METALLIC ORE DEPOSITS OF FINLAND mined during the 20 th century <si Main metal: 6 Cu Ni zn.pb W Au y Fe.V.Ti C Cr $ Mo Q u Kemi O Active (1994) Size: e j O O O World class 'a^e medium n 4 smam * [ J / Vihanti Hitura @ Pyhäsalmi r V 9 «x Kotalahti Outokumpu 'S^i O e / * HUB Vammala t- 100 Km S* W w - f 'If/ INK! Geological Survey of Finland 1994
Introduction to mineral legislation in Finland 2nd revised edition Compiled by C. Kortman, P.A. Nurmi and T. Vuotovesi Geological Survey of Finland Espoo 1996
EXPLORATION AND MINING IN FINLAND The bedrock of Finland consists almosts exclusively of Archaean and Proterozoic rocks, to a large extent obscured by Quaternary sediments; these are predominantly glacial in origin and consequently have a considerable impact on exploration methods and strategies. Geologically, the bedrock is reminiscent of other shield areas, such as those in Canada, South Africa and Western Australia. Because of the glaciated terrain, modern geophysical and geochemical techniques are required, along with more traditional prospecting methods. A diversity of minerals have been mined in Finland. Almost 270 metallic mines were in operation between the years 1530 and 1994, yielding a total of 250 million tonnes of different ores. The exploitation of sulfidic copper, nickel, zinc and lead ores as well as chromium, vanadium and iron deposits has provided the raw material base for the country's metal industry. The major industrial minerals mined in Finland are limestone for cement production and agricultural purposes, apatite and talc. The locations of the major (past and present) metal and industrial minerals mines are shown on the inside covers. Finland's mineral and metal production (in tonnes) in recent years is as follows: 1992 1993 1994 Pyrite concentrate Chromite conc. & lump ore Ferrochrome Stainless steel Nickel concentrate Nickel, cathode Zinc concentrate Zinc Copper concentrate Copper, cathode 653 000 691000 775 000 499 000 511 000 573 000 187 000 218 000 229 000 322 000 371000 426 000 135 000 127 000 107 000 15 000 15 000 16 000 59 000 42 000 33 000 171000 171 000 173 000 37 000 44 000 34 000 71 000 73 000 69 000 Gold (kg) 1 600 1 400 1 400 Limestone Apatite Talc Quartz Feldspar Soapstone Wollastonite 3 191000 2 957 000 2 883 000 555 000 628 000 647 000 371000 399 000 453 000 169 000 167 000 162 000 47 000 51000 41000 32 000 35 000 38 000 28 000 27 000 28 000 2
MINERAL LEGISLATION AND REGULATIONS IN FINLAND This guide is an introduction to Finnish mineral legislation and regulations. It is for general information only, based on the situation in February 1996, and it has no legal status. The actual Mining Act and Decree are available in both the Finnish and Swedish language: - The Mining Act (Kaivoslaki 503/65) - The Mining Decree (Kaivosasetus 663/65) - Amendments to the Mining Law (e.g. 1427/92, 1625/92, 474/94, 1571/94, 208/95, 561/95 and 1076/95) In the text below these will be referred to collectively as the Mining Law. 1. MINERALS COVERED BY THE LAW The mineral substances covered by the Mining Law include about 50 metals and 30 minerals, as well as gems, marble and soapstone. For details, see the Law and amendments. 2. APPLICANTS FOR MINERAL RIGHTS IN FINLAND Rights under the Mining Law may be granted to every Finnish citizen or corporate body, and also to any resident of a country in the European Economic Area (EEA). The same applies to all foreign corporations and foundations established according to the laws and regulations of any EEA member state, provided that their central administration and principal place of business are in one of the member states. The applicant must present a valid certificate of registration issued by the relevant authority in the country of residence. Anyone applying for a right under the Mining Law must nevertheless have an address and an agent in Finland. The application must be drawn up in either of the official languages of the country, Finnish or Swedish. The Ministry of Trade and Industry may, at its own discretion, also grant rights under the Mining Law to individuals and corporate bodies from outside the EEA. 3. PROSPECTING Under the Mining Law, prospecting is considered to be a part of the so-called everyman's right, which is a special Nordic tradition, giving as a general rule public access to all land, public or private. Geological observations and measurements, as well as limited sampling, can be carried out everywhere, provided no damage is done to the land owner's property or to the environment. The land owner or the local registry office must be informed about sampling beforehand. Prospecting may, however, not be carried out without the consent of the authority or owner in certain limited areas were public access is explicitly prohibited or restricted; nor in claim areas and mining concessions owned by another person or company; yards, gardens and parks connected with dwellings; churchyards and cemetaries. Damage and inconvenience arising out of prospecting shall be compensated for in full. 3
4. DEFINITION OF TERMS Whosoever wishes to avail himself of the right to a mineral deposit referred to in the Mining Law shall apply for an exploration licence (in Finnish "valtauskirja ") for the area. Before applying for an exploration licence, the applicant has the right to reserve for himself priority (i.e. first right) to claim any mineral deposit within a stated area (reservation, "varaus") by making a notice of reservation ("varausilmoitus"). The reservation is also referred to as "reservation for claim" ("valtausvaraus"). On receiving his exploration licence the applicant or claimant ("valtaaja") has the claim right ("valtausoikeus") within the claim area ("valtausalue") specified in the licence to carry out exploration for minerals and/or ore deposits. The word "claim" as a noun is often used as a synonym for "claim area" and sometimes for "exploration licence", and as a verb for the process of applying for an exploration licence. If the claimant can show that minerals appear in the claim area in such abundance and in such form that the deposit can probably be exploited, he may apply for a mining concession ("kaivospiiri"). 5. RESERVATION Before actually applying for an exploration licence, it is possible, but not obligatory, to make a reservation, i.e. file a request for priority (first right) to claim a particular area. The only purpose of the reservation is to give the applicant a reasonable period of time to delimit the area of interest and to prepare his application for an exploration licence. Priority to claim an area may be granted by submitting a notice of reservation to the appropriate regional Registry Office ("rekisteritoimisto"). The notice must include the applicant's name, occupation and address, and specify the province, municipality, and the size (each reservation not exeeding 9 km 2 ) and precise geographical location of the area(s), supported by an appropriate map (for large areas at a scale of 1:200,000). The location and borders of the area must be marked on the appended map with such clarity that no uncertainties can arise. The notice of reservation should include an extract from the trade register or population register, if needed to identify the applicant. The Registry Office records the notice, and forwards it to the Ministry of Trade and Industry. A reservation will not be granted for areas that are closer than 1 km to a claim area (either under application or granted) or a mining concession owned by another person or company. Nor will a reservation be granted for areas previously reserved until three years after the expiry of the previous reservation. The Ministry may, however, at its discretion grant a reservation earlier (minimum one year after the expiry), if the applicant presents good reasons and a plan for the investigations (208/95). The granting of a reservation does not permit drilling or sampling without the landowner's permission. Conversely, a reservation does not exclude other parties from prospecting within the reserved area (under the before-mentioned everyman's right). The person filing the notice of reservation enjoys priority in applying for a claim (exploration licence) within the reserved area for one year from the date of filing. The period can be reduced to four months at the discretion of the Ministry (208/95). Under the Stamp Duty Law a sum of FIM 1000 must be paid for each area reserved (1243/95). Reservations are not transferrable, and they cease when the exploration licence has been issued. 4
6. CLAIM (EXPLORATION LICENCE) An exploration licence entitles the holder (individual or company) to carry out exploration activities in the claim area with or without the consent of the landowner. The claimant must, however, compensate the landowner in full for any permanent or temporary damage or inconvenience caused by the exploration activities inside or outside the claim area. The claimant shall also act in compliance with environmental legislation and other laws and regulations. The maximum area permitted for each claim area is 1 km 2, and the area must be coherent and of an appropriate shape. The boundaries of the claim descend vertically. An exploration licence cannot cover the following areas (claim impediments): 1. Another claim area, mining concession or related auxiliary area, or an area for which a mining concession has been applied, or in an area currently reserved to another party; 2. Previous claim areas or mining concessions without the permission of the Ministry of Trade and Industry, until five years have elapsed since their expiry; 3. The restricted border zone along Finnish national frontiers without permission of the Council of State; 4. A fortified area and surrounding restricted areas; 5. An area closer than 30 m to an airport, road or street, railway or canal; 6. An area closer than 50 m to a building in permanent use as a dwelling or work site currently or in the future, or to a reserved building site where construction has begun, or to a public building or plants, or to a power line or transformer of over 35 kv, or to a garden or park adjoining a dwelling; 7. Industrial plants and associated storage and waste areas; 8. A churchyard or cemetery. The claim application must be addressed to the Ministry of Trade and Industry and must include: 1. The name, occupation, domicile and address of the applicant, and a statement to the effect that the applicant is eligible to file a claim, supported by an extract from the trade register or population register identifying the applicant. 2. The area where the deposit is presumed to lie, specifying the province, municipality, village and the property's name and register number; 3. The extent (hectares), precise geographical location and outer borders of the claim area, including the borders of any holdings inside the claim, all indicated on the appended map (at the scale of 1:20 000 or 1:10 000) with such accuracy that no uncertainty can arise, together with a statement (by local authorities or persons familiar with the area) to the effect that no impediments to the claim exist; 4. A statement about what mining minerals are presumed to occur in the area, the grounds for the presumption of their occurrence, and an estimation of the extent and type of exploration work required; 5. A proposal for the name of the claim. 5
All applicants must enclose with their first application an original document, issued by the appropriate authority of their own country, providing reliable evidence of the identity of the applicant (e.g. certificate of registration). The effective date of the application is the day when it has been received by the Ministry of Trade. and Industry. The claim is valid from the day of issue of the exploration licence. The period of validity is a minimum of 2 and a maximum of 5 years, depending on the estimated amount and type of exploration work required. In certain cases the Ministry may, at its own discretion, grant a maximum extension of three years for the claim. If more than one person has made an application concerning the same area, the person who first made the application has priority. The claimant has the right to carry out exploration work on his claim to ascertain the extent and quality of the deposit, and to use ground outside the claim for constructing power lines and water pipes. With the exception of gold (and its by-products) panned within state-owned areas, the claimant may not, without permission of the landowner, utilize mineable minerals in the claim in any way or to any extent other than that required for feasibility and related studies. The claimant is entitled to transfer his exploration concession to another person eligible to claim. Such a transfer must, however, be reported to the Ministry of Trade and Industry. A stamp-duty of FIM 2500 is charged for granting the claim (1630/92). For each calendar year the claimant must pay a claim fee of FIM 60 per hectare to the landowner(s), and FIM 40 per hectare to the Ministry of Trade and Industry, however, the minimum fee being FIM 400 (1571/94, 208/95). Within one year of expiry of the claim, the claimant must submit a report to the Ministry of Trade and Industry detailing all exploration activities conducted on the claim and the results obtained. The claimant has to surrender a representative portion of the drill cores and drill logs to the National Drill Core Depot within five years of the expiry of the claim (208/95). 7. MINING CONCESSION A mining concession will be granted only if the deposit is shown to be technically and economically exploitable. The reliability of both the potential exploiter and the deposit data are assessed critically. An application for a mining concession must be addressed to the Ministry of Trade and Industry, and must be made while the claim is still valid. The concession area must be a coherent and appropriate area, and include part of the area contained within the original claim. The concession area may include other areas necessary for the exploitation (auxiliary areas). The boundaries of the concession area descend vertically. 6
An application for a mining concession must include: 1. A map showing the location and borders of the claim, the concession area applied for, and the relevant holdings; 2. A detailed report on exploration activities conducted on the claim and the results; 3. A report on the factors determining the extent and form of the concession area; 4. The names and addresses of the persons whose rights are affected by the concession; 5. An extract from the land register on the holdings concerned; and also 6. A proposed name for the concession. As of September 1st 1994 applications must also be accompanied by an environmental impact assessment in accordance with legislation drafted by the Ministry of Environment (468/94, 471/94 and 474/94). Provided the application meets the requirements of the Mining Law, the Ministry of Trade and Industry will give directions for the execution of the mining concession, and appoint a survey engineer. For further information on the procedure, please refer to the Mining Law. As soon as the execution has been legally accepted, the Ministry will issue a mining certificate as proof of the mining right, and the concession holder can begin to mine, process and utilize all the extractable minerals within the concession. The concession holder is entitled to transfer his concession rights to another eligible person or company. A note of transfer must then be added to the original concession certificate. A stamp-duty of FIM 5800 is charged for granting the concession rights (1630/92). If the concession holder does not own the concession area and the auxiliary areas, he must pay the landowners) an annual concession fee for the concession right. The fee is determined by the Ministry and stipulated in the Decree, at present FIM 120 per hectare (968/88). As compensation for minerals extracted, the concessionaiy must in addition pay the landowner(s) a reasonable annual mining fee, the amount depending on the value of the minerals minerals mined and processed, and other economic factors. 8. GENERAL The operating environment in Finland is generally favorable for exploration and mine development. The country has a long mining history and a traditional focus on primary resources such as mining, forestry and farming. Finnish mining equipment manufacturers are recognized throughout the world's mining community. There is a well developed infrastructure with good port facilities, extensive high voltage power grid and a comprehensive road network. The corporate tax rate is at present 28 % (early 1996). The general value added tax rate (VAT) is 22%. The monetary unit is Finnish mark (1 FIM = approx. 0.22 US$ in February 1996). On January 1st, 1995 Finland became a full member of the European Union. 7
THE GEOLOGICAL SURVEY OF FINLAND The Geological Survey of Finland (GSF) was founded in 1885, and is one of the largest geoscience research organizations in Europe. Its main functions are to acquire, assess, and make available geological information on Finland, and to promote the balanced long-term use of natural resources, particularly for the mining and construction industries, as well as for land use and environmental management. The activities include geological, geophysical and geochemical mapping, exploration, basic research, and the development of geoscientific technology and methods, as well as promotion of their application in mineral exploration and environmental management. The GSF is supervised by the Ministry of Trade and Industry. The GSF is a research centre of wide geoexpertise, some 40 % of its 700 employees holding academic degrees, and of these more than 70 have a Ph.D. or its equivalent. The annual budget of the GSF is about US$ 35 million, of which US$ 30 million is from long-term government appropriations and US$ 5 million represent revenue generated through consulting and services. In addition to its role in mapping, research, mineral exploration and publishing, the GSF is responsible for managing the national geoscience databanks, including ore deposit, industrial minerals and mineral indication databases, and maintaining exploration report archives and a national drill core depository. Therefore the GSF is able to provide mining companies with comprehensive and customized services. Within the GSF, the Department of Mineral Resources and the Information Bureau are responsible for advising newcomers to the Finnish exploration and mining development scene. Because the GSF has no investment interests in the downstream development of mining, it is able to work impartially and in full confidence with its clients. For further information, please contact the Department of Mineral Resources or the Information Bureau at the Head Office in Espoo. ADDRESSES: GEOLOGICAL SURVEY OF FINLAND Betonimiehenkuja 4 FIN-02150 ESPOO Tel:+358 0 469 31 Fax: +358 0 462 205 MINISTRY OF TRADE AND INDUSTRY Aleksanterinkatu 4 FIN-00170 HELSINKI Tel: +358 0 1601 Fax: +358 0 1603 666 Regional offices: GEOLOGICAL SURVEY OF FINLAND Regional office for Mid-Finland Neulaniementie 5 P.O. Box 1237 FIN-70211 KUOPIO Tel: +358 71 205 11 1 Fax: +358 71 205 215 GEOLOGICAL SURVEY OF FINLAND Regional office for Northern Finland Lähteentie 2 P.O. Box 77 FIN-96101 ROVANIEMI Tel:+358 60 3297 111 Fax: +358 60 3297 289 Cover background: Copper ore from the Outokumpu mine (Photo: Jari Väätäinen) 8
INDUSTRIAL MINERAL DEPOSITS OF FINLAND mined during the 20 th century Main minerals: apatite o quartz e talc feldspar ü asbestos Q limestone Q soapstone u o O Size: Cr marble Active (1994) World class o large medium 0 small ornio Lahnaslampi Siilinjärvi Kaatiala Ihalainen 100 km ^/.Parainen Lohja /SINKI Geological Survey of Finland 1994
RUSSIA NORWAY FINLAND PHANEROZOIC: Plutonic rocks Caledonides SWEDEN Stockholm Helsinki ESTONIA Autochthonous St.Petersburg PRECAMBRIAN: Sveconorwegian Jotnian / Riphean Subjotnian (Rapakivi) LATVIA Copenhac Baltic Sea Paleoproterozoic plutonics Paleoproterozoic supracrustals Archaean