BMI's Executive Summary

[TOP]

Slovakia is a landlocked nation bordered by Poland, Hungary, Ukraine and the Czech Republic. It is a modest regional producer of a variety of minerals. During the Soviet era, the Slovak mining industry was a major contributor to the national economy, but the situation today is very different. Today, the Slovak mining industry is not a prominent contributor to the national GDP and the extraction of mineral resources is no longer cost effective on the whole. Most of the mines are no longer able to compete in the international market. Apart from brown coal, which is mined on a large scale, iron ore is the only other major mining commodity in Slovakia. Small quantities of copper, gold, lead and zinc are also produced.

Gold production came to a standstill in 2001 but small quantities of refined gold are still produced from the remaining stocks. Most steel and aluminium production – two dominant metals in Slovakia – is based on imported raw materials.

The major mining areas in Slovakia are located in upper Nitra in central Slovakia and in the West Carpathians. The Slovenské Rudohorie segment of the Carpathians is noted for its high-grade iron ore deposits. The Slovak Ore Mountains, in eastern Slovakia, are also known for their mineral deposits. The Ministry of Industry oversees the privatisation of the coal mining segment in Slovakia. The Slovak government is encouraging private enterprises that want to enter the domestic mining industry. It is also simultaneously pushing the reorganisation of the state mining administration.

Slovakia has three coal mining enterprises: Baňa Záhorie, Hornonitrianske Bane Prievidza and Baňa Dolina. Hornonitrianske Bane Prievidza is Slovakia’s largest brown coal mining company. Slovakia does not export any coal, but imports about 20% of its domestic requirements from the Czech Republic. On a positive note, Cyprus-based EMED Mining has achieved encouraging drill results at its Biely Vrch Gold Prospect in the Detva licence area in central Slovakia.

Contents

[TOP]

Executive Summary

Chapter 1 - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 2 - Project And Property Updates

Metals

Minerals

Table: Mines In Slovakia

Chapter 3 - SWOT Analysis

Slovakia Political SWOT

Slovakia Economic SWOT

Slovakia Business Environment SWOT

Chapter 4 - Business Environment

Introduction

Regional Overview

Table: Regional Business Environment Overview

Slovakia: Business Environment Ranking

Table: Business Environment Rankings

Legal Framework

Table: Demographic Indicators

Labour Force

Foreign Investment Policy

Table: Employment Indicators

Chapter 5 - Political Environment

Domestic Political Outlook

Table: Slovak Cabinet & Other Key Posts (As Of December 2006)

Chapter 6 - Industry Forecast Scenario

Global Overview

Regional Analysis

Slovakia Mining Industry Forecast

Table: Slovakia Mining Industry Forecast

Chapter 7 - Competitive Landscape

Chapter 8 - Company Monitor

Hornonitrianske Bane Prievidza

Baňa Dolina

Slovalco

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