Tirana to consider incentives for struggling mining industry

By bne IntelliNews February 17, 2016

Albanian energy ministry said on February 17 it has asked the finance ministry to propose some tax incentives in the mining industry, as the fall in prices of minerals in the international market has been challenging for the country’s sector.

This industry is important for Albania not only in terms of employment, but due to the fact that a whole chain of activities are related to it. The sector of mining and quarrying, which also includes the water supply and energy, expanded by 1.1% y/y in Q3 2015, slowing from a 6.3% annual increase in the previous quarter, according to statistics office data.

“I hope that in the near future we will find a solution to this emergency situation for the mining industry,” the energy minister Damian Gjiknuri was quoted in the statement.

The required incentives will be aimed to avoid massive bankruptcy of companies that deal with mineral extraction and trade.

Details were not provided in the ministry’s statement, but according to business news provider Monitor, the energy ministry requires the level of royalties fees not be fixed, because the price of minerals change frequently, as well as exemption on royalties for by-products.

Related Articles

Albanian stock exchange expected to launch in autumn 2017

Albania’s first private stock exchange is expected to be operational soon, most probably this autumn, after it was licensed by the financial supervisory authority, AMF, earlier in July. The ... more

Albanian opposition Democrats re-elect party leader despite disastrous election defeat

Albania’s opposition Democratic Party (DP) re-elected Lulzim Basha as party leader for another four-year mandate on July 22, despite the catastrophic general election defeat in June. Basha, 43, ... more

Albanian PM says new government to get rid of “parasites” in administration

Dismissing "parasites" in the public administration will be the priority of the Socialist-led government during its second mandate, Albanian Prime Minister Edi Rama has said, ... more