With the deadline for developing the Strategy for the Management of Mineral and Other Geological Resources of Serbia by 2040 fast approaching, there has been a noticeable lack of transparency regarding its progress. Despite the strategy’s significant implications for Serbia’s mineral sector, there has been no public disclosure or response from the Ministry of Mining and Energy or the Faculty of Mining and Geology (RGF), which is tasked with its development.
The secrecy surrounding the strategy has led to comparisons with the fairy tale “Snow White and the Seven Dwarfs,” suggesting that Serbia’s approach to managing its mineral resources resembles the tale’s plot, where Snow White, a royal figure, is saved by dwarfs in exchange for her help with household chores. This analogy highlights concerns that Serbia’s mining sector, which generates substantial revenue, is being mishandled and kept out of public scrutiny.
Currently, Serbia’s mineral sector, with only four major companies extracting copper, gold, oil and gas, produced goods worth nearly $3.5 billion in 2023, equating to over 5% of the country’s GDP. Despite this, key documents related to geological research, reserves certification, and exploitation rights are not publicly accessible, a stark contrast to the past when such information was readily available.
The government has also been criticized for its handling of mineral resources, particularly the way it sets the value of extracted resources and the management of mining rights. The current regulations have been deemed inadequate, leading to potential issues with privatization deals and international agreements. Notably, the sale of mining rights, such as the Cukaru Peki mine’s certificate, raises questions about whether appropriate taxes were paid.
The lack of transparency extends to the strategy’s development process, with no information available about the team working on it or the progress made so far. This situation has led to a call for more public involvement and scrutiny, emphasizing the need for the strategy to align with constitutional principles, ensure transparency, and adequately protect Serbia’s natural resources.
To address these issues, experts advocate for the adoption of a concession model for mining, which could significantly boost state revenues and improve environmental and social outcomes. Proposals for new laws on concession exploration, fees, and investor supervision have been pending in the Serbian Parliament since April 2023, highlighting the urgency for legislative action to prevent further losses and ensure responsible management of Serbia’s mineral wealth.
