About Slovakia

Brief History
Location, Size and Population
Economy
Administration of Geology and Mining in Slovakia
The State Geological Survey
Regulations for Foreign Entrepreneurs in the Field of Geology
Geological and Mining legislation
Environmental Legislation
Nuclear Power in Slovakia (WNA)

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History

The dissolution of the Austro-Hungarian Empire at the close of World War I allowed the Slovaks to join the closely related Czechs to form Czechoslovakia. Following the chaos of World War II, Czechoslovakia became a Communist nation within Soviet-dominated Eastern Europe. Soviet influence collapsed in 1989 and Czechoslovakia once more became free. The Slovaks and the Czechs agreed to separate peacefully on 1 January 1993. Slovakia joined both NATO and the EU in the spring of 2004 and the Eurozone on 1 January 2009.

Location and Size

The Slovak Republic is a land-locked nation in the eastern portion of Central Europe, with access to the Black Sea via the Danube River. Its neighbors are the Czech Republic to the northwest, Poland to the north, Ukraine to the east, Hungary to the south, and Austria to the west. The country's total area is 48,845 square kilometers (18,859 square miles). Much of its northern and central terrain is composed of striking mountains, similar to the American Rockies. Terrain in southern Slovakia consists of plains in the west and rolling hills. Slovakia is about the size of South Carolina, and it does not border a sea. The capital, Bratislava, is located near the country's western border and is not far from Vienna, Austria. Other major cities include Košice in the east and Banská Bystrica in the center of the country.

Population: 5,463,046 (July 2009 est.)

Economy

Slovakia has made significant economic reforms since its separation from the Czech Republic in 1993. Reforms to the taxation, healthcare, pension, and social welfare systems helped Slovakia to consolidate its budget and get on track to join the EU in 2004 and to adopt the euro in January 2009. Major privatizations are nearly complete, the banking sector is almost entirely in foreign hands, and the government has helped facilitate a foreign investment boom with business friendly policies such as labor market liberalization and a 19% flat tax.

Foreign investment in the automotive and electronic sectors has been strong. Slovakia's economic growth exceeded expectations in 2001-08 despite the general European slowdown. Unemployment, at an unacceptable 18% in 2003-04, dropped to 7.4% in 2008.

GDP (purchasing power parity): $115.7 billion (2009 est.)
GDP (official exchange rate): $89.33 billion (2009 est.)
GDP - real growth rate: -4.7% (2009 est.)
GDP - per capita (PPP): $21,200 (2009 est.)
GDP - composition by sector: agriculture: 2.6% ; industry: 33.4%; services: 64% (2008 est.)
Labor force: 2.365 million (2009 est.)
Labor force - by occupation: agriculture 4%, industry 39%, services 56.9% (30 September 2008)
Unemployment rate: 12.1% (2009)
Mining: Approximately 4.6 million tons of coal are mined in Slovakia each year. Other significant minerals include iron, copper, lead, manganese, zinc, mercury, and lignite. Uranium exploration also continues in Slovakia.

Sources:
http://www.nationsencyclopedia.com/economies/Europe/Slovakia.html
https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html

Administration of Geology and Mining in Slovakia

Exploration for mineral resources is in Slovakia administered by the ministry of Environment, while mining itself is administered by the Ministry of Economy. At the Ministry of Environment it is the Division of Geology and Natural Resources, which directly oversees the field of geology. The division is headed by the director general and has two main departments: Legal Department and Department of Geological Research and Exploration.

According to the law No. 313/1991 the Ministry: (1) proposes concepts and plans of geological research and exploration, (2) contracts geological works budgeted by the government, supervises their realization, and approves their results, (3) ensures that results of geological activities are collected, archived and made available to users, (4) approves the reserves of exclusive minerals and issues statements thereof, (5) ensures evidence of exclusive minerals reserves, (6) grants the right to manage deposits of exclusive minerals during the prospection and exploration period budgeted by the government and the right to manage the unmined deposits, (7) guarantees an integrated system of geological information, (8) issues decrees as to staking, changing and cancelling the claims, (9) issues certificates of exclusive minerals deposits, and in coordination with appropriate governmental institutions protects mineral wealth, (10) issues licenses to firms and individuals to perform geological works, (11) deals with abandoned mines.

The state authority in the field of mining is the Main Mining Bureau at the Ministry of Economy. Its headquarters are in Banska Stiavnica (same street as EMED Mining office in Slovakia). The Main Mining Bureau has five regional mining offices in Bratislava, Banská Bystrica, Košice, Prievidza, and Spišská Nová Ves.

According to the law No. 44/1988 in the wording of the law 214/2002 the Main Mining Bureau: (1) oversees mining activities in Slovakia, (2) administers regional mining offices, (3) takes measures concerning the rational exploitation of mineral resources, (4) takes measures concerning the safety regulations during mining, (5) carries out inspections of mining activities, (6) registers mining licences and their changes.

Regional mining offices: (1) inspect compliance with the mining law and safety regulations, (2) inspect mining works and objects, (3) oversee use of explosives, (4) set, modify or cancel mining licences, (5) permit opening and exploitation of exclusive mineral deposits, (6) permit exploration by underground works, (7) issue permits for construction works in the area of mining licences.

The State Geological Survey

The role of the state geological survey is carried out by the Štátny Geologický ústav Dionýza Štúra (Geological Survey of Slovak Republic). The survey is based in Bratislava and has regional branches in Košice, Spišská Nová Ves and Banská Bystrica. It has 6 divisions (Regional Geology, Environmental Geology, Mineral Resources, Analytical Laboratories, Informatics and Accounting) and the Administration Office.

The geological survey carries out: (1) a systematic and comprehensive geological investigation of the state territory, including geological mapping, hydrogeology, engineering geology, environmental geology, and metallogeny, (2) mineral resource assessment, (3) exploration of mineral, water, and energy resources, of engineering and environmental geological factors, and of waste disposal sites, (4) geophysical and geochemical surveys, (5) chemical and technological analyses, (6) develops and operates an information system in geology and mineral reserves, including geological archives, (7) provides geological information, (8) operates the central geological library of Slovakia, (9) publishing of geological maps, books and journals, (10) provides an impartial advise to government bodies and state institutions.

Beside the above mentioned duties the Survey cooperates with private investors on the contract basis, using its highly experienced staff and excellent information basis.

Essential regulations concerning business activities of foreign entrepreneurs in the field of geology

The Commercial Code, which regulates legal issues related to business activities of foreign entrepreneurs in Slovakia, states that any foreigner may undertake business activities on the territory of Slovakia under equal conditions and with equal scope as Slovak nationals. Any individual, or legal entity residing abroad, deemed to be foreign persons and having the right to do business abroad are deemed the entrepreneurs also by the Commercial Code.

Yet, being a foreign businessman compliant with the Commercial Code does not automatically mean that he/she is entitled to undertake business activities in the SR. He/she qualifies to do so on employing a domestic partner resident in the SR and the validity of such permission starts on the day of signing by this person and/or by his/her domestic partner, and on registering the scope of business in the Commercial Register. The pre-condition to register in the Commercial Register also applies to foreign individuals.

Each foreign individual registering in the Commercial Register as a person authorized to act on behalf of the entrepreneur must produce a Slovak residence permit. This permit must not preclude running profit activities.

An applicant for registration in the Commercial Register must prove that latest on the day of registration he/she is entitled to carry out geological works, which are registered in the Commercial Register as the object of entrepreneurship. The Ministry of Environment of the Slovak Republic issues the licenses to undertake geological works in compliance with the Law No. 313/1999 and by the Regulation No. 141/2000 on granting licenses to undertake geological works.

Every individual attaches to the application for the license to undertake geological works a certified copy of the University, or Maturity diploma, a list of realized professional projects, a license of professional competence, or an application for the professional competence test.

The legal entity attaches to the application a Statement of the Commercial Register, or a document certifying establishment of legal entity (corporate contract, founding letter, or a decision of a foreign person to establish it's filial in SR). Furthermore, the application is supplemented by the documents of responsible representatives, in which the scope of his/her or responsible representatives accountabilities are marked.

The Ministry of Environment organizes professional competence tests to test theoretical knowledge, experience and know-how of applicable legal regulations and other instructions for projecting, realization and assessment of geological works. All those who undertake geological works, be it individuals, their responsible representatives, the representatives of legal entities, or project leaders, are liable to testing.

On successful completion of the test the Ministry issues a competence certificate, in which are stated the activities and the range for which the certificate has been issued. The professional competence is being tested quadrennially and each update is marked in the certificate.

With the objective to run business any foreign individual can take part in the establishment of a Slovak legal entity, or may become a partner, or a member of an already established Slovak legal entity. If it is not contradictory to the law he or she can establish a legal entity, or to became a sole partner of such. The Commercial Code does not bar any form of participation in business activities of nationals outside established legal entities, or to share activities within such entities, neither any form of commercial commitment relationship, based on, say, a tacit partnership contract, or a syndicate contracted in compliance with the Civic Code.

Geological and Mining legislation

Mining legislation in Slovakia is almost as old as mining itself. Regional mining rights named after major mining districts (Kremnica, Legnica, Banská Štiavnica) were effective before the year 1570. Maxmilian mining rights of the Austro-Hungarian Monarchy were in effect during next 280 years. A new General Mining Code of the Austro-Hungarian Monarchy was published in the year 1854. This mining code has survived even downfall of the monarchy and has been used without significant changes also in Czechoslovakia up to the year 1948, when it was changed due to nationalization of mining industry.

At present all geological and mining activities in Slovakia are regulated by three acts. These acts define essential rights and obligations of legal entities and individuals carrying out exploration and mining operations.

The Act of the Slovak National Council No 313/1999 on geological operations and geological administration determines the:

conditions for projection, performance, and evaluation of geological operations,
conditions for the issue of licences to undertake geological works and certificates of professional competence,
rules governing granting and transfer of exploration licences,
role, position, and activities of the state administration in geology -- Division of Geology and Natural Resources of the Ministry of Environment.
role and duties of the state geological survey

The Act of the Slovak National Council No. 44/1988 on protection and exploitation of mineral resources (mining code) in wording of the Act No. 214/2002, determines the:

ownership and administration of mineral resources,
principles of protection and rational exploitation of mineral wealth,
conditions for mining and mining licenses,
reimbursement of damages due to mining activities.

The Act of the Slovak National Council No. 51/1988 and 499/1991, in wording of the Acts No. 154/1995 and 58/1998, determines the:

conditions under which mining activity and activity performed by mining techniques can be carried out, particularly as regards safety regulations, environmental protection, and rational exploitation of mineral deposits,
condition for the use of explosives,
state mining administration.

Details are included in Regulations published in pursuance of these acts.

According to these acts geological operations (exploration) may be carried out by legal entities and individuals on the basis of license only, granted by the Ministry of Environment.

Exploration for exclusive minerals, which are the property of the State, may be carried out in exploration areas (claims) only, granted by the same ministry. The exclusive exploration area for a specified commodity is granted for up to four years and is renewable for another four years and additional two years. The size of the exploration area is limited to 250 km2. The fee per square km per year is 3 000.- Sk during the first four years period, 6 000.- Sk during the second period and 9 000.- Sk during the last two years period. With each application for prolongation of the licence its area has to be reduced by at least 25 %. Whereabouts of the application for the exploration licence are specified in the §46 of the Regulation 141/2000. The first application registered for the given exploration area has a priority, except of the case of the tender. Exploration areas are transferable. A special exploration licence is issued for the government paid exploration projects. The special exploration licence may be change to exploration licence. In such the case the ministry organises a tender.

The right to mine exclusive mineral deposit is given by granting a mining area (license) and by permission to perform mining activity. Both are issued by regional mining offices belonging to the Ministry of Economy. The owner of the exploration area (claim) has a priority to apply for a mining area (license) within 6 month from the approval of the ore reserves by the State Commission for Classification of Reserves, acting at the Ministry of Environment. Mining has to start within three years from granting of the mining area. A fee for the mining area is 5 000.- Sk per square km a year. A system of royalties related to the production is also used. Foreign companies have the same rights and obligations as domestic ones.

Environmental legislation

Protection and improvement of the environment in the Slovak Republic is based mainly on the Act No. 287/1994 on the environment quoted in the Act of the National Council of Slovak Republic No. 222/1996. It defines basic terms and establishes basic principles of the environmental protection and obligations of legal entities and individuals in protecting and improving the environmental situation and in exploiting natural resources. Furthermore, the Act regulates responsibilities in terms of environmental protection.

The Act No. 127/1994 on the environmental impact assessment regulates the method of complex professional and public assessment of designed constructions, facilities and other activities prior to their approval in compliance with particular regulations, as well as in evaluation of some development concept proposals and generally obligatory legal instructions in terms of their expected environmental impact. Mineral exploration is not amenable to assessment of its compliance with this law, however, the mining activities are liable to such assessment. The Ministry of Environment of the Slovak Republic is authorized to assess the compliance of the activities with the law.

The Act No. 287/1994 in wording of the Act 222/1996 on protection of the environment and the country: Its objective is to support the measures taken to preserve variety and forms of life on the Earth, to create conditions for maintaining, regeneration and rational use of the natural resources, to protect natural heritage and characteristic scenery of the country and to attain and keep an ecological stability. Five levels of the country protection are in effect. The degree of restriction increases with the increasing level of protection. The first level is a general protection measure applicable to the whole territory of Slovak Republic. The second through to fifth protection levels apply as special protection measures to the protected areas and to protective zones.

The first level applies for the areas with no particular protection. To carry out any mining activities and activities using mining methods an approval of the environmental protection institution is required. The projects of geological works and their changes must also be approved.

To the protected areas applies the second protection level, which implies that the geological works, mining activities and other activities carried out by mining methods can only be made after having been approved by an environmental protection institution.

The third protection level is valid for the national park areas. Any geological works, mining activities and other works made by means of mining methods can be carried out after approval of an environmental protection institution. The second protection level applies to the national park protection zone.

The fourth protection level, applicable to protected grounds, natural reservations, or national natural reservations, bars any geological works, mining activities, or other activities carried out by mining methods.

The fifth protection level, applicable to the natural reservation areas, national monuments and to national natural monument areas, prohibits all geological works, mining activities, or other activities using mining methods.

The environmental protection institution accountable to impose the protection measure may, in justified cases, grant an exception from the enacted prohibitions. If the prohibition relates to a national park, the Ministry of Environment is the institution to decide. If a subject of prohibition is a natural monument, the District Court is the responsible institution to apply to.

There are other acts relating to geological, but mainly to mining activities. The first to mention is the Act No. 61/1977 on forests as quoted in the Act No. 14/1994, which regulate the terms of temporary (i.e. less than twelve years), or permanent exclusion of grounds from the Forestry Fund, including the payments due to the National Fund for Forestry Promotion. No exclusion of the forestry grounds from the Forestry Funds is required in the case of mineral exploration.

The use of agricultural land for other than farming purposes is regulated by the Act No. 307/1992 on Agricultural Soil Fund protection. To carry out a geological exploration program it is satisfactory to obtain an approval from the appropriate Agricultural Soil Fund Protection Institution. However, if the scope is to produce minerals, it is necessary to forward an application for exclusion from the Agricultural Soil Fund to the corresponding Agricultural Soil Fund protection institution. Any exclusion of grounds from the Agricultural Soil Fund will incur a levy to be paid by the entrepreneur to the National Fund for Protection and Promotion of Agricultural Soil Fund.

From Tournigan Energy, Form 20-F, March 2009