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XII Mining conference ESTONIAN MINERAL POLICY

XII Mining conference ESTONIAN MINERAL POLICY. Case: Raw materials and industry in Scandinavia Friday, May 3 rd 2013 Pekka Suomela FinnM in. What’s up in Finland today ?. Mining industry is booming Also tomorrow? Need of human resources with quality And we know that?

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XII Mining conference ESTONIAN MINERAL POLICY

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  1. XII Mining conference ESTONIAN MINERAL POLICY • Case: • Raw materials and industry in Scandinavia • Friday, May 3rd 2013 Pekka Suomela FinnMin

  2. What’sup 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....

  3. WhatFinnMin? • 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

  4. 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 €

  5. Main targets for the Finnish mineral strategy • To contribute to the increase of employment, economic growth and welfare through vital mineral sector • To find solutions to global challenges of raw-material chains through Finnish innovations • To decrease total environmental impacts of mining industry 1.3.2010

  6. Long term trends in copper, nickel & uranium grades

  7. Kaivokset ja yhteiskunta: Lähde: Tukes 2013 7.10.2011

  8. Lähde: Tukes 2013 Oremining and mineralquarring 1950-2012 (milj. tn) 18.3.2013, Ossi Leinonen, Terho Liikamaa

  9. 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

  10. Operating in NordicRegions • 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

  11. Pampalo Gold Mine - completed on schedule and in line with budget • 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 PlantFeb 2, 2010 StartOct 22,2009 Plant Jan 11.2011 25th May 2011

  12. 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 Strong focus on Health-Safety-Environment

  13. Kittilä Mine: Areal View

  14. April 2012 • Management 12 • Senior Staff 51 • Staff 72 • Operators 305 • Contractors 180 Personnel

  15. 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. Economic Impact on the Region

  16. Kittilä Population Kittilä Mine

  17. 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?

  18. In case of Finland • with strong Nordic democratic traditions • with high percentage of private land ownership • with high demands of environment protection

  19. Finnish mineral cluster Special Inputs Related industries • Location and Infra • Mineral resources • Geological data • Excavation contractor • Transport • Rock engineering • Design and Architecture • Energy production • Residential services Primary products Technology • Ores and concentrates • Industrial minerals • Aggregates • Natural stones and stone products • Mining machineries • Enrichment technology • Stone processing machines • ICT • Environmental expertise Consumers • Basic metal industries • Chemical industry • Construction materials industry • Construction Associatedservices • Exploration and junior companies • R&D and Education • Financing

  20. EUROPEAN UNION

  21. VALUATION OF • Economic benefits • Environmental impacts and • Effects on prosperity • That result from mining activities • - Working Paper 138 by PTT

  22. Benefits are clearly greater than their adverse external impacts Individual adverse experience by local people can be quite significant Mining projects with their local characteristics are quite different

  23. MINING POLICY and SOCIAL LICENCE- times are changing

  24. Puolustusministeri Haglundin tapaaminen 2.8.2012

  25. Thankyou! ”Everymine is important everymine is different” Pekka Suomela FinnMin

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