VKG opens 75 million euro Uus-Kiviõli oil shale mine

VKG has opened its 75 million euro Uus-Kiviõli oil shale mine, which is expected to supply the company’s shale oil operations for three decades, ERR reported. The company says demand for shale oil remains strong despite regulations that do not favour its use.

VKG began planning the mine 22 years ago. Underground work started last summer, and workers have already brought the first million tonnes of oil shale to the surface. The deposit holds about 160 million tonnes, which is expected to supply VKG’s oil industry until 2058.

VKG board chairman Ahti Asmann said the regulatory environment did not support the industry, but he believed some rules might not hold over time because of the laws of physics. “We do what we know how to do and try to influence what we can,” he said, adding that time would show how far the company could go.

The route from the Uus-Kiviõli mine to VKG’s oil plants in Kohtla-Järve is about 20 kilometres along conveyor belts. The mine is expected to employ 530 people and reach full capacity in early 2028. By then, VKG plans to close its depleted Ojamaa mine nearby.

The mine will bring additional tax revenue to Luganuse municipality. The municipality also said VKG had worked with villages affected by the mine, where some wells have run dry and residents face noise disturbances. Mayor Dmitri Dmitrijev said the company had discussed water and other issues with local residents and found solutions.