2008 Minerals Yearbook COUNTRIES OF THE BALTIC REGION (ESTONIA, LATVIA, LITHUANIA), CAUCASUS REGION (ARMENIA, AZERBAIJAN, GEORGIA), CENTRAL ASIA REGION (KAZAKHSTAN, KYRGYZSTAN, TAJIKISTAN, TURMKENISTAN, UZBEKISTAN), AND EURASIA REGION (BELARUS, MOLDOVA, RUSSIA) U.S. Department of the Interior December 2010 U.S. Geological Survey THE MINERAL INDUS T RIES OF COUN T RIES OF T HE BAL T I C REGION (ES T ONIA , LA T VIA , LI T HUANIA ), CAU C ASUS REGION (AR M ENIA , AZER B AIJAN , GEORGIA ), CEN T RAL ASIA REGION (KAZA K HS T AN , KYRGYZS T AN , TAJI K IS T AN , TUR km ENIS T AN , UZ B E K IS T AN ), AND EURASIA REGION (BELARUS , MOLDOVA , RUSSIA ) By Richard M. Levine and Glenn J. Wallace The countries that are covered in this report are grouped also can include a number of the above cited minerals, as well into the following four geographic regions: the Baltic region as gallium, hafnium, tellurium, and selenium, are produced as (Estonia, Latvia, Lithuania), the Caucasus region (Armenia, byproducts from the production of bauxite, copper, lead and Azerbaijan, Georgia), the Central Asia region (Kazakhstan, zinc, and uranium ores. A number of these minerals have been Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan), and the designated as critical and strategic by various Governments. Eurasia region (Belarus, Moldova, Russia). These countries Other elements could possibly be added to this list now, and all had been republics of the Soviet Union prior to 1992, still others will emerge as technological developments take although the United States Government never recognized place. This report, however, is only an initial effort to assess the incorporation of Estonia, Latvia, and Lithuania into the production of such commodities in this part of the world. Soviet Union. Although many of these countries have followed Global and country-specific data are often lacking for many of quite different economic and political development paths these minerals, and information is often inadequate to derive following the dissolution of the Soviet Union (for example, production estimates, which adds to the uncertainty regarding the Baltic states of Estonia, Latvia, and Lithuania became the potential supply of these minerals from this part of the members of both the European Union and the North Atlantic world. Owing to a dearth of current and consistent reporting Treaty Organization), the development of mineral mining and on reserves and production of these minerals in this area, processing, particularly of those minerals that are the focus of information used in this report is drawn from a period that spans this report, originated during the Soviet era, and patterns of the Soviet era to the present. Such historical information can be mineral mining, processing, shipping, and trade that were in indicative of a country’s resource endowment and production effect during the Soviet period persist or still have a bearing on potential, particularly as increased demand for these minerals current conditions. could make previously uneconomic deposits economic. The report This report focuses on the production of a suite of metals is not a comprehensive assessment but rather an attempt to form loosely termed “rare metals” (a term for less common and more a base from which to add and refine information on production expensive metallic elements) that are currently not produced and reserves as it becomes available. Ukraine, which also had in large quantities, but which could be used in far larger been a republic of the Soviet Union, is not covered in this report. amounts if the use of current technologies is expanded and More-extensive coverage of the major mineral industries of the new technologies to generate energy with batteries, fuel cells, countries covered in this report can be found in the individual nuclear reactors, solar cells, wind mills, and so forth, replace country reports of the 2007 U.S. Geological Survey Minerals current hydrocarbon use. This report also discusses production Yearbook, volume III, Area Reports—International—Europe of such elements as uranium (which is not referred to as a rare and Central Eurasia, which are available on the Internet at metal in this report), the future use of which could greatly http://minerals.usgs.gov/minerals/pubs/country. increase with the expanded use of nuclear power; and other elements that could be used in emerging technologies in such BALTIC REGION (ESTONIA, LATVIA, LITHUANIA) fields as aerospace, alternative energy, defense, electronics, and medicine. The minerals covered in this report include cesium, ESTONIA gallium, germanium, hafnium, indium, lithium, niobium, platinum-group metals (PGM), rare earths, scandium, selenium, Estonia’s mining industry was primarily engaged in extracting tantalum, tellurium, thallium, uranium, and zirconium. A oil shale, peat, and industrial minerals. Although Estonia is not number of these minerals, including cesium, germanium, rich in mineral resources, the country does have the world’s indium, lithium, niobium, rare-earth elements, tantalum, leading commercially exploited oil shale deposit. The Rakvere uranium, and zirconium, can be mined from deposits in which phosphate deposit in Estonia is one of the largest phosphorite they are the principal minerals; some of these minerals, which deposits in Europe, although it had not been mined because COUNTRIES OF THE BALTIC, THE CAUCASUS, THE CENTRAL ASIA, AND THE EURASIA Regions—2008 4.1 of environmental concerns. Estonia has some of the richest light and middle group of rare-earth metals and compounds, peatlands in northern Europe, including 9,836 mires that cover such as cerium, lanthanum, neodymium, praseodymium, and about 22% of Estonia’s territory. In 1945, the Soviet Union samarium-europium-gadolinium carbonates, oxides, metals, and starting processing uranium in Factory number 7 in Estonia, chloride and nitrate solutions (AS Silmet, 2009). which was a code name for the former Silmet Factory number 7 Silmet reportedly was one of the world’s leading producers of at that location. In 1990, AS Silmet stopped processing uranium niobium metal chips. At yearend 2007, Silmet began production and concentrated its activities on producing rare-earth metals of cerium carbonate 45 grade 99.9% (AS Silmet, 2007, 2008). and rare metals (AS Silmet, 2009). In 2008, Silmet made a profit of 22.4 million kroons (EEK) ($2,093,4581) compared with that of 2007 when the company Production lost 3.6 million kroons ($312,290). The profit made it possible for the company to cover losses in 2007 and increase its equity In mid-2008, Estonia’s economy fell sharply, primarily as a to 173.5 million kroons ($16,214,953). The company achieved result of an investment and consumption slump that followed its growth in sales because of growth in the physical volume the bursting of the real estate market bubble. The gross domestic of sales as well as because of higher prices for its products. product (GDP) was estimated to have declined by 3.6% in 2008 Silmet’s sales in European countries accounted for 236.9 million compared with that of 2007 (U.S. Central Intelligence Agency, kroons ($22,140,187), followed by the United States, 122 2009). The decline in the GDP was reflected in the estimated million kroons ($11,401,869), and Japan, 82.4 million kroons decreases in cement, clay, oil shale, peat, and sand and gravel ($7,700,935). The company stated that by managing to double production, but production of rare-earth metals and compounds its sales of rare-earth metals, it was presenting a real alternative and revenues from their sales increased in 2008. Production data to Chinese products (Estonian Investment and Trade Agency, are in table 1. 2009; U.S. Central Intelligence Agency, 2009). Structure of the Mineral Industry Outlook Most of Estonia’s mineral production facilities were privately Estonia is expected to gain in importance as a processer owned. Silmet was privatized in 1997 (AS Silmet, 2008). In of rare-earth elements as the demand for rare-earth metals 2005, the Estonian Silmet Group sold its majority holding in increases with the development of new technologies. The Silmet to Zimal SA of Switzerland, which controlled the Revda country also could be of increasing importance in the loparite mine in Russia and the Solikamsk magnesium works, development of technology for using oil shale owing to its also located in Russia, through the Russian holding company long experience and technical expertise in oil shale mining, Mineral Group (Estonian Economy, 2006). processing, and use. Commodity Review References Cited Metals AS Silmet, 2007, News—New product—Cerium carbonate 45 grade 99.9: AS Silmet, December 1. (Accessed August 19, 2010, at http://www.silmet.ee/ default.aspx?m1=44&m2=&m3=&m4=&id=162.) Niobium and Rare-Earth Metals.—The Silmet plant in AS Silmet, 2008, Overview: AS Silmet. (Accessed December 10, 2008, at northeastern Estonia was one of the leading rare-metals and http://www.silmet.ee/default.aspx?m1=48&m2=51&lang=1.) rare-earth-metals producers in Europe. Silmet employed 527 AS Silmet, 2009, Rare earth metals: AS Silmet. (Accessed February 6, 2010, at people in 2008, which was 22 fewer than in 2007 (Estonian http://www.silmet.ee/.) Estonian Economy, 2006, Industry: Estonian Economy, January. (Accessed Investment and Trade Agency, 2009). Silmet included a December 10, 2008, at https://www.static.vm.ee/static/Failid/101/ factory for rare-earth-metals separation, a factory for rare- Economy-Jan2006.pdf.) metals production, and a metallurgical factory. Output Estonian Investment and Trade Agency, 2009, Estonia’s Silmet makes of the factory for rare-earth-metals separation included profit of EUR 1.4 mln last year: Estonian Investment and Trade Agency, September 11. (Accessed November 23, 2009, at www.investinestonia.com/ rare-earth element carbonates, hydroxides, and oxides, and index.php/news/263-estonias-silmet-makes-profit-of-eur-14-mln.) rare-earth-element-bearing solutions, as well as liquid nitrogen U.S.