Green Mining, on-going projects

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1 Green Mining, on-going projects Program annual seminar 24 th October 2012 Helsinki, Finlandia hall Harry Sandström Spinverse Oy

2 Green Mining program is part of Natural Resources and Sustainable Economy focus area of Tekes

3 Green Mining, part of national R&D funding Duration: Budget: 60 m, out of which Tekes funding is 30 m. Enterprises: 20 m Tekes funding as grants (35/50%) or loans (70%), proposals can be submitted all the time Public research organizations: 10 m Tekes funding as grants (60/70%). Calls once a year. GTK Universities Green Mining Direct geology related R&D and education Approximately m /y Harry Sandström

4 Long term aims of the programme The aim is to make Finland a global forerunner of responsible mineral economy To achieve global leader status in selected fields of mineral and mining research Continuous improvement of practices in organizational processes in Finnish mineral cluster companies Finnish mineral sector is well known and carries a positive image within the country and abroad To develop new business models that offer export opportunities to Finnish mining sector service and technology providers and increase the number of SMEs in the cluster Harry Sandström

5 The programme covers the whole mineral sector Mining activity metallic minerals industrial minerals Exploration Mining industry Technology industry Minerals sector machinery and equipment manufacture Process planning Research and education Aggregate production Gravel and sand extraction Stone materials industry Natural stone industry Soapstone product manufacture Dimension stone production Minerals sector services Excavation contracting Transport services Sampling and measurement Financial services Information services Consultant services

6 Summary of on going projects Company projects Number of projects 14 Mining companies 3 Technology providers 6 Instrument providers 3 Material providers 1 Total costs 13.4 m Tekes funding 6.05 m Public projects Number of projects 14 Other partners 38 Mining companies 15 Service and techn. providers 23 Total costs 10.6 m Tekes funding 7.3 m

7 Public Green Mining research projects (2012) Mine Steel DEVICO Ren energy Repro BEPGEII Sorex Total budget 10,6 M Tekes funding 7.3 M Thiogold Ads. mater. MINIMAN RAIKU NICK NovTexEx Arsenal Dilacomi Maintenance Energy Measurement Automation Processing Materials Exploration Reduction of emissions Social licence to operate KMK 4/26/12

8 Company specific Green Mining research projects Endomines Miilux Talvivaara Outotec Total budget 13.4 M (Tekes 6.1 M ) Firotec Allu Finland Mustavaara Arctic Drilling Company Normet Fenno-Aurum Sandvik Avance Partner Metso Minerals IMA Engineering Maintenance Energy Measurement Machinery Automation Processing Materials Exploration Reduction of emissions Social licence to operate KMK 4/26/12

9 Participating organizations 10/ R&D organizations Exploration and Service and technology Mining organizations providers Aalto University Agnico-Eagle Finland ABB Finnish Forest Research Institute Anglo American Arctic Drilling Company Geological Survey of Finland Boliden Minera BK-Automation Kajaani School of Applied Science Endomines Corrotech Kemi-Torno School of Applied Science Kevitsa Mining DEKRA Finland Lappeenranta University of Technology Mondo Minerals Ekokem-Palvelu Tampere University oif Technology Mustavaaran kaivos GaV Group University of Oulu Nordic Mines Ima Engineering Univesity of Lapland Nordkalk Insinööritoimisto Suomen Unit Nortec Minerals Kemin Digipolis Northland Mines Kemira Chemicals Outokumpu Keycast Pyhäsalmi Mine Langh Ship Sotkamo Silver Lohjan Energiahuolto Talvivaaran Kaivososakeyhtiö Metso Automation So far natural stone and aggregate industries are not involved! Mining companies are mainly participating through public research projects! Yara Suomi Harry Sandström Metso Minerals Miktech Mine On-Line Service MIP Electronics Norilsk Nickel Harjavalta Outokummun Energia Outokumpu Chrome Outotec Paakkola Conveyors PHD Nordic Pixact Polar Metalli Rovaniemen Kehitys Ruukki Metals Sandvik Mining and Construction SKF Teollisuuden KPP

10 Focus and funding of GM projects Total costs appr. 24 m Tekes funding appr. 13 m

11 Focus and funding of company specific projects

12 Going towards to new mining age? 5 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 High commodity prices Easy access to capital High labour costs/low availability More volume = more equipment Exploit known deposits, marginal new ground. Unprecedented volume challenge Combat declining grades Productivity focus/low cost Autonomy & Smart Systems Safety via technology Less people = more technology and automation Our opportunities Bigger domestic market Finnish cleantech know-how Technology and service export Source: Austmine 2012

13 Challanges in mining cluster innovation system End users 10 metal mines 30 industrial minerals quarries 40 exploration companies Commercialization Technology and service providers 3 big actors 3 medium size and 10 small companies R&D organizations Aalto University GTK Kajaani School of Applied Sciences Kemi-Tornio School of Applied Science Lappeenranta University of Technology Oulu University Tampere University of Technology VTT Where the innovations are created? Where they are developed further globally? How to promote the growth and internationalization? Harry Sandström

14 Segmentation of recognized service and technology providers in Finnish mining cluster Segment Harry Sandström Number of companies Laboratory, measurement, intrumentation technology 23 Environmental consultancy 15 Engineering works 14 Planning and engineering 11 Machinery providing and planning 12 Material providers 8 Other business consultancy 7 Geological consulting 4 Sampling 5 Leagal consultancy 4 Financing 4 Automation 4 Water technology 3 ITC 3 Maintenance 5 Energy 3 Tecnology providers 2 Communication 1 Recycling 1 Total 129 Does not include construction and transport companies

15 Internationalization and size of selected mining cluster Technology and service providers Part of international concern Business as usual Beginning/Planning Harry Sandström

16 Summary Project portfolio covers well the sector and includes over 200 man power years R&D effort by now. The program has gathered new R&D organizations with different viewing angle diversifying the research. There is still need to enhance the Nordic and international cooperation in RDI projects. Joint arctic mining technology development is a big opportunity to the northern mining countries. Collaborative research among mining companies is still an unused opportunity. Pilot cases and support for commercializing are needed to get new service and technology innovations into the market. Horizontal alliances among the service and technology providers should be investigated to get required critical mass and credibility.

17 Thank you very much for your attention! Tekes Programme Manager Mr Kari Keskinen Tel Spinverse Programme Coordinator Mr Harry Sandström Tel

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