MATERIAL FLOWS AND ENVIRONMENTAL CONSEQUENCES IN SERBIAN MINING PRACTICES

Based on gold and copper processing, Serbia's mining sector faces significant challenges due to outdated practices, existing regulations, and a lack of investment in sustainable technologies. Economically important, the industry unfortunately causes severe environmental degradation, resulting in air, water, and soil pollution, which is compounded by resource overexploitation and poor waste management. Serbia's material flow indicators show high raw material consumption and hazardous waste production, with per capita Raw Material Consumption (RMC) exceeding the EU average. The country ranks low in resource productivity and struggles to align its practices with modern European standards. Serbia's mining royalty rates remain relatively low compared to other countries, limiting state revenue and enabling resource overexploitation. Additionally, the lack of local processing of raw materials reduces the sector's economic contribution. While foreign investors bring capital and technology, concerns about environmental impacts and equitable benefit distribution persist. To address these issues, Serbia must enforce strict environmental standards, and adopt new technologies while incorporating material flow analysis into policy-making to achieve better resource management and minimize environmental damage. Promoting local processing and increasing mining royalties could enhance economic contributions while fostering sustainability. Collaborative efforts among government entities, investors, and the public are essential to balancing different aspects of the development of the Serbian mining sector by transitioning to more acceptable mining practices while preserving ecological integrity.