Mining in Finland 2012 Branch Manager for Mining and Stone Industry Regional Council of Lapland Tel. +358 40 4877 901 maija.uusisuo@lapinliitto.fi, www.lapinliitto.fi
Content The mining industry report in 2012 Mining in Finland Future prospects
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 Mining in Latin America and Australia by the Finpro has been added
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 Land area under mining licences and licence applications 25 000 20 000 km 2 15 000 10 000 5 000 0 2008/9 2009/9 2010/9 2012/7 Source: TEM and Tukes Exploration expenditure 2008 2009 2010 2011 Number of companies 45 42 34 40 Expenditure, M 60,1 50,5 60,9 81 Map online at http://geomaps2.gtk.fi/tukes// Source: TEM and Tukes
million tonnes REGIONAL COUNCIL kg Au 1000 tonnes Production of metal mines Mining of metal ores Production of metal concentrates 50 45 40 35 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2 011 Metal ores Leftover rock 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 Sulphur concentrates Chromium concentrates Zink concentrates Nickel concentrates Copper concentrates Mine production of gold 7000 6000 5000 4000 3000 2000 1000 0 2008 2009 2010 2011 Mine production of gold Source: TEM and Tukes
1000 tonnes million tonnes 1000 tonnes 30 25 20 15 10 5 0 REGIONAL COUNCIL Production of industrial minerals Mining of industrial minerals 2004 2005 2006 2007 2008 2009 2010 2011 Mining of ore Mining of leftover rock Use of carbonate rocks * 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2 010 2 011 Cement production Quicklime production Soil improvement Technical grains and powders Production of industrial mineral concentrates 1 000 * Production also from imported rocks 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 2011 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 Zink concentrate 87 974 582 323 15,1
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 Taivaljärvi silver mine, Sotkamo, Sotkamo Silver Oy/Sotkamo Silver AB (SE) Kylylahti mine and Luikonlahti mill extension (copper, cobalt, nickel, zink), Kylylahti Copper Oy / Altona Mining Ltd. (AU) Extension of Kevitsa mine (nickel, copper), Sodankylä, Kevitsa Mining Oy/First Quantum Minerals Ltd. (CA,UK) Extension of Kittilä gold mine, Kittilä, Agnico-Eagle Finland Oy/Agnico- Eagle Ltd. (CA) Investments million Estimated time for production 30 2013 6 2013? 2014? 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) Mustavaara mine and smelter (iron, vanadium), Taivalkoski/Posio, Mustavaaran Kaivos Oy Suhanko (palladium, platinum, nickel, copper), Ranua, Gold Fields Arctic Platinum Oy/Gold Fields Ltd. (ZA) Sokli apatite mine, Savukoski, Yara Suomi Oy/Yara International ASA (NO) Talvivaaran extension to 50 000/100 000 t Ni (Overlord), Sotkamo Talvivaara Sotkamo Oy/Talvivaaran Kaivososakeyhtiö Oyj 300 2015/2016 400 2016 1000-1500 2017 700 2017 500-1000 TOTAL 2 986-3 996 at the end of the decade
2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e 2016e 2017e 2018e 2019e 2020e million tonnes REGIONAL COUNCIL Mining of metal ores Estimate including information published from the active projects 300,00 250,00 200,00 150,00 100,00 50,00 0,00 Metal ores Leftover rock
Employment Metal and industrial mineral mines 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 5600 professionals are needed by 2022 in mining and related companies 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Construction Subcontractors in operating mines Current operating mines Projects in pipe line
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 Difficulties in financing exploration and projects
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 www.toimialaraportit.fi
Thank you for your attention Picture: Agnico-Eagle Finland Oy, Kittilä gold mine