Maija Uusisuo
Branch Manager for Mining and Stone Industry Regional Council of Lapland
Tel. +358 40 4877 901
Content
• The mining industry report in 2012
• Mining in Finland
The mining industry report in 2012
• Definition of the sector– Report has focus on metal ore and industrial minerals mining
• Statistics Finland, Finnish Customs, Company reports, Tukes, TEM
– Environmental impact assessment (EIA) process and environmental permitting process have been added
• Structure of the mining industry • Market structure and development
– More information on smelters and metal refining
• Production and production methods • Investments and production capacity • Economical status
• Success factors, problems and development needs • Future prospects
• Appendices
Metal and industrial mineral mines
• 12 metal mines in operation in 2012 • 31 active industrial mineral mines in 2011 • Total turnover of the mining industry in 2011 was about 1,48 billion € • Turnover of the metal mines in 2011 was about 963 million €Exploration
0 5 000 10 000 15 000 20 000 25 000 km 2 2008/9 2009/9 2010/9 2012/7Land area under mining licences and licence applications
Source: TEM and Tukes Source: TEM and Tukes
Map online at http://geomaps2.gtk.fi/tukes//
2008 2009 2010 2011
Number of companies 45 42 34 40
Expenditure, M€ 60,1 50,5 60,9 81
Production of metal mines
Mining of metal ores
0 5 10 15 20 25 30 35 40 45 50 2004 2005 2006 2007 2008 2009 2010 2 011 m ill ion t on ne s
Metal ores Leftover rock
0 100 200 300 400 500 600 700 800 900 2004 2005 2006 2007 2008 2009 2010 2011 1 0 0 0 t on ne s
Sulphur concentrates Chromium concentrates Zink concentrates Nickel concentrates Copper concentrates
Production of metal concentrates
Mine production of gold
Source: TEM and Tukes
0 1000 2000 3000 4000 5000 6000 7000 2008 2009 2010 2011 kg A u
Production of industrial minerals
0 5 10 15 20 25 30 2004 2005 2006 2007 2008 2009 2010 2011 m ill ion t on ne sMining of ore Mining of leftover rock
Mining of industrial minerals
Production of industrial mineral concentrates
0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2004 2005 2006 2007 2008 2009 2 010 2 011 1 0 0 0 t on ne s
Cement production Soil improvement
Quicklime production Technical grains and powders
Use of carbonate rocks *
0 200 400 600 800 1 000 2004 2005 2006 2007 2008 2009 2010 2011 1 0 0 0 t onne s
Apatite concentrate Talc
Quartz Feltspar
Wollastonite Mica concentrate Source: TEM and Tukes
Self-sufficiency in metal concentrates
2011 Concentrate production tonnes Refining of concentrates tonnes Production from refining %Iron ore concentrate 3 608 222 0
Chrome concentrate 692 527 689 435 100,4
Copper concentrate 48 668 464 033 10,5
Nickel concentrate 91 196 344 677 26,5
Cobalt concentrate produced as by product 8 994
Export and import of concentrates in 2011
Concentrates of metal ores
• Value of export 57,2 million €
• Value of imports 1 948,2 million €
Kaoline and limestones
• Value of export 11,7 million €
• Value of import 196,5 million €
The main mine projects
Mine/project, municipality, company Investments million € Estimated time for production
Taivaljärvi silver mine, Sotkamo, Sotkamo Silver Oy/Sotkamo Silver AB
(SE) 30 2013
Kylylahti mine and Luikonlahti mill extension (copper, cobalt, nickel,
zink), Kylylahti Copper Oy / Altona Mining Ltd. (AU) 6 2013
Extension of Kevitsa mine (nickel, copper), Sodankylä, Kevitsa Mining
Oy/First Quantum Minerals Ltd. (CA,UK) ? 2014
Extension of Kittilä gold mine, Kittilä, Agnico-Eagle Finland
Oy/Agnico-Eagle Ltd. (CA) ? 2014/2015
Länttä (litium) Kaustinen, Keliber Oy/ Nordic Mining ASA (NO) 50-60 2014/2015
Hannukainen iron ore mine, Kolari, Northland Mines Oy/Northland
Resources S.A. (LU) 300 2015/2016
Mustavaara mine and smelter (iron, vanadium), Taivalkoski/Posio,
Mustavaaran Kaivos Oy 400 2016
Suhanko (palladium, platinum, nickel, copper), Ranua, Gold Fields Arctic
Platinum Oy/Gold Fields Ltd. (ZA) 1000-1500 2017
Sokli apatite mine, Savukoski, Yara Suomi Oy/Yara International ASA
(NO) 700 2017
Talvivaaran extension to 50 000/100 000 t Ni (Overlord), Sotkamo
Talvivaara Sotkamo Oy/Talvivaaran Kaivososakeyhtiö Oyj 500-1000
at the end of the decade
Mining of metal ores
Estimate including information published from the active projects
0,00 50,00 100,00 150,00 200,00 250,00 300,00
2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e 2017e 2018e 2019e 2020e
m ill ion t on ne s
Employment
Metal and industrial mineral mines
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Construction Current operating mines
Subcontractors in operating mines Projects in pipe line
• Mid 2012 mines give work for 4500 people including subcontractors in mines • Exploration is not included in figures
• At the end of this decade mines would employ about 6200 people
Global trends
• Global population growth and urbanisation will increase use of metals and minerals
• Need for metals and minerals is strongly depending on growth of economy
in developing countries
• New deposits are found infrequently and the found deposits are more diluted
• Investment costs are increasing
• Announcements of new projects in pipeline are decreasing • Predictability is decreasing
– Political risks, taxes, royalties
– Local protests can expand to global movements – Global competition on mining professionals
– Increasing costs
– Fluctuation in commodity prices
• Uncertainty in the economic development in Europe and China
– Reduced demand for commodities
Challenges in Finland
• Global trends have impact also in Finland
– Demand and financing
• Social licence to operate is a necessity
– Consolidation of different interest is needed
– Information on basic conditions for mining and also other
businesses
– Methods to measure impacts are needed
– EIA, land use planning and permitting processes offer an
excellent forum for discussions, but the processes are not
properly known by the interest owners
• Lack of resources in permitting is delaying projects
• Availability of mining professionals
Opportunities in Finland
• Finland is still under explored and there is a good probability
to find new deposits
– PGMs and nickel
• Finland has potential to improve self-sufficiency in mineral
concentrates and to enhance the development of refining,
machinery and technology industry
• Culture of co-operation enables shorter handling times in
permitting, EIA and land use planning and sustainable
solutions of conflicting interests
• Expected global investments of almost 800 billion USD is an
opportunity for Finnish mining technology export
Please, notice
• The presentation was based on information
available at the time
• Issues in mining are in continuous
development and the information given can be
out of date anytime
• The sector reports can be downloaded free of
charge at
Thank you for your attention
