Local communities to benefit under new mining legislation
Local communities will receive a share of the money generated from future mining projects, including minerals and rare earth metals, under new rules put forward by the Ministry of Climate.
Last week, the ministry submitted the draft proposal to change the Earth's Crust Act and the Environmental Charges Act for the approval round.
The new amendments clarify the conditions for extracting minerals and layout benefits for residents and local governments in the affected areas.
"Estonia has valuable mineral resources, such as magnesium, iron ore, phosphorite, and rare earth metals, which are in great demand in the European Union and on the world market. Our aim is to ensure responsible exploitation of future mineral resources, bringing maximum benefits to local communities and the Estonian economy,' said Minister of Climate Yoko Alender (Reform) in a statement.
She added Estonia must reap the benefits by creating "added value and jobs" while avoiding "negative environmental impacts."
The legislation also covers resources already in use, such as sand, gravel, limestone, and peat. It will ensure the equal distribution of revenue generated from them.
"Right now, the mining operator does not have to pay a fee to local residents. With the amendment, we want to reassure local residents and governments that they will also benefit from mining. We propose that a portion of the mining rights fee should be distributed to all individuals residing in the immediate vicinity of the quarries, including those on private and municipal land," the minister of climate said.
The plan is closely related to research by the Estonian Geological Survey (EGT) which is studying how to extract minerals effectively and in an environmentally sustainable way. The EGT will submit the results of the survey to the government at the end of 2025.
"Any mining is a long and complex process that requires thorough research and environmental impact assessment. We are currently exploring ways to valorise phosphorite and other future mineral resources so that we can make informed and responsible decisions that take into account both the local benefits and the environmental impacts of the activity," Alender said.
The ministry plans to send a draft amendment to the Earth's Crust Act and the Environmental Charges Act for public consultation in the spring of next year and to the Government of the Republic and the Riigikogu in the autumn of 2025.
The draft amendment to the Environmental Charges Act will also be prepared and sent by the Ministry for approval during 2025; the amendments and new mining rights rates are scheduled to enter into force in 2026.
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Editor: Helen Wright