Mining Activity and Regional Development Eleftherios Faidros Chairman

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1 Greek Mining Enterprises Association Mining Activity and Regional Development Eleftherios Faidros Chairman

2 Greece is full of minerals and ores, in great variety Greek mineral raw materials Greece mining and extraction of ornament stones has a history more than years. All of the ancient monuments of the country, are mainly connected /related with marble quarries, some of which continue their activities until today In the maps which derive from GGI research and assessment, it seems that there is a high dispersion of mining and industrial minerals as well as aggregates, all over the country Greek Mining Enterprises Association, has 26 member companies, responding to the 80% of the extractive activity of the country and 100% of the metallurgies that process Greek raw materials The contribution of mineral raw materials in regional development is obvious, especially in the crisis period of recent years, where mining companies survive and keep up conducing to the economic development of the local communities, despite the financial difficulties

3 Non-energy mineral commodities and operating mines in Greece (map provided by Greek Geological Insitute)

4 Main Metallic Commodities of Greece (map provided by GGI)

5 Critical Raw Materials in Greece (map provided by GGI)

6 Geological map of Greek Industrial Minerals (provided by GGI)

7 Map of quarries of aggregates in Greece (provided by GGI)

8 Investing in Extractive Industry today Nowadays, to start a mining affair, the investor needs to make a great effort,in order to receive the governmental and social license Unfortunately, local communities are persuaded about the valuable contribution of mining investments to their growth, when they lose the advantages that occur from their functions and activities (companies closure or recovery of ore deposits). There are numerous examples in many Greek regions It is common phenomenon for the local communities to react strongly against the disruption of an extractive company. Those that are keen opponents, become supporters, in case of closure of the mine and the loss of job vacancies

9 Why Regional Development needs to integrate extractive industries Investments in mineral resources are boned with resources, never mitigate, in order to find low cost labor Mining activity investors are never occasional. They invest, in order to stay long, until reserves are exhausted Mining investments, because of their specificity, offer many well paid and stable job vacancies Every job position in mining activities, corresponds indirectly to 3-4 new job positions Enterprises in Mineral Raw Materials (MRM ) sector, stimulate local markets by using supplies and services

10 Why Regional Development needs to integrate extractive industries (cont.) The state has already imposed special fees for the local communities from Industrial Minerals and Aggregates exploitation. Soon the state will also impose mining royalties for the metallic minerals exploitation The Corporate Social Responsibility of extractive industries has significant value, especially in areas with lack of other major activities, a fact which is not rare in Greece Mining activity creates infrastructure in many neglected areas with absence of roads and networks Mining activity enriches society with scientific and technical skills and experience, mostly in areas with no previous industrial history

11 Prerequisites for the efficient contribution of mineral raw materials in regional development Regional political authorities must have the political will and special plans for the sustainable development of mineral raw materials in their territories, regardless of existing minority reactions. They must have the political persuasion to convince local communities to overcome the not in my back yard feeling Central state policies for development should be declared and respected by regional authorities Any rejection of an extractive investment should be clearly justified, without general vague references

12 Prerequisites for the efficient contribution of mineral raw materials in regional development (cont.) Essential factor for the contribution of mineral raw materials in regional development is the social license (acceptance of the extractive activity, by the local community). Prerequisites for this factor are the reputation and the history of an extractive company, its social profile, as well as its function in the context of sustainable development A significant share of responsibility for the acceptance of the extractive activities belongs to the state which is responsible for cultivating dialogue with local communities, in order to be convinced about the exploitation of the mineral raw material resources

13 Examples of contribution of extractive industries to regional development in Greece MILOS ISLAND 1. Milos Island Milos is an island with a balanced coexistence of both mining affairs and tourism Companies: S&B Industrial Minerals SA Interbeton SA LAVA SA (LAFARGE group) And Other The 90% of extractive activities belongs to S&B Industrial Minerals SA Products: Perlite, Bentonite, pozzolane, silica oxide etc.

14 EXAMPLES (cont.) Unemployment of the wider area (South Aegean Sea), is 30,3% MILOS ISLAND (cont.) Unemployment in Milos island: o% for the residents Annual per capita income: (average in Greece ) Extractive activity covers the 30% of GDP of Milos island Services (tourism, state and regional administration etc), is over 55% of GDP More than 450 people are employed directly and indirectly, over residents

15 2. Bauxite Alumina-aluminium industry Location: South - West Central Greece Bauxite- Aluminium Bauxite production companies: S&B Industrial Minerals SA Delphes Distomon SA ELMIN SA Alumina-Aluminum production company: Aluminium SA Directly employed personnel of the sector : 1755 empl. Indirectly employed personnel of the sector : 772 empl. Total: 2527 Wages, contractors payments: 110 mil. (2013)

16 Sales (2012) in thous. Bauxite- Aluminium (cont.) Total sales Mining Companies Aluminum SA total ,8

17 Marble region of East Macedonia and Thrace 3. Marble region of East Macedonia and Thrace Object: marble extraction and treatment Companies: Pavlidis Marble SA, Dionyssomarble SA, Lazaridis SA and many others Unemployment of wider area 27,8% (1 st quarter of 2014) Employees in quarries and treatment facilities: more than 2500 The 88% of Greek Marble Exports is produced in this region

18 Marble region of East Macedonia and Thrace Marble Exports-imports

19 Utilization of mixed metal sulphides by HELLAS GOLD company Chalkildiki Utilization of Magnesite by Grecian Magnesite SA Employees: HELLAS Gold: 1640 Grecian Magnesite: 319 Sales from local market (2013)= 12,7 mil About 34 mil., end up to the region through salaries Social responsibility actions 2013: 4 mil. Unemployment of Central Macedonia for the 1 st quarter of 2014: 29,9%

20 Gyali, Nisyros Island Gyali island is inhabited only by employees of the extractive company LAVA SA. It belongs to the Nisyros Municipality, which has 800 residents Activities: Perlite and pumice production Pumice Activities (2013) Total sales: Total Exports: Fees and rents: Wages: Transport cost by ship : Direct and indirect employees: 50