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

2. 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....

3. 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

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

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

7. 7.10.20117 Lähde: Tukes 2013 Kaivokset ja yhteiskunta:

8. 18.3.2013, Ossi Leinonen, Terho Liikamaa 8 Ore mining and mineral quarring 1950-2012 (milj. tn) Lähde: Tukes 2013

11. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 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

12. 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

13. 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 Plant Feb 2, 2010 25 th May 2011 Start Oct 22,2009 Plant Jan 11.2011

14. 14 Strong focus on Health-Safety- Environment 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

15. Kittilä Mine: Areal View

16. Personnel April 2012 Management12 Senior Staff 51 Staff 72 Operators 305 Contractors 180 Agnico-Eagle Finland OyContractorsTotal Geology2097117 Mine17923202 Mill54155 Maintenance93497 Administration7332105 Projects51116 Exploration131225 AEF303 Total440180620

17. 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.

18. Kittilä Population Kittilä Mine

19. 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?

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

21. Special Inputs Technology Associated services Primary products Related industries Consumers Ores and concentrates Industrial minerals Aggregates Natural stones and stone products Mining machineries Enrichment technology Stone processing machines ICT Environmental expertise Exploration and junior companies R&D and Education Financing Excavation contractor Transport Rock engineering Design and Architecture Energy production Residential services Location and Infra Mineral resources Geological data Basic metal industries Chemical industry Construction materials industry Construction Finnish mineral cluster 21

22. EUROPEAN UNION

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

24. 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

25. MINING POLICY and SOCIAL LICENCE - times are changing

26. Puolustusministeri Haglundin tapaaminen 2.8.2012

27. Thank you! ”Every mine is important every mine is different” Pekka Suomela FinnMin