The mining industry in Norway generated a turnover of NOK13,6 billion in 2022 and employed approximately 4,000 full-time equivalent (FTE) individuals. This includes activities within industrial minerals and metallic ore, construction materials and natural stone. Metallic ore mining has superior productivity (measured as value creation (revenue minus cost) per FTE, and is three times more productive than construction materials, industrial minerals and natural stone. Industrial minerals (eg, quartz, feldspar and limestone) and metallic ores have seen increasing demand which has been driven mainly by the green transition. Construction materials and natural stone have declined to some extent in the last few years due to fewer larger infrastructure projects and slowing construction markets.

There are a high number of extraction sites of construction materials and of natural stone in Norway. The active extractions have an in situ value of approximately NOK1,150 billion in construction materials and NOK180 billion in natural stone. Furthermore, it is estimated that the extractions have a total of 18 billion tonnes of practically usable resources in construction materials, while the corresponding figure for natural stone is uncertain. In terms of industrial minerals and metallic ores, the picture is different. There are only a few sites in operation, ie, 33 extractions of industrial minerals and just two extractions of metallic ores across the whole of Norway (however the third is due to open in 2025). Metallic ores have the highest in situ value of all minerals and therefore attract a lot of interest. The in situ value of metallic ores in Norway is estimated to be NOK3,700 billion.

Norway’s legal system is based on civil law. The main legislation regulating mining activities in mainland Norway is the Minerals Act, which came into effect on 1 January 2010. Separate legislation applies to Svalbard (the Arctic archipelago under Norwegian sovereignty). This includes the Regulation on Mineral Resources Management and the Svalbard Environmental Protection Act. Historically there have been several coal mines in Svalbard. Mine 7 is still in operation but a decision has been taken to close it during 2025.

The Minerals Act applies across the Norwegian mainland. It contains rules regarding the acquisition and extraction of minerals, as well as regulations concerning the searching and exploration of minerals. Furthermore, it regulates the operational phase, which requires an operating licence. In addition, it contains regulations concerning the duty to exercise caution, to implement safety measures and to clean up by the end of the operational phase.

Furthermore, it contains provisions regarding annual fees and supervision charges and sanctions. Following an Official Norwegian Report (NOU) 2022: 8 New Minerals Act, the Norwegian government is currently preparing a new Minerals Act. It is expected to be presented to the Norwegian Parliament in 2025.

The Minerals Act distinguishes between minerals that belong to the State and minerals that belong to the landowner. Under the Minerals Act, state-owned minerals are metals with a specific gravity of five grams/cubic centimetres or higher, including chromium, manganese, molybdenum, niobium, vanadium, iron, nickel, copper, zinc, silver, gold, cobalt, lead, platinum, tin, zirconium, tungsten, uranium, cadmium and thorium, as well as the ores of these metals. However, alluvial gold is exempted. Additionally, titanium and arsenic, as well as their ores and pyrrhotite and pyrite are state-owned minerals.

All minerals not defined as state-owned minerals, are considered to be the landowner’s. However, under the Minerals Act landowner minerals do not include petroleum.

The role of the State in the mining sector is primarily to act as grantor-regulator. However, the Norwegian Geological Survey plays a central role in supporting the mining and mineral industry with mapping, analysing and disseminating geological information. This information is made available to public and private parties. The activities are funded by the Norwegian government.

Mineral rights do not have a constitutional basis in Norway, but are governed by statutory law, specifically the Minerals Act. The rights to state-owned minerals are derived from law and not from individual contracts, although contracts are used to regulate the specific terms and conditions under which mining operations are conducted once the rights have been granted by the State. When it comes to landowner’s minerals the right to the minerals derives from an individual contract between the landowner and the extracting party.

In Norway, the granting authority for the state-owned minerals is the Norwegian Directorate of Mining with the Commissioner of Mines at Svalbard, usually called the Directorate of Mining (the “DMF”). The DMF assesses all applications for exploration permits, extraction permits and operation licences in Norway. The DMF is also responsible for ensuring compliance with the Minerals Act.

Rights to landowner’s minerals are granted by contract by the landowner.

There are no overlaps in jurisdictions in terms of granting rights under the Minerals Act, as the authority is centralised at the national level.

According to the Minerals Act, anyone can carry out low impact activity, such as collecting surface materials and rock samples for landowner and state-owned minerals.

Individuals or companies with an interest in further exploration for state-owned minerals must apply for an exploration licence, which are only granted by the DMF to entities registered in the Norwegian Register of Business. There are no restrictions on foreign ownership. An exploration licence is initially granted for a seven-year term but may be extended.

The holder of the highest priority exploration licence may apply for an extraction licence under the Minerals Act. To obtain an extraction right, the application must provide documentation from explorations showing that there is a likely mineable deposit of state-owned minerals in the area, or that it could become mineable within a reasonable time. An extraction licence is initially granted for a ten-year term but may be extended.

An extraction licence expires if an operational licence is not granted within ten years from the date the extraction right was issued, if the extraction is under 10,000 cubic metres and more than ten years have passed since the extraction right was granted and operation has not commenced, if an extended deadline has expired, or one year after the operation licence has lapsed.

Applying for an extraction right for state-owned mineral costs NOK10,000 per area. If the application covers more than one contiguous area, an additional fee of NOK500 is charged for each subsequent area. To maintain the extraction right for state minerals, an annual fee of NOK100 is charged for each 10,000 square metres commenced, with a minimum annual fee of NOK1,000 per area, regardless of size. In addition, the right-holder will pay the landowner an annual fee of 0.5% of the sales value of the extracted materials.

An additional fee of 0.25% accrues in Finnmark county. If there are multiple landowners in the extraction area, the fee will be distributed among the landowners in proportion to the area each owns within the extraction area.

The extraction right itself does not grant the right to start mineral deposit operations. Extracting more than 10,000 cubic metres requires an operating licence from the DMF, in addition to other relevant permits being in place, such as a zoning plan according to the Planning and Building Act, permits from pollution authorities, etc.

An operational licence on state-owned minerals may only be granted to a party holding an extraction licence. An operational licence will entail a public hearing with a number of stakeholders, including the pollution authorities, the relevant municipalities, the county governor, the Norwegian waterfalls and energy authorities, potential affected reindeer herding districts, etc. If the project is situated in Finnmark county, the Sámi Parliament will be involved.

Public transparency and stakeholder participation are key features in Norway.

An operating licence can be time-limited, and the conditions set in the licence can be amended or changed every tenth year. If the mining activity has not commenced within five years of the issuance, the operating licence may become void if an extension is not granted.

The exploration and extraction of landowner’s minerals are based on a contract entered into directly between the landowner and the interested party. Extractions exceeding 500 cubic metres must however be reported to the DMF, and those over 10,000 cubic metres will require an operating licence to be granted by the DMF.

The environmental licensing process for mining projects in Norway will consist of several different steps and permits depending on the project.

All pollution is prohibited by law, and before entering an operational phase, the right-holder must apply for the relevant emission and waste storage permits under the Pollution Control Act. Efforts to avoid and limit pollution and waste problems will be based on the technology that will give the best results in the light of an overall evaluation of current and future use of the environment and economic consequences.

The Norwegian Environmental Agency (the “NEA”) may require that an environmental impact assessment is carried out for activities that may cause major pollution effects. However this will be co-ordinated with similar requirements in other legislation, eg, the Planning and Building Act. An application will be subject to public consultation, allowing stakeholders, including local communities and environmental organisations, to provide input. A permit will often include several conditions intended to prevent pollution from resulting in damage or nuisance and further conditions to ensure protection and clean-up measures. Monitoring and compliance checks are conducted to ensure adherence.

Environmental regulation and permitting in Norway are primarily managed at a national level by the NEA. The agency oversees the implementation of environmental laws, issues permits and monitors compliance. Some responsibilities are also delegated to municipal and county governments.

In addition to the Pollution Control Act the environment is protected by the Nature Diversity Act, which protects biodiversity and sustainable use of natural resources and aligns with the Convention on Biological Diversity. An environmental impact assessment is often required for mining projects to assess the potential environmental impacts. It is important to engage with the authorities at an early stage to determine whether the project requires an environmental impact assessment.

The environmental regulations also ensure sustainable mining.

Norway has several environmentally protected areas designed to conserve its natural heritage. These include national parks, nature reserves, protected landscapes and marine protected areas. The management and establishment of these protected areas are governed by the Nature Diversity Act and other relevant environmental legislation.

In environmentally protected areas, activities such as exploration, extraction and mining are heavily restricted. The primary goal of these restrictions is to preserve biodiversity, landscapes and natural habitats. In some of these areas, activities under the Minerals Act are completely prohibited as mining is not considered to be aligned with the purposes of the conservation.

The Minerals Act and other relevant laws and regulations applicable to the mining sector are designed to ensure transparency and local involvement. These laws require hearing procedures and consultations with affected communities before a permit is granted. As a mining project requires a municipal land use plan, local acceptance is of great importance.

An environmental impact assessment will be processed for major projects where social and environmental consequences are considered before a decision is made. Mining projects in areas with a potential effect on the indigenous Sámi population are further subject to separate consultation procedures.

Several pieces of legislation mandate reporting requirements for mining projects and grant the authorities the power to impose reporting obligations with an impact analysis of the planned activities. In general, an environmental impact assessment or other analysis must be provided by the investor.

One of the purposes of impact analyses is to provide a basis for discussing the pollution-related consequences with neighbours and others who may be affected by pollution from the planned activity. The reporting obligation itself aims to enable the pollution authority to decide whether to require an impact analysis.

Furthermore, the Planning and Building Act requires an impact analysis and public hearing when processing zoning proposals that allow for mining activities. This ensures that affected interests have an opportunity to influence the zoning proposal under consideration. Based on the consultation input, a zoning proposal may either be amended or proceed unchanged to political processing, where inputs and comments are considered and addressed.

The Sámi Act also obligates Norwegian authorities to consult the Sámi Parliament and other Sámi interests in matters that concern them, ie, mining activities’ impact on reindeer herding. Chapter Four of the Sámi Act facilitates consultations between public authorities and the Sámi Parliament or other Sámi interests to be conducted in good faith with the aim of reaching an agreement.

Parties must share relevant information about the matter so that the Sámi party can make an informed decision about the proposed activity. If the parties do not reach an agreement, the Sámi party’s position and assessments must be clearly presented in the documents submitted to the final decision-maker. The Minerals Act also contains rules in respect of certain areas in Norway such as Finnmark county where certain case handling rules apply due to indigenous people.

The Sámi people are recognised as an indigenous community with specific protections under the Sámi Act, which mandates consultations with the Sámi Parliament and other Sámi interests, on development projects, including mining, which could impact their traditional territories. These consultations aim to ensure that Sámi cultural practices, such as reindeer herding and fishing, are not adversely affected by these developments.

Environmental and social impact assessments for mining projects are required to consider the effects on Sámi culture and livelihoods. This includes assessing impacts on culturally significant areas and resources essential for their traditional practices. The process involves public hearings where Sámi representatives can voice their concerns.

The Minerals Act includes special provisions that protect Sámi interests in mining activities in Finnmark county. These provisions encompass substantive rules emphasising the consideration of Sámi conditions and procedural rules about notification duties, permits, consultation processes, and the ability to escalate cases directly from the DMF to the Ministry of Industry and Trade. Some rules apply exclusively to state-owned minerals, while others also cover landowner’s minerals.

Norwegian law, complemented by international conventions like the ILO 169 concerning Indigenous and Tribal Peoples, provides protections for the Sámi community’s rights to use lands for traditional activities. These legal frameworks ensure that any mining activities undergo strict scrutiny to prevent or mitigate adverse impacts on Sámi rights and resources.

In Norway, community development agreements (CDAs) regarding mining projects are not mandatory under national law. CDAs are not common in Norway. However, some mining companies have entered into CDAs.

To enhance sustainability efforts, the Norwegian Mineral Industry Association promotes the “TSM – Sustainability in the Mining Industry” reporting programme. The TSM reporting programme is a well-established programme which is used in several countries worldwide. It helps ensure effective dialogue with stakeholders, local communities, and indigenous populations, implement enhanced environmental standards, and commits companies to improve safety for employees and neighbouring areas.

As part of the mining industry’s strategy to bolster sustainability efforts, the TSM reporting programme is aligned with several of the UN’s 17 sustainable development goals. The TSM reporting programme was established in Canada in 2004, and the Norwegian Mineral Industry Association adopted the reporting programme in March 2020. The main goal of the programme is to enable businesses within the mining industry to meet societal needs for minerals, metals and energy products in the most socially, economically, and environmentally responsible manner.

Illegal mining is not a significant issue in Norway.

See 1.1 Main Features of the Mining Industry. Today, the mining industry in Norway mostly contains sites on construction minerals and natural stone. Industrial mineral and metallic ore production is limited and it doesn’t seem fruitful to distinguish between them.

Norway is committed to tackling climate change and has implemented initiatives to address this issue. These initiatives impact the mining industry in Norway and its development in several ways. At an overall level, the mineral industry must be expected to contribute to reducing emissions, for example by operating with fossil-free alternatives. At a more specific level, it will have to be assumed that initiatives to deal with climate change will affect the conditions under which the mineral industry can operate.

Norway does not have any climate change legislation specifically aimed at mining, but the general climate change legislation is relevant and has significance for mineral activities.

However, the EU Corporate Sustainability Due Diligence Directive (the “CSDDD”), which entered into force on 25 July 2024, is of further relevance to the industry. The CSDDD obliges large companies to adopt and put into effect, through best efforts, a transition plan for climate change mitigation aligned with the 2050 climate neutrality objective of the Paris Agreement as well as intermediate targets under the European Climate Law (Regulation (EU) 2021/1119)).

The rules of the CSDDD will start to apply to the largest companies on 26 July 2027 and be further phased in to apply to smaller companies in 2028, before applying to all companies covered by the CSDDD on 26 July 2029.

The government has stated in its Norwegian mineral strategy 2023 that the overriding ambition is to develop the world’s most sustainable mineral industry. In the strategy the 2015 UN Sustainable Development Goals are referenced as a benchmark for the standards that should be applied to mineral operations. The focus on sustainability in the strategy addresses social, economic, and environmental aspects.

Additionally, the Norwegian Mining Industry Association emphasises sustainability in the mineral industry and since March 2020 has promoted the TSM reporting programme. The overall aim of the programme is for businesses to effectively manage their most important social and environmental risks and adhere to best practices in environmental management, safety and community engagement. The programme requires annual reporting and public disclosure of individual company results on the Norwegian Mining Industry Association’s website.

See 3.3 Sustainable Development Initiatives Related to Mining for discussion of the Norwegian mineral strategy of 2023.       

The EU’s Critical Raw Materials Act (the “CRMA”), which came into effect on 23 May 2024, is also relevant. Norway adopted its position on the proposal for the CRMA on 10 July 2023. The position paper assumes that Norway supports the EU’s ambitions and measures for more efficient national application processes. At the same time, it emphasises that it is important that the processes adequately ensure the protection of the environment, safety, and the rights of indigenous peoples. The position paper does not include an assessment of whether the proposal should be incorporated into the European Economic Area (EEA) Agreement and does not anticipate any EEA-relevant adaptations.

Norway’s tax system for mining and exploration activities is built upon a general framework applicable to all industries and Norway does not impose specific mining royalties.

Corporate Income Tax

Mining companies are subject to the standard corporate income tax rate, which is currently 22%. Profits are taxed based on income derived from mining operations, minus allowable deductions such as operational costs, depreciation of equipment, and exploration expenses.

Royalties

Unlike many jurisdictions, Norway does not impose royalties on mining operations (see 1.7 Mining: Security of Tenure for landowner’s fee).

Distinction Between National and Foreign Investors

Norway’s tax legislation does not generally distinguish between national and foreign investors in terms of taxation. Foreign companies operating in Norway are taxed on income derived from their operations within the country. However, double taxation agreements (DTAs) between Norway and other countries may modify the tax treatment of foreign investors, especially regarding withholding taxes on dividends, interest, and royalties paid to foreign entities.

Norway provides several tax incentives aimed at encouraging investments, but there are no specific tax incentives for the mining sector.

Tax Deductions and Depreciation

Investors can benefit from accelerated depreciation on mining equipment and infrastructure. The general depreciation rate for machinery used in mining is set at 20%, allowing companies to reduce taxable income during the early years of investment. Unutilised tax losses may be carried forward indefinitely.

R&D Tax Incentive Scheme

Norway offers a R&D tax incentive scheme through the SkatteFUNN programme, which also applies to eligible projects in the mining sector. Companies can claim up to 19% of qualifying R&D expenses, including innovative exploration technologies.

Regional Incentives

Mining projects in certain regions such as in northern Norway may benefit from reduced employer contributions, as the region qualifies for lower social security tax rates under government incentives to promote economic development.

Pre-Registration for VAT and VAT Deduction

In Norway, mature mining companies can apply for pre-registration for VAT, allowing them to reclaim input VAT on goods and services acquired for preparatory activities before reaching the VAT registration threshold of NOK50,000. This ensures that costs related to exploration, feasibility studies, and initial project set-up do not carry an irrecoverable VAT burden.

Pre-registration is contingent on certain criteria such as demonstrating a clear intent to engage in taxable mining activities and as a general rule there should be a clear probability that the business will start as planned. Once approved, businesses can deduct input VAT on eligible expenses incurred during this pre-operational phase. This system supports development investments by reducing upfront costs and promoting cash flow efficiency.

Tax Stabilisation Agreements

Unlike some jurisdictions, Norway does not offer tax stabilisation agreements in the mining sector.

Capital Gains Tax

Capital gains derived from the sale of mining projects are subject to the standard corporate income tax rate of 22%. Gains are calculated based on the difference between the sale price and the tax book value of the assets.

Sale of Shares in Norwegian Limited Liability Companies

The sale of shares in a Norwegian limited liability company (AS) is generally exempt from capital gains tax for both Norwegian and foreign corporate entities, provided the seller qualifies for the exemption method (fritaksmetoden). In addition, gains from the realisation of shares for foreign entities who are tax resident outside of Norway are not subject to tax in Norway unless the entity is holding the shares in connection with business activities carried out or managed from Norway.

The main features of attracting investment for mining are a favourable geology, a transparent regulatory framework and a stable political and economic environment.

Norway also has a considerable amount of renewable hydropower energy to support green mining and a well-established infrastructure, with ports and road facilities. The workforce is skilled with technical expertise and the Norwegian University of Science and Technology provides specialised training in mining science.

Norwegian bedrock contains mineral resources of relevance for the green transition and the in situ deposits of industrial and metallic ore are generally of interest for future explorations. See 1.1 Main Features of the Mining Industry and 6.1 Two-Year Forecast for the Mining Sector.

As a general rule, investments in Norway by foreign individuals are not regulated and do not require approval from the authorities. However, the General Act Relating to National Security (Sikkerhetsloven) is worth a mention. An investor may fall under the scope of the Act if it deals with, among other things, information or infrastructure crucial for fundamental national functions, or if it conducts activities of significant importance to fundamental national functions. Mining activity is currently not mentioned as an industry encompassed by the Act, but Norwegian authorities could nonetheless intervene on a general basis.

Norway is not a party to any international treaties that specifically focus on protecting investments in exploration and mining. However, as a member of the European Free Trade Association (EFTA) and the EEA, Norway has access to the EU internal market and routinely incorporates EU legislation into its domestic laws. Through its EFTA membership, Norway is also a party to several multilateral free trade agreements.

Norway has additionally entered into numerous bilateral investment treaties. Many of these treaties specifically include concessions for searching for, extracting, or exploiting natural resources within their definitions of “investments”, thereby explicitly extending protections to these activities.

In Norway, the financing of exploration, development, and mining activities is sourced through a variety of channels, reflecting the diverse needs and stages of mining projects.

The primary source of financing for mining companies operating in Norway is Norwegian and international equity capital markets. Traditional bank financing (including leasing and equipment financing), and bond financing may also be available, especially for more developed projects.

Royalty facilities and similar structures may be available, subject to, among other things, compliance with the Norwegian licence requirement for lending activities.

Classic project financing within the mining sector is still not common in the Norwegian market.

Governmental grants and support, including direct funding/financing and tax incentives may also be available. In addition to EU funding, this also includes funding/financing through Norwegian governmental agencies such as Eksportkreditt Norge (a member of the International Minerals Security Partnership (MSP) Finance Network) and Innovasjon Norge.

Domestic and international securities markets both play an important role in the financing of exploration, development and mining in Norway. Mining companies listed on the Oslo Stock Exchange (Euronext Oslo Børs) and Euronext Growth primarily raise capital in the equity capital markets. As Norway has a large and active high-yield bond market attracting capital from international investors, several international mining companies raise debt capital through the issuance of Norwegian high-yield bonds.

A Norwegian company may grant security over all its operating assets from time to time (including machines, tools and other equipment) by registering a floating charge with the Norwegian Register of Mortgaged Movable Property (Løsøreregisteret). The floating charge will also include exploration rights granted under the Minerals Act.

With consent from the DMF with the Commissioner of Mines at Svalbard (Direktoratet for mineralforvaltning med Bergmesteren for Svalbard), it is also feasible to grant security over extraction rights under the Minerals Act by registering a mortgage with the Norwegian Land Register (Grunnboken).

Currently, granting security over an operating licence is not possible. However, the proposed new Minerals Act, has suggested permitting this.

Norway’s mineral industry is expected to undergo major development in the coming years. There is a growing global demand for critical minerals due to the transition to renewable energy and electrification. Norway’s mineral deposits are among the richest in Europe and include Europe’s largest deposit of rare earth elements. For the first time in more than 40 years, in 2024/2025, Norway’s first metal mine (Engebø Rutil and Garnet) started operating.

For the first time in many decades, there is now considerable political attention on Norwegian mineral extraction and a goal for Norway to contribute to securing Europe’s mineral needs.

In 2023, the government adopted a new mineral strategy with the aim of developing a profitable and sustainable mineral industry. The strategy emphasises Norway’s potential for extraction of critical minerals. The government has highlighted five focus areas as follows.

• Norwegian mineral projects must be implemented faster.
• The Norwegian mineral industry must contribute to the circular economy.
• The Norwegian mineral industry must become more sustainable.
• Norwegian mineral projects need good access to private capital.
• Norway will be a stable supplier of raw materials for green value chains.

In addition, a new Minerals act is expected to be adopted in 2025.

The current mining policy is also driven by several EU and international strategies, such as the CRMA and the US-led Minerals Security Partnership. Additionally, the Norwegian Mineral Industry Association actively promotes the TSM reporting programme in Norway.

Both junior and major international mining companies have increased their investments in Norwegian mineral projects. The investments include exploration and survey projects, but also mature projects where operations can begin in the next couple of years.

In June 2024, the Norwegian mining company Rare Earths Norway announced a mineral resource estimate showing that the Fen Carbonatite Complex hosts continental Europe’s largest deposit of rare earth elements. The Fen Complex is described as a very large deposit in a global context and is probably by far the largest in Europe. A conservative estimate suggests that the Fen field contains between 30 and 50 million tonnes of rare earth elements. In comparison, the Swedish rare earth complex in Kiruna is reported to contain 1.3 million tonnes.