Mine Claim Sparks State-Landowner Conflict
Published: 30.08.2010 09:16
Photo: Postimees/Scanpix
Armed with a court ruling, landowners in a mining area in the northeastern part of the country are looking to halt expropriation proceedings, but the Ministry of Economic Affairs says they should have known before buying that the state would exercise eminent domain.
According to the Ministry of Economic Affairs and Communications, the development of a mining claim in the Kiviõli area was set forth in a regulation issued by the Sonda municipality council in March 2005.
"All of the owners besides one acquired their plots after the plan for the area was established," said the ministry's spokesman, Rasmus Ruuda. "They knew very well that the plots were in the oil shale surface mining area designated for mining. The expropriation procedure should have been no surprise."
The plots are owned by eight individuals and one company, who oppose the expansion of mining. On August 26, they sent an appeal to the government, calling for an end to the compulsory purchase proceedings. They said they consider a cabinet decision in the matter to be in conflict with the court ruling and say there is no basis for going ahead with the compulsory purchase.
In the letter, they waxed dramatic, cautioning that if it completed the expropriation, the Ministry would set a precedent, allowing the state to force owners to sell any private property with underlying natural resources - be it oil shale or sand.
Ruuda said the government determines real estate expropriation on the basis of the market price and the ministry is continuing to lay preparations for the expropriation.
"Kiviõli Keemiatööstus Ltd. continues to be an applicant for a mining permit, even though Tallinn Circuit Court revoked their permit in the April 9 ruling," said Ruuda. "A valid mining permit is not a requirement for eminent domain, but actual mining cannot start before the permit is issued. Utilizing natural resources will give work to hundreds in the city of Kiviõli."
Kiviõli Keemiatööstus Ltd. filed an application for the mining permit with the Ministry of the Environment in January 2004. The Põhja-Kiviõli II mining claim is located in Ida-Viru County, one kilometer from the small town of Sonda. The mining claim and the mine service plot have an area of around 740 hectares.