REORGANIZATION OF OIL SHALE MINING IN ESTONIA
R. PÄSOK
Estonian Institute of Economics
Tallinn, Estonia
| Under the present conditions of limited demand for oil shale, the Estonian oil shale mining industry is in a state of overcapacity. This results in an inefficient use of labor. This working atmosphere has resulted in high production costs per tonne of mined oil shale. To improve economic factors, it is necessary to concentrate production into a limited number of mines working at full capacity and to modernize the mining technology at those mines. A development plan for oil shale mining is proposed. It primarily includes modernization of the prospective mines to be kept in operation and reduction of surface mining at the Sirgala and Narva opencast pits. This will result in conservation of oil shale reserves for 8-10 years of future production. It is recommended that the resumption of mining in these fields be by underground means. The detailed plan does not call for the untimely closing of mines before the exhaustion of their reserves of oil shale. At the same time, a relatively stable level of mining activity (10-13 million tonnes per year) with minimal investments in the oil shale industry is guaranteed until 2025. |