Bunge permit process - is this our future? Fennoscandian Exploration and Mining, 4.11.2015, Levi, Finland Chief Geologist, Håkan Pihl, Nordkalk Corporation
Bunge? Nordkalk s project to open a new quarry in Bunge, Gotland (Sweden) The plan is to extract and crush limestone in the new quarry and then transport the stone on an 8.7 km long conveyor belt to Nordkalk s existing operations (Storugns) for sorting and shipping. Planned investment for EUR 70 million Application process ongoing since 2006 Between two Natura 2000 areas when the process started The area is, in 2006, defined as a national interest area for minerals extraction Now also the mining area to which permissibility was given for extraction, is suggested to EC as Natura 2000 area 2
Why Gotland and Bunge? Nordkalk member of the Rettig Group
Gotland and limestone excavation is important to the Swedish mine cluster Most of minerals in Sweden are produced in three main areas Gotland is the biggest producer of limestone: 6-7 million tons of the about 9.3 million tons per annum 3.5 million tons of limestone-based products, 2 million tons for the Swedish society, the rest is exported Supply of raw materials and basis for the export industry 4
The quality and logistics create the value Limestone extraction for centuries on Gotland The Storugns plant, from mid 60 s is located at a good harbour The main source of limestone for lime burning in the Baltic Sea region Comparable, high quality limestone, is scarce in the Baltic Sea region The present quarry is coming to its end Prospecting for a new deposit started already in the 90 s Major Customer - - 5
Bunge is a National interest area of mineral exploration In a judgement from 2009 (which gained legal force in 2010) it was decided that the national interest area of minerals shall take precedence over the national interest of nature conservation Bästeträsk Natura 2000 The Swedish Environmental Protection Agency wants to establish a national park in the area. Proposed new Natura 2000 areas Include the Bunge Quarry The areas proposed as new Natura 2000 (Government decision 31.Aug..2015) cover 9800 ha. Severe impact on Nordkalks properties of 832 ha on northern Gotland. Hobursmyr Natura 2000 Mölnermyr Natura 2000 Bräntings haid Natura 2000 Ojnaremy r 6
The Permit Process
Legal framework in Sweden Limestone is considered a land owner mineral A quarry permit is applied for and regulated within the Environmental Act The County Administration/ Environment Court as the permitting authority In case of a ground water issue the permit process is handled by the Land and Environment Court Permit vs permissibility (tillstånd vs tillåtlighet) 8
Long and curvy permit process Bunge area proposed as a new Natura 2000 just days before hearing. Proceedings put on hold until the goverment has decided on the issue. Test Quarry Permit Application MD 2008-12-19 MÖD 2009-10-09 H D MMD 2011-11-30 MMÖD 2012-07-05 H D MMD 2014-06-02 MMÖD 2015- Q2 HD 2016- xx-xx Construc -tion Ope ration 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Permit process begins in 2006 The Land and Environment Court of Appeal deemed the quarry permissible in 2009, the verdict gained leagal force in 2010 Permit and conditions were granted 2012 The Supreme Court decided on new cohesive trial for the Natura 2000 issues 9 The Land and Environment Court approved the permit and conditions once again in 2014 In april 2015 the verdict was to be finalised by the Land and Environment Court of Appeal However, in Mars 2015 the Swedish Environmental Protection Agency proposed Bunge to be a new Natura 2000 area The court desided to put the hearings on hold until the government has decided on the issue.
Habitats Directive Member states obliged to propose Natura 2000 areas (before 1995) Sweden has proposed areas by 1995 According to article 17 of the Habitats directive every 6th year the Member States shall draw up a report on the implementation of the measures taken under the directive The Commission review of Sweden for 2001-2006 showed that there was a need for additional Natura 2000 areas for the species porpoises (tumlare) and a certain bat (barbastell) and for sea caves There are none of these species/habitats on Nordkalk s property that is now proposed as Natura 2000 areas! The Swedish addition to Natura 2000, the top objects, was added by the Environmental Protection Agency in order to get Bunge included and the permit process stopped before it was too late! 10
Compensation made/proposed by Nordkalk Nordkalk has given two areas (with limestone deposits) for nature conservation 2001 (580 ha) in order to be able to extract on the Bunge property. Mölnemyr and Hogburgsmyr now Natura 2000 areas Nordkalk has proposed different measureas and compensation areas, among others 300 ha forest in Hangvar; wetland restauration and research on some specific species (gaffelfibbla) 11
What? How? Why?
Predictability and Legal Security? Earlier Agreement with Authorities and abstaining from land? Can you trust earlier agreements? Earlier decisions by the Government? Can you trust that they prevail? Impartial Authorities and objectivity? Judgement with legal force can that be overruled by a Natura 2000 decision? Right to land? Status of national interest areas (minerals extraction)? How much demands on research can be demanded by the operators? When is the precautionary principle drawn to far? Right to be heard and have access to information 13
Right to a Fair Trial National constitutional rights, European Convention on Human Rights (ECHR), Charter on fundamental rights of the European Union (art 47), Treaty of European Union The state shall not involve in a legal proceeding ECHR 6.1 article: Right to a fair trial 1. In the determination of his civil rights and obligations or of any criminal charge against him, everyone is entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal established by law. 14
Nature Conservation vs. Minerals Extraction? Which one weights higher? Natura 2000 vs Legal Security? Can the national authorities use Natura 2000 in order to stop ongoing cases? Assessment of other interests when Natura 2000 sites are chosen? What is the value of a Mineral area of Public interest? The Power of NGO s when it comes to nature conservation Political situation affects the Legal Security THERE MUST BE A WAY TO CO-EXIST! 15
The Future Limestone quarrying possible on Gotland?
Way forward EU Guidance Non-energy mineral extraction and Natura 2000 Hard continued permit process without garanties for success Theoretical option The Land and Environmental Court of Appeal process is on hold and must be finalised Expansion possibilities in the present quarry area as a short term way forward An other area on the island is spotted. Long new process. Consequence - Supplies from far away distances is causing added environmental burden Decreased self sufficiency 17
If it can t be grown, It must be mined How can we co-exist in a sustainable way?