Finland s Minerals Strategy



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Pekka Nurmi Geological Survey of Finland Finland s Minerals Strategy Efficiently managed and sustainable utilisation of our mineral resources secures the long-term supply of raw materials at a national level, while creating the preconditions for stable regional development far into the future. Expertise in the minerals sector also enables Finland to effectively promote responsible and sustainable management of mineral resources within a global environment, as well as generating opportunities for new international business activities.

Presentation Contents Fennoscandian mineral potential Mining in Finland The minerals sector as an opportunity for Finland Key actions since 2010 Green Mining concept and programme

Fennoscandia: A significant mining region Kevitsa Nurmi & Eilu Iron, Titanium, Silicon, Olivine, Nepheline, Graphite, Carbonate s Iron, Copper, Zinc, Silver, Gold, Lead, Telluriu Nickel, Nickel, Iron, Chromium, Phosphorus, Phosphorus Copper,, Zinc, Cobalt, Rare Copper, earth metals Cobalt, Gold, Talc, Pyrite Dot: Large metal deposit Named: Large active metal mine Novem

Mining Boom in Fennoscandia Major new mines 2012 Expansion/reopening of old mines

Production and New Metal-Mine Projects in Fennoscandia 2012 Great growth potential Source: Industry Investment, Kimmo Viertola 2012

Gold Kittilä Large dot: present mine Small dot: deposit with a resource estimate Ni Cu, n, Pb Fe, V, Ti, Cr Au, Ag, Pd, Pt Hi-tech metals

Nickel Cu, Zn, pb Fe, V, Ti, Cr Au, Ag, Pd, Pt Hi-tech metals Uranium Nickel Large dot: present mine Small dot: deposit with a resource estimate Kevitsa Petchenga Talvivaara

Fennoscandia is a Focus Area for Exploration Composite Policy and Mineral Potential Ranking Finland Sweden Norway Source: Frazer Institute Mining Company Survey 2012

Why Finland? Excellent geodata and infrastructure A favourable and secure investment environment Significant potential for new discoveries

Mining in a Nutshell 52 mines (12 metal, 17 carbonate rocks and 14 industrial minerals ) Mine investments 2008-2011 1.3 Bill. Estimated investments 2012-2017 over 3 Bill. Estimated turnover 2.5 Bill. and employeers 5000 in 2015 Finland is one of the leading mining technology providers (Metso, Outotec, Sandvik, Normet) Annual ore output (Mt) > 10 1.0-10 0.5-1.0 0.1-0.5 < 0.1 Metals Industrial minerals Kittilä gold Hitura nickel Raahe gold Kevitsa nickel Pahtavaar a gold Kemi chrome Pyhäsalmi Copper-zinc Siilinjärvi phosphorus Lahnaslampi talc TalvivaaraNickel-zinc Kylylahti copper Polvijärvi talc Ilomantsi gold Orivesi gold Data: ETLA 2011 Jokisivu gold Parainen calcite Lohja calcite Lappeenranta calcite

Mine Projects 2012 Project Raaka-aineet Company Mine project Kolari iron Sokli phosphorus Sokli Phosphorus Yara Kolari Iron (copper, gold) Northland Reources Ab Suhanko Palladium (platinum) Gold Fields Mustavaar a Vanadium (iron, titanium) Mustavaaran Kaivos Oy Taivaljärvi Silver (zinc) Sotkamo Silver Ab Länttä Lithium Keliber Oy Länttä lithium Suhanko palladium Mustavaara vanadium Taivaljärvi silver

Exploration Projects 30 to 40 companies active in exploration Main commodities: Ni, Cu, Au, PGM, ferrous metals, hitech metals, Exploration expenditure 81 mill. incl. brown fields in 2011 Rompas golduranium Sakatti Nickel-copperplatinum Kuusamo gold Särkiniemi nickel Rantasalmi gold

Finland s Mining vision 2020 Volume of metallic ores mined

Global challenges Population growth In 2010 7 billion and in 2030 8 billion Urbanisation In 2030 2/3 of population are living in cities Higher living standards and growth of consumption Housing Infrastructure and transportation Agriculture New energy technology Information and Communications Technology

The Finnish minerals sector

The minerals sector as an opportunity for Finland

Promoting domestic growth and prosperity The minerals sector has significant potential to further enhance its position as a vital foundation of the national economy. Continued development in the sector requires proactive support and commitment from both the Finnish Government and other relevant public authorities. More knowledge on the resources is required and the relevance of the sector should be considered in land use planning and zonation at all levels of the decision making process. The expanding and rapidly diversifying Finnish minerals sector has an important role to play in supplying raw material supply both in Finland and elsewhere in the PA Nurmi EU. 1.2013

Solutions for global mineral chain challenges Sustained growth in the Finnish mining industry creates a favourable environment for maintaining technological leadership across the whole minerals sector. The global increase in consumption of mineral raw materials, together with growing environmental challenges, offers considerable potential for business activities promoting sustainable utilisation of mineral resources. New value chains, technologies and services for both domestic and export markets.

Mitigating environmental impact Finland should take a proactive role in implementing the principles of sustainable development throughout the extractive minerals sector, ensuring that mining and processing is compliant with established bestpractice guidelines. Increasing the proportion of raw materials produced sustainably in Finland represents a significant step towards meeting these objectives. Incentives for using environmentally benign raw materials, quality certification for materials and processes and the implementation of penalties through environmental taxes will be among the principal steering mechanisms for guiding reform in the sector.

Key Challenges for the Mining Industry Deposits more difficult to discover: deeper, remote, lower grade, more difficult to process Social lincense to operate Changing legistlation and access to land (NIMBY) Skills crisis Volatility of commodity prices Critical minerals change with time and tehnological development

Priority research areas Invisible and intelligent mining Innovative processes, automation and optimisation Efficient use of materials, energy and water Minimisation of emissions Chemical/biological beneficiation processes Geodata systems and multi-dimensional modeling Innovative exploration technologies High-tech metal exploration and beneficiation Recycling, new and alternative materials Environmental impact management and measurement

Mineral strategy action proposals 14 proposals in the following areas: Strengthening minerals policy Securing the supply of raw materials Reducing the environment impact of the minerals sector and increasing its productivity Strengthening R&D operations and expertise

Key Actions since Release of Mineral Strategy Goverments raw materials communication for the parlament 2010 New government s programme consideres minerals as one of the growth areas New experts hired for the ministries Green Mining R&D Programme launched 2011 Study on traffic infrastructures and needs for labour and education Q1/2013 New sustainable mining programme under preparation to further promote the development of the industry Q2/2013 Strong commitment to EU s raw materials actions (EIP, EIT-KIC, ) 2013 -

Green Mining R&D Programme Material and energy efficiency Controlling environmental impacts Work organisation development Mine / dressing plant pilot projects New mineral Resources Exploration technologies Geomodels and geodata management Hi-tech metal resources Beneficiation and use of country rock and tailings Intelligent and minimal impact/invisible mining Innovative processes (mine, quarry, dressing plant) Automation and optimisation Chemical/biological enrichment techniques Management of process waters Mining machinery/equipment Service innovations and new business concepts Value networks Tekes

Tekes - Green Mining Programme Tekes Green Mining Programme aims to make Finland a global forerunner of responsible mining. Duration: 2011 2016 Budget: EUR 60 million, of which Tekes will contribute 50%.» Companies: EUR 20 million» Public research institutes: EUR 10 million 27 public research projects and 15 company projects under way GTK leading 8 projects and a partner in 5 projects (total GTK budget 5.8 M ) http://www.tekes.fi/ohjelmat/greenmining Tekes

Sustainable minerals supply Thank You! means a provision for better future