# Silmet

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**NPM Silmet AS** is a [rare-earth](/source/Rare-earth_element) processor located in [Sillamäe](/source/Sillam%C3%A4e), [Estonia](/source/Estonia). It is a subsidiary of Neo Performance Materials.

## History

### Pre-war history and World War II

Main article: [Eestimaa Õlikonsortsium](/source/Eestimaa_%C3%95likonsortsium)

See also: [Oil shale in Estonia](/source/Oil_shale_in_Estonia)

History of Silmet dates back to 1926 when Swedish-Norwegian *[Eestimaa Õlikonsortsium](/source/Eestimaa_%C3%95likonsortsium)* (Swedish: *Estländska Oljeskifferkonsortiet*; English: *Estonian Oil Consortium*), controlled by [Marcus Wallenberg](/source/Wallenberg_family), was established to build a [shale oil extraction](/source/Shale_oil_extraction) plant in Sillamäe. For [shale oil](/source/Shale_oil) production, the consortium built a tunnel oven in 1928. However, due to the [Great Depression](/source/Great_Depression), production halted in 1930 and was restarted only in 1936 by the reorganized consortium called *Baltic Oil Company*. The second tunnel oven was added in 1938. The main product was gasoline. After the [Soviet occupation](/source/Occupation_of_the_Baltic_states) started in 1940, the plant was [nationalized](/source/Nationalization) according to the 30 May 1941 Moscow Agreement between the Soviet Union and Sweden.[1][2] [Germany invaded the Soviet Union](/source/Operation_Barbarossa) in 1941 and the industry's infrastructure was largely destroyed by retreating Soviet forces. During the subsequent [German occupation](/source/German_occupation_of_Estonia_during_World_War_II), the plant was restored and subordinated to a company named Baltische Öl GmbH.[3] However, most of its facilities were destroyed during the war.

### Soviet era

Restoration of the plant restarted immediately after Soviet troops took control in Estonia in 1944. In 1945, the *Glavgastopprom Oil Shale Processing Plant* was established based on the existing plant. In 1946, the [Council of Ministers of the Soviet Union](/source/Council_of_Ministers_(Soviet_Union)) approved the establishment of the diversified enterprise *Kombinat No 7* on the basis of the *Glavgastopprom Oil Shale Processing Plant* for mining and processing [Dictyonema](/source/Basidiolichen) [argillite](/source/Argillite) ore (a type of [oil shale](/source/Oil_shale)). The new plant was built mainly by using labour of war prisoners. In 1947 when the new factory was built, the code name *Military Unit No 77960* was assigned to the *Kombinat No 7*. In 1955, a new code name *Enterprise POB 22* was assigned. During the Soviet period, the enterprise was renamed several times and its names included *Factory No 7*, *Enterprise P.O.B. P-6685*, *Sillamäe Metallurgical Plant*, and *Sillamäe Chemical Metallurgical Production Association*.[2]

During 1946–1952, Dictyonema argillite was mined and used for [uranium oxide](/source/Uranium_oxide) production.[2][4][5][6][7] Later richer uranium ores were imported to the Sillamäe plant from various locations of [Central Asia](/source/Central_Asia) and the [Eastern Bloc](/source/Eastern_Bloc), mainly from mines in [Czechoslovakia](/source/Czechoslovakia), [East Germany](/source/East_Germany), [Hungary](/source/Hungary), [Poland](/source/Poland) and [Romania](/source/Romania).[8] In 1982, the plant began the production of reactor-grade [enriched uranium](/source/Enriched_uranium) (2–4.4% 235U) in form of [UO2](/source/Uranium_dioxide). Uranium production at Sillamäe continued to supply nuclear materials for the Soviet [nuclear power plants](/source/Nuclear_power_plant) and [weapon](/source/Nuclear_weapon) facilities until 1989. In the years of 1950–1989, the plant produced about 98,681 tonnes of uranium (mostly as [U3O8](/source/Triuranium_octoxide)) and 1354.7 tonnes of enriched uranium.[9]

In 1970, the plant started to process [loparite](/source/Loparite) ore from the [Kola Peninsula](/source/Kola_Peninsula) producing [tantalum](/source/Tantalum) and [niobium](/source/Niobium). Later, it also started to extract [rare-earth metal](/source/Rare-earth_metal) oxides.[9]

### 1990–recent time

In 1990, the enterprise stopped processing uranium. It was renamed Silmet and was reorganized as state-owned [joint-stock company](/source/Joint-stock_company). In 1997, the company was privatized. Following the privatization, the company went under control of former prime minister [Tiit Vähi](/source/Tiit_V%C3%A4hi). In 2002, Austrian Treibacher Industrie AG became a minority shareholder. In 2005, Vähi sold a controlling stake in Silmet to Russian related Swiss company Zimal SA, but bought it back in 2010.[10][11][12]

In April 2011, Molycorp bought 90% stake in Silmet for US$89 million.[13] The company was renamed Molycorp Silmet. Remaining 10% was acquired by Molycorp in October 2011.[14]

In June 2015, Silmet's parent company Molycorp filed for bankruptcy. New owner of Silmet is Toronto-based Neo Performance Materials Corp. Correspondingly, Silmet was renamed NPM Silmet in September 2016. ["Molycorp Silmet renamed NPM Silmet AS"](http://www.baltic-course.com/eng/markets_and_companies/?doc=124081). *The Baltic Course*. 2016-09-15. Retrieved 2017-02-12.[citation needed]

In 2019, NPM Silmet OÜ received recognition as the best enterprise in Ida-Virumaa and the best enterprise of Estonian chemical industry.[15] [16]

## Operations

Silmet operates three factories: metallurgical factory, rare metals factory, and rare-earth metals factory. Its main products are niobium and tantalum.

## References

1. Holmberg, Rurik (2008). [*Survival of the Unfit. Path Dependence and the Estonian Oil Shale Industry*](http://liu.diva-portal.org/smash/get/diva2:133713/FULLTEXT01) (PDF). Vol. 427. Linköping Studies in Arts and Science. [Linköping University](/source/Link%C3%B6ping_University). pp. 107–108; 130; 272.

1. Maremäe, Ello; Tankler, Hain; Putnik, Henno (2003). ["Uranium Production Research at Sillamäe, Estonia in 1946–1989"](https://www.digar.ee/arhiiv/et/download/22590). *Historical Survey of Nuclear Non-Proliferation in Estonia, 1946–1995* (PDF). Estonian Radiation Protection Center. pp. 13–14.

1. Uibopuu, Lembit. ["Saksa kapital Eesti põlevkivitööstuses (1922–1940) ja Eesti põlevkivitööstus Saksa okupatsiooni ajal (1941–1944)"](http://www.ene.ttu.ee/maeinstituut/seminar/saksakapitaleestis.htm) [The German capital in Estonian oil shale industry (1922–1940) and the Estonian oil shale industry during the German occupation (1941–1944)] (in Estonian). [Tallinn University of Technology](/source/Tallinn_University_of_Technology). [Archived](https://web.archive.org/web/20141026145106/http://www.ene.ttu.ee/maeinstituut/seminar/saksakapitaleestis.htm) 2014-10-26 at the Wayback Machine. Retrieved 2014-04-05.

1. Dyni, John R. (2006). [*Geology and resources of some world oil-shale deposits. Scientific Investigations Report 2005–5294*](https://pubs.usgs.gov/sir/2005/5294/pdf/sir5294_508.pdf). U.S. Department of the Interior. U.S. Geological Survey. Retrieved 2012-07-08.

1. Lippmaa, Endel & Maremäe, Ello (2000). "Uranium production from the local Dictyonema shale in North-East Estonia". *Oil Shale. A Scientific-Technical Journal*. **17** (4): 387–394. Estonian Academy Publishers. [ISSN 0208-189X](https://www.worldcat.org/issn/0208-189X)

1. Maremäe, Ello (2001). "Extraction of uranium from local Dictyonema shale at Sillamäe in 1948–1952". *Oil Shale. A Scientific-Technical Journal*. **18** (3): 259–271. Estonian Academy Publishers. [ISSN 0208-189X](https://www.worldcat.org/issn/0208-189X)

1. Lippmaa, E. & Maremäe, E. (2003). "The beginnings of uranium production in Estonia". *Oil Shale*. **20** (2): 167–174. Estonian Academy Publishers. [ISSN 0208-189X](https://www.worldcat.org/issn/0208-189X)

1. Diehl, Peter (1995). ["Uranium production in Europe"](http://www10.antenna.nl/wise/index.html?http://www10.antenna.nl/wise/439-440/chapter1.html). [WISE](/source/Nuclear_Information_and_Resource_Service). Retrieved 2012-07-08.

1. Lippmaa, Endel & Maremäe, Ello. "Uranium Processing at Sillamäe and Decommissioning of the Tailings". *Proceedings of the NATO Advanced Research Workshop on Turning a Problem into a Resource: Remediation and Waste Management at the Sillamäe Site, Estonia*

1. ["Ex-PM Tiit Vahi sells controlling stake in Silmet to Russians"](http://bbn.ee/Default.aspx?PublicationId=1ae2e10c-357b-4dab-b34a-14cd6de1da01). Baltic Business News. 2006-01-03. Retrieved 2012-07-08.

1. ["Silmet Grupp boosts holding in Silmet to 90 pct through share repurchase"](http://www.investinestonia.com/en/news/silmet-grupp-boosts-holding-in-silmet-to-90-pct-through-share-repurchase). [Baltic News Service](/source/Baltic_News_Service). 2010-12-17. Retrieved 2012-07-08.

1. Tere, Juhan (2010-12-20). ["Tiit Vähi buys back Silmet's shares"](http://www.baltic-course.com/eng/markets_and_companies/?doc=35168). *The Baltic Course*. Retrieved 2012-07-08.

1. ["Molycorp buys rare earth processor"](https://web.archive.org/web/20110415064822/http://www.businessweek.com/ap/financialnews/D9MD1NU80.htm). *[Bloomberg Businessweek](/source/Bloomberg_Businessweek)*. [Associated Press](/source/Associated_Press). 2011-04-04. Archived from [the original](http://www.businessweek.com/ap/financialnews/D9MD1NU80.htm) on April 15, 2011. Retrieved 2012-07-08.

1. Banerjee, Ankur (2011-10-24). ["Molycorp buys rest of European rare earths plant"](https://web.archive.org/web/20170213164221/http://uk.reuters.com/article/molycorp-idUKL3E7LO1XY20111024). *[Reuters](/source/Reuters)*. Archived from [the original](http://uk.reuters.com/article/molycorp-idUKL3E7LO1XY20111024) on February 13, 2017. Retrieved 2012-07-08.

1. ["Ida-Virumaal lõikas loorbereid NPM Silmet"](https://www.aripaev.ee/top/2019/12/12/ida-virumaal-loikas-loorbereid-npm-silmet). *Äripäev*. 2019-12-12. Retrieved 2019-12-12.

1. ["Keemiatööstuse TOPi võitja: Turg ei soosi tööjõumahukat tootmist"](https://www.aripaev.ee/uudised/2019/11/21/keemiatoostuse-topi-voitja-turg-ei-soosi-toojoumahukat-tootmist)

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Adapted from the Wikipedia article [Silmet](https://en.wikipedia.org/wiki/Silmet) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Silmet?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.