site.btaDemand for Extractive Raw Materials in EU to Rise Up to Six-Fold in 2030 - Bulgarian Mining Chamber's Dragomir Draganov

Demand for extractive raw materials in the European Union is expected to grow up to six-fold in 2030 and up to 15-fold in 2050, said Eng. Dragomir Draganov, Chairman of the Management Board of the Bulgarian Chamber of Mining and Geology. He was speaking at a Solemn Assembly on the occasion of Miners' Day, August 18. As part of the event, the Chamber conferred awards on deserving representatives of the industry.

Draganov pointed out that more than three quarters of what we use in our daily lives is produced from extractive raw materials. "To be able to meet the increased demand for mineral raw materials for our companies, it means large-scale investment, and this requires stability of the political and business environment," Draganov stressed. The targets set by the EU require a well-developed and functioning mining industry. Currently, the EU uses 30% of the world's critical raw materials, but produces only 3% of them, he said. In his words, the biggest problem is that many critical raw materials rely almost entirely on imports, and suppliers are often highly concentrated in a small number of third countries. This concentration exposes the EU to significant security and value risks, Draganov argued.

He said that the target set by the European Commission through the critical commodities legislation is to reach a minimum of 10% of our own production by 2030. The EU's green transition ambitions place a strong emphasis on the importance of the mining industry, the specialist noted. An overly restrictive regulatory framework for European mining companies should not be allowed to put them at a disadvantage compared to the mining industry in the rest of the world, he argued. For Bulgaria this is a chance to consolidate its position and make important steps in its development, Draganov noted. 

The mining industry accounts for nearly 5% of Bulgaria's gross domestic product, depending on international commodity prices, he told the guests at the forum. The industry is strategically important because it provides raw materials for key sectors such as metallurgy, construction, engineering, chemical industry, energy and other industries and guarantees the country's raw material and energy independence, Draganov said. In 2023, Bulgaria retained its leading positions in Europe for mineral extraction. The main raw materials mined in Bulgaria are lignite, lead-zinc, copper and polymetallic ores, gypsum, limestone, bentonite, kaolin, quartz sands, refractory clays, marble. About 80% of mining activities are carried out by open-pit method, Draganov said.

In 2023, the industry contributed BGN 800 million to the state budget in the form of concession fees, VAT, profit tax and personal income tax as well as contribution to the social security funds, according to the Institute for Market Economics. The total extraction of minerals in Bulgaria in 2023, according to the Ministry of Energy, was 119.8 million tonnes, which is a decrease of 5% from 2022. The total net value of production in industrial enterprises of the extractive industry was nearly BGN 4.2 billion, marking a decline of 4% compared to 2022, Draganov said. According to him, the decrease is mainly due to the serious decline in lignite production by 41%, which is the lowest level in recent decades. The general trend is for the value of output in the mining industry to grow steadily by about 13% per year and 34% overall for the 2020-2023 period, he specified.