2007 Minerals Yearbook

Estonia, Latvia, and Lithuania

U.S. Department of the Interior July 2010 U.S. Geological Survey Th e Mi n e r a l In d u s t r i e s o f Es t o n i a , La t v i a , a n d Li t h u a n i a By Richard M. Levine, Mark Brininstool, and Glenn J. Wallace

Estonia reportedly one of the world’s leading producers of niobium metal chips. In 2007, Silmet began production of cerium carbonate 45 In 2007, Estonia continued its economic expansion and the grade 99.9 (City of Sillamae, 2007; AS Simet, 2008). gross domestic product (GDP) increased by 7.1% compared Estonia was the leading producer of oil shale in Europe and with that of 2006 (U.S. Department of State, 2008). Estonia’s had been mining high-grade marine oil shale (kukersite of mining industry was primarily engaged in extracting oil shale, Ordovician age) for many years. In 2007, about 16.4 million peat, and industrial minerals, which included clays, limestone, metric tons (Mt) of oil shale was mined from several and sand and gravel. underground and open pit mines, which was about a 16% The AS Silmet enterprise located in the northeast of Estonia increase compared with that of 2006 and was the largest amount was one of the leading rare metals (for example, rare-earth of oil shale produced since the early 1990s. The increase in metals) producers in Europe. Silmet employed about 550 people. production was spurred by increased demand for fuel. On The enterprise included a factory for rare-earth metals separation, average, about 85% of the oil shale is burned as fuel in several a factory for rare-metals production, and a metallurgical factory. large electric powerplants in northeastern Estonia; the remainder The factory for rare-earth metals separation produced such is retorted for shale oil, which is used in the manufacture of products as carbonates, fluorides, hydroxides, oxides, and fuels and petrochemicals. Estonian oil shale manufacturers solutions as well as liquid nitric fertilizers. The factory for rare were participating in oil shale development in other countries. metals produced ammonium bifluoride, hydroxides, oxides, and Eesti Energia AS, which was a state-owned company engaged rare metals. The metallurgical factory produced metallic products, in the production, sale, and transmission of electric power, was which included hydrides, metallic powders, niobium and developing an oil shale mine in Jordan. Viru Keemia Grupp AS tantalum chips, and rare-earth metals products, which included (VKG), which was the country’s leading oil shale processing mischmetal, neodymium ferroboron alloys, and neodymium company and one of the world’s leading shale oil producers, metal ingots. About 99% of the raw materials used in production was participating in the development of the Boltyshk oil shale at Silmet were imported and 99% of the products sold were deposit in Ukraine (Viru Keemia Grupp AS, 2008, p. 13). exported (AS Silmet, 2008). VKG, which in 2007 produced about 400,000 t of liquid fuels Estonia supplied more than 90% of its electricity needs from oil shale, was projected to produce 1.7 Mt in 2015, which with locally mined oil shale. It imported all its natural gas would cover the country’s entire need for liquid fuel, including and petroleum, which equaled about 30% of its total energy fuel for transport. VKG employed more than 1,400 people in consumption, from Russia. Alternative energy sources, which Ida-Viru county and other parts of Estonia. In 2007, VKG began included biomass, peat, and wood, made up about 9% of construction of a new shale oil plant with the capacity to process primary energy production. An undersea electricity cable 900,000 metric tons per year (t/yr) of oil shale. VKG also held commissioned in December 2006 allowed Estonia to export permits to develop oil shale mining in the country. In 2007, VKG electricity to Finland (U.S. Department of State, 2008). began development of the Ojamaa underground mine, which Estonia has 64 ports along its coast, 31 of which handled was expected to achieve its design capacity to mine 2.5 million commercial shipping and were open to vessels from other metric tons per year (Mt/yr) by 2011 (Dyni and Johnson, 2006; countries. Oil refinery products from Russia made up more than Parkman, 2008; Viru Keemia Grupp AS, 2008). Cement and lime 50% of the cargo handled at the country’s ports. The Port of production increased in 2007 in line with the country’s economic Tallinn was the country’s largest port in terms of freight handled. growth. Data on mineral production are in table 1. In the area of mineral shipments, Muuga Harbor, which was the main cargo handling harbor for the Port of Tallinn, handled crude Structure of the Mineral Industry oil and petroleum refinery products. The Paldiski South Harbor of the Port of Tallinn handled scrap metal, the Paljassaare Harbor Most of Estonia’s mineral production was privately owned. of the Port of Tallinn handled petroleum refinery products and Silmet was privatized in 1997 (AS Silmet, 2008). In 2005, the coal, the Kunda Port handled cement, the Sillamae Port handled Estonian Silmet Group sold its majority holding in Silmet to metals and petroleum refinery products, and the AS Parnu Zimal SA of Switzerland, which controlled the Revda loparite Sadam Port handled peat (Enterprise Estonia, 2008). mine in Russia and the Solikamsk magnesium works, also in Russia, through the Russian holding company Mineral Group Production (Estonian Economy, 2006). Oil shale production was Estonia’s main raw material for energy production. Oil shale production Estonia’s main metals producing enterprise, Silmet, annually was under the control of Eesti Energia, which owned the mines produced up to 3,000 metric tons (t) of rare-earth products from which the oil shale was extracted (Eesti Energia AS, and 700 t of rare-metal products (AS Silmet, 2008). Silmet was 2008). Oil shale mining was conducted by Eesti Põlevkivi

ESTONIA, LATVIA, AND LITHUania—2007 14.1 (Estonian Oil Shale Company), which was a subsidiary of Eesti steel reinforced concrete bars from Latvia (among a number Energia (Oil Shale Symposium, 2009). VKG, which processed of other countries) would likely lead to a continuation or oil shale, was privately owned. recurrence of material injury within a reasonably foreseeable time; therefore, the antidumping duty order was to remain in References Cited place (U.S. International Trade Commission, 2007). In 2007, iron and steel accounted for about 9% of the total value of AS Simet, 2008, Overview: AS Silmet. (Accessed December 10, 2008, at Latvia’s exports (Latvijas Statistika, 2008). http://www.silmet.ee/default.aspx?m1=48&m2=51&lang=1.) City of Sillamae, 2007, Business in Sillamae: City of Sillamae, May 3. (Accessed December 10, 2008, at http://www.sillamae.ee/index.php?page=36 Production 6&&PHPSESSID=ab93a1f73565f1eda6a3fb789d2d146e.) Dyni, J.R., and Johnson, R.C., 2006, Energy Minerals Division—Will oil shale The growth in Latvia’s economy appeared to spur substantial be a major player?: AAPG Explorer, May. (Accessed December 7, 2008, at increases in the production of mineral commodities used in http://www.aapg.org/explorer/divisions/2006/05emd.cfm.) Enterprise Estonia, 2008, Transportation: Estonian Investment infrastructure development, although information was not and Trade Agency, June. (Accessed December 8, 2008, at available to estimate 2007 production of cement or steel. Data http://www.investinestonia.com/index.php?option=displaypage&Itemid=111 on mineral production are in table 1. &op=page&SubMenu=.) Eesti Energia AS, 2008, About us: Eesti Energia. (Accessed December 7, 2008, via http://www.energia.ee/index.php?id=1&L=1.) Structure of the Mineral Industry Estonian Economy, 2006, Industry: Estonian Economy, January. (Accessed December 10, 2008, at https://www.static.vm.ee/static/Failid/101/ The Ports of Riga and Ventspils operate as freeports and the Economy-Jan2006.pdf.) Port of Liepaja is part of the Liepaja Specialized Economic Oil Shale Symposium 2009, 2008. (Accessed December 11, 2008, at http://www.oilshalesymposium.com/index.php?id=13.) Zone. The country’s steel mill, Liepajas Metalurgs, which was Parkman, Janek, 2008, Estonian oil sector undergoing changes: Baltic Rim the country’s main mineral industry enterprise, was a public Economies, Expert Article 235, Bimonthly Review 5, October 31. (Accessed joint-stock company (Liepajas Metallurgs, 2007). December 28, 2008, at http://www.tse.fi/FI/yksikot/erillislaitokset/pei/ Documents/bre2008/BRE 5-2008/245 - 5-2008 - Expert articles.pdf.) U.S. Department of State, 2008, Estonia: U.S. Department of State background References Cited note, May. (Accessed December 8, 2008, at http://www.state.gov/r/pa/ei/ bgn/5377.htm.) Freeport of Riga Authority, 2008, Freeport of Riga in facts and figures: Viru Keemia Grupp AS, 2008, Annual report 2007: Viru Keemia Grupp Freeport of Riga Authority. (Accessed November 26, 2008, at AS, 27 p. (Accessed December 29, 2008, at http://www.vkg.ee/failid/ http://www.freeportofriga.lv/eng/fakti.asp.) VKG_Aastaramat_2008_EN_.pdf.) Freeport of Ventspils Authority, 2008, Latvia’s Ventspils port reloads 31 million tons of cargo in 2007: Freeport of Ventspils Authority, January 9. (Accessed December 30, 2008, at http://www.ventspils.lv/nr/exeres/76E5048D-E3FF- Latvia 4F3B-ADE7-4ADE98A98BA3?Lang=ENG.) Latvijas Statistika, 2008, Foreign trade: Latvijas Statistika. (Accessed Latvia had the Baltic States’ only steel mill. Other mineral December 30, 2008, at http://data.csb.gov.lv/DATABASEEN/atirdz/ commodity production was confined to industrial minerals Shorttermstatisticadata/Foreigntrade/Foreigntrade.asp.) Liepajas Metallurgs, 2007, Quarterly report for the first nine used in construction, peat extraction, and production of a small months of the year 2007: Liepajas Metallurgs. (Accessed amount of natural gas. In 2007, the country’s GDP increased by November 26, 2008, at http://www.baltic.omxnordicexchange.com/upload/ an estimated 10.3% compared with that of 2006 (U.S. Central reports/lme/2007-q3_en_uni_00_ias.pdf.) Intelligence Agency, 2008). U.S. Central Intelligence Agency, 2008, Latvia, in The world factbook: U.S. Central Intelligence Agency. (Accessed November 26, 2008, at Ventspils Nafta Terminal LTD was the Baltic Sea region’s https://www.cia.gov/library/publications/the-world-factbook/geos/lg.html.) leading oil and petroleum product transshipment terminal. Crude U.S. International Trade Commission, 2007, ITC makes determinations in oil and petroleum products were received by pipeline and five-year (sunset) reviews concerning steel concrete reinforcing bar from railways. The tank farm capacity of the enterprise exceeded Belarus, China, Indonesia, Korea, Latvia, Moldova, Poland, and Ukraine: U.S. International Trade Commission news release 07-070, July 10. 1 million cubic meters, which enabled the clients of the terminal (Accessed December 30, 2008. at http://www.usitc.gov/ext_relations/ to store products in case there is no immediate transshipment news_release/2007/er0710ee1.htm.) possibility owing to adverse conditions, such as weather, or in expectation of a better market price. The terminal also included Lithuania among its services chemical analysis of oil and petroleum products in the company laboratory (Freeport of Ventspils Authority, 2008). Lithuania’s main mineral commodity production enterprises The Freeport of Riga, which was the country’s second were its nitrogen fertilizer enterprise in Jonava and its petroleum ranked port, handled cargo, which included mineral refinery near Mazeikai. The country also produced industrial fertilizers, petroleum products, and various metals. About mineral products, which included cement, clays, and sand 80% of the products handled were transshipped from or to the and gravel, and mineral fuels, which included peat and crude Commonwealth of Independent States countries (Freeport of petroleum. Lithuania had the Baltic States’ only nuclear Riga Authority, 2008). The Port of Liepaja handled one-third powerplant; the plant, which was located at Ignalina, generated less cargo than that of Riga. It handled among its mineral about 70% of the electric power consumed in Lithuania. The product cargo mainly metals and mineral fertilizers. reactors at the plant, however, were of the RBMK-2 model that In July, the U.S. International Trade Commission determined was involved in the accident at the Chernobyl plant in Ukraine that revoking the existing antidumping duty order on (Energy Daily, 2007).

14.2 U.S. GeOlOGICAl SURVeY MINeRAlS Yearbook—2007 The Ignalina nuclear powerplant consisted of two units. The 90 kilometers to the Butinge terminal at the Port of Klaipeda decommissioning of both the Ignalina nuclear powerplant’s (Interfax Central Europe News Agency, 2007). two units was one of the main issues in Lithuania’s accession Achema AB, which was a nitrogen fertilizer and chemical negotiations to the European Union (EU). The country closed products manufacturer, was the country’s other major mineral unit 1 in December 2004 and was committed to shutting down product production enterprise. On average, its annual production unit 2. At the time, however, the EU recognized that entirely of fertilizers exceeded 2 Mt, which included compound and decommissioning the Ignalina nuclear powerplant would have nitrogenous fertilizers. Achema AB employed more than 1,600 to be delayed because of the extraordinary financial burden that people. In 2006, Achema AB started production at a second closing down the plant would place on Lithuania—a burden ammonia plant, and production of ammonia more than doubled that was disproportionate to Lithuania’s economic capacity. in 2007 (Achema AB, 2008a, b). Data on mineral production are The EU was committed to providing financial assistance for the in table 1. closure of unit 2, which was scheduled for decommissioning in 2009 if sufficient financial resources were available from Structure of the Mineral Industry EU institutions and other donors to assist with the closure (Ignalina Nuclear Power Plant, 2008a). Lithuania wanted to In 2007, controlling shares of the AB Mazeikiu Nafta continue using nuclear power and was planning to construct a petroleum refinery were owned by the Polish refiner PKN Orlen. new reactor using the infrastructure at Ignalina for this purpose. PKN Orlen was the leading oil refiner in Central Europe and On December 8, 2006, a Joint Communiqué of the Prime was part owned by the Polish state. Achema AB was privatized Ministers’ Council of the Baltic Council of Ministers along with in 1994 (Achema AB, 2008b). The Ignalina nuclear powerplant Polish representation was signed in Vilnius, which stipulated was a state-owned enterprise (Ignalina Nuclear Power Plant, agreement to cooperate in building and operating a new nuclear 2008b). powerplant in Lithuania. The planned new reactor near Ignalina would consist of two units; at least one of the units was planned References Cited to be operational by 2015 (Lithuania in the European Union, 2007). Achema AB, 2008a, About “Achema”: Achema AB. (Accessed The country’s Port of Klaipeda was a major transshipment December 9, 2008, at http://www.achema.lt/about.) Achema AB, 2008b, History: Achema AB. (Accessed December 9, 2008, at center for mineral products, and, in particular, crude oil, http://www.achema.lt/history.) fertilizers, and petroleum products. The completion of upgrades Energy Daily, 2007, General Electric interested in Lithuania nuclear power at the Butinge terminal at the Port of Klaipeda, which was plant project: Energy Daily, January 23. (Accessed December 10, 2008, connected to the Russian oil pipeline system, increased the at http://www.energy-daily.com/reports/General_Electric_Interested_In_ Lithuania_Nuclear_Power_Plant_Project_999.html.) country’s ability to reexport crude oil and petroleum refinery Graham, Tod, 2006, Mazeikiu media frenzy, sale still up in smoke: products from Russia (U.S. Energy Information Administration, The Baltic Times, November 1. (Accessed December 9, 2008, at 2006). http://www.baltictimes.com/print_article/16738/.) Ignalina Nuclear Power Plant, 2008a, Decommissioning—Background information: Ignalina Nuclear Power Plant. (Accessed January 1, 2009, at Production http://www.iae.lt/inpp_en.asp?lang=1&subsub=201.) Ignalina Nuclear Power Plant, 2008b, Publications—V.Shevaldin manages INPP In 2007, Lithuania’s GDP grew at a rate of 8.8% compared for 10 years: Ignalina Nuclear Power Plant. (Accessed January 1, 2009, at with that of 2006 (U.S. Central Intelligence Agency, 2008). http://www.iae.lt/inpp_en.asp?lang=1&subsub=38.) Interfax Central Europe News Agency, 2007, Russian oil deliveries Although production of cement and limestone increased fundamental for Mazeikiu Nafta refinery—Lithuania PM: compared with that of 2007, this increase in the GDP did not Interfax Information Services B.V., April 23, 1 p. (Accessed result in increases in all construction materials used in building December 8, 2008, at http://www.forum-ekonomiczne.pl/public/upload/ the country’s infrastructure. Production of crude oil and ibrowser/forum_europa-rosja_2007/Russian_oil_deliveries.pdf.) Lithuania in the European Union, 2007, Ignalina NPP and the prospects of petroleum products also decreased in 2007 compared with that nuclear energy in Lithuania: Office of the Government of the Republic of 2006. The decrease in the production of refinery products had of Lithuania. (Accessed December 31, 2008, at http://www.euro.lt/en/ continued since 2006, when Russia cut off pipeline supplies to lithuanias-membership-in-the-EU/ignalina-npp/.) the country’s AB Mazeikiu Nafta refinery, reportedly owing to U.S. Central Intelligence Agency, 2008, Lithuania, in The world factbook: U.S. Central Intelligence Agency. (Accessed January 2, 2009, at technical problems caused by an accident on the pipeline that https://www.cia.gov/library/publications/the-world-factbook/geos/ supplied the refinery. The accident took place shortly after the lh.html#Econ.) sale of controlling shares of the refinery to a Polish refiner PNK U.S. Energy Information Administration, 2006, Baltic Sea regional factsheet: Orlen (Graham, 2006). Following the cutoff of supplies through U.S. Energy Information Administration, July. (Accessed December 8, 2008, at http://www.eia.doe.gov/emeu/cabs/Baltic/Oil.html.) the pipeline, the refinery had to transport oil a distance of about

ESTONIA, LATVIA, AND LITHUania—2007 14.3 TABLE 1 ESTONIA, LATVIA, AND LITHUANIA: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Country and commodity 2003 2004 2005 2006 2007 ESTONIA2 Cement: Clinker 157,300 113,100 88,800 65,100 302,700 Portland, other 506,200 614,600 726,000 r 848,900 r 937,400 Clays: For brick cubic metersr 134,900 136,600 151,800 231,400 r 214,000 e For cement do. 27,300 31,600 37,200 56,700 r 52,000 e Coal thousand metric tons 14,896 13,989 14,588 14,188 16,647 Coke, electrode 30,000 35,600 38,700 40,000 39,700 Dolomite: For building cubic meters 291,200 323,400 261,700 378,300 r 356,000 e For finishing do. 3,200 1,300 2,000 1,660 r 2,700 e For industry (technological limestone) do. 150,800 171,900 155,300 128,540 r 210,000 e Fuel oil 317,600 338,500 367,400 389,200 436,600 Gravel, pebbles, shingle and flint cubic meters NA NA 597,100 NA NA Lead, metal, secondary -- r 3,000 7,000 e 9,000 e 10,000 Lime 31,000 34,000 37,000 39,700 43,500 Limestone: For building cubic meters 1,255,000 1,547,000 1,922,000 2,343,800 r 2,750,000 e For cement do. 372,200 430,500 335,100 340,300 r 480,000 e For industry (technological limestone) do. 62,500 93,900 86,300 87,600 r 126,000 e Nitrogen, N content of ammonia 37,812 r 83,844 r 78,912 r 73,158 r 66,746 Oil shale thousand metric tons 12,608 r 11,736 r 12,349 r 14,138 16,400 Peat do. 1,089 767 r 1,034 r 1,208 r 964 For fuel do. 362 r 279 r 378 r 507 r 475 Briquets do. 120 68 r 68 r 101 r 128 Sand and gravel cubic meters 4,468,400 r 3,131,000 3,227,200 r 4,214,200 r 5,275,900 Silica sand (technological sand) do. 41,300 r 49,800 r 53,800 r -- r -- Sulfuric acid kilograms NA 31 NA 5 NA LATVIA Cement: Clinker 241,104 252,685 NA NA NA Other 295,205 283,647 280,000 280,000 e W Common clays and shales for construction use 174,896 208,391 NA NA NA Crushed rock NA 414,305 r 586,607 r 137,023 r 937,030 Diatomite 632 ------Dolomite, crude (excluding calcined, crushed dolomite aggregate) 789,796 810,137 1,675,882 1,688,643 NA Gravel, pebbles, shingle and flint of a kind used for concrete aggregates, road metalling, or railway and other ballast NA r 3,070,709 r 2,817,287 3,824,965 5,759,249 Gypsum 159,133 225,742 220,000 e 230,000 e W Limestone 431,590 443,987 420,000 e NA W Peat 1,076,142 823,938 829,865 931,103 820,996 Sand and gravel 1,981,431 1,875,494 3,242,199 2,132,779 3,281,684 Silica sand, industrial 6,000 r, e 6,700 r 18,300 r 12,600 r 13,000 e Steel, crude 545,626 553,684 550,000 e 550,000 e W LITHUANIA Cement, portland and other 596,857 r 753,069 r 832,076 1,065,367 1,105,365 Clays 240,800 228,100 289,465 r 385,275 r 384,850 Crushed stone used for concrete aggregates, roadstone, and other construction use NA NA 4,752,041 5,247,978 NA Dolomite, crude (excluding calcined, crushed dolomite aggregate) NA NA 7,196 10,455 2,131 Granules, chippings and powder of stones, excluding marble NA NA 4,316 10,390 21,885 See footnotes at end of table.

14.4 U.S. GeOlOGICAl SURVeY MINeRAlS Yearbook—2007 TABLE 1—Continued ESTONIA, LATVIA, AND LITHUANIA: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Country and commodity 2003 2004 2005 2006 2007 LITHUANIA—Continued Limestone 944,600 1,385,600 1,242,200 1,776,300 1,754,000 Marble granules, chippings and powder NA NA 666 1,167 1,244 Nitrogen, N content of ammonia 461,800 424,000 431,700 453,300 935,900 Peat 366,900 367,900 536,200 471,400 306,500 Petroleum: Crude 382,800 301,900 216,634 180,894 154,449 Refinery products 6,703,000 7,682,600 8,518,500 7,709,800 5,263,500 Sand and gravel: Construction sands 2,122,000 r 2,784,000 r 3,689,217 4,342,743 5,223,596 Gravel, pebbles, shingle and flint 2,672,000 r 3,051,000 r 3,345,185 3,290,568 3,958,004 Silica sand, industrial 49,700 58,300 46,500 42,600 45,400 Sulfur 48,515 67,094 74,277 61,135 42,618 Sulfuric acid kilograms 1,002,000 r 1,019,000 r 713,200 730,253 747,494 eEstimated; estimated data are rounded to no more than three significant digits. rRevised. do. Ditto. NA Not available. W Withheld to avoid disclosing proprietary data. -- Zero. 1Table includes data available through December 31, 2008. 2In addition to the commodities listed, Estonia produces sulfur but available information is inadequate to make estimates of output.

ESTONIA, LATVIA, AND LITHUania—2007 14.5