IQmining.cz 2011 Conference: Czech Mining – Quo vadis?

Leaders of the biggest Czech mining companies, experts from the Czech Mining Agency including its President Ivo Pěgřímek and representatives of the Ministry of Industry and Trade met two weeks ago in Plzeň to try to answer questions about the future of Czech mining. OKD was the main partner of IQmining.cz 2010 and the company’s representatives actively contributed to the event.

One of the key issues discussed at the conference focused on proposed amendments to the Act on Protection and Use of Mineral Resources (better known as the Mining Act). “It is important to make sure that the Act reflects the needs of mining companies and that they directly contribute to the drafting of the amendment. The task of the Ministry of the Environment is to define terms and conditions for mining but it should not interfere with the substance of the Act,” Pavel Kavina, head of the mineral resources and security policy department at the Ministry of Industry and Trade, summarised the opinion of most conference participants following a discussion where concerns were voiced about the fragile coalition government and the possibility that it might give in to populist pressures of certain interest groups.

The tone of the meeting was set in the opening speech of the President of the Czech Mining Agency Ivo Pěgřímek. “Mining must not be seen as a profit-oriented business activity but rather understood in the context of the benefits it brings to society. Fortunately, more and more people now realise what consequences we would have to face with further restrictions on extraction of raw materials needed in energy generation. However, we must continue our awareness raising efforts and explain the situation to the public,” he added.

Deputy Minister of Industry and Trade Tomáš Hüner emphasised the fact that the Czech Republic will face energy self-sufficiency problems as early as in 2015. “Ever since the heyday of the Czech energy industry, we have seen an uninterrupted, sharp growth in electricity consumption. With all due respect to energy-saving efforts, all available studies show that energy consumption will continue increasing at least until 2050,” he argued.

Zdeněk Osner, Chairman of the Board of The Employers’ Association of Mining and Oil Industries, talked about the lack of clarity of the country’s energy policy and stressed that there is actually very little that mining businesses ask from the state. “What does a mining entrepreneur want? If he is to invest substantial amounts into identification of and search for deposits he needs guarantees that his investment will not be frustrated,” Osner said.

Ján Fabián, OKD’s director for development and strategy, represented the company at the conference, outlining OKD’s outlook and touching on several more general topics. “Strict EU legislation on environment protection in mining means that European coal is much more environmentally responsible that coal from third-world countries. Closing this or that shaft has zero effect on consumption and global environmental burden. On the contrary, both are certain to keep growing in the future,” Fabián explained.

Vladislav Sobol