The Ministry of Climate will start developing the principles of future mineral resource exploitation and local benefits

23.09.2024 | 14:50

On 20 September, the Ministry of Climate submitted a draft of the legislative intent to amend the Earth's Crust Act and the Environmental Charges Act for the approval round. The purpose of these amendments is to clarify the conditions for the exploitation of future mineral resources. The draft also introduces a local benefit instrument for residents and local governments in mining areas.

‘Estonia has valuable mineral resources, such as magnesium, iron ore, phosphorite, and rare earth metals, which are in great demand in the European Union and on the world market. Our aim is to ensure responsible exploitation of future mineral resources, bringing maximum benefits to local communities and the Estonian economy,’ said Minister if Climate Yoko Alender.  

The Minister of Climate emphasised that the valorisation of future mineral resources must take place in Estonia: ‘We must use our resources to create added value and jobs in Estonia and avoid negative environmental impacts.’   

The exploitation of future mineral resources is closely related to the research of the Estonian Geological Survey (EGT), one of the aims of which is to identify effective and environmentally sustainable ways of valorising mineral resources. The EGT will submit the results of the survey to the Government of the Republic at the end of 2025.   

‘Any mining is a long and complex process that requires thorough research and environmental impact assessment. We are currently exploring ways to valorise phosphorite and other future mineral resources so that we can make informed and responsible decisions that take into account both the local benefits and the environmental impacts of the activity,’ Alender said. 

In addition, the legislative intent encompasses mineral resources currently in use, such as sand, gravel, limestone, and peat, and ensuring the equitable distribution of the revenue generated from them.  

‘Right now, the mining operator does not have to pay a fee to local residents. With the amendment, we want to reassure local residents and governments that they will also benefit from mining. We propose that a portion of the mining rights fee should be distributed to all individuals residing in the immediate vicinity of the quarries, including those on private and municipal land,’ added the Minister of Climate. 

The Ministry plans to send a draft amendment to the Earth's Crust Act and the Environmental Charges Act for a public consultation in the spring of next year and to the Government of the Republic and the Riigikogu in the autumn of 2025. The draft amendment to the Environmental Charges Act will also be prepared and sent by the Ministry for approval during 2025; the amendments and new mining rights rates are scheduled to enter into force in 2026. 
 
 

VIKTORIA KORPAN

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