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23 February 2021

Performance Audit Report on the Licensing Process of Mineral Users

23 February 2021

16.02.2021 - Institutions have not engaged sufficiently in protecting the environment from mining activities. So says the Performance Audit Report of the National Audit Office (NAO) on the licensing process of users of construction and industrial minerals and the protection of the environment from this activity.

The findings of this report have shown that the responsible institutions have not done enough to protect the environment from economic operators during the development of mining activities, allowing these operators to operate without implementing the required criteria and without providing safety on the ground.

According to the ZKA, the Independent Commission for Mining and Minerals has established the system for issuing licenses and permits for exploitation and specific activities, but the implementation of this system is accompanied by some deficiencies and, consequently, has not provided the necessary assurance that all criteria have been met during the licensing process of economic operators. "The deficiencies are related to the lack of coordination with other parties during licensing, the absence of approvals from the authorities responsible for roads, the absence of a detailed rehabilitation program, and the continuation of licenses in the absence of re-cultivation of the areas where the minerals have been exploited.

During the years 2018 and 2019, the Inspectorate of the Independent Commission for Mines and Minerals did not properly enforce the penal provisions and monitoring of illegal operators. This endangers the protection of the environment from mining activities that pose a risk to humans and animals,” the ZKA report states. According to the Auditor, even the issuance of environmental approvals and permits by the Ministry of Economy and Environment has been characterized by some deficiencies in monitoring the validity of environmental approvals and the permitting process, monitoring operators who exploit minerals, inspecting mineral users, and deficiencies in the enforcement of penal provisions. “These have a direct negative impact on the protection of the environment from mining activity and also have a financial effect.

Therefore, based on the general conclusions, we assess that, with the aim of protecting the environment, there is a need to improve the licensing system for mineral exploitation and specific activities, as well as to improve the system for issuing/monitoring environmental approvals and permits. At the same time, there is a need to improve the management of inspections for mineral exploiters and to enhance cooperation between central and local level institutions in the field of environmental protection.

In order to address these important issues, we have assessed that the active involvement of the Government of the Republic of Kosovo is necessary,” the ZKA report emphasizes, adding that 10 recommendations have been given for KPMM, 6 for MEA, and 1 recommendation for municipal inspectorates.

The SAI report presents a starting point towards pushing the responsible institutions to undertake actions to improve the current situation, given that the representatives of the institutions involved in the audit process have expressed their willingness to prepare action plans by defining the measures to be taken, the responsible persons, as well as the timelines for implementing the recommendations.

For more: Performance Audit Report on the licensing process of mineral users

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