Mining 2025

NORWAY Law and Practice Contributed by: Mona Søyland, Øystein Nore Nyhus, Halvor Klingenberg and Fredrik Haberer Anfinsen, Simonsen Vogt Wiig

3.4 Energy-Transition Minerals See 3.3 Sustainable Development Initiatives Related to Mining for discussion of the Norwe - gian 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 posi - tion 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 pro - tection of the environment, safety, and the rights of indigenous peoples. The position paper does not include an assessment of whether the pro - posal should be incorporated into the European Economic Area (EEA) Agreement and does not anticipate any EEA-relevant adaptations. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes Norway’s tax system for mining and explora - tion 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 deduc - tions such as operational costs, depreciation of equipment, and exploration expenses.

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 fur - ther phased in to apply to smaller companies in 2028, before applying to all companies covered by the CSDDD on 26 July 2029. 3.3 Sustainable Development Initiatives Related to Mining The government has stated in its Norwegian mineral strategy 2023 that the overriding ambi - tion 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.

355 CHAMBERS.COM