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Regional competition between Finland and Norway in mining branch of BEAR and economical prospect Печать E-mail

According to some Finnish estimates, voiced by experts in international conferences and seminars, which was in the Barents Euro-Arctic Region (BEAR) in the first half of 2012, the total planned investment in this year in the mining industry in Finland will be about 1.6 billion euros. 

However, it is only possible while maintaining a constant demand from the Asia-Pacific region to the primary products of mining production BEAR, and prices to it.

Currently, one of the key centers of development of the mining industry in Finland is the province of Lapland, where in this year will realize more then ten major projects. At the same time one of the most significant and promising is a project to develop a copper-nickel deposit near the locality Sodankylä (Finland), which is funded by the Anglo-American company. Foreign investment in this project is approximately EUR 3 billion. The second is the importance of the investment project for production of palladium near Suhanko.

The growth of industrial production of the mining industry will be possible if they decide some problems with energy and logistics. That is why the two have received financial support for the project to create electricity to the mining complex objects: line Sokli/Hannukaynen (270 million euros) and the line Sakatti (270 million euros). There is a Finnish party plans to expand the perspective of alternative energy, in accordance with the Finnish strategy of development. Thus, in the next few years Finland will build power stations in Mustikkamaa based processing bio material, 2nd - hydroelectric power plant near Sierile and Kemihaara, wind power station near Posio, Muonio, etc.

In the transport sphere, there are some projects for the establishment and modernization of logistics infrastructure in particular the railway traffic near human settlements (Rovaniemi, Kemi, Kolari, Sodankylä, Sokli etc). It has got investment.

The development of mining and other projects in this area, as expect the Finnish experts, in 2016 bring to Lapland a significant amount of investment only in the mining-industrial complex (construction of new mines, production of mining equipment, infrastructure development, industry, etc. ), employment of 35,000 people, and the volume of ore extracted about 68 million tons.

Investment growth will cause a sharp need for industries in the region for skilled workers (transport, energy, metallurgy and petrochemical industry, timber processing, higher and vocational education, processing of natural resources and agricultural products, etc.) that can be a key factor in the formation of "transboundary education segment" in the BEAR.

At this time, in Norway the mining branch has identified as an important factor in long-term prospect of economic growth.
In comparison with Finland, Norway is traditionally weaker in the mining area. It applies to both the resource base and experience in this field of technology and know-how.

In the previous five-year period Norway has closed a significant number of mines. Because they were economic unprofitability. At the same time the Finland in the past five years has intensified the development of national production in the mining area and took the leading position in the Barents region.

Currently, mining and export of raw materials for Finland is one of the key sectors of national economy. For a breakthrough in this sphere, Finland has upgraded technical equipment used in mines, in the light of new technological solutions has been restored activity and extraction of raw materials to the previously mothballed mines, and has begun to exploit, development the newly discovered ore's deposits.

This is active work of the Finnish organizations in this field during 2010-2012 attracted the attention of state and business structures in Norway. That is why for the creation of competitive production in the mining sector, the development of this sector of national economy and for the export of resources abroad, the use of raw materials for domestic use of rare earth metals, etc. Norway's authorities get documentary base such as "national strategy for development of the mining industry," the implementation of which should be fully implemented will start in 2012.

Probably one of the most important factors which influenced for the position of Norway in the development of the advisability of the industry and fully funding the initial phase of the state budget is an increase in demand from the Asia-Pacific region (China and India) for raw materials, including Rare-earth metals.

Experts in the field of regional economic forecasting, in the analysis for ANO "Centre for Democratic Integration", pointed out that Norway in a period from 2014 till 2016 may (at an average pace of development of mining production and exports of raw materials) to compete with Finland, in the case of solving the problem of energy and human resources, and coastal infrastructure necessary to ensure that marine transportation of raw material exports.

Dmitry Borisov, "The Industrial North magazine"



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