Demand for extractive raw materials within the European Union is projected to increase significantly, with forecasts suggesting a rise of up to six-fold by 2030 and as much as fifteen-fold by 2050, according to Eng. Dragomir Draganov, Chairman of the Management Board of the Bulgarian Chamber of Mining and Geology. Draganov made this statement during a Solemn Assembly marking Miners’ Day on August 18, where the Chamber also honored notable figures in the mining sector.
Draganov emphasized that more than 75% of daily consumer products are derived from extractive raw materials. To address the anticipated surge in demand for these materials, substantial investment is necessary, coupled with a stable political and business environment. He noted that while the EU consumes 30% of the world’s critical raw materials, it only produces a mere 3% of them. This heavy reliance on imports, particularly from a limited number of third countries, poses significant security and value risks, Draganov warned.
The European Commission’s critical commodities legislation aims to boost the EU’s self-production of these materials to at least 10% by 2030. Draganov argued that the EU’s green transition goals underscore the crucial role of the mining industry and cautioned against overly restrictive regulations that could disadvantage European mining operations compared to global competitors. He pointed out that Bulgaria has the opportunity to strengthen its position and advance its mining sector under these circumstances.
In Bulgaria, the mining industry is vital, contributing nearly 5% to the country’s GDP, subject to fluctuations in international commodity prices. The sector supplies essential raw materials for various key industries, including metallurgy, construction, engineering, chemicals, and energy, thereby ensuring Bulgaria’s resource and energy independence. In 2023, Bulgaria maintained its leading role in Europe for mineral extraction, focusing on materials such as lignite, lead-zinc, copper, polymetallic ores, gypsum, limestone, bentonite, kaolin, quartz sands, refractory clays and marble. Notably, around 80% of mining activities are conducted through open-pit methods.
According to the Institute for Market Economics, the mining industry contributed BGN 800 million to the state budget in 2023 through concession fees, VAT, profit tax, personal income tax, and social security contributions. However, the total mineral extraction volume in Bulgaria decreased by 5% to 119.8 million tonnes compared to 2022. The net production value of the extractive industry also dropped by 4% to approximately BGN 4.2 billion. This decline was primarily attributed to a significant 41% reduction in lignite production, marking its lowest level in recent decades. Despite this, the general trend indicates a steady annual growth rate of about 13% in the mining industry’s output value, with a cumulative increase of 34% from 2020 to 2023.
