Future plans included doubling production of iron-ore in Kiruna, reopening the iron-mine at Kirkenes in Norway and also opening a completely new iron-mine close to Pajala, just a couple of hours up the road from Kalix. Both Sweden and Finland are also preparing new mining ventures in respect of gold, uranium and other minerals.
Including Northwest-Russia, there are currently 42 functioning mines in the region. Within a few years there could be as many as 68. An overview of this prospective growth in the mining sector is provided on pp 8-9.
The basis for these developments is the enduring richness of the Fennoscandain Shield, which provides a geological structure ripe with assets. A good comparison here is the oil and gas fields below the North Sea. Globally only a few areas, such as some parts of North and South America, China, India, Russia, Australia and Southern Africa have mineral potentials like the Fennoscandian Shield (p 5).
Iron is the basic element in steel, the metal used in the construction of buildings, bridges, oil-platforms, pipelines, cars, trains, weapons and ammunition. Sweden is already the largest producer of iron in Europe and the planned expansion could more than double its capacity.
The importance given to controlling these iron-ore assets was clearly demonstrated during World War II. This was also the case for nickel. Talvivaara in Finland has one of the largest reserves of this precious metal in Europe. In 2008 Finland opened a new mine here. The importance now given to exploiting these minerals, combined with the already discovered reserves of oil and gas in the Barents Sea, has without doubt increased the military-strategic importance of the region as a whole.
Why the sudden interest then in mining? Jan-Olof Hedström, the Head of the Mining Inspectorate of Sweden, draws our attention to the increased level of global demand for metal and minerals (pp 6-7). In particular the growth in demand levels in both China and India should be mentioned here.
Increased demand levels generate higher prices but also a greater willingness to risk capital on prospecting for new fields. According to figures provided by the Norwegian Government, prospecting investment in Sweden, in 2007, amounted to 625 million SEK; the equivalent figures for Norway and Finland were 100 million NOK and 54 million euros respectively.
Most natural resources have been there for millions of years. For so-called sparsely populated areas this is clearly understood. Woods, fish, pastures for reindeer and other husbandry was the starting point. Later value was added through work to produce timber and food. Mining and the production of metals can usually be traced back to the 15th century.
Industrialisation offered the possibility for massive expansion, jobs and the growth of the permanent population. Subsequently however more sophisticated modes of production reduced the number of jobs available. Produced volumes, however, often continue to grow. In this respect the story of LKAB is telling, the iron-ore company which at its peak had 8300 employees in Lappland and Norrbotten today has just 3100. No one has thus far however studied the likely impact the opening of the new mines will have on employment. It does however seem that several thousand jobs will be created in the foreseeable future (See also p 8).
The greater part of these new mining areas is within what is called the remote Northern Sparsely Populated Areas (NSPA) of Finland, Sweden and Norway. They have a population density of only 4.9 inhabitants per km2, which is not to be found in any other part of the European Union (Nordregio 2005:4 1). The NSPA of Finland and Sweden comprise an area of 429,970 km2 with a population of only 2,185,000 people. Furthermore, North Norway comprises an area of 135,340 km2 with a population of 591,470 people.
Most mining projects have major impacts on the landscapes they inhabit. One would expect this to generate conflict with the tourist-industries or the reindeer-herders. There seems however to be little if any evidence of this. Potential conflicts are often more concerned with the use of specific hazardous chemicals in the production process, like cyanide for extracting gold. The mining of uranium, given the use to which it is put, does however usually meet with strident protests.
During the production of this issue of the Journal, the impact of modern tourism in Northern Norden, particular skiing, became very evident. The Finnish municipality of Kittilä (p 12) is one of the outstanding examples of this development. On pp 26-27 we attempt to provide a brief Nordic overview.
During the summer a minor reader's inquiry was conducted for the Journal of Nordregio. First and foremost the inquiry lent support to the editorial changes undertaken in recent years. We of course appreciate this. In our attempt to broaden the reader base the main potential for expansion seems to lie in the private rather than in the public sector and among the younger rather than the older age-groups. In addition, again from a demographic point of view, attracting more female readers is a challenge worth pursuing.
The next issue of the Journal of Nordregio is slated for publication in early December. We plan to take a closer look at some of the aspects of Nordic climate adaptations.
By Odd Iglebaek, Editor