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President of SME: Investments of 350 million euros per year and hopes for a nominal increase in turnover in 2022 for the mining sector

With investments of at least 350 million euros per year, it is estimated that the development of the mining sector in Greece can continue in the period until 2030, with the aim of maintaining its production capacity, protecting the environment, modernizing equipment and adapting to requirements. of digital transition, as he points out, in an interview with APE-MPE, the president of the Association of Mining Companies (SME), Athanasios Kefalas.

“The mining industry is a stable investor and according to a study by the Foundation for Economic and Industrial Research (IOBE), it has invested, even in the years of economic crisis and investment apnea, around 350 million euros per year. It is expected to continue at least at this rate. “Large new investments can be made in the industry, provided that legal certainty is consolidated, licensing procedures are accelerated and the industry is included in the forecasts of” Greece 2.0 “, he adds.

The president of SME also expresses the hope that, although any forecast is -because of the broader conditions- precarious, in 2022 the industry will record a nominal increase in turnover and maintain a share in exports, as well as the level of quality quality jobs. “The 2021 report is very encouraging, but since the middle of last year, health and logistics difficulties and new challenges have been added. We must be well prepared to deal with supply chain difficulties, high energy costs, the inflationary environment and “the challenges in the smooth supply of our customers, the adaptation to the requirements of tackling climate change and the probable geopolitical changes” he underlines.

The pandemic, and later the war in Ukraine, dealt multiple blows to the supply chain. How has it affected this industry so far? According to Mr. Kefalas, the problems concerning the industry are the vertical increase of maritime fares, which creates issues of competitiveness, the lack of containers, which leads to difficulties in the smooth supply of customers and the inability of equipment manufacturers to extract equipment. deliver the required machinery or spare parts on time. “But Greece has strong access to ports and a hub for transport in Europe, so for several markets our competitive advantage for deliveries by large ships or from ports with relative container traffic is strengthened,” he says.

“Do not devalue domestic energy resources before obtaining credible alternatives”

Lignite production has increased in many countries for reasons of enhanced energy security after the outbreak of war in Ukraine. How do you see the picture evolving in this field in the medium to long term? The “green transition-energy-competitiveness” triangle poses a number of major challenges for Europe. On the other hand, the green transition is significantly affected by energy sources and this creates the need for significantly increased quantities of metals and minerals, which are not produced in Europe. Regarding the great challenge of the country’s energy security, maintaining the possibility of exploiting domestic lignite until 2028 is moving in the right direction, but lessons from geopolitical changes must make us careful and not devalue a domestic energy resource before we obtain credible alternatives “sub adheres.

Marble sales are rising, but the financial results … are not following

How did the size of SME members in Northern Greece move in 2021 and what is the estimate for 2022? “The mining activity of the members (in Northern Greece) is important and covers the production of lignite, a significant number of ores, marbles, a series of industrial minerals and aggregates. Following the upward trend of the industry, it is estimated that production volumes increased by about 15%, while the cycle The economic results, however, do not follow the same trend, because the increases in energy and transport of products have had a significant adverse effect. he clarifies.

Respectively, an increase in sales, which is not reflected in the financial results, is also noted in the marble sector. “The marble industry is proving to be dynamic, having shown (in 2021) a significant recovery, by 15%, compared to 2020, a year in which there was a fall of 20% -25%, due to the problems created by the pandemic. The increase of sales does not translate into corresponding financial results, due to the increased costs of energy and transport to the final destination “says Mr. Kefalas, while for other products in the sector, which followed an upward trend last year, notes that 2021 was a year of significant growth for aluminum, nickel and some industrial ores.

The green transition, research and innovation

The need to “green” the economy extends to construction, where the mining and mining industry is strongly present with the supply of raw materials for building materials. How can zero emissions be ensured in this area? “Private construction and infrastructure projects to be done in the coming years, even those that serve the green economy, require large quantities of raw aggregates and other construction materials. The production of aggregates has a very small CO2 footprint, only 3-5 kg / ton and important properties that do not allow their complete replacement by the secondary.Our effort is to improve the energy efficiency of inert production activities and to take advantage of Net Metering (ie net offset, ie offset of produced and consumed energy) in the areas of the quarries and their adjacent areas “he answers.

How extensively do Greek companies invest in Innovation, Research and Development? “Innovation concerns both the satisfaction of market needs and the optimization of production processes. and the post-mining use of the land used is a priority and significant amounts are invested every year.Successful examples are the production of whitewash products, with a contribution of up to 20% from old discards, the verticalization of marble mining products with a significant reduction of discards and “Instead of simply relocating vegetation, he explains that the introduction of technological innovations, collaboration with IT companies and robotic and artificial intelligence applications will lead to process redesigns, equipment changes and new human skills.” chapter in industry. “The new conditions bring special requirements for the human resources, which is called to adopt a model of lifelong learning” concludes Mr. Kefalas.

Source: Capital

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