Mining has long been an important industry for countries around the world. Underground resources are essential for everything from building to jewellery, and as such, the income from the mining industry is a vital part of the global economy. Why is Scandinavia sauch an essential region for mining? Read on and find out.
Areas that boast large reserves of desirable minerals and metals are deemed as important for the sector. Whilst you might typically think of Australia, Canada or South Africa as mining hotspots, one key collection of countries is a little further north.
Scandinavia, with its vast resources, has long stood on the precipice of becoming a mining juggernaut. Its rich deposits of iron ore, copper, and nickel are backbones to the growing demand of the global market – Sweden in particular accounts for 90% of iron ore in Europe. But there are several other reasons why this geographical area is seen as an important region for mining. Let’s explore them in this article.
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Related: Swedish Mining Town on the Move
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Long history of mining
The Scandinavian nations have been mining for thousands of years, with Sweden holding the crown of being a world leader in iron production from the mid-1200s to the late 1800s – no mean feat, given the global changes and innovations that happened in that period. Exportation from the country via train allowed the Swedes to make the most of the demand for the metal in Europe. Norway, too, has been mining for 1,000 years, starting with the Akersberg silver mine in Oslo.
This long tradition of mining has given the Scandinavian countries the chance to fine-tune their operations and be at the forefront of any new technologies. It also meant that the infrastructure was already in place to increase production. Additionally, the depth of knowledge and understanding about the mining process is high, with workers of all levels of seniority understanding the craft.
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Related: Norway’s Mining Past
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Low energy costs
Energy costs are a big factor when it comes to the profitability of mining operations. Not only is a huge amount of power needed to actually run the machinery, but underground operations have a big overhead lighting cost. Plus, old machinery isn’t as energy efficient as new technologies, but it can be costly to keep equipment up-to-date, so many companies won’t replace it until it’s broken.
However, a lot of the energy produced in the Scandinavian countries comes from renewable sources, such as hydro, wind or solar power, with biomass also playing a smaller part. This means that mining companies can benefit from cheaper prices, reducing their associated costs and leaving more money for other aspects of the process.
Environmental efforts
Some Swedish manufacturers are also trying to lead the way towards greener, more energy-efficient alternatives to the standard mining process. A lot of traditional machinery is run on fossil fuels such as diesel, resulting in a huge negative impact on the planet. Electric alternatives could be the first step in moving mining towards a more sustainable future.
On a wider scale, the Swedish Association of Mines, Minerals and Metal Products (SveMin) is actively working towards a sustainable roadmap. Initiatives include increasing biodiversity in mining areas, tracing sustainable metals via certification and working towards fossil-fuel-free mining operations by 2035, and climate-neutral processing by 2045. Whilst these targets are still in the future, the fact that industry bodies are thinking about them is a good first step. If they can get these processes working in Scandinavia, then other countries may be able to learn and follow suit.
Political stability
The political party in charge might not seem like a mitigating factor in the success of independent mining operations, but it can play a surprisingly important role. Political uncertainty can deter investments, fuel legal complexities, and escalate operational costs through heightened risk premiums. Investors seek assurances that their investments are insulated against shifts in regulations, expropriation, or fiscal unpredictability. In comparison, political calm allows mining companies to plan for the long term, creating sustainable practices, fostering community relations, and investing in the environmental recovery of mining sites.
Generally, the Scandinavian nations are politically stable, and this allows them to keep a steady flow of mining operations running. In a time where there is a lot of turmoil in the world, this may be crucial to the global supply chain.
Why is Scandinavia sauch an essential region for mining? Written for Daily Scandinavian by Madeline Collins.Madeline has a particular interest in the sustainable mining sector, and focuses her writing on countries that promote ethical practices. She is interested to see how the industry rises to the challenge of climate change and looks forward to the innovation this will bring.