SERBIA - DIVELOPMENT OF IM SECTORMarinko Bosnjak, Merkol d.o.o, Belgrade

March 2012

I d t i l Mi l i S biIndustrial Minerals in Serbia

Industrial Minerals in exploatation

Industrial Minerals not in exploatationNot explored enough Not exploredexploatation Not explored enough Not explored

Apatite (metaphosphorite) Al-silicate-alunite Amfibor-asbestsBarite Alunite White bauxiteBentonits Borates BromeCement lapors Gem stones DiamantDi t it G t Fl itDiatomit Granats FlogopiteDolomite Graphite PhosphoriteExpalnding clay Iodine Salt rockFeldspat Roof shale K & Mg saltsGypsum & Anhydride Perlite CorrundHydrotil-Asbest Piezooptic quarz Optical fluoritKaolin Mineral pigments Optical calcitRefractory & Ceramic clay Silex PhyrophilliteLimestone Petrology rocks PumiceChalk Rocks for glass & ceramics SulphurChalk Rocks for glass & ceramics SulphurQuarz send Vermicullite StrontianitMica (Muscovite) Basalt slag Basalt ash

March 2012

I d t i l Mi l i S biIndustrial Minerals in Serbia

February 2012

Miscelaneous Minerals reserves in SerbiaMiscelaneous Minerals reserves in Serbia

I d t i l Mi l i S biIndustrial Minerals in Serbia

Locality Industrial MineralsMiscelaneous Industrial Minerals reserves

Locality Industrial MineralsName Reserve (t) Main Mineral Escort Minerals

Fluorit Ravnaja – Krupanj 800.000 Fluorit Galenite, Sohalerite, Pyrite, CalcitBoron Piskanja – Pobrdje 7.500.000

27.000.000Colemanite, Haulite Boracite, Calcite, Quarz

Wollastonite Duboka - Kopaonik 1.500.000 Vollastonite Quarz, CalciteC C QTalc Bela stena -

Studenica85.000

750.000Talc, Chlorite Carbonats, Quarz

Dunite Poljane - Raska 1.700.000 Olivine Pyroxens, SerpentinsBarite Koprivnica - Zajecar 10.000 Barite Quarz

Misljenovac - Kucevo 3.000 Barite QuarzVidzurik - Miroc 4.000 Barite QuarzQBobija - Ljubovija Exhausted Barite Quarz

Basalt Vrelo – Buk.banja 13.000 Plagyoclas, piroxens -Slavujevac - Presevo 1.600.000 Plagyoclas, piroxens -

Diabasi Selenac - Ljubovija 8.000.000 Plagyoclas, piroxens -Draca - Rekovac 2.000.000 Plagyoclas, piroxens -

Phosphates Lisine Bosilegrad 82 000 000 Apatite Quarz CalcitePhosphates Lisine - Bosilegrad 82.000.000 Apatite Quarz, CalciteGranodiorite Radalj Plagyoclas, piroxens, Quarz Feldspats

February 2012

I d t i l Mi l i S biIndustrial Minerals in Serbia

Average consumption of IM per day per capita:

WORLD - 22 kg

EUROPE 43 kgEUROPE - 43 kg

AFRICA - 10 kg

NORTH AMERICA - 88 kg

SERBIA 19 kg

February 2012

I d t i l Mi l i S biIndustrial Minerals in Serbia

Coal reserves

Coal type Serbia (central) Kosovo & Metohia Vojvodina Serbia (total)Bituminuos 8.214 - - 8.214Semi-Bituminous 111 293 - - 111 293Semi Bituminous 111.293 111.293Brown-Lignite 536.678 - 8.729 545.407Lignite 3.989.333 15.746.000 275.000 20.010.333

February 2012

I d t i l Mi l i S biIndustrial Minerals in Serbia

OIL SHALE

Updated figures show total reserve of about 4,8 billion tons of oil shale and 40 Mt oil. Majority is concentrated around Aleksinac region, well explored with 2 billion tons of oil shale

OIL SHALE

Majority is concentrated around Aleksinac region, well explored with 2 billion tons of oil shale and 20 Mt oil. Other sites in Serbia has been explored on level of C1+C2. There are no existing mines or mining activities.

Ministry for environment, mining and spatial planning has opened a tender for consultingMinistry for environment, mining and spatial planning has opened a tender for consulting partner regarding proposal of exploration and extraction of oil shale, and final selection of a consultant will be announced in mid-April 2012. Ministry has received five letters of intention of possible strategic partners: investment funds Hatoro and Zao staro, Esti energy (Estonia), VKG (E t i ) d Oil I d t f S bi (NIS)VKG (Estonia) and Oil Industry of Serbia (NIS).

http://www.ekoplan.gov.rs/

February 2012

Mi i t D li ith l f Oil Sh lMinister Dulic with sample of Oil Shale

February 2012

I d t i l Mi l i S biIndustrial Minerals in Serbia

COPPER MINECOPPER MINEVeliki Rivulj0,37-0,45% Cu0,2 g/t AuA+B+C1 reserve 560 illi t560 million tons

February 2012

M itMagnesite

Magnohrom KraljevoMagnohrom - KraljevoMagnesite reserve5 million tons1 rotary kiln 40.000 t DBM12.000 t Mg-C bricks80 000 t Fired bricks80.000 t Fired bricks

February 2012

Z litZeoliteInstitute ITNMS, Belgrade in cooperation with Veterinary faculty in Belgrade, has done wide study of application of natural modified zeolite klinoptiloit maketing brand Min-a-Zel Plus® which has strongapplication of natural modified zeolite, klinoptiloit, maketing brand Min a Zel Plus , which has strong absorping properties of aphlatoxine, zearalenon, ohratoxine A, ergot alcaloide. Beside development of absorbents of microtoxines ITNMS is researching on development of new materials based on natural zeolite which can be applied as absorbent for removal of sulphate, phosphate, chromite, uranium ions etc. In cooperation with Farmacy faculty in Belgrade research project has been carried out in order to modifyIn cooperation with Farmacy faculty in Belgrade, research project has been carried out in order to modify zeolite as carrier of active materials.

Several locations in Serbia where Zeolite tufts were find:

Općošte- BeočinOpćošte Beočin

Veliko selo – Belgrade, (90-95% Zeolite tuft)

Mionica – Belanovica

I š B (90 95% Z lit t ft)Igroš – Brus, (90-95% Zeolite tuft)

Zlatokop, Katalenac and Mečkovac – Vranje, (Zlatokop underground mines are active and have reserve of 2 million tons high quality Zeolite tufts)

T i i K i kTopionica – Kriva reka

February 2012

Ph h t Vi t i Ph h tPhosphate - Victoria PhosphateTotal geological reserves in Serbia are at level of 106,61 Mt with average content of 9,1% P O Main deposit is located in Lisina by Bosilegrad in south east Serbia close to SerbianP2O5. Main deposit is located in Lisina by Bosilegrad in south-east Serbia close to Serbian-Macedonian border, with reserve of Apatite of 40 Mt with 9,55% P2O5, Al2O3+Fe2O3 7%, Carbonates 9-48,6%, SiO2 11,6-56,4%, Mica 2,9-21,3% etc.

In oder to prepare raw ore for further processing it is necessary to instal concentrate unitIn oder to prepare raw ore for further processing it is necessary to instal concentrate unit which will result in phosphate concentrate with 32% P2O5 , 1,4% Fe2O3, 1% Al2O3, 8% SiO2. Project is based on processing of 1,5 Mt Phosphate ore a year, mined in open-pit mine and underground mines, concentrated by flotation and magnetic separation, and with waste material storage according to existing regulations.

Phosphate concentrate specification:

Phisical properties:Phisical properties:

Specific density 3,05 t/m3

Bulk density 1,42 t/m3

Content of solid phase 15%Content of solid phase 15%

February 2012

Ph h tPhosphate

February 2012

B ltBasalt

SiO2 47,91-48,84% CaO 7,81-8,32%TiO2 1,00-1,20% Na2O 3,20-3,50%Al2O3 19,06-19,92% K2O 1,85-2,80%Fe2O3 1 95-4 95% CO2 0 00-0 03%Fe2O3 1,95-4,95% CO2 0,00-0,03%FeO 2,00-5,06% H2O (110o) 0,22-1,15%MnO 0,12-0,13% H2O (1100o) 1,42-2,55%MgO 5,95-7,61%

February 2012

Lithi & BLithium & Boron

Rio Sava ExprlorationpReserve of 125,3 million tons of Jadrit ore with average 1,8% Lithium oxide and 12,9% Boron oxide

February 2012

Fl itFluoritGeological reserves are 0,721 Mt, including 0,706 Mt balance reserve and 15·103 t, with average content of 28 58 CaF (with 3 4% Pb and 0 44% Zn) in Ravnaja location in westaverage content of 28,58 CaF2 (with 3,4% Pb and 0,44% Zn), in Ravnaja location in west Serbia and Koprivnica location on Kopaonik mountain.

It is possible to continue explorations and increase balance reserve what could be the base of further processing facilities developmentof further processing facilities development.

February 2012

P i f t iProcessing factoriesSilica and alumosilicate IM

Generaly saying concept of processing facilities of Silica sand, Feldspat, Mica, Clay and Zeolite are acdeptable from technology point of view. Due to unfavorable economic situation during period 1990-2000 industry need additional reconstruction and application of updated information technology in process control.

The most important players:

Jugo-kaolin (Kopovi – Ub, Srbokvarc – Rgotina, Belorečki peščar – Bor)

Kolubara – VreociKolubara – Vreoci

Kaolin - Valjevo

Šamot – Garaši, Aranđelovac

Feldspat – Bujanovac

Zorka nemetali – Šabac

Nemetali – Vrnjačka banja

February 2012

P i f t iProcessing factoriesCarbonate IM The most important players:

Limestone, Dolomite, Magnesite processing have base in important reserves. Numerous companies are concentrated in preparation material for constructive industry. Micronisation of limestone

Jelen do – Užice (Nexe Group) - Lime

Venčac – Aranšelovac

Nemetali – Topola – Micronised limestone etc.has attracted small investors.

Beside 3 integral cement plants Lafarge, Holcimand Titan there is a project of a new cement factory in Šabac which will be based on clincer grinding

Šumadija – Čačak – Magnesite

Rudnik – Bogutovac – Magnesite

Timok – Boljevac – Dolomitein Šabac which will be based on clincer grinding and mixing of ingredients – investor is Elixir Group, Novi Sad.

Timok Boljevac Dolomite

Nemetali – Rakovac

Mermer – Rekovac

February 2012

P i f t iProcessing factoriesMiscelaneous IM

First group, IM which are being mined and companies which process them are: Barite –Bobija, Ljubovija, Dacit – Granit, Ljubovija, Andesit – Šumnik, Raška etc.

Second group, IM where projects are under development: Borone – Rio Sava Exploration, Phosphate – Victoria Phosphate

February 2012

I d t i l Mi l i S biIndustrial Minrals in SerbiaDirections of strategy development of IM management is based on:

Strategic documents

Regulations (lows and supporting documents)

Development of institutional frameDevelopment of institutional frame

February 2012

I d t i l Mi l i S biIndustrial Minerals in SerbiaResults to be expected:

Geological explorationsDomestic thermal coal supply of local electricity productionSubstitution of certain import of IM with increased local miningIncreased processing of metalic and non metalic IMIncreased processing of metalic and non-metalic IMIncreased production of coal, oil and gasPromotion of sustainability of geology and miningState support of establishing modern operations for preparations and processing to final productsState support of export of final products based on domestic IMRecultivation and new application of abandoned mining operations

February 2012

Y 2020Year 2020

Estimated income of mining industry in the year 2020 should reach about 3 billion euros, including energy resources 2,060 billion euros, metals 0,670 billion euros, and IM 0,230 billion euros. Total investment in mining and processing industry should be 3,5 billion euros plus potential investment of about 1 billion euros in oil shale project.

February 2012