Information from KL: A passing lane may open for these Finnish mines

According to information from Kauppalehti, among the mining companies operating in Finland, CRMA status for critical minerals has been applied to by the Commission Endomines (Ilomantsi) with its tungsten deposit. Also FinnCobalt (Outokumpu), which has cobalt, nickel and copper, has applied for status. In addition, a multi-metal mine located in Ranua Suhanko Arctic Platinum and Latitude 66 (Kuusamo) – cobalt and copper – have applied for critical mineral mining status.

This year there were a lot of applications, i.e. 95 from the EU and 66 from outside the Union. According to information from Kauppalehti, the commission is to announce on Friday which mining projects have been selected as the most important for Europe.

Last year, Finland was chosen as the strategic mining project for critical minerals AA Sakatin polymetallic deposit in Sodankylä, Terrafamen The triple school project in Sotkamo and Of caliber lithium mine and refinery in Kokkola and Kausti.

So far, the Commission has nominated a total of 47 strategic projects in 13 member countries. 25 of the projects are related to mining, 24 to refining and 10 to recycling.

The benefits of choice

The regulation on critical minerals entered into force in 2024. The goal is to strengthen the EU’s self-sufficiency, especially in raw materials important for defense and clean transition.

The goal is that by 2030, the EU will produce 10 percent, refine 40 percent and recycle 25 percent of the strategic raw materials it needs.

At the same time, the aim is to keep the share of imports from a single third country below 65 percent.

According to the commission, the critical project status brings significant benefits to mining and refining projects. The status should speed up permit processing, facilitate the organization of financing and help find industrial partners and buyers.

According to the regulation, permit periods for mining projects may not exceed 27 months and for other projects 15 months. Nowadays, these processes can take up to 5-10 years.

The Commission is also assured that the accelerated procedure does not mean a relaxation of environmental requirements.

Municipalities have decision-making power

Mining Industry Association executive director Pekka Suomelan according to the permit requirements for mines have remained unchanged.

The change, however, is that a kind of accelerated processing, or “skip lane”, has been created for critical projects, with the help of which the authorities try to process permits within the set deadlines.

On the other hand, Suomela reminds that the appeal processes of the projects have not changed or sped up.

“In practice, these applications for administrative rights are starting to queue up, or have already queued up,” says Suomela.

He also reminds that in Finland, municipalities play a big role in mining decisions, because in practice the municipality can promote or prevent the progress of a mining project through its zoning

Suomela also thinks that the decision-making bodies of municipalities do not necessarily give much value to what is hoped for in Brussels.

Challenges in financing

The commission also promised that projects with CRMA status can more easily get funding and help with its procurement.

Finland is not as optimistic. He criticizes EU funding as too complicated. In addition, European financial markets are still lagging behind North America, where private risk money moves significantly more and faster.

“A good mining project usually finds financiers even without this status, even if the money doesn’t come from Europe but from, for example, London, Canada or the United States,” says Suomela.

If this is the case, why are mining companies seeking strategic status in the first place?

“They have it for different reasons: for some, the most important thing is the credibility it brings, because the commission’s approval convinces owners, investors, employees and the company’s management of the importance of the project,” says Suomela.

According to the commission, the goal of strategic mining projects is also to ensure that operations are sustainable and that, for example, the rights of indigenous peoples are taken into account.

According to Suomela, the most significant pressure on the sustainability of mines comes from financiers and owners and not so much from legislators.

“If, for example, an American or British investment fund demands that responsibility issues be handled properly, the companies will also react to it.”

Suomela tells about cases where representatives of investors have come from London to evaluate the sustainability work of mining companies, which shows how important a driver the financiers’ point of view has been.

EU legislation also aims to guide development, but there is confusion associated with regulation. For example, the requirements regarding corporate responsibility reporting have been prepared, changed and partly lightened before their full implementation.

“Leaves a mark”

The executive director of Kaivosteollisuus ry reminds that when talking about the primary raw materials of mines, a deposit in the bedrock is needed first, and its utilization requires the removal of topsoil from large areas as well as excavation and blasting.

“Mining always leaves its mark on the environment, and it cannot be completely avoided, even if the activity is carried out as responsibly as possible.”

According to Suomela, the acceptability of mines arises locally from an open flow of information, listening to residents, the economic benefits remaining in the area and the management of environmental impacts, especially water bodies.

“It comes from sharing information and also receiving information, that we also listen.”

Pressure on member states

According to Suomela, the EU’s critical minerals regulation, which entered into force in 2024, has brought one significant improvement, because cooperation between authorities now works better in Finland than before.

“There is a central point of contact and an obviously good official who gathers information, investigates and shares information between different authorities.”

Suomela also thanks the fact that the European Commission has awakened to the strategic importance of the mining industry in recent years.

He hopes that the commission would next put pressure on member countries, such as Finland, so that they would develop a coherent mineral policy and create predictable operating environments for mining projects.

“Finland needs to invest in having a proper mineral policy and not skimping on taxes.”

Suomela refers to the mining mineral tax introduced in 2024 and the significant increase in it last year.

“Finland has the worst example of what a member state can do by partially spoiling the market,” says a representative of the mining industry.

The matter was fixed at 19:50. Changed Latitude’s location to Kuusamo. In the story, the first erroneously read Juankoski and Kuopio.