BMI's Executive Summary

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Located in South East Europe, Bulgaria produces several metallic mineral resources, including copper, iron, lead, zinc, manganese and coal. Coal is the key mineral fuel in Bulgaria. Over 40% of the nation’s electricity generation is dependent on coal. The nation also has large manganese reserves. However, the mining industry in Bulgaria is small by global standards.

The government has gone ahead with the privatisation of the mining industry. Almost all mining projects are now managed by private enterprises. The government's privatisation policy and integration with the EU have been driving foreign direct investment (FDI). The mining industry cornered about 5% of the total FDI inflows in 2005.

Copper deposits are mainly found in the Srednogorie-Panagyurishte regions and the Alpine-Balkan- Carpathian-Dinaride belt. Asarel Medet and Elatsite Med are the two largest copper mining companies in Bulgaria. Chelopech Mine is the largest gold operation in Europe, with estimated gold deposits of 119.4 tonnes, along with 430,900 tonnes of copper. Lead and zinc are largely found in Plovdiv, in the Ossogovo Mountains, near the Thundza River, and in the Madan area close to Greece. The Maritza Iztok coal basin accounts for 80% of the nation's coal production.

The Ministry of Environment and Water is responsible for geological prospecting, exploration and mining of the underground resources, and also for environmental protection. The primary legislation governing mineral exploration in Bulgaria is the Subsurface Resources Act of 1999. An extraction concession is valid for 35 years while a prospecting permit is valid for three years. Foreign investors are under the jurisdiction of the Foreign Investment Protection Act of 1994.

Executive Summary

Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 1 - Project And Property Updates

Metals

Minerals

Precious Stones

Table: Mines in Bulgaria

Chapter 2 - SWOT Analysis

Bulgaria Political SWOT

Bulgaria Economic SWOT

Bulgaria Business Environment SWOT

Chapter 3 - Business Environment

Introduction

Regional Overview

Bulgaria: Business Environment Ranking

Table: Bulgaria Business Environment

Legal Framework

Labour Force

Table: Employment Indicators

Table: Demographic Indicators

Foreign Investment Policy

Chapter 4 - Political Environment

Domestic Political Outlook

Table: Bulgarian Cabinet and other key posts (January 2007)

Chapter 5 - Industry Forecast Scenario

Metals Price Outlook

Risks To Outlook

Global Industry Overview

Regional Analysis

Bulgaria Mining Industry Forecast

Table: Bulgaria Mining Industry Forecast

Chapter 6 - Competitive Landscape

Table: Bulgaria Mining - Key Players

Chapter 7 - Company Monitor

Asarel Medet

Elatsite Med

Chelopech Mining

Maritza Iztok

Appendix A: Mining Ratings: Methodology

Introduction

Breakdown Of Ratings

Breakdown Of Components

Appendix B: The World Economy

Outlook And Risks

Table: Global Assumptions

United States

Soft Landing Ahead

Risks To Outlook

Europe

Moderating, But Solid Economic Growth

Medium-Term Growth Outlook

Japan

Japan In 2007 & 2008

Japan's Medium-Term Prospects

China

China In 2007 And 2008

China's Medium-Term Prospects

Oil

Appendix C: Regional Demographic Data

Table: Wages (ave. labour force per annum), US$ PPP

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn