Natural resources are abundant in Kosovo. Kosovo is mainly rich in lignite and mineral resources such as: coal, zinc, lead, silver and chromium, but also with productive agricultural land.^{[1][2][3][4][5]} Kosovo is also rich in forests, rivers, mountains and soil; Kosovo is especially rich in coal, being aligned among European countries as the third with the largest coal reserves.^[6] Kosovo possesses around 14,700 billion tons of lignite in reserves, which aligns Kosovo as the country with the fifth largest lignite reserves in the world.^[5][7][8]

Natural resources through history

Natural resources in Kosovo were once the "backbone of industry". However, output is currently low due to insufficient investments in equipment. Among these natural resources that were previously important in the Kosovo economy were minerals and metals such as: lignite, aluminum, chrome, magnesium, nickel, lead, zinc, and several different construction materials.^[9] Kosovo was historically a mining district for the former Yugoslavia. The industrial complex Trepça in Mitrovica "was the largest mining operation in the former Yugoslavia".^[1][4] During the time of Yugoslavia, Kosovo possessed 50% of all of Yugoslavia's nickel reserves, 36% of lignite, 48% of lead and zinc reserves, 47% of the magnesium reserves, and 32.4% of kaolinite reserves.^[10] During this time, mining was Kosovo's growth engine; however, the sector faced a decline from the 1990s.^[4] Even prior to Yugoslavia, the region's natural resources were explored and extracted. During the reign of King Milutin (mid 14th century) the mine in Novo Brdo was considered the richest mine with silver in the Balkans, while the other two mines in Kosovo after Artana were Trepça and Janjevo.^[10] During the mid 14th and 15th century, Artana was the heart of the local economy, it was known as the city of silver and gold. Due its enormous importance, it was also highly protected and was the last city to fall in the hands of the Ottomans during the invasion in the 15th century.^[10] Data from 1931 to 1998 show that total production by the industrial complex Trepça during this time was:

• Lead: 2,066,000 tons
• Zinc: 1,371,000 tons
• Silver: 2,569 tons
• Bismuth: 4,115 tons
• Cadmium (1968–1987) 1,655 tons.^[11]

From 1922 up to 2004, cumulative exploitation of lignite reserves amounted to 265Mt.^[7] However, from September 2005 to the latest data in 2007, Trepça only produced lead, zinc and copper at an average of 5,000 tons per month. Some published research claims that Trepça still has potential for production of 999,000 tons of lead, 670,000 tons of zinc, and 2,200 tons of silver.^[11] Although mining of Kosovo's most noted mineral resources such as lead, zinc and silver was an important part of its economy prior to 1999, active mining of lead, zinc and silver mines was halted at the start of the Kosovo conflict.^[5] Although these mines present a good opportunity for investment, their privatization has been difficult due to ownership issues.^[5]

Total natural resource rents in 2010, as calculated by the World Bank were 1.52% of GDP. Agriculture has also been an important sector of the economy in Kosovo due to its richness in agricultural land. It used to constitute 25% of the total output in Kosovo.^[5] However, today, the use of agriculture land is fairly low in Kosovo. 53% of the total land in Kosovo is considered to be arable land.^[5] The average farm is around 1.4 hectares.^[5]

Land

Since it is the surface upon which most economic activities occur, land is one of the most important natural resources contributing towards economic development. Kosovo has a total surface area of 10,877 square kilometers which is classified as: 53 to 54.23% agricultural land, 40.92% forest land and 4.85% infertile land.^[12][13] Kosovo possesses a wide variety of soils. It is assessed that 15% of the soil in Kosovo is high quality soil, followed by 29% of medium quality, so 56% of all soil is poor quality soil, while the high and medium quality make up 44% of the soil in Kosovo.^[14] The high and medium quality soil is composed 11% by humus soil, 8.4% grey carbonate land, 7.8% alluvial soil, and other dark and serpentine soils.^[14] The poor quality soil is composed of diluvial lands, swamps, acidic grey soils and other infertile soils, and it mainly lies on hilly areas and mountains.^[14]

Wood

Wood is used in Kosovo as the main source of heating. Studies reveal that households in Kosovo consume 7.58 m³ of wood each during one year, or a total consumption of 1.525 million m³ per year.^[16]

Water

Kosovo can secure around 131 × 10⁶ m³ of water per year from its underground water and river flows.

Kosovo possesses relatively low reserves of water as compared to its needs. The per capita water per year in Kosovo is estimated to be at 1,600 m³/s.^[17] The average annual water flow in Kosovo is calculated to be approximately 3.8 x 10⁹ or 121.2 m³/s. Total accumulated volume of water in current accumulation points is 569.69 million m³. Apart from having insufficient water resources to meet its people's and economy's needs, Kosovo is also characterized by an unequal distribution of water across its surface.^[17] Hydropower is only modestly used, due to its low potential. Water resources are mostly located in the western part, as opposed to the East and South East which have smaller reserves but larger needs for water.

There is lack of research regarding groundwater reserves in Kosovo. Groundwater reserves in Kosovo are mainly located in different formations of rocks. Although these reserves have a high importance for drinking water needs as well as agriculture and industry, they are mainly used through private wells. In the area of the White Drin river basin there are several groundwater accumulations, which have a total area of 998 km², usable volume of 271×10⁶ m³ and an estimated total capacity of 511×10⁶ m³.^[17]

Lakes

In Kosovo, there are only few natural lakes. Among its artificial lakes are: Radoniq, Gazivoda, Batllava, Përlepnicë and Badovc, which have the following characteristics:

Gazivoda Lake:

• Area of basin: 1,060 km² (410 sq mi)
• Average water flow: 13.5 m³/s
• Total volume of accumulation: 390 m³

Batllava Lake:

• Area of basin: 226 km² (87 sq mi)
• Average water flow: 1.06 m³/s
• Total volume of accumulation: 30 m³

Badovc Lake:

• Area of basin: 103 km² (40 sq mi)
• Average water flow: 1.05 m³/s
• Total volume of accumulation: 26.4 m³

Radoniq Lake

Radoniq Lake:

• Area of basin: 130 km² (50 sq mi)
• Average water flow: 0.16 m³/s
• Total volume of accumulation: 113 m^3[17]

Rivers

From the rivers in Kosovo:

• 50.7% belong to (flow to) the Black Sea, these are: Ibar, Morava e Binçës and Sitnica together with its branches Llapi and Drenica;
• 43.5% to the Adriatic Sea, these are: White Drin and its branches in Deçani, Peje, Prizren, Erenik, Klina, Topluha Plava and Mirusha Waterfalls;
• and 5.8% to the Aegean Sea, these are: Lepenci river and its branch Nerodimka.

The rivers in Kosovo have irregular flows during the year, but they typically have high flows in the Winter season and early Spring. The four main rivers in Kosovo are: White Drin, Lepenci, Morava and Iber. The river White Drin is the longest river in Kosovo with a length of 122 km (76 mi). Below are the length and surface area of the main rivers in Kosovo:^[17]

River in Kosovo

Mirusha waterfalls

Table 1: Length in kilometers of main rivers in Kosovo

Name	Length in km inside the territory of Kosovo	Surface m2
White Drin	122	4.622
Sitnica	90	2.873
Peja river	62	424.9
Morava	60	1.552
Lepenci	53	679.0
Erenik	51	510.3
Iber	42	1.155
Prizren river	31	262.6

Table 2: Water accumulation basins, basin areas (S), water flowing quantity (Q, q, and annual flowing) and discharge place

No.	Basin	S [km2]	Q [m3/s]	q [l/s/km2]	Annual flowing [million m3]	Flowing direction
1	White Drin	4649	61.0	14.6	2.200	Adriatic Sea
2	Iber	4009	32.6	8.13	771	Black Sea
3	Morava	1564	6.1	4.35	330	Black Sea
4	Lepenci	0.685	8.7	12.7	307	Aegean Sea

Table 3: The maximum, minimum, and average values of annual flows (Q-m³/s) of hydrometric stations according to river basins

NR.	BASIN	STATION	RIVER	Qmin	Qmes	Qmax
1	WHITE DRIN	Berkovo	Istok	0.48	3.75	1.86
2	WHITE DRIN	Drelaj	Bistrica e Pejes	0.32	4.20	83.50
3	WHITE DRIN	Grykë	Bistrica e Pejes	0.46	5.95	194
4	WHITE DRIN	Klina	Klina	000	1.49	49.20
5	WHITE DRIN	Mirusha	Mirusha	0.02	1.21	23.30
6	WHITE DRIN	Deçan	Bistrica e Deçanit	0.60	4.28	58.00
7	WHITE DRIN	Rakovina	White Drin	0.80	24.64	358
8	WHITE DRIN	Gjakova	Erenik	0.06	12.33	542
9	WHITE DRIN	Piranë	Topluha	0.04	3.47	55.40
10	WHITE DRIN	Gjonaj	White Drin	0.10	48.8	1118
11	WHITE DRIN	Prizren	Bistrica e Prizrenit	0.03	4.47	424
12	IBER	Glogovac	Drenica	0.02	1.52	32.80
13	IBER	Lluzhan	Llapi	0.90	5.01	63.80
14	IBER	Nedakovc	Sitnica	0.50	13.62	328
15	IBER	Milloshevë	Llapi	0.00	4.48	82.70
16	IBER	Prelez	Iber	0.80	13.39	452.80
17	IBER	Leposavić	Iber	0.50	30.85	667
18	MORAVA BINQËS	Konçul	Morava	0.03	9.21	1012
19	MORAVA BINQËS	Domarovc	Lumi Kriva	0.2	2.6	30.8
20	MORAVA BINQËS	Vitina	Morava	0.05	1.06	18.70
21	LEPENCI	Kaçanik	Nerodimja	0.15	4.17	17.50
22	LEPENCI	Đeneral Janković	Lepenci	0.10	10.49	184

Mineral resources

Kosovo's main mineral resources are: lead, zinc, silver, nickel, cobalt, chrome, lignite, copper, bauxite, magnesium, iron, and several industrial minerals such as: kaolin, bentonite, quartz, halloysite, diatomite, garnet, asbestos and leucites.^[17][18] Mineral resources in Kosovo are estimated to be worth 13.5 billion euros, based on a survey by the Directorate for Mines and Minerals and the World Bank, from which 6.5 billion euros are attributed to the Mine in Sibofc alone, 3 billion to Trepča, 2 billion to Ferronikel and another 2 billion to other resources across Kosovo.^[19] Although the former director for mines and minerals, Hengstmann, claimed of this value, the expert for mines, Adil Januzi claimed that Kosovo's natural resources are of even higher value since Kosovo possesses only lignite of over 13 billion tonnes.^[19] The industrial complex Trepča alone possesses more than 60 mineral species which have been identified thus far.^[11]

Mining and metal industry

There are two lead and zinc smelters in Trepča in Mitrovica, which are currently not operating because they were closed down during the UNMIK administration in 2000. They were closed down because of their environmental hazards. There are also several other enterprises which have been privatized after the war, such as: Ferronikeli in 2005, Llamkos Galvasteel in 2005, and Sharrcem in 2000. These enterprises: Ferronikeli in Drenas, a nickel mining and smelting complex; Sharrcem in Han i Elezit, a miner of limestone and manufacturer of cement; and Llamkos Galvasteel in Vushtrri, a manufacturer of steel, were "industrial champions" in the former Yugoslavia. Investments in the mining and metals sector in Kosovo have been very low and even declining during 2007–2011; however, this industry constitutes the largest portion of Kosovo's exports. The mining and metals industry provides almost 76% of the export revenues in Kosovo. This has also contributed to decreasing a portion of the rent-based income in Kosovo and increasing the real-economy income in Kosovo. Nevertheless, there are many structural imbalances in this sector and although it constitutes a high portion of the exports, the industry is also heavily dependent upon imports. The mining and metals industry in Kosovo shows a lack of internal integration, which means that there are few links in the production process between different segments in the industry and there is a need for investments in the field. Also, by establishing new enterprises in the mining and metals sector, Kosovo was able to decrease its current account deficit in 2011 by around 537 million Euros.^[28] Although metal processing developed quickly within the mining and metal industry during 2003–2011 and it increased export revenues by 16-fold, it was not able to encourage production linkages within the industry. During 2009–2011 the only mining licenses issued were to existing companies in Kosovo and only 5 were issued for extraction projects. During 2003–2011 imports also increased of ore and ore concentrates which were then processed locally and re-exported. While ores extracted by private companies or at Trepča are exported and further on processed and refined out of Kosovo, the domestic manufacturing industry uses processed metals imported from abroad. Thus, there are no linkages within the metals and mining industry in Kosovo and the industry is fully dependent linked with external economies. The extractive sector, although it is increasing in importance, it still remains at a relatively low level of 1.1% of GDP (2010) and significantly lower than its level prior to the war and the 90s.^[28] In 2008, the export of nickel ingots amounted to almost half of the whole exports value.^[1] The mining sector contributes relatively low to GDP (approximately 1%).^[1] Base metals accounted for almost 33% of all exports in 2010. These figures align Kosovo among the countries which the World Bank evaluates as "mineral economies".^[1]

Institutions in the energy sector

The main institutions in the energy sector in Kosovo are: The Ministry of Energy and Mining, the Energy Regulatory Office and the Independent Commission for Mines and Minerals (ICMM), while some of the major enterprises are: the Kosovo energy Corporation (KEK) and the Kosovo Electricity Transmission System and Market Operator (KOSTT).^[27]

See also

• Coal in Kosovo
• Economy of Kosovo
• Forests of Kosovo
• Geography of Kosovo
• Trepča Mines

References