The Rejuvenation of Finland's Mining Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--Although Finland's mining history dates back more than 200 years, the industry has not thrived as one would expect. This is partly because of old mining legislation in force until 1994 that limited foreign-company ownership of mineral resources and barred some mineral exploration. In 2003, the state-owned metal and minerals company Outokumpu (Espoo, Finland) then decided to get out of the mining business. Since the revamping of the mining legislation in 1994, the first grassroot mine to be constructed in this northern European nation is set to become operational by the end of the year, and two more mines are scheduled come online by 2010.

The Talvivaara polymetallic mine, the first mine to be constructed in Finland in over a decade, is owned by Finland's junior miner Talvivaara Mining. Talvivaara, being built by Outotec, is being implemented in two phases with the first to be completed by year's end and the second in 2009. According to the owner, construction on the Talvivaara nickel mine is progressing as planned, on time and on budget. Upon completion, the 15 million-ton-per-year open-pit BioHeap leach mine and mill will produce 33,000 tons of nickel, 60,000 tons of zinc, 10,000 tons of copper and 1,200 tons of cobalt annually.

Vulcan Resources Limited (Perth, Australia) completed a definitive feasibility study and is aiming for production from its Kylylahti copper-cobalt-nickel mine by late 2010 early 2011. The mine is planned as an underground mine with a 10- to 15-year life. It will require a capital investment of $170 million and will produce 9,000 tons of copper, 1,900 tons of nickel and 3,800 tons of cobalt per year as concentrates. The project has been fully permitted, and site work will commence in mid-2008. It will create more than 300 jobs for construction and about 130 permanent positions when it becomes operational.

Although Scandinavian Minerals Limited expects the feasibility study for the Kevitsa copper-nickel-PGE mine to be completed in June, the company has gone ahead and awarded the construction of a 7-kilometer road that will link the Kevitsa mine to the main highway to a Finnish company called Veljekset Karjalainen Oy. The mine, expected to begin operation in 2010, is being engineered to be a 5 million-ton-per-year open-pit mining operation. First Quantum Minerals Limited recently announced its intention to acquire Scandinavian Minerals in a cash-and-share transaction by June.

Finland is an advanced industrial economy that is politically stable with a strong mining culture and history. The country, which has excellent infrastructure and a good commercial environment, is a member of the European Union with globally known local equipment and technology suppliers, including Metso, Sandvik and Outotec. Finland has an abundance of natural resources, such as chromite, copper, zinc, nickel and other industrial minerals such a limestone and phosphate rocks. According to U.S. Geological Survey, the metals, engineering and electronic industries account for approximately 60% of the country's export revenue.

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