Document

Mineral Industry

Strategy in the

Nordic Region

Damian Brett &

Magnus Ericsson

The Barents region - Where Gas Meets Ore

Oslo 17&18th November 2010

RAW MATERIALS GROUP

• Raw Materials Data, Metals/Coal/Iron Ore

• Strategy development

– Mining companies, equipment & service providers

• Mineral policy, investment promotion

– Governments, International organisations

• Pre-feasibility/Feasibility studies

– Financial institutions, companies

OUTLINE

• Nordic Region Metal Mines and

Mineral Projects

• Expenditure in the Nordic Region

• Company Strategies

• Government Strategies

• Conclusions

Europe – Value by Country

Nordic Region Metal Mines

Nordic Metal Projects

Nordic Mines and Projects

• Nordic region major supplier of metals

in Europé

• Supplies: Iron ore, gold and base

metals

• Major cluster of operations and project

development in Barents Region

• Renewed interest in exploration in

Barents

Companies – Iron Ore

Companies - Gold

Companies – Base Metals

Companies – Uranium

CAPEX

Nordic Exploration

Expenditure

0

100

200

300

400

500

600

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

MEU

R

Sweden Finland Greenland Norway RMG Metal Price index - RHS

Forecast

0

50

100

150

200

250

300

0

100

200

300

400

500

600

RMG Metal Price index Nordic Exploration Expenditure RHS (MEUR)

Expenditure

• Diverse range of companies size and

commodities

• Iron ore and gold success stories

• Large investments taking place and

likely an under estimate

• Costs to increase

• Exploration expenditure to remain

around 200 MEUR in the long term

Industry and

Governmental

Strategies

Copper drawing: Kaianders Sempler.

Company Strategies –

Producers

• Producers aiming to self fund

exploration

• High metal prices giving producers

access to capital for project

expansion and consolidation (M&A)

• Dehedging for great exposure to

metal price movements

Company Strategies –

Juniors• Period of high metal prices facilitating

juniors access to capital markets

• Greater interest from local markets

• Generally international juniors having

higher valuations (reverse for

producers)

• Responding faster to metal price

movements

Government Strategies –

Geological Surveys

• providing country wide geological,

geophysical and geochemical data

sets

• involved in grass root / first pass

exploration

• Promoting the country’s

prospectivity globally

Government Strategies

• Auctioning of known projects

• Auctioning of prospective terrains

• Mining laws in place to encourage

active exploration expenditure

• Foresight in infrastructure

development – development

corridors

Nordic Countries

• Small globally but leaders in Europe.

• Revival with international companies.

• Regional growth motor.

• Cluster world leading.

• Opportunities in new strategic minerals.

•Political role under-played in Europé and globally

•R&D key to future.

Policy

implications

Manganese drawing: Kaianders Sempler.

Policy Implications

•Nordic countries act as one from a position of power.

– take the lead in Europe

• Create European ”Bureau of Mines” locate in Barents

– EU think tank mineral economics/policy/geology

• Coordinate across borders:

Merge geological surveys

Coordinate strategy, legislation/regulations

Cooperate in Research & Development

• Support clusters – Private initiatives Euromine Expo

• Global role – Mining for Development.

- Chinese cooperation?

Thorium drawing: Kaianders Sempler.

Thank you/Tack!

Raw Materials Group

Damian Brett

PO Box 3127

SE-169 03 Solna, Sweden

Tel: +46-8-744 00 65

Fax: +46-8-744 0066

E-mail: [email protected]

www.rmg.se

Anchor &

“cluster”

Stranded

investment

Stranded

investment

Anchor &

“cluster”

Agri-node &

“cluster”

Problem

feeder

Problem

feeder

“DENSIFICATION”Feeders often need to be funded thru’

fiscus/grant

DC logistics

“catchment”

Idealized Development Corridor

Jourdan 2008

Development Corridors

• Requires strong well plan

governance

• Xborder cooperation

• Returns domestic development

• Stimulates regions economy

• Lowers economics barriers for

other project development