Proposed new Norwegian Minerals Act (Prop. 71 L (2024–2025))

Norwegian version of the article.

Below is a brief overview of the main changes and innovations in the proposal, ranging from simplified procedures and a new system for exploration permits to strengthened Sámi rights, stricter activity requirements for exploration, a renewed focus on national security and new reporting obligations. We also address that the proposal does not address the EU’s Critical Raw Materials Act (CRMA) in a significant way, and we outline the next steps toward a final legislative decision.

The Act maintains the main distinction between minerals owned by the state and those owned by landowners, continuing the division from the previous law until the legal scope for altering it has been clarified and it is deemed desirable to do so. However, four categories of landowner minerals are singled out according to their properties and uses: construction materials, natural stone, industrial minerals, and light metals. In some cases, specific rules apply to these four, while in other cases the same rules apply as for the state’s minerals. In principle, industrial minerals and light metals will largely be governed by the same rules as state-owned minerals.

One of the main measures in the new Minerals Act is introducing a general obligation to coordinate all mineral operations. This is intended to improve the alignment between various authorities’ permits and to avoid duplicative or conflicting rights. At the same time, a sequencing requirement states that the area in question must be clarified under the Planning and Building Act before a mining license can be granted. These measures are meant to make the processes faster and more predictable—both for industry stakeholders and local communities.

Authorities must ensure that processes for handling plans and applications for required permits are coordinated effectively and appropriately. The Directorate of Mining with the Commissioner of Mines at Svalbard (DMF) may hold a dialogue meeting to plan the processing of an application. The developer, affected municipalities, and other relevant authorities must participate in such a meeting. The Ministry is authorized to issue regulations on how this coordination should be carried out. However, no specific deadlines have been set in the legislative proposal.

The proposal discontinues the old priority system and introduces a single, exclusive exploration permit for state-owned minerals, industrial minerals, and light metals. This means that one party will have exclusive rights to explore the entire mineral deposit in a given area, helping prevent conflicts over rights and ensuring better utilization of overall mineral resources. Hopefully, this will also simplify the process of initiating new mineral projects.

Exploration for not only state-owned minerals, but also industrial minerals and light metals, will require a permit from the DMF. The same applies to exploration of leftover materials from previous mining operations. The proposal also introduces a six-month waiting period if an exploration permit expires without an extraction right being granted.

The duration of an exploration permit is reduced from seven to three years, and actual exploration activity is required to extend this right. The goal is to prevent entities from “stockpiling” attractive exploration areas without progress, and instead motivate serious applicants to invest in necessary and appropriate research at an early stage.

The proposal distinguishes between extraction that is subject to a notification requirement and extraction that requires a mining license. Extracting a deposit of more than 500 cubic meters and up to 10,000 cubic meters must be reported, while any extraction above 10,000 cubic meters will require an operating license from the DMF. Smaller operations may also require an operating license if special circumstances apply. Trial extractions do not require a separate operating license, but they do require a time-limited permit from the DMF, covering the volume necessary to evaluate the deposit’s properties and economic viability.

Extractions of more than 5,000 cubic meters of material carried out mainly in connection with other activities (such as construction and road projects) must be reported, giving authorities better statistics and knowledge of surplus materials. In addition, there are requirements for carrying out responsible mineral operations and for ensuring appropriate competence even for this type of extraction. The Ministry is authorized to stipulate more detailed requirements in regulations.

The proposal states that the Act must be applied in accordance with international law concerning Indigenous peoples and minorities. It places clear emphasis on protecting Sámi interests in line with Norway’s international obligations. Among other things, the specific Sámi provisions, previously limited to Finnmark County, are now extended to all traditional Sámi areas (Sápmi). In practice, this means that most areas in Northern and Central Norway will be included. Additionally, an Indigenous Peoples Compensation scheme is proposed for cases in which state-owned minerals are extracted, ensuring that Sámi rights holders—particularly reindeer herders—receive a share of the value derived from mining. The government emphasizes that the proposals make the protection under international law more concrete  and predictable for both parties.

When state-owned minerals are extracted in traditional Sámi areas, the operator must pay an annual fee to the State Treasury. In addition, an annual fee must be paid to affected Sámi rights holders. The size and distribution of this Sámi fee will be determined by the Ministry in regulations. Moreover, the operator must pay Sámi rights holders compensation for financial losses resulting from impacts on the natural resources used by traditional Sámi industries. This compensation must be paid according to ordinary expropriation regulations unless otherwise agreed between the parties.

It is proposed that the royalty for the State’s minerals in traditional Sámi areas be set at 0.25 percent of the value of the extracted mineral. This amount is intended to be allocated between the Sámi Parliament (25 percent) and the affected local reindeer herder groups (siidas) (75 percent).

Regarding the extraction of landowners’ minerals, it is proposed to split the royalty into two rates. For state-owned land, the Finnmark Estate, or state commons, the royalty would be set at 25 percent of the agreed or determined landowner compensation. For private land, the royalty would be set at 10 percent of the agreed or determined landowner compensation. In both cases, the Sámi Parliament would receive 25 percent, while the local reindeer herder groups (siidas) holding rights to the area would receive 75 percent.

Since the royalty is to be determined at a later stage, it may create uncertainty for the industry. For mining companies, carrying these costs on to customers could be challenging, especially given that mineral prices are set by international commodity exchanges.

The Sámi Parliament (Sametinget) reviewed the bill before its public release, and the majority does not support the proposal in its current form. The main reason is that the majority believes the bill is not in line with international law. Specifically, it is noted that the government does not set a legal threshold for acceptable interventions in Sámi areas, nor does it require an agreement with Sámi rights holders before such interventions occur. The Sámi Parliament also objects to the state controlling how compensation is distributed, rather than allowing the Sámi Parliament to decide how the funds should benefit the different Sámi rights holders. In their view, the proposed legislation contravenes ILO Convention No. 169 on Indigenous and Tribal Peoples, undermines the Sámi Parliament’s role as an Indigenous legislature, and reduces predictability for Sámi users. The Sámi Parliament’s executive council has therefore asked the Parliament to intervene and adjust the proposed legislation before it is adopted.

The government highlights national security as a new consideration in the Minerals Act. The mineral sector is now seen as strategically important in a geopolitical context, since minerals are essential for, among other things, the defense sector, renewable energy, and digital technology. The authorities will be able to refuse or impose special conditions on projects considered critical for emergency preparedness or national security. In addition, there will be expanded reporting requirements for both exploration activities and operations.

In our view, the proposal includes limited considerations about CRMA, the EU regulation on strategic and critical raw materials. The Norwegian proposal does not specifically discuss how requirements for priority processing and establishing national contact points for “strategic projects” will be implemented.

Norway’s new Minister of Trade, Industry and Fisheries, Cecilie Myrseth, has stated that incorporating CRMA into Norwegian law as soon as possible is a priority. If CRMA is adopted into Norwegian law, there may be a need for amendments to the Act and regulations or for additional measures. For now, the matter is in the hands of the parliament and the government, both of which want Norway to contribute to Europe’s access to raw materials without losing national control.

The proposition is currently under consideration by the Parliament. The Standing Committee on Business and Industry will review the matter, and a committee hearing is scheduled to be held 24 April 2025, where industry stakeholders, the Sámi Parliament, municipalities, the mining sector, and other interested parties can provide comments. Furthermore, the deadline for submitting written consultation responses to the committee is set to 25 April 2025. It is therefore assumed that the new legislation will be fully processed before the summer break. Once the Act is passed, it is scheduled to enter into force in 2026, with transitional provisions of up to five years for existing permits.

The proposal for a new Minerals Act represents a significant modernization of Norway’s mineral legislation. If it is adopted, Norway will have a more integrated and efficient regulatory framework for the mineral industry—better suited to today’s needs for both value creation, sustainability, and Indigenous peoples’ rights. Nonetheless, critical clarifications remain, especially concerning the Sámi Parliament’s demands for real co-determination and practical safeguards of international law obligations. Furthermore, it is still unclear to what extent and in what way Norway will incorporate CRMA. The Parliament's deliberations will therefore be a decisive first step in determining whether and how the proposal will be amended.

We will follow this process closely and provide further updates once the proposal is finally adopted and when regulations and guidelines clarify specific issues in more detail.

Advokatfirmaet Schjødt regularly assists players in the mineral industry with various challenges of a legal nature, whether related to framework conditions, applications for public law permits and private law agreements. Please contact us if your company wants further information about the content of the draft law or if there are questions about this you wish to discuss.