Download - Welcome and comments on Nordic mining scene
Several good
reasons to
remain
optimistic!
Scandiu
m d
raw
ing:
Kaia
nders
Sem
ple
r.
Magnus Ericsson
Mining on Top, Stockholm 26/27 November 2013
10th annual RMG conference
Copper drawing: Kaianders Sempler.
Metal prices
Copper price I
USD/t
Copper price II
USD/t
Copper price III
USD/t
0
1000
2000
3000
4000
5000
6000
7000
8000
9000 1900
1903
1906
1909
1912
1915
1918
1921
1924
1927
1930
1933
1936
1939
1942
1945
1948
1951
1954
1957
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993
1996
1999
2002
2005
2008
US
D/t
(2005)
33 years
-3.5%pa
40 years
2.3%pa 29 years
-3.5%pa 10-15 years
2-3%pa ?
Copper price IV
Copper price V
Metal prices
061030 Anton Löf
0
5000
10000
15000
20000
25000
30000
35000
40000
0
100
200
300
400
500
600
700
RMG Price Index Iron Ore Copper Nickel
Zinc Aluminium Lead Potash
Phosphate Metallurgical coal
Index = 100 year 2000 USD/t
Copper drawing: Kaianders Sempler.
Metal prices
remain at
high levels.
Chinese economic
development continues
to impress.
Import of ores will increase.
Manganese drawing: Kaianders Sempler.
Exploration
Source: Raw Materials Group.
0
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sweden Finland Greenland Norway
M EUR
Nordic exploration
Mining capex
Neodymium drawing: Kaianders Sempler.
Mining capex
0
50000
100000
150000
200000
250000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
MUSD
Scandium drawing: Kaianders Sempler.
Conclusions
• Prices remain on high
levels.
• Chinese demand grows -
production declines.
• Exploration much too low.
• Capex will decline in 2014
then continue to grow.
Source: Swedish Geological Survey SGU.
Background
Source: Swedish Geological Survey SGU.
Background
Source: Swedish Geological Survey SGU.
Background
Global metal mining I
Source: Raw Materials Data.
CIS 10.5 %
Europe excl CIS
2.4 % North America 8.2 %
Asia 25.0 %
Latin America excl Mexico
22.1 %
Africa
10.4 % Oceania 14.4 %
Global metal mining II
061030 Anton Löf
China
14.8 %
Source: Raw Materials Data.
Source: Raw Materials Data.
Operating mines
Source: Swedish Geological Survey SGU.
Background
Source: SGU, GTK,
Source: Raw Materials Data.
Ore production by mine
Sources: Raw Materials Data, GTK.
Nordic ore production
0
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Sweden
Norway
Greenland
Finland
Mt
Source: Raw Materials Data.
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
UG
OP
Mt
Ore production OP/UG
Source: Raw Materials Group.
0
50
100
150
200
250
300
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sweden Finland Greenland Norway
M EUR
Nordic exploration
Nordic mining
Source: Raw Materials Data 2013.
Iron ore
Mt
Gold
t
Lead
kt
Zinc
kt
Copper
kt
Nickel
kt
Fin/Nor/Swe Nordic countries
29.7 14.1 66 242 103 21
Sweden 26.5 6.1 65.5 190 82.4 0
Finland 0 8.0 0 52 21 21
Nordic
% of Europe 86 70 32 30 23 30
Sweden/Finland
rank Europe 1 1 1 2 3 3
Nordic refining
Source: Raw Materials Data 2013.
Nickel
kt
Aluminium
kt
Zinc
kt
Copper
kt
Fin/Nor/Swe Nordic countries
incl Iceland
137 2142 468 378
Sweden 0 0 0 214
Finland 46 0 315 126
Nordic
% of Europe 60 49 23 14
Sweden/Finland
rank Europe 2 na 2 5
Source: Raw Materials Data.
Value of Nordic mine production % of total world metal production value
Source: Raw Materials Data.
Exploration projects
Source: Raw Materials Data.
Canadian exploration
Source: Raw Materials Data.
Name Country Status Type Company Main metal
Iso-Kuotko Gold Deposit Finland Project, no spec Agnico-Eagle Au
Kittilä Gold Mine Finland Operating OP,UG Agnico-Eagle Au
Kylmäkangas Gold/Silver Deposit Finland Conceptual UG Agnico-Eagle Au
Apajalahti Gold Deposit Finland Project, no spec Belvedere Au
Hirsikangas Gold Deposit Finland Conceptual UG Belvedere Au
Hitura Nickel Mine Finland Susp, restart/constr OP,UG Belvedere Ni
Jouhineva Copper/Cobalt Deposit Finland Project, no spec Belvedere Cu
Kaskela/Susineva Zinc Deposit Finland Conceptual Belvedere Zn
Kopsa Gold Deposit Finland Conceptual Belvedere Au
Kouvervaara Cobalt Deposit Finland Conceptual OP Belvedere Co
Osikonmäki Gold Deposit Finland Prefeasibility Belvedere Au
Pirilä Gold Deposit Finland Conceptual Belvedere Au
Vesiperä Gold Deposit Finland Conceptual Belvedere Au
Ängeslampi Gold/Copper Deposit Finland Conceptual Belvedere Au
Lappvattnet Nickel Deposit Sweden Prefeasibility UG Blackstone Ventr Ni
Njuggträskliden/Juggs Nickel Deposit Sweden Conceptual Blackstone Ventr Ni
Björkråmyran Uranium Deposit Sweden Conceptual Cont Precious U
Kvarnån Uranium Deposit Sweden Conceptual Cont Precious U
Lilljuthatten Uranium Deposit Sweden Prefeasibility Cont Precious U
Nöjdfjället Uranium Deposit Sweden Conceptual Cont Precious U
Pleutajokk Uranium Deposit Sweden Prefeasibility Cont Precious U
Canadian operations I
Source: Raw Materials Data.
Name Country Status Type Company Main metal
Skuppesavon Uranium Deposit Sweden Conceptual OP,UG Cont Precious U
Sågtjärn Uranium Deposit Sweden Conceptual Cont Precious U
Viken Uranium Deposit Sweden Prefeasibility OP Cont Precious U
Björkdal Gold Mine Sweden Operating, exp OP,UG Elgin Au
Norrliden Zinc/Copper Deposit Sweden Prefeasibility UG Elgin, Kopparberg Zn
Duobblon Uranium Deposit Sweden Conceptual European U U
Kläppibäcken Uranium Deposit Sweden Conceptual European U U
Nuottijärvi Uranium Deposit Finland Conceptual European U U
Kevitsa Polymetallic Mine Finland Operating OP First Quantum Ni
Pyhäsalmi Zinc Mine Finland Operating UG First Quantum Zn
Woxna (Kringel) Graphite Mine Sweden Susp, restart/plans Flinders Res IM
Brännorna Nickel Deposit Sweden Conceptual Lundin Mining Ni
Mjövattnet Nickel Deposit Sweden Conceptual Lundin Mining Ni
Rörmyrberget Nickel Deposit Sweden Conceptual UG Lundin Mining Ni
Storliden Zinc/Copper Mine Sweden Closed UG Lundin Mining Zn
Svartliden Copper Deposit Sweden Abandoned project Lundin Mining Cu
Zinkgruvan Zinc/Lead Mine Sweden Operating, exp UG Lundin Mining Zn
Rompas Gold/Uranium Deposit Finland Project, no spec Mawson Resources Au
Tåsjö Uranium/Rare Earths/Phosphate Sweden Conceptual Mawson Resources U
Kaukua PGM/Gold Deposit Finland Conceptual OP Nortec Pd
Barsele Gold Deposit Sweden Conceptual OP Orex Minerals Au
Norra Kärr Rare Earths Deposit Sweden Conceptual Tasman Metals REO
Olserum Rare Earths Deposit Sweden Conceptual OP Tasman Metals REO
Otanmäki Rare Earths Deposit Finland Conceptual OP Tasman Metals REO
Sala Silver Deposit Sweden Project, no spec Tumi Res Ag
Canadian operations II
Source: Raw Materials Data.
Source: Raw Materials Group.
Equipment producers I Company Products Website
ABB Engineering, power, hoists www.abb.com
Alimak Hek Elevators, lifts, hoists www.alimakhek.com
Atlas Copco Drill rigs, LHD and more www.atlascopco.com
Bergteamet Mining Contractor www.bergteamet.se
Driconeq Drill pipes www.driconeq.com
Drillcon Drilling contractors www.drillcon.se
GIA (part of Atlas Copco) Underground utility vehicles www.gia.se/gia
Hägglunds Drives Drive solutions www.hagglunds.se
ITT Flygt Pumps www.flygt.se
Kemira Chemicals www.kemira.com
Larox (part of Outotec) Filtration equipment www.outotec.com
Metso Crushers and more www.metso.com
Normet Underground utility vehicles www.normet.fi
Outotec Process engineering and more www.outotec.com
Sandvik Drill rigs, LHD, and more www.sandvik.com
Scania Trucks www.scania.com
Volvo Construction Trucks, loaders www.volvoce.com
Source: Raw Materials Group.
Equipment producers II Company Products Website
Global Drillers Drilling training and staffing www.globaldrillers.com
Mine investments Sweden
061030 Anton Löf
3%
1996
0
2
4
6
8
10
12
14
16
18
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
% of total
Source: Swedish Statistics Office.
Nordic mine investments
061030 Anton Löf
3%
1996
Kiruna
Kaunisvaara
Dannemora Sydvaranger
Talvivaara
Kevitsa
Aitik
Garpenberg
Kittilä
Laiva Kankberg Kemi
Järn
Nickel
Koppar
Zink/Bly
Guld
Krom
Source: Raw Materials Group.
Iron ore Nickel Copper Zinc/lead Gold Chromite
Conference
When/
Frequeny Organizer Where Booths Website
Partici
pants
Focus area
Euro Mine
Expo *
12-14 June
2014,
Biannual
Georange/Nolia Skellefteå,
Sweden >200
www.euromine
xpo.se
500
Mining industry,
Exploration, mining,
equipment suppliers,
service and consultants
Mining trade
fair
11–12
September
2013
Tampereen
Messut Oy/
Tekes
Tampere,
Finland 200
www.eurominin
g.fi/ 800 Mining technology
Finnmateria
19-20 Nov
2014
Annual
Jyväskylä
Paviljonki
Jyväskylä,
Finland 140
www.jklpaviljon
ki.fi/finnmateria
2012/eng.php
4000
Mining industry, metal
processing industry, rock
material industry and
earth construction
Fenno-
scandian
Exploration
Mining FEM*
29-31 Oct
2013,
Biannual
FEM, partners
PDAC,
Canadian
Embassy
Levi,
Finland 100 fem.lappi.fi/en
900
Exploration, mining,
ccompanies, academia,
geological surveys.
“Nordic PDAC”.
Mining on Top-
Stockholm *
26-27 Nov
2013,
Annual
IntierraRMG Stockholm,
Sweden 20
miningontop.co
m/stockholm
200
Exploration & mining
companies, investors,
financial community
Mining on Top-
Finland *
16-17 Sep
2013,
Annual
IntierraRMG Helsinki,
Finland 15
miningontop.co
m/helsinki 100
Exploration & mining
companies, investors,
financial community
Framtidens-
Gruv &
Mineralindustri
27-29 Jan
2014,
Annual
Nordic
publishing/
Georange
Stockholm,
Sweden 22
www.framtiden
sgruvochminer
al.se
300 Seminar, mining,
sustainability No
te:
* =
In
En
glis
h
.
Trade fairs/conferences
SWOT: Strengths
• Finland and Sweden are underexplored compared to other regions with similar geological endowment in Canada, Australia and West Africa.
• The infrastructure, both transport lines such as railways and roads and telecommunications are well developed.
• The attitudes of the public and authorities towards exploration and mining are, in spite of some protests, in general positive in particular in the regions where mining is most important ie the nortern parts of the Sweden and Finland. The ”resource nationalism”, which is spreading in developing countries have few proponents in Europe. On the contrary the political interest in exploration and mining in Brussels is increasing after a trough in the late 1990s and early 2000s.
• The mining cluster is strong with world leading equipment suppliers and consultants.
• Academic research is of high international standard.
• Legislation is up-to-date and open to foreign investors.
SWOT: weaknesses
• Government in Sweden has not fully understood the
importance of the sector and the support from central
authorities is not as solid in Sweden as in Finland.
• The availability of experienced staff to carry out all phases of
exploration and mining projects is still acceptable but there
might be a shortage developing in the next couple of years.
SWOT: opportunities
• Major investments in exploration and mining projects are
underway in both Sweden and Finland.
• European support for the sector will be chanelled to the
Arctic regions of Sweden and Finland.
SWOT: threats
• New mining law in Finland has put high fees on exploration
which might in the long run dampen international interest.
• The Mining inspectorate in both Sweden and Finland will not
be able to handle applications for exploration and mining
permits without long delays up to 6-9 months.
• Lack of students entering the mining schools.
• Aboriginal issues (Sami people) have been perceived not to
have been treated in accordance with international best
practice.
Conclusions
• Dynamic, underexplored region compared to similar regions world wide.
• Highly significant new deposits being discovered, Sakatti for example.
• Europe’s leading mining region.
• Established mining companies: LKAB, Boliden, Outokumpu and otehrs.
• High level of investments continue for rest of decade.
• World class equipment manufacturers: Atlas, Metso, Outotec, Sandvik etc.
• Dynamic cluster of consultants and emerging producers.
• Europe’s leading R&D efforts and well established universities and mining
schools.
• Leading role in European Innovation Partnership and other EU programs.
• Advantageous legislation and regional understanding of mining industry
demands.