Rising interest in ore prospecting spells mining growth

Investments in ore prospecting started to grow in 2016. Investments in the mining sector totalled about EUR 240 million, which was much higher than that in the previous year, said a government press release.

New business opportunities for mining companies lie in sustainable mining operations, side streams management, water treatment, social issues, and new technologies. The circular economy that crosses borders between sectors and value chains creates new opportunities for the mining and metal refining industry.

The report on mining industry of the Business Sector Services of the Ministry of Economic Affairs and Employment of autumn 2017, published on Tuesday in Levi, tells about the current situation and outlook of the sector.

“The global economic outlook is quite positive and the prices for metals and minerals show a rising trend, which is directly reflected as a better situation in the mining sector. The price level is now stable and growth is to be expected,” said Heino Vasara, sector manager at the Centre for Economic Development, Transport and the Environment for Lapland, who compiled the report.

Recent years have been a challenging time for the mining industry, but the mines that are active at present already rest on a solid foundation. Recently, a particular focus in the development has been placed on measures to improve the efficiency of the production to achieve higher profitability and on environmental investments.

Right now the mining sector is investing strongly in competence building and new technologies.

Measured by the quarrying volumes the three largest mines in Finland are Kevitsa, Talvivaara, and Siilinjärvi. At the moment, there are five projects well under way that aim for starting new mining operations: Taivaljärvi Silver Mine, Hautalampi Cobalt-Nickel Mine, Keliber Lithium Mine, Hannukainen Iron Mine, and Kaapelinkulma Gold Mine. The reopening of the Pahtavaara Gold Mine is also being considered. Three projects are at the stage where preliminary profitability estimates are being made, while several ore prospecting projects are under way.

The key factors that attract international investors and operators include the good geological knowledge base, ore potential and infrastructure, high level of education, and social and economic stability. The high standard of ore prospecting that produces good results and the new deposits that are found secure the raw material supply for the future and create new opportunities for industrial operations. Finland has strong expertise in mining equipment and technologies as well.

The Sector Reports publication series collects and combines data from various sources into a basic information package that represents the views of the experts and serves as a tool for decision-making by SMEs. The Sector Report on healthcare and social services will be published on 16 November, on renewable energy on 23 November, and on tourism in the early part of 2018.