NORTH MACEDONIA Trends and Developments Contributed by: Ana Tosic Chubrinovski, Ivica Jevtic, Ljupka Naumoska Gjorgjievska and Marija Boceska, JPM Partners North Macedonia
subject to an integrated environmental permit (A-per - mit). This permit is a consolidated administrative act that sets emission limit values, imposes obligations to apply best available techniques (BAT), defines moni - toring systems, regulates waste and tailings man - agement, requires accident prevention planning and establishes periodic reporting obligations towards the competent authorities. The law further prescribes specific public-participa - tion duties, meaning that local communities, non- governmental organisations and interested members of the public have the right to submit comments, objections and proposals within EIA procedures and during the issuance of integrated permits. Mine clo - sure planning, supported by financial guarantees, is becoming an integral part of the underlying business model. Integrated permits and project documentation incorporate concrete requirements for land rehabili - tation, tailings stabilisation, long-term monitoring of water and soil quality and mechanisms for securing the funds necessary to implement these measures. In addition, the reprocessing of historical tailings is encouraged as an element of the circular economy that simultaneously reduces environmental expo - sure and creates new investment opportunities. This is particularly relevant for mines with a longstand - ing operational history, where the combination of modern technologies with existing tailings facilities enables simultaneous financial and environmental improvement of balance sheets. An increasing num - ber of operators implement ESG models in line with International Organization for Standardization (ISO) standards and the International Finance Corporation (IFC) Performance Standards, including independent audits, monitoring programmes and public reporting, which in turn strengthens confidence among interna - tional financial institutions and investors. Strategic Positioning in the Energy Transition Copper, together with other polymetallic resources, has assumed a central role within the energy transition agenda as an indispensable material for power grids, renewable generation plants, battery systems and electric transport. This structural increase in demand has generated heightened investment interest in the country’s metal resources while simultaneously raising
expectations regarding the stability, transparency and long-term predictability of the regulatory framework. Parallel to the development of strategic metals, the Republic of North Macedonia is pursuing a controlled withdrawal of coal from its energy mix. This process is driven by decarbonisation commit - ments and alignment with European climate objec - tives, as well as by economic considerations linked to the age of existing facilities, rising emissions costs and the declining competitiveness of coal in a higher- carbon-price environment. Decarbonisation reforms are horizontally integrated into both energy and industrial policy. The principle of “energy efficiency first” is increasingly embedded, meaning that every new industrial project, including mining projects, is assessed not only for its economic and technical fea - sibility but also for its energy intensity and its capacity to integrate renewable sources. For mining operators, this creates scope for innovative models combining extraction activities with on-site generation of electricity from solar or wind installa - tions, the deployment of electric mobile equipment and the digitalisation of processes to optimise energy consumption. The strategic orientation of the Repub - lic of North Macedonia is towards gradual alignment with European mechanisms, including those affecting carbon pricing and border adjustment. Mining compa - nies that begin early to measure, manage and reduce their carbon footprint will hold a significant competi - tive advantage once European buyers systematically calculate the “embedded” carbon content in raw materials. Consequently, new opportunities are opening for the use of dedicated financial instruments, such as green credit lines for energy efficiency projects, grants for low-carbon technologies and regional initiatives for sustainable mining. For investors, this increases the potential to structure projects using blended finance – combining commercial loans, development finance and grant components – thereby enhancing returns while reducing risk.
280 CHAMBERS.COM
Powered by FlippingBook