2007 Minerals Yearbook ESTONIA, LATVIA, AND LITHUANIA U.S. Department of the Interior July 2010 U.S. Geological Survey THE MINERAL INDUS T RIES OF ES T ONIA , LA T VIA , AND LI T HUANIA 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.