Page 89 - SE Outlook Regions 2023

The deposits in the banking system increased by 1.5% y/y to
BGN130bn. Deposits of households increased by 0.8% y/y, while those
of credit institutions moved up by 12.6% y/y.

The banks' total assets increased to BGN151bn at the end of October,
up by 1.4% y/y.

3.3.3 Industry

Bulgaria is a producer of metals including lead, zinc and copper. Among
the internationally listed mining companies active in Bulgaria, Dundee
Precious Metals reported strong results for gold and copper production
in 2021, while Velocity reported positive drill results from its Rozino gold
project.

In 2022, Dundee extended the life of its Chelopech mine in Bulgaria to
2030 and updated the mineral resource and mineral reserve estimates
for the project. The company has said that the proven and probable
mineral reserves were 1.7mn ounces of gold and 341.9mn pounds of
copper.

Velocity announced plans to begin drill testing at its Rozino gold project
as well as its Dangovo prospecting license in the fourth quarter of 2022.
The company also plans to continue drilling at additional sections of its
Iglika copper-gold project in southeastern Bulgaria.

Another company from the metals industry – the aluminium products
manufacturer Alcomet – plans investments in 2023 in order to get
closer to energy independence. The company intends to invest around
€1.3mn in the construction of a 2 MW rooftop solar photovoltaic (PV)
module at its plant. The solar array should be commissioned in
February 2023. The project includes the installation of 5,000 solar
panels that would produce 2,600 MWh of electricity per year. That
would cover about 4% of the energy needs of the production plant.

Alcomet also plans to complete in 2023 the €1.7mn ALUGREEN green
anodising project which began in August 2021 and was co-funded
under the Norway Grants 2014-2021 mechanism.

3.3.4 Energy & power

Bulgaria’s energy sector has remained unreformed over the past year
due to the lack of a stable government and parliament needed for the
in-depth reforms that the country needs in order to meet the EU green
goals.

In its Recovery and Resilience Plan, Bulgaria aims to close down its
coal industry by 2038 or 2040. However, this would pose challenges to
the country as nearly 40% of the energy in Bulgaria is produced by
coal-fired power plants with more than 95% of the fuel being lignite. The
biggest coal-fired power plant is the state-owned Maritsa East 2 with a

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