pptPekkaNurmi

An Overview on Finnish Mining

Pekka A. Nurmi and Pasi Eilu High North Seminar, Oslo, Nov. 14-15, 2012

Kittilä gold mine

Agnico-Eagle Mines Ltd.

Fennoscandia: mining and mineral

potential in the north

Nurmi & Eilu Nov. 15, 2012

Fennoscandian Shield - Good Potential within EU • Precambrian shield area similar to

Canada & Australia

• Long mining tradition

• Yet under-explored terrain

• Potential for many commodities

• Base metals, iron, gold,

platinum metals, high tech metals,

industrial minerals, diamonds, …


Fennoscandian Ore Deposit Data Base

http://en.gtk.fi/ExplorationFinland/FODD/

Map Server GTK Special Paper 2012

Fennoscandia:

Significant mining region

Nickel, Iron,

Phosphorus,

Copper, Cobalt,

Rare earth metals Iron,

Copper,

Zinc,

Silver,

Gold,

Lead,

Tellurium

Iron,

Titanium,

Silicon,

Olivine,

Nepheline,

Graphite,

Carbonates

Dot: Large metal deposit

Named: Large active metal mine

Kevitsa

Nickel,

Chromium,

Phosphorus,

Zinc, Copper,

Cobalt, Gold,

Talc, Pyrite

Nurmi & Eilu November 2012 Nurmi & Eilu Nov. 15, 2012

Production and New Metal-Mine Projects

in Fennoscandia 2012


Great

growth

potential

Source: Industry Investment, Kimmo Viertola

Europe is Highly Dependent on Metal Import

U.S.A

Brazil

Chile

D.R.Congo

South Africa

Russia

China

Australia

Molvbdenum 34%

Niobium- Columbium 90%

Lithium 60%

Cobalt 36%

Rhodium 79% Platinum 77% Vanadium 45% Chromium 41%

Tantalum 60% Titanium 42%

Rare Earths 95% Antimony 87% Tungsten 84%

Palladium 45%

Source: Eurostat

EU

Sources of high-tech metals

Antimony

Beryllium

Cobalt

Fluorite

Gallium

Germanium

Graphite

Indium

Magnesium

Niobium

Platinum metals

Rare earths

Tantalum

Tungsten

Critical 14 minerals (EU 2008):

Active mine

Resource



Fennoscandia is a Focus Area for Exploration

Composite Policy and Mineral Potential Ranking

Source: Frazer Institute Mining Company Survey 2012

Finland

Norway

Sweden


Why Fennoscandia?

• Excellent geodata and infrastructure

• A favourable and secure investment environment

• Long mining tradition and knowhow

• Significant potential for new discoveries

Cu

Crb

Norway Geology indicates extensive

mineral resources

Titanium (Ti)

Iron (Fe)

Silicon (Si)

Molybdenum (Mo)

Carbonates (Crb)

Talc (Tlc)

Copper (Cu)

Nickel (Ni)

Magnesium (Mg)

Gold (Au)

Vanadium (V)

Niobium (Nb)

Fe

Fe

Cu, Au

Ti, V, Fe

Ti

Mo

Ni

Ni

Fe

Grf

Ni

Mg

Nb

Si

Si

Tlc

Tlc, Mg

Tlc

Tlc


Norway: Mining in a Nutshell


• 41 mines (4 metal, 22 carbonate rock and 15 industrial minerals )

• Ore output

– Metal ore 3.4 Mt/a

– Industrial mineral ore 10 Mt/a

• Estimated turnover 400 mill. € and employees 2000 in 2013

• Norway also have active mining for coal

Source: NGU, Henrik Schiellerup

INDUSTRIAL MINERALS

of national importance, 2011

METALS

of national importance, 2011

Mine Projects 2012

Nurmi & Eilu Nov. 15, 2012 Slide 6

Project Products Company

Repparfjord Copper, gold Nussir AS

Biddjuvagge Au, Cu Arctic Gold

Engebøfjell Titanium (rutile) Nordic Mining


Nussir:

Reserve: 26.7 Mt @ 1.13 % Cu

+ 18 g/t Ag + Au, Pt, Pd

Ulveryggen:

Resource: 7.7 Mt @ 0.81 % Cu

Project currently pending

approvement for tailing

deposition

Repparfjord sediment-hosted Cu province



Exploration Projects

• Approximately 30 companies active in exploration

• Main commodities: Cu, Au, Ag, Mo, Ti, REE, Zn, Ni, PGE and Fe

• Exploration expenditure 9 mill. € incl. brown fields in 2011

• Exploration licences are issued for more than 9 % of Norway (>30

000 km2)


Exploration licences

in Norway

September 2012


V

Cu

REE

F Zn

Cu

Cu, Au

Fe

Fe

Fe

Fe

Fe

Cu, Zn

Cu, Zn

Sweden: Geology indicates extensive

mineral resources

Iron (Fe)

Copper (Cu)

Zinc (Zn)

Lead (Pb)

Gold (Au)

Rare earth metals (REE)

Uranium (U)

Vanadium (V)

Molybdenum (Mo)

Nickel (Ni)

Carbonates (Crb)

Graphite (Grf)

Fluorite (F)

Ni

Grf

Crb

Zn, Pb

U, V, Mo

U

V


Sweden: Mining in a Nutshell


Metals

Industrial

minerals

• 40 mines (13 metal, 21 carbonate rock and 6 industrial minerals )

• Ore output:

– Metal ore 68 Mt (2011)

– Industrial mineral ore 8.5 Mt (2011)

• Mine investments in 2011 1.04 Bill. €

• Estimated investments 2012-2017 over 3 Bill. €

• Number of employees in 2011: 5500

• Sweden is one of the leading mining technology providers

(Atlas Copco, Sandvik, ABB)

Source: SGU, Anders Hallberg


Norra Kärr: Rare Earth Elements

• Tasman Metals Ltd.

• Zirconium and Rare Earth Element rich intrusion

•Discovered by SGU in 1906

• Resources 58 Mt @ 0.59% TREO and 1.7 % ZrO2

• Rich in heavy REE

Slide 4


Leveäniemi&Mertainen

iron Sahavaara

iron Aitik

copper-gold

Mine Projects 2012


Stekenjokk

zinc-copper-silver Storuman

fluorspar

Kringeltjärn

graphite

Håksberg,

Blötberget&Grängesberg

iron

Norra Kärr

REE

Project Commodity Planned start Company

Gruvberget Iron started 2010 LKAB

Salmijärvi (Aitik) Copper-Gold started 2011 Boliden Mineral

Tapuli Iron started 2012 Northland

Leveäniemi Iron 2014 LKAB

Kringelgruvan Graphite 2014 Flinders Resources

Blötberget Iron 2015 Nordic Iron Ore

Håksberg Iron 2015 Nordic Iron Ore

Mertainen Iron 2015 LKAB

Stekenjokk Copper-Zinc-Lead 2015 Vilhelmina mineral

Grängesberg Iron 2016 Grängesberg Iron AB

Sahavaara Iron 2016 Northland

Norra Kärr REE 2016 Tasman Metals

Storuman Fluorite 2016 Tertiary Minerals plc



• Around 90 exploration companies

• Main commodities: Au, Cu, Fe, U…

• Exploration expenditure 91 mill. € in

2011 (greenfield and brownfield)


Li

Cr

Crb

Crb

V

Cu, Zn

P, REE

Cr

Ni, Cu, Pd

Au

Fe

Ni, Cu, Zn, Co Ni

Finland: Geology indicates extensive mineral

resources

Nickel (Ni)

Chromium (Cr)

Phosphorus (P)

Zinc (Zn)

Copper (Cu)

Cobalt (Co)

Palladium (Pd)

Gold (Au)

Talc (Tlc)

Vanadium (V)

Lithium (Li)


Carbonates (Crb)

Cu, Co

Tlc

Tlc

Pd

Cr


Mining in a Nutshell


Metals

Industrial

minerals

Kittilä

gold

Kevitsa

nickel

Pahtavaara

gold

Raahe

gold

Kemi

chrome

Hitura

nickel

Pyhäsalmi

Copper-zinc

TalvivaaraNickel-zinc

Jokisivu

gold

Parainen

calcite

Ilomantsi

gold

Lappeenranta

calcite

Orivesi gold

Lahnaslampi

talc

Kylylahti

copper

Polvijärvi

talc

Lohja

calcite

Siilinjärvi

phosphorus

• 52 mines (12 metal , 17 carbonate rocks and 14

industrial minerals )

• Mine investments 2008-2011 1.3 Bill. €

• Estimated investments 2012-2020 4-5 Bill. €

• Estimated turnover 2.5 Bill. € and employeers 5000

in 2015

• Finland is one of the leading mining technology

providers (Metso, Outotec, Sandvik, Normet)

Annual ore output (Mt)

< 0.1

0.1 - 0.5

0.5 - 1.0

1.0 - 10

> 10


Kittilä Mine

• Agnico-Eagle Mines Ltd.

• Discovered by GTK in 1986

• Resources 7.4 Moz (230 t)@ 4.7 g/t

gold with excellent potential

• Planned minelife to 2044

• Most of gold in arsenopyrite

• Gold recovered by pressure

leach + syanidation

• Production started January 2009

• Gold production 5000 kg/a with

initial plans to 25% increase

• Investment so far 400 mill. €

• Planned investment 200 mill. €

• Direct employment 400 people

Mine Projects 2012


Mine project

Kolari

iron

Suhanko

palladium

Sokli

phosphorus

Länttä

lithium

Taivaljärvi

silver

Mustavaara

vanadium

Project Raaka-aineet Company

Sokli Phosphorus Yara

Kolari Iron (copper, gold) Northland Reources Ab

Suhanko Palladium (platinum) Gold Fields

Mustavaara Vanadium (iron, titanium) Mustavaaran Kaivos Oy

Taivaljärvi Silver (zinc) Sotkamo Silver Ab

Länttä Lithium Keliber Oy


Kuusamo

gold

Rompas

gold-uranium

Sakatti

Nickel-copper-

platinum

Rantasalmi

gold

Särkiniemi

nickel

• 30 to 40 companies active in exploration

• Main commodities: Au, Ni, Cu, PGM, ferrous metals, high-tech

metals,…

• Exploration expenditure 81 mill. € incl. brown fields in 2011


Cr

Fe P, REE, Nb, Ta

C

Russia: Geology indicates extensive

mineral resources

Nickel (Ni)

Iron (Fe)

Phosphorus (P)


Palladium (Pd)

Lithium (Li)

Niobium (Nb)

Tantalum (Ta)

Vanadium (V)

Titanium (Ti)

Chromium (Cr)

Uranium (U)

Magnesium (Mg)

Carbon (C)

Ni

Ni, Mg

Cr, Pd

Pd

Fe

Fe

Li

Nb, Ta

Pd

Pd

Ti, V

U

V

Cr

V

V

Nb, Ta

Ni

U


Russia: Present significant

mine production

Nickel

Iron

Phosphorus

Copper

Cobalt

Rare earth metals

Carbon

Nurmi & Eilu November 2012

Olenegorsk mines: Iron

Kostomuksha: Iron

Pechenga: Nickel, Copper, Cobalt

Kovdor: Iron, Zirconium

Zazhoginsk & Maksosvo:

Carbon

Hibiny mines:

Phosphorus, Rare earths


5 Mt/a = Mining of ore, five millions of tonnes, per year


Major new mines 2012–

Expansion/reopening

of old mines

Russia

Zazhoginsk C, 2013, 0.35 Mt/a

Lovozero REE, 2013?

Fedorova Tundra PGM, 2014?

Partomchorr & Oleni Ruchei P, 2013?


Development case, Russia:

Zazhoginsk shungite Carbon-Shungite Co.


Present production 0.2 Mt/a of ore (60,000? t shungite = elemental carbon)

Increasing to 0.35 Mt/a in 2013?


Key Challenges for the Mining Industry

• Deposits more difficult to discover: deeper, remote, lower grade,

more difficult to process

• Social lincense to operate getting more difficult to earn

• Changing legistlation and access to land (NIMBY)

• Skills crisis

• Volatility of commodity prices

• Critical minerals change with time and tehnological development


Major new mines 2012–

Expansion/reopening of old mines


Mining Boom in Fennoscandia

Sustainable minerals supply …

… means a provision for better future

Thank You !


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