Kosovo is an independent country as of February of 2008 under EU supervision. A new 2000 person strong EU mission has been installed in the country with a $125 million Euro budget for 2008 and a mandate to oversee its accession to the European Union.

Although relatively small, Kosovo possesses a significant share of the region's mineral resources including, most notably its lignite deposits (the fifth largest in the world), and significant occurrences of zinc, lead and silver.

Kosovo has a long history of mining and a skilled workforce. The mining law is of an international standard and is independently monitored.

Lydian, through its subsidiary company Kosovo Resource Company, is only the second foreign mineral exploration company (after Phelps Dodge) to establish an exploration presence in Kosovo.