The current crises facing the Macedonian economy have not bypassed the mining sector, but it has once again demonstrated that it is a vital economic branch that can face the toughest challenges and still continue with investments and development, delivering security, stability and support for people, local communities and the country’s economy. This was emphasized by the President of the Macedonian Association of Mining (MAR), Ivica Talevski, in an interview with East Press, highlighting the significance of this sector for local communities, the national economy, and the need for a strategic approach for sustainable development in this industry.
Talevski reminds that the Macedonian mining complex creates about 8,000 jobs and is one of the few domestic industrial branches that records a surplus in trade exchange with foreign countries, exceeding $200 million annually, of which over 75% is accounted for by the export of metal ores. The contribution of mining to total direct investments in the country is also significant. For example, in 2020, as much as 30.7% of the total direct investments that arrived in the country were in the mining sector. Additionally, in the years before the pandemic and the economic crisis, the share of mining in total industrial production surpassed 11%. These are clear indicators of the importance and contribution of this sector to the development of the Macedonian economy.
MAR’s president also commented on the impact of high energy prices on the industry, which temporarily halted operations in some domestic mines last year, resulting in a decline in the overall volume of industrial production and exports of the country. Some predictions indicate that the price of electricity on the open market will remain high this year as well. “If such unfavorable predictions are realized, then our country needs to seriously consider how to assist domestic industrial capacities, including mining, to maintain their production and competitiveness on foreign markets where they export. This is particularly important because foreign companies from this industry already receive significant support from their countries, usually in the form of subsidized electricity prices, which reduce their operating costs and allow them to redirect more financial resources into capital investments for further modernization of their mines and sustainable development,” says Talevski.
Regarding metal prices, Talevski refers to the estimates of international financial institutions, which indicate that the largest industrial countries in the world may slow down economic activity in the next period, even facing a recession. This will negatively affect the demand and price of metals on world markets, which will have an impact on the revenue and development potential of domestic mining companies.
In the interview, MAR’s president emphasizes the importance of building greater trust in the mining industry. By pointing to the example of developed countries where a consensus has been reached since long ago that the concept of sustainable development, which equally takes into account the economic, social, and environmental dimensions of life, can be successfully applied in the mining industry, Talevski believes that the same can be achieved in our country, provided that several prerequisites are met.
“First, a long-term strategy for the development of the Macedonian mining sector needs to be defined, which should answer the question – what are the real potentials for the development of this branch, and how can these potentials be activated. Second, it is necessary to establish an effective system that ensures that all business entities in this industry, from the smallest to the largest, consistently and responsibly comply with standards and regulations in all areas that are relevant for sustainable development of mining. Third, we need to work on building trust and effective cooperation with all stakeholders who depend on the success of mining. Only in this way, with dedicated work and fulfillment of these three basic tasks, the domestic mining industry will gain the place in society that it deserves, which undoubtedly deserves as an industry that has a significant contribution to the economic development of the country, which invests in new technologies, employs and provides livelihoods for people in entire regions of the country, and invests in the prosperity of the community,” MAR’s president concludes.
As a good example of a responsible mining company that has sustainability at the center of its overall development strategy, Talevski points to the SASA mine, which invested over $30 million in overall modernization in the past five years, as well as an additional $25 million in the new capital investment program, the implementation of which is underway and is expected to enable stable SASA production in the coming years, job security, new employment opportunities for young people, improved safety and environmental protection, as well as additional benefits for the local community and the economic development of the country.
