The aim of this doctoral thesis is to prepare the framework for reorganization of mining activity in relation to regulations regarding exploration and exploitation of mineral raw materials and supervision at mining operations in the Republic of Croatia for the purpose of sustainable, more efficient and rational use of mining raw materials. The subject of this research are mining legislation, concession rights and revenues, mining inspectorate, and exploitation and illegal exploitation of mineral raw materials in the Republic of Croatia. With the aim of sustainable and more rational development of mining activity, it is necessary to change certain key provisions in mining legislation. The mining activity in Croatia is limited not only by the provisions of the Mining Act, but also by the provisions of other regulations related to environmental and nature protection, and the protection of other natural and man-made resources. The outcome of the procedure for granting a concession for exploitation of raw materials is often uncertain and the duration of the procedure is constantly increasing. A lack of coordination between regulations and competent administration bodies and discourages mining activities in the Republic of Croatia. Therefore, the availability of mineral raw materials in the Republic of Croatia is substantially limited and it can be expected that, due to complexity, duration and uncertainty of the outcome of the procedure, certain raw materials will have to be imported. Non-metallic mineral resources present a potential that is only partially exploited. The reason for that is partly related to the duration and uncertainty of the procedure regarding concession for exploitation of mineral raw materials and partly related to insufficient knowledge regarding the use of mineral raw materials. It results in the use of non-metallic mineral resources for products of low added value (e.g. building material), instead of products of higher added values (e.g. fillers). When compared to the revenues from other concession fees, local self-government units receive a larger part of that revenue, therefore it would be in their own interest to develop, encourage and protect mining activities. The revenue from concession fees for the exploitation of solid non-energy mineral resources is particularly low, even when accepting the quantity and market value of excavated mineral raw materials and the minimum fee for the exploitation. Therefore, it is necessary to reassess the basis to calculate the variable part of the fee for the exploitation of mineral resources, i.e. correct evaluation of the market value of mineral resources. The importance of mineral resources for the economy has to be evaluated by multiple increase of added value through the production of final products and/or its role in other economic activities (building, road building, energy sector, manufacturing industry). It is necessary to include competent state administration bodies, Ministry of the Interior and police administration, in the supervision and prevention of illegal exploitation of mineral raw materials. It would provide help to mining inspectorate and enable more efficient supervision of exploration and exploitation fields. It is necessary to re-establish State Inspectorate to improve the efficiency of mining inspectorate. Illegal exploitation has to be sanctioned, depending on the gravity of misdemeanour, and those provisions have to be included in penalty and criminal provisions of the Mining Act, which is not the case at present. Based on the SWOT analysis and the combination of opportunities and threats with strengths and weaknesses, four strategic recommendations for the development of mining activity are determined. The preferred aggressive strategy (maxi-maxi), with adapted legislation, defined strategic guidelines for regional development of individual counties and a higher level of manufacturing raw materials, enables more efficient use of available mineral resources, provides export of final products, and increases state budget and employment rate.