2015 Minerals Yearbook [ADVANCE RELEASE]

U.S. Department of the Interior August 2019 U.S. Geological Survey The Mineral Industry of Estonia By John R. Matzko

Estonia, which is one of the Baltic States of northern Europe, Production was ranked eighth in the world in peat production in 2015, accounting for 3.4% of the world’s total. The country produced In 2015, the production of lime increased by 68% compared mostly industrial minerals, including cement, clay, crushed with that of 2014; electrode coke, by 51%; gravel, pebbles, stone, dolomite, gravel, lime, limestone, nitrogen (ammonia), shingle, and flint, by 42%; and nitrogen (N content of ammonia), and silica sand. Mineral fuels produced included coke, fuel oil, by 17%. Several mineral commodities showed decreases in and oil shale. Oil shale was important to the country’s economy production in 2015 compared with that of 2014. The production because much of it was used in powerplants to generate 77% of peat for fuel and peat briquets decreased by 77% and 76% of the country’s electricity (Statistics Estonia, 2016d, p. 318; respectively; limestone, by 53%; clinker production, by 51%; Apodaca, 2017). clays and kilts used in construction, by 46%; dolomite, by 32%; Estonia’s real gross domestic product (GDP) increased by crushed limestone, by 19%; and portland and other cement, by 1.1% in 2015 compared with 2.9% in 2014, and the nominal 13% (table 1). GDP was $22.7 billion.1 The slow growth was owing mainly Structure of the Mineral Industry to weak economies in neighboring countries, which reduced demand for Estonian exports, and market uncertainties. In 2015, In 2015, 150 companies were operating in the mining and industrial production decreased by 2.2% compared with that quarrying sector of Estonia, of which 130 were privately owned of 2014. Energy production decreased by 13.4%, and mining domestic companies, 19 were foreign owned, and 1 was owned production decreased by 4.7%. In 2015, mining and quarrying by the Government. The mining and quarrying sector employed accounted for about 1.2% of the GDP (Eesti Pank, 2016, p. 4, 3,100 people in 2015. Table 2 is a list of the major mineral 16, 19; Estonia.eu, 2016; Eurostat, 2016; International Monetary industry facilities in the country (Statistics Estonia, 2016d, Fund, 2016; Statistics Estonia, 2016a; 2016c, p. 182; 2016d, p. 163, 235). p. 190, 211–212; 2016e). According to the Government, the country’s foreign trade Commodity Review had been declining since 2013. In 2015, the value of exported goods decreased by 4% to $12.9 billion compared with that of Industrial Minerals 2014. The decrease in exports in 2015 was owing largely to decreased exports of mineral products, electrical equipment, Cement.—In May, AS Kunda Nordic Tsement announced and agricultural products. Mineral products made up 9.4% of a reduction in its output owing to reduced clinker exports to total exports in 2015 and were valued at $1.2 billion, which was Russia. The reduced exports likely accounted for the decline a decrease of about 18%, by value, from that of 2014. In 2015, in production of clinker and cement in 2015, by 51% and 13%, about 75% of Estonia’s exports went to European Union (EU) respectively, compared with that of 2014. AS Kunda Nordic countries. Estonia’s principal export partners during the year Tsement, which was a subsidiary of HeidelbergCement Sweden were the Commonwealth of Independent States (CIS) countries, AB of Sweden (75%) and CRH Europe Holding BV of the Finland, Germany, Latvia, Lithuania, and Sweden (Statistics Netherlands (25%), operated the country’s only cement plant; Estonia, 2016b). the plant was located at Kunda in northeastern Estonia. The The value of imported goods decreased by 5% to $14.5 billion plant had production capacities of 750,000 metric tons per year compared with that of 2014 and resulted in a trade deficit of (t/yr) of cement and 650,000 t/yr of clinker. The company also $1.6 billion. The decrease was owing largely to decreased operated five ready-mix concrete plants and owned an oil shale imports of agricultural products, electrical equipment, and deposit, which provided fuel for the cement kilns. In addition, mineral products. Mineral products made up about 11% of total AS Kunda Nordic Tsement operated the largest limestone quarry imports in 2015 and were valued at $1.6 billion—a decrease in the country; the quarry produced crushed limestone and other in value of 20% compared with that of 2014. About 83% of aggregates (CemNet.com, 2014; Global Cement News, 2015; Estonia’s imports in 2015 originated from EU countries, and International Cement Review, 2015, p. 127; AS Kunda Nordic mineral products were imported mostly from Finland and Tsement, 2016). Lithuania. During the year, Estonia’s main import partners were Nitrogen (Ammonia).—Nitrofert JSC, which was wholly Finland, Germany, Latvia, Lithuania, the Netherlands, Poland, owned by Group DF of Ukraine, was Estonia’s only producer of Russia, and Sweden (Statistics Estonia, 2016b). mineral fertilizers and specialized in the production of synthetic ammonia and urea. The Nitrofert fertilizer plant was located in the Kohtla-Jarve region and employed 426 people. The plant had a production capacity of 220,000 t/yr of urea, 180,000 t/yr of liquid ammonia, and 30,000 t/yr of aqueous ammonia. The 1 Where necessary, values have been converted from euro area euros (EUR) to company exported almost 90% of its urea production and 100% U.S. dollars (US$) at an average annual exchange rate of EUR0.9012=US$1.00 for 2015. of its ammonia production to Western Europe. The company had estonia—2015 [ADVANCE RELEASE] 14.1 been mostly idle since 2009 owing to decreases in the global owing to increased use of renewable energy resources, primarily market prices, and operated for only a few months in 2012 and biomass and wind energy, for electricity production. The share 2013. In July 2015, the company announced that it would lay off of oil shale in electricity production had decreased to about 77% all its employees by the end of the year; however, the company in 2015 from more than 85% in 2010. In contrast, the amount would not be shut down but its assets would be frozen (GDF of produced shale oil increased by about 20% owing to strong Group DF, 2014; Hobemagi, 2015; Laats, 2015b; Eurofound, foreign demand, and more than 90% of the shale oil production 2016; OSTCHEM, 2016). was exported (Kearns and Tuohy, 2015, p. 2; Statistics Estonia, Rare Earths.—On June 9, a major fire took place at one 2016d, p. 318). of Molycorp Silmet AS’s buildings in the town of Sillamae. The Government-owned energy company Eesti Energia AS The fire destroyed a production line for rare-earth metals but, was one of the leading energy companies and one of the according to the company, the production line would be rebuilt. largest employers in Estonia. In 2015, the company employed Molycorp Silmet, which was a wholly owned subsidiary of 6,300 people and produced 336,500 t of shale oil—an increase Molycorp Minerals LLC of the United States, was located of 27% compared with that of 2014. The company’s new in northeastern Estonia about 200 kilometers from Tallinn. Enefit280 shale oil plant produced 137,100 t of shale oil. The Molycorp Silmet was one of the largest rare-earth metal Enefit 280 plant was designed to consume 2.26 Mt/yr of oil producers in Europe and employed more than 550 people. shale. The plant’s capacity was about 1.9 Mt/yr of shale oil; Molycorp Silmet exported its products to Asia and Europe 75 million cubic meters per year of hydrogen-rich retort gas; and (including countries of the former Soviet Union), and to 280 gigawatthours per year of electricity from waste heat (Eesti North America and South America (Molycorp Inc., 2014a; Energia AS, 2016, p. 4, 6, 22–23; Enefit, 2016). 2014b, p. 9, 46; Gerden, 2015). Peat.—Peatlands cover about 10,000 square kilometers, or about 22% of Estonia’s territory, ranking the country third in Mineral Fuels and Other Sources of Energy peat resources in Europe after Finland and Sweden. Total peat resources were 2.37 billion metric tons, and proved reserves Oil Shale.—In late 2015, the Government approved a 15-year were 780 Mt. AS Turvas, headquartered in Parnu, was plan for the development of oil shale. The plan would keep the leading peat producer in Estonia. The company was wholly mining quotas at the current level of 20 million metric tons owned by the Vapo OY Group of Finland and produced milled per year (Mt/yr). The purpose of the plan was to decrease the peat for fuel and horticultural use. During the period from environmental impact of mining the oil shale through research May 2014 to April 2015, the company employed 35 people, into new production technologies and by reducing oil shale’s on average (Orru and Orru, 2008, p. 87–88; AS Tootsi Turvas, contribution to the country’s production of electricity to 50%, 2016; Orru, undated). and heat, to 80% (Laats, 2015a). In November, Viru Keemia Grupp AS (VKG), which was References Cited the leading producer of shale oil in Estonia, opened its third Apodaca, L.E., 2017, Peat: U.S. Geological Survey Mineral Commodity oil-shale-processing plant based on Petroter technology. The Summaries 2017, p. 120–121. Petroter I and II plants, which were completed in 2009 and AS Kunda Nordic Tsement, 2016, About us: AS Kunda Nordic Tsement. 2014, respectively, and the Petroter III plant were all located in (Accessed April 19, 2016, at http://www.knc.ee/en/node/5268.) AS Tootsi Turvas, 2016, Company: AS Tootsi Turvas. (Accessed April 15, 2016, Kohtla-Jarve in northeastern Estonia. Construction of the new at http://www.vapo.ee/?page_id=635.) Petroter III plant started in October 2013 and was completed in CemNet.com, 2014, Kunda Nordic Cement Corp—Kunda: CemNet.com plant September 2015. The cost of the project was about 84 million data. (Accessed April 19, 2016, at http://www.cemnet.com/GCR/plant/1227.) euros ($93 million). The plant was expected to process about Eesti Energia AS, 2016, Annual report 2015: Tallinn, Estonia, Eesti Energia SA, 132 p. (Accessed September 1, 2016, at https://www.energia.ee/-/doc/10187/ 1 Mt/yr of oil shale, which would produce about 135,000 t/yr pdf/concern/annual_report_2015_eng.pdf.) of oil products, as well as byproduct electrical and heat energy. Eesti Pank, 2016, Estonian economy and monetary policy: Eesti Pank (Estonian The three Petroter processing plants provided 300 direct and Bank), 1—2016, 36 p. (Accessed April 21, 2016, at http://www.eestipank.ee/ 100 indirect jobs (Kearns and Tuohy, 2015, p. 16; Viru Keemia sites/eestipank.ee/files/publication/en/MonetaryPolicySurvey/2016/ rpm_2016_1_eng.pdf.) Grupp, 2015a). Enefit, 2016, Estonia shale oil industry—Enefit280 oil plant: Tallinn, Estonia, In 2015, VKG produced about 506,000 metric tons (t) of oil Enefit. (Accessed September 1, 2016, at https://www.enefit.com/en/ shale, which was 56% of the country’s production. Most of the enefit280-building.) oil shale processed by VKG was supplied by the company’s Estonia.eu, 2016, Economy in numbers: Estonia.eu, April 20. (Accessed April 21, 2016, at http://estonia.eu/about-estonia/economy-a-it/economy-in- underground Ojamaa Mine, which contained 60 million numbers.html.) metric tons (Mt) of oil shale. The mine opened at the end of Eurofound, 2016, European Monitoring Centre on Change—AS Nitrofert: January 2013 and reached full capacity in the second half of European Foundation for the Improvement of Living and Working that year. VKG had invested 120 million euros ($133 million) in Conditions. (Accessed August 31, 2016, at http://www.eurofound.europa.eu/ observatories/emcc/erm/factsheets/as-nitrofert.) the mine, and the mine was expected to provide VKG with raw Eurostat, 2016, Government debt fell to 91.6% of GDP in euro area: materials for the next 16 years. The mine employed more than Eurostat press office, January 22. (Accessed April 19, 2016, at 400 people (Viru Keemia Grupp, 2015b). http://ec.europa.eu/eurostat/documents/2995521/7141153/2-22012016-AP- The greater part of oil shale production was consumed in EN.pdf/8288af1f-6f6f-4d2e-91ba-d5c45f07f2e2.) GDF Group DF, 2014, Fertilizer business: GDF Group DF. (Accessed powerplants and as raw material for shale oil. In 2015, the August 31, 2016, at https://groupdf.com/en/press-center/press-kit/ consumption of oil shale by powerplants decreased by 20% fertilizer-business/.)

14.2 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 Gerden, Eugene, 2015, Molycorp Silmet plans to resume production of rare Molycorp Inc., 2014b, Form 10–K—2014: U.S. Securities and Exchange metals in Estonia after major fire: ProEdge Media Corp., June 16. (Accessed Commission, 148 p. (Accessed April 15, 2016, at http://phx.corporate-ir.net/ April 15, 2016, at http://investorintel.com/technology-metals-intel/ External.File?item=UGFyZW50SUQ9NTg1MDIxfENoaWxkSUQ9MjkzMT molycorp-silmet-plans-to-resume-production-of-rare-metals-in-estonia/.) g4fFR5cGU9MQ==&t=1.) Global Cement News, 2015, Kunda Nordic Tsement announces 30 job Orru, Mall, [undated], Sustainable use of Estonian peat resources and redundancies: Pro Global Media Ltd., May 28. (Accessed April 19, 2016, environmental challenges: The Geological Survey of Estonia, 24 p. (Accessed at http://www.globalcement.com/news/itemlist/tag/Kunda%20Nordic%20 April 15, 2016, at http://www.gi.ee/maegs15/presentations/6_4_Orru.pdf.) Tsement.) Orru, Mall, and Orru, Hans, 2008, Sustainable use of Estonian peat resources and Hobemagi, Toomas, 2015, Nitrofert announces major layoffs in northeast environmental challenges: Estonian Journal of Earth Sciences, v. 57, no. 2, Estonia: Baltic Business News, July 9. (Accessed August 31, 2016, at February 4, p. 87–93. (Accessed April 15, 2016, at http://www.kirj.ee/public/ http://balticbusinessnews.com/article/2015/7/9/nitrofert-announces-major- Estonian_Journal_of_Earth_Sciences/2008/issue_2/earth-2008-2-87-93.pdf.) layoffs-in-northeast-estonia.) OSTCHEM, 2016, AS Nitrofert is the only mineral fertilizer producer in International Cement Review, 2015, Estonia, in The global cement report Estonia: OSTCHEM. (Accessed August 31, 2016, at http://ostchem.com/ (11th ed.): International Cement Review, p. 127-128. en/o-kompanii/proizvodstvo/nitrofert.) International Monetary Fund, 2016, World economic outlook database: Statistics Estonia, 2016a, In 2015, industrial production decreased: Tallinn, Washington, DC, International Monetary Fund, April. (Accessed Estonia, Statistics Estonia, February 1. (Accessed April 19, 2016, at April 21, 2016, at https://www.imf.org/external/pubs/ft/weo/2016/01/ http://www.stat.ee/277488.) weodata/weorept.aspx?sy=2009&ey=2017&scsm=1&ssd=1&sor Statistics Estonia, 2016b, Last year Estonia’s foreign trade continued to decline: t=country&ds=.&br=1&pr1.x=51&pr1.y=11&c=939&s=NGDP_ Tallinn, Estonia, Statistics Estonia, February 9. (Accessed April 18, 2016, at RPCH%2CNGDPD%2CTMG_RPCH%2CTXG_RPCH%2CGGR_ http://www.stat.ee/news-release-2016-016.) NGDP%2CGGXWDG_NGDP&grp=0&a=.) Statistics Estonia, 2016c, Quarterly bulletin of Statistics Estonia—1/2016: Kearns, Jordan, and Tuohy, Emmet, 2015, Trend in Estonian oil shale utilization: Tallinn, Estonia, Statistics Estonia, April, 191 p. (Accessed April 18, 2016, at Tallinn, Estonia, International Centre for Defence and Security, October, http://www.stat.ee/publication-download-pdf?publication_id=42574.) 22 p. (Accessed September 6, 2016, at http://www.icds.ee/fileadmin/media/ Statistics Estonia, 2016d, Statistical yearbook of Estonia 2016: Tallinn, Estonia, icds.ee/failid/Jordan_Kearns_-_Trends_in_Estonian_Oil_Shale_Utilization_ Statistics Estonia, July, 440 p. (Accessed July 28, 2016, at http://www.stat.ee/ Oct_2015.pdf.) publication-download-pdf?publication_id=42573.) Laats, J.M., 2015a, Government approves new oil shale rock development Statistics Estonia, 2016e, The Estonian economy grew 1.1% in 2015: Tallinn, plan until 2030: News.err.ee, December 21. (Accessed April 19, 2016, at Estonia, Statistics Estonia, March 10. (Accessed April 14, 2016, at http://news.err.ee/v/economy/c5f1b970-7962-43e5-a9c0-525401f80dcb/ http://www.stat.ee/277536.) government-approves-new-oil-shale-rock-development-plan-until-2030.) Viru Keemia Grupp, 2015a, Viru Keemia Grupp has opened the new Petroter Laats, J.M., 2015b, Nitrofert lays off first 99 staff members: News.err.ee, III plant: Viru Keemia Grupp, November 11. (Accessed September 1, 2016, August 25. (Accessed August 31, 2016, at http://news.err.ee/v/business/ at http://www.vkg.ee/eng/news/517/viru-keemia-grupp-has-opened-the-new- economy/2f96810d-93a0-408b-aa3d-3277a8f2bd11/nitrofert-lays-off-first-99- petroter-iii-plant.) staff-members.) Viru Keemia Grupp, 2015b, Yearbook 2015: Viru Keemia Grupp. (Accessed Molycorp Inc., 2014a, About Molycorp Silmet: Molycorp Inc. (Accessed September 1, 2016, at http://www.vkg.ee/aastaraamat2015/index-en.html.) April 15, 2016, at http://www.molycorp.com/about-us/our-facilities/ molycorp-silmet/.)

estonia—2015 [ADVANCE RELEASE] 14.3 taBLe 1 estonia: PRoDUCtion oF MineRaL CoMMoDities1

(Metric tons unless otherwise specified)

Commodity2 2011 2012 2013 2014 2015 MetaLs Lead, metal, secondary 7,840 8,046 7,581 r 8,588 8,329 inDUstRiaL MineRaLs Cement: Clinker thousand metric tons 719 r 715 r 691 r 721 r 356 Portland and other do. 451 r 482 r 457 r 447 r 390 Clay and kilts used in construction 120,000 98,600 99,000 e 107,000 r 58,000 Lime 27,862 26,000 31,391 47,200 r 79,200 nitrogen, n content of ammonia thousand metric tons -- 14 99 30 r 35 silica sand (industrial) 14,000 21,000 20,000 23,000 22,000 stone: Crushed stone used for concrete aggregates, 6,196,300 6,170,200 r 6,463,100 r 5,805,200 r 5,342,000 for roadstone, and for other construction use Dolomite cubic meters 35 25 25 e 19 r 13 Gravel, pebbles, shingle and flint do. 1,251,680 946,500 r 1,207,300 r 1,562,300 r 2,213,200 Limestone 1,026,350 1,017,415 1,013,176 1,031,133 486,649 Limestone, crushed 525,000 679,600 360,784 626,000 r 510,000 MineRaL FUeLs anD ReLateD MateRiaLs Coke, electrode 24,400 26,300 22,000 24,500 r 37,000 Fuel oil 559,900 598,900 629,600 770,000 770,000 e oil shale thousand metric tons 18,734 r 18,796 r 20,511 r 20,995 r 19,217 Peat, all uses 926,700 670,800 1,061,100 854,600 r 779,400 of which: For fuel 322,600 166,000 260,200 261,000 r 59,500 Peat briquets 74,800 52,100 56,000 62,000 r 14,800 eestimated; estimated data are rounded to no more than three significant digits. rRevised. do. Ditto. -- Zero. 1table includes data available through august 31, 2016. 2In addition to the commodities listed, Estonia produced sulfur and rare-earth metals, but available information was inadequate to make reliable estimates of output.

14.4 [ADVANCE RELEASE] U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2015 taBLe 2 estonia: stRUCtURe oF tHe MineRaL inDUstRY in 2015

(thousand metric tons unless otherwise specified)

annual Commodity Major operating companies and major equity owners Location of main facility capacity Cement as Kunda nordic tsement (HeidelbergCement sweden aB Kunda plant 750 cement; 75%, and CRH europe Holding BV, 25%) 650 clinker. Lead, secondary ecometal as sillamae 20. Lime nordkalk as (Rettig Group, 100%) lime plant na. Do. VKG energia oÜ (Viru Keemia Grupp as, 100%) Lime plant 24. nitrogen (ammonia) nitrofert JsC (Group DF, 100%) Kohtla-Jarve plant, Ida-Viru 220 urea; Region of Kohtla-Jarve 180 liquid ammonia; 30 aqueous ammonia. oil shale VKG oil as (Viru Keemia Grupp as, 100%) ojamaa Mine, about 2,800. 10 kilometers south of Kohtla-Jarve Do. eesti energia as Group (Government, 100%) narva Mine 6,000. Peat as tootsi turvas (Vapo oY Group, 100%) ellamaa, , Peningi, na. Puhatu, and deposits Rare earths metric tons Molycorp silmet as (Molycorp Minerals LLC, 80%; Factories in sillamae 700 rare-earth treibacher industrie aG, 10%; silmet Group, 10% ) metal. shale oil eesti energia as Group (Government, 100%) 3 plants in narva, of which: Do. 42-gallon 2 x enefit 140 1,500,000.e barrels per year Do. do. do. 1 x enefit 280 1,900,000.e Do. do. VKG oil as (Viru Keemia Grupp as, 100%) 7 processing plants in Kohtla-Jarve of which: Petroter i and ii 1,500,000.e Do. do. do. Petroter iii 1,000,000.e Do. do. do. 4 x Kiviter na. Do. do. Kiviõli Keemiatööstuse oÜ (alexela energia, 100%) Kivioli oil shale plant na. stone: Dolomite nordkalk as (Rettig Group, 100%) Kurevere dolostone quarry na. Limestone VKG energia oÜ (Viru Keemia Grupp as, 100%) limestone quarry na. Limestone, aggregates as Kunda nordic tsement (HeidelbergCement sweden aB Jaama 2, Kunda na. 75%, and CRH europe Holding BV, 25%) eestimated. Do., do. Ditto. na not available.

estonia—2015 [ADVANCE RELEASE] 14.5