orica Med Bulgaria to invest BGN 1 million in a new line for detonators By the end of the year, one of the largest producers of explosives for civil use in the Balkans Orica Med Bulgaria will complete its investment program for about BGN 1 million. It will allow all handmade detonators to be mechanized. "The project Balskan is very important for us, as we transferred the whole manual production of the system for non-electrical detonators Excel from Sweden to Bulgaria" said CEO Stanislav Nikolov. Now the plant produces about 1 million detonators annually, half of which are sent to the company holding the license Orica Sweden and through it go to the mining and construction industry in all EU members and some African countries. The rest is sold on the Bulgarian and Balkan markets. Its explosives are used in mining and construction of roads, in metallurgy, as well as demolition of old buildings. The Balskan began in 2015, approved by Assarel Medet, which together with one of its subsidiaries holds 40% in the company, and by the majority shareholder Orica Norway after preliminary studies of the economic efficiency of transmission of the Swedish manual production of waveguides with large lengths to Bulgaria.
Source: Capital (09.11.2016)