XII Mining conference
ESTONIAN MINERAL POLICY
Case:
Raw materials and industry in
Scandinavia
Friday, May 3rd 2013 Pekka Suomela FinnMin
What’s up in Finland today?
• Mining industry is booming
Also tomorrow?
• Need of human resources with quality
And we know that?
• Metals Industry in Finland
• Dialogue with regulators and authorities
• Expectations for the future are bright but
some clouds....
What FinnMin?
• FinnMin is a recognized representative of the
Finnish metals and minerals mining industry
• The association's main objective is to promote
the industry and to maintain its relations with
National and European institutions at all levels
• FinnMin also fosters contacts with the mining
community in Nordic countries and in Europe
Mining in Finland:
• 12 metal mines in operation in 2012
• 31 active industrial mineral mines
• Total turnover of the mining industry in
2011 was about 1,5 billion €
Main targets for the Finnish mineral strategy
I. To contribute to the increase of employment,
economic growth and welfare through vital
mineral sector
II. To find solutions to global challenges of rawmaterial chains through Finnish innovations
III. To decrease total environmental impacts of
mining industry
1.3.2010
Long term trends in copper, nickel &
uranium grades
Kaivokset ja yhteiskunta:
Lähde: Tukes 2013
Malminetsintäpanostus kansainvälisesti yhteensä sekä
Suomessa 1995-2012
Suomi vasemmalla (lähde TEM)
kansainvälisesti oikealla asteikolla (lähde Metals Economics Group)
milj. €
Kansainvälisesti
Suomi
100
US $ milj.
25000
90
80
20000
70
60
15000
50
40
10000
30
20
5000
10
0
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
7.10.2011
7
Lähde: Tukes 2013
Ore mining and mineral quarring 1950-2012 (milj. tn)
40.00
35.00
30.00
25.00
Metallimalmit
Karbonaattikaivokset
20.00
Teollisuusmineraalit ja muut
15.00
Yhteensä
10.00
5.00
0.00
18.3.2013, Ossi Leinonen, Terho Liikamaa
8
Sweden’s share of EU27’s total mine production of gold
2002–2011.
EU27 in red
Sweden in blue
Gold, tons
25
20
15
10
5
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Operating in Nordic Regions




Low sovereign risk
Long history of mining
No mining royalties
Low corporate tax rate (Sweden 26.3% Finland - 24.5%)
 Major mining, smelting and mining
equipment industry
 Finland rated best country for mining
investment - ResourceStocks 2011
World Risk Survey
Pampalo Gold Mine
- completed on schedule and in line with budget
Start Oct 22,2009
Plant Feb 2, 2010
 Investment 20 M€ in line with the
budget
 Commercial production
commenced Feb 2011 as
scheduled
 Currently employing 80 own + 30
contractors – 70 % locals
Plant Nov 9 2010
Plant Jan 11.2011
25th May 2011
Strong focus on Health-SafetyEnvironment
Average LTIFR in
Finnish mining industry
was 25 for the period
2008-2011
Own personnel 550
accident free days
Contactors 200 days
accident free days
Pampalo safety statistics - LTIFR
60
50
40
LTIFR
Endomines
30
Contractors
Total
20
10
0
LTIFR= accident number / 1 000 000 working hour
14
Kittilä Mine: Areal View
Personnel
April 2012
Management
12
Senior Staff
51
Staff
72
Operators
305
Contractors
180
Geology
Mine
Mill
Maintenance
Administration
Projects
Exploration
AEF
Total
Agnico-Eagle Finland Oy
Contractors
Total
20
179
54
93
73
5
13
3
440
97
23
1
4
32
11
12
0
180
117
202
55
97
105
16
25
3
620
Economic Impact on the Region
The economy of the Kittilä municipality is based on two pillars:
1. tourism



Tourism provides ca. 1100 jobs for Kittilä residents
42 % of Kittilä’s total manpower resources
In total 1800 jobs during high season
2. Kittilä mine



Kittilä mine provides 600 jobs
Approximately 50 % from Kittilä
22% of Kittilä’s total manpower resources
The unemployment rate in Kittilä is below 10 % on average - during high
season 6 %
The Kittilä annual municipal tax income ca. EUR 4 million and equal amount to
the state
Annual real estate tax paid by the Kittilä mine EUR 0.25 million
Annual royalty payment to the State will be ca. EUR 3 million
Corporation tax will be ca. EUR 15 - 20 million
Kittilä mine’s B 2012 turnover is over EUR 190 million – Tourism’s turnover is
ca. EUR 200 million.
Kittilä Population
Kittilä Mine
Key task for the mineral policy:
 How to improve business environment of
mining industry in a global context ?
 And at the same time take into account the
needs and requirements of national, regional
and local societies?
In case of Finland



with strong Nordic democratic traditions
with high percentage of private land
ownership
with high demands of environment protection
Finnish mineral cluster
Special Inputs
Related industries
• Location and Infra
• Mineral resources
• Geological data
Technology
•
•
•
•
•
Mining machineries
Enrichment technology
Stone processing machines
ICT
Environmental expertise
Associated services
• Exploration and junior
companies
• R&D and Education
• Financing
Primary products
• Ores and
concentrates
• Industrial minerals
• Aggregates
• Natural stones and
stone products
•
•
•
•
•
•
Excavation contractor
Transport
Rock engineering
Design and Architecture
Energy production
Residential services
Consumers
• Basic metal industries
• Chemical industry
• Construction materials
industry
• Construction
21
EUROPEAN UNION
VALUATION OF
 Economic benefits
 Environmental impacts and
 Effects on prosperity
That result from mining activities
- Working Paper 138 by PTT
I. Benefits are clearly greater than their
adverse external impacts
II. Individual adverse experience by local
people can be quite significant
III. Mining projects with their local
characteristics are quite different
MINING POLICY and SOCIAL LICENCE
- times are changing
Media headlines in
capital letters
Pro
mining
Mining
tax ?
Puolustusministeri Haglundin
tapaaminen 2.8.2012
”Every mine is important
every mine is different”
Thank you!
Pekka Suomela
FinnMin