PROCEDURE FOR AWARDING CONCESSIONS FOR PROSPECTIVE GEOLOGICAL
RESEARCHES, DETAILED GEOLOGICAL RESEARCHES AND EXPLOITATIONS OF
MINERAL RESOURCES
The mineral resources in Republic of Macedonia are regulated in accordance with the
Mineral Resources Law.
The procedure for awarding concessions for prospective geological researches, detailed
geological researches and exploitations of mineral resources is conducted by the state
administration organ responsible for performing the work in the area of mineral
resources.
The procedure for all mineral resources starts with awarding concession for prospective
or detailed geological researches except for the energy mineral resources.
1. CONCESSION FOR DETAILED GEOLOGICAL RESEARCHES
The right to performing detailed geological researches is acquired after obtaining
concession for detailed geological researches which is awarded by the Government.
The concession for detailed geological researches is awarded on the basis of public call
with electronic auction, except for the public companies, public institutions, as well as the
entities which are owners of the land where the concession is required for the mineral
resources like sand or collective quartz, where the concession is awarded on the basis
of request.
The procedure for awarding concession for detailed geological researches starts with
submitting initiative for awarding concession for performing detailed geological
researches. The initiative can be submitted by each interested legal person, including
the foreign legal persons with office registered in the Central Registry of Republic of
Macedonia, in addition to which they are obliged to submit:

Explanation and basic data for the submitter of the initiative;

Proposed period during which the concession will be awarded;

Location on which the detailed geological researches would be performed
drawn on topographic map in ratio 1:25 000 or 1: 50 000.
After submitting the initiative, insight is made on the location and adjustment of the
space, at which within 14 days and upon official duty opinion is requested from the local
administration unit and the state administration organs for performing the works from
the area of environment and spatial planning, protection of the cultural heritage,
transport and connections, forestry, water management and agriculture.
The Ministry of economy, after adjusting the locations according to the initiatives,
submits to the Government proposal for announcing a Public call for awarding
concessions for performing detailed geological researches.
After conducting the procedure and evaluation of the bids for awarding concessions for
performing detailed geological researches of mineral resources the Commission submits
to the Government Information for the evaluation of the bids with Minutes, Report of the
conducted procedure and individual Draft decisions for awarding concessions at which
after their adoption by the Government the selected concessionaires are obliged in the
determined deadline to pay the concession allowance offered in the bid. After the
payment of the assets Agreement is concluded for concession for detailed geological
researches of mineral resources (the signatory on behalf of the Grantor is the ministry of
economy).
Period for the awarding of the concession
The concession for detailed geological researches of mineral resources is awarded for
period of six years for maximum space of:
- 30 km2 for energy mineral resources;
- 30 km2 for metallic mineral resources;
- 30 km2 for technogenic mineral resources;
- 2 km2 for nonmetallic mineral resources;
- 5 km2 for architectural and decorative stone and
- 2 km2 for thermo mineral, thermal and mineral waters and gas CO2.
Starting the detailed geological researches
The concessionaire can start the detailed geological researches if, within 15 days before
starting the same, he submits to the Ministry of economy:
 Revised Project for performing detailed geological researches.
After completing with the detailed geological researches, the concessionaire is obliged to
deliver to the Ministry of economy Revised Elaborate for the detailed geological
researches.
2. CONCESSION FOR PROSPECTIVE GEOLOGICAL RESEARCHES
Prospective geological researches are obtained in order to find potential locations for
detailed geological researches.
Prospective geological researches can be made on the whole territory of Republic of
Macedonia except on locations where concessions for exploration or exploitation of
mineral resources are already awarded or on localities where an initiative is submitted.
The procedure for awarding a concession for prospective geological researches is the
same as the procedure for awarding a concession for detailed geological researches (as
in Part 1).
Period for the awarding of the concession
The concession for prospective geological researches of mineral resources is awarded
for period of two years for maximum space of 5000 km2.
Starting the prospective geological researches
The concessionaire can start the prospective geological researches if, within 120 days
after signing the Contract for prospective geological researches, he submits to the
Ministry of economy:
 Revised Project for performing prospective geological researches.
After completing with the prospective geological researches, the concessionaire is
obliged to deliver to the Ministry of economy Revised Elaborate for the prospective
geological researches.
The results of the prospective researches cannot be transferred to another person and
they remain in possession of the concessionaire until a request for awarding a
concession for detailed geological researches is applied by the concessionaire. A
request can be applied for maximum of 2,5 % of the territory on which the prospective
geological researches were made. The rest of the results remain in state property. The
request can be applied within 30 days after expiration of the Concession Agreement.
3. CONCESSION FOR EXPLOITATION OF MINERAL RESOURCES
Exploitation of mineral resources is acquired by obtaining a concession for exploitation
of mineral resources, which is awarded by the Government of the Republic of
Macedonia (hereinafter: Grantor of concession).
Concession for exploitation of mineral resources is awarded for a determined location
defined by coordinates put on a topographic map on the basis of an elaborate from the
performed detailed geological researches.
Concession for exploitation of mineral resources is awarded for a period of up to 30
years with a possibility for extension for another period i.e. until full exploitation of the
mineral resources for which the concession was awarded, but not longer than 30 years.
Awarding concession by public competition
Concession for exploitation of mineral resources is awarded on the basis of a public call
when an owner of the results of the performed detailed geological researches is
Republic of Macedonia.
The public call is implemented in a way and under conditions determined by this Law
and the Law on Concessions and public private partnership.
Awarding concession for exploitation of mineral resources on request of an
interested person
Concession for exploitation of mineral resources is awarded on the basis of a request of
the person that performed the detailed geological researches, and when the results
from the performed detailed geological researches are his ownership.
To entities such as public enterprises, public institutions, pursuant to this Law,
concession for exploitation of mineral resources are awarded on the basis of a request.
The request is submitted to the state administration organ responsible for performing
the works in the field of mineral resources within a deadline of 120 days, calculated
from the day of expiration of the concession for detailed geological researches.
Beside the data for the applicant for the concession, enclosed to the request are the
following:
-
Study on the justification for the requested concession;
-
Topographic map in ratio 1 : 25 000 with coordinates on the border points of the
location of the determined area;
-
Sketch, copy of a cadastre plan with marked borders of the requested area for
awarding concession for exploitation of mineral resources and property list, with
number of cadastre parcels and cultures for the area at which exploitation of
mineral resource would be performed and
-
Elaborate for performed detailed geological research.
After submitting the request, inspection is done on the location.
When the file is completed, Draft-Decision for awarding concession for exploitation of
mineral resources is submitted to the Government.
Pursuant to the decision for awarding a concession for exploitation of mineral
resources, the grantor of concession and the concessionaire conclude an Agreement
for concession for exploitation of mineral resources.
4. LICENCE FOR EXPLOITATION OF MINERAL RESOURCES
Exploitation of mineral resources and performing mining works may be started after the
concessionaire obtains a license for exploitation of mineral resources.
A license is issued on request, which the concessionaire is obliged to submit within a
deadline of two years from the day of concluding the agreement for concession for
exploitation of mineral resources, enclosing to it the following documentation:
-
Data for the applicant;
-
Proof of solved property and legal relations for the land where the exploitation of
mineral resources would be performed, except in case when it is an
underground exploitation in conditions when exploitation doesn’t have an impact
on the surface;
-
Main mining project for exploitation of mineral resoruces that are subject to the
concession together with revision (expert) assessment of the same;
-
Decision for approval of the study for assesment of the impact on the
enviornment or decision for approval of the elaborate for assesment of the
impact on the environment;
-
Traffic consent for connection to a public road;
-
Waste management plan;
-
Proof of owning or renting a weighing-machine (scale) for the ehploatated
mineral resource and
-
Water management consent for protection or use of waters from the responsible
state adminsitration organ responsible for water managment.
5. ALLOWANCES FOR CONCESSIONS FOR MINERAL RESOURCES
Pursuant to the Mineral Resources Law the following allowances are paid:
- Allowance for concession of detailed geological researches
- Allowance for concession for exploitation of mineral resources
The funds of the allowance for performing detailed geological researches and
exploitation of mineral resources in amount of:
- 22 % are income of the Budget of the Republic of Macedonia and
- 78 % are income of the Budget of the municipality on whose area the
concession activity is performed.
The concessionaire for detailed geological researches of mineral resources pays onetime allowance for the area, in accordance to the offered price in the bid of the public
call.
The payment of allowance for the concession for exploitation of mineral resources is
made on two bases:
-
-
For the area awarded with the concession for exploitation, where the amount
depends on the type of the mineral resource subject to the concession for
exploitation and
For the exploited mineral resource subject to the concession.
The payments for performing detailed geological researches and exploitation of mineral
resources are determined in the List of tariffs for determining the payments for issuing
licenses and concession for performing detailed geological researches and concessions
for exploitation of mineral resources.
 For the metallic minerals, the fee is 2% of the market value (London Metals
Exchange) of metal in the concentrate
 For decoration stones, the concession fee depends on the type:
- marble €15 per cubic meter;
- granite €9 per cubic meter;
- onyx, travertine €6,5 per cubic meter.
 For minerals for construction industry, the fee is 0,15 EUR per tone
6. REHABILITATION OF THE ENVIRONMENT AND ELIMINATION OF THE
CONSEQUENCES
The rehabilitation of the environment and elimination of the consequences is regulated
in the Mineral Resources Law:
(1) The owner of the license for detailed geological research, the concessionaire
that performs detailed geological research and the concessionaire that performs
mining works, that is, exploitation of the mineral resources and mineral
technology during the detailed geological research and execution of the mining
works and works of the mineral technology, as well as, after their completion is
obliged to make rehabilitation of the space, pursuant the project for performance
of detailed geological research, the project for rehabilitation, that is, composition
part of the main or additional mining project, the agreement for concession and
the license for exploitation.
(2) For non-implementation of the actions from Point (1) of this Article the organ of
the state administration responsible for performance of the works in the area of
the mineral resources shall perform the rehabilitation of the space pursuant the
project for performing detailed geological research, the agreement for
concession and the license for exploitation and mineral technology, as burden of
the concessionaire that performs detailed geological research or exploitation.
(3) Because of re-cultivation and return in useful condition of the degraded space on
which are performed geological research and exploitation of the mineral
resources, the Government adopts Annual Program for re-cultivation of
degraded spaces.
(4) The funds for financing of the Annual Program from Point (3) of this Article are
secured from the Budget of the Republic of Macedonia.
(5) After the completion of the detailed geological research and performance of
mining works, that is, exploitation of mineral resources and mineral technology is
not allowed storing of harmful, dangerous, radioactive and waste materials in
abandoned premises and excavation spots.