Finland is still one of the most attractive mining countries in the world

Report: Mining industry fluctuations are visible throughout the value chain. Finnish mining industry products will be needed in the future.

In recent years, the mining boom has subsided and the conditions have become less stable due to the uncertainty of the economic situation. Last year, the total investment in mines was approx. EUR 200 million, which is 45% less than the previous year. Finland is still one of the most attractive mining countries in the world, and the industry products will still be needed in the future.

This is the assessment of the Mining Industry Sector Report by the Ministry of Employment and the Economy’s Business Sector Services, published in Helsinki on 25 November 2014. The report was compiled by Mining Industry Sector Manager Maarit Kokko from the Centre for Economic Development, Transport and the Environment for Lapland.

Features such as geological knowledge and skills, potentially good ore resources, a functional infrastructure, a generally high educational level, in addition to a socially and politically stable country render Finland attractive for mining. Long permit processes, the increasing taxation and the generally negative attitude towards mining may lessen the interest in investing in Finland.

If the mining industry conditions become less stable, the threat is that obtaining funds will become more difficult and the number of investments will decrease. The decrease in mineral prospecting will be evident in the future as new deposits will be seldom found to replace the current drain of mineral resources. There are currently no ongoing mining construction projects in Finland.

The methods of operation of mining companies are changing, and the development of procurements and sub-contracting work opens up new possibilities for SMEs. Mines operate using an increasingly thin organisation, which is why the supplier network is given more responsibility. In the future, new innovations will be needed for solving environmental questions. Mining activities must be carried out in an environmentally, socially and economically sustainable manner.

In 2013, the turnover of metallic ore and industrial minerals was approx. EUR 1.5 billion and the production employed approx. 3,000 individuals in Finland. The operating mines and mining projects were mainly located in Eastern and Northern Finland.

Source: Press release/ Ministry of employment and Economy