Challenges in mining legislation and regulatory setup-evidence from Kosovo
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ORIGINAL PAPER
Challenges in mining legislation and regulatory setup-evidence from Kosovo Azem Rexhaj 1,2,3 Received: 28 October 2019 / Accepted: 1 September 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Mining sector in Kosovo is of crucial importance for the economic development of the country. Since 1999, it has been considered as one of the main areas that would attract foreign investments and thus improve the economy of a young country emerging from the conflict of 1998–1999. Kosovo has in place legal and institutional framework for mining sector since 2005 but still the functionality and effectiveness remains questionable. The complex nature of the mining sector consequently involves many different laws and institutions followed by few challenges in this sector since 1999. The purpose of this paper is to outline the existing legal and institutional framework of the mining sector, focusing on the challenges involving both gaps in legislation and the implementation. The paper aims to conclude that legislative changes and improvements may be required to enable more efficient functioning of the mining sector which would have a positive impact in the attraction of foreign investments. Keywords Mineral resources . Mining legislation . Challenges . Strategy . Environment . EU Directive
Introduction Regulation of the mining sector in the Republic of Kosovo is of importance as it is seen as one of the sectors with highest potential for the economic development of the country and attracting foreign investments. Regulation of this sector is a complex task too. Existing legal and institutional framework capacities play a key role in the development of this sector towards a friendly trend towards the private sector and foreign investors (Otto et al. 2006). The efficiency and functionality of this sector require review and analysis of some other sectors as the mining sector is associated with many other areas such as spatial conflict issues (infrastructure, settlements, blocking criteria, etc.) in general. In this context, special attention should be paid to the analysis of property issues and their connection with the mining
* Azem Rexhaj [email protected]; https://orcid.org/0000-0002-3335-2147 1
University College UBT, Prishtina, Republic of Kosovo
2
Independent Commission for Mines and Minerals, Prishtina, Republic of Kosovo
3
International management College “Globus”, Prishtina, Republic of Kosovo
sector, respectively, with the rights and obligations of the parties in the mining sector and possible difficulties that may pose different limitations in terms of ownership for the mining sector. Property issues may be concerning and negatively impact the efficiency and functionality of the sector, in cases when property is essential for conducting mining activity, which is usually the case. Ownership over mining resources is of crucial importance and may be an obstacle to the proper usage of minerals and hence foreign direct investments (Morgan 2002; Southland 2012). Studies show th
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