Mining 2026 Comparisons

Geological Foundation and Scale

Finland sits on the Fennoscandian Shield, which provides strong geological potential for mineral exploration. In 2024, mining activity was reported by 22 operators at around 44 mines, comprising both metallic ore and industrial mineral operations. Exploration activity was reported by 60 operators, and activity was particularly concentrated in Northern Finland.

Production and Commodities

Mining production in Finland is dominated by a few large operations, which account for the majority of the total volume. Finland produces base metals including chromium, zinc, copper, cobalt and nickel, precious metals such as gold, silver and platinum group metals, and industrial minerals including apatite, limestone, talc and soapstone. Several of these minerals are designated as EU critical or strategic raw materials. Finland also has a strong refining sector, producing processed metals in greater quantities than the amount of the raw materials mined domestically. Despite significant domestic production, Finland also imports metal concentrates on a large scale to support its refining industry.

Economic Contribution

The mining sector clearly makes a substantial contribution to Finland’s economy, both directly through employment and sales, and indirectly through its support of advanced manufacturing, technology development, and regional economic resilience.

Business Finland has stated that 80% of mines worldwide have a Finnish component. This highlights Finland’s technological expertise and global influence in mining equipment and technology, which extends the economic benefits beyond direct mining operations to include machinery manufacturing, equipment, technology services, research, and training.

According to the 2023 mining sector report, in 2022 the mining sector in Finland employed approximately 6,000 people and generated around EUR3 billion in turnover. According to the Finnish Mining Association, it has just under 60 member companies. These include mining operators, contractors, suppliers of machinery and equipment, service providers and exploration companies, which employ a total of approximately 8,000 people.

Legal System

Finland operates a civil law system, with the Administrative Procedure Act (Hallintolaki 434/2003) as a general law governing procedures across permit applications in addition to a number of special laws, and the Administrative Judicial Procedure Act (Laki oikeudenkäynnistä hallintoasioissa 808/2019) governing judicial proceedings in the general administrative courts.

Core Mining Legislation

The Mining Act (Kaivoslaki 621/2011) entered into force on 1 July 2011 and has been amended several times. The most recent substantive reforms (Act 505/2023) strengthen municipal planning requirements, environmental and community provisions, protections for the Sámi people, and public information duties. The Safety and Chemicals Agency (Tukes) serves as the mining authority.

Related Legislation

The Mining Act operates alongside numerous related statutes that apply concurrently through cross-references, including the Nature Conservation Act, Environmental Protection Act, Water Act, Land Use Act, Building Act, Dam Safety Act, Off-Road Traffic Act, Radiation and Nuclear Energy Acts, Wilderness Act, Ancient Monuments Act, Reindeer Herding Act, Administrative Act, and Electronic Services Act. Additional legislation addresses monitoring of foreign acquisitions (foreign direct investments, acquisition of real estates), real estate acquisition and licensing (surface rights), municipality and state pre-emption right related to sale of real estates as well as expropriation for national security purposes.

Environmental Assessment and Planning

The Environmental Impact Assessment Act requires scoping by a contact authority, public hearings, and a reasoned conclusion that must be annexed to permit decisions. The Land Use Act and Building Act govern the planning hierarchy and building permit procedures.

Discovery-Based System

Finland follows a discovery system rather than vesting mineral ownership in either landowners or the state by default. Under this system, the person who discovers minerals gains a priority right to seek permits to explore and extract them, subject to statutory controls and protections.

Separation From Land Ownership

Mineral rights derive from statute through the permit system and are not automatically tied to land ownership. These rights are property-like in nature but remain inherently regulatory and conditional.

Landowner Compensation

Although landowners do not own the minerals, they receive statutory compensation when mining occurs on their land. For exploration, the fee is EUR20 per hectare annually for the first four years, escalating up to EUR50 per hectare in later years of the permit. For mining, compensation includes a fixed amount of EUR50 per hectare annually and an excavation fee being either 0.15% of the calculated value of the extracted metallic minerals, excavated and exploited during the year, or, as regards mining minerals other than metallic minerals, a reasonable compensation for excavated and exploited mining minerals.

Grantor-Regulator Role

The state functions primarily as grantor and regulator rather than owner-operator. The Ministry of Economic Affairs and Employment handles mining policy, whilst Tukes supervises the sector and issues most permits under the Mining Act. The State Council (government) decides on mining area expropriation and uranium or thorium mining permits, with uranium and thorium permits processed jointly under nuclear energy legislation.

National Security Oversight

Where it is considered that national security risks could arise, the Ministry Economic Affairs and Employment may assume decision-making competency. The state exercises oversight through regulatory frameworks, planning controls and security mechanisms, including review of foreign acquisitions and real estate transactions near sensitive sites (see 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors for further information).

No Mandatory Participation

There is no mandatory state equity participation, joint venture requirement or contracting obligation in mining projects.

Statutory Foundation

Mineral rights mainly derive from statute through the permit system rather than from private title or contract. Permits are administrative acts issued under statute, not contractual arrangements.

Constitutional Context

The Mining Act operates within a constitutional framework that protects property rights, environmental rights (including the right to a healthy environment and participation in decision-making), and Sámi indigenous rights. The Act embeds general principles requiring necessary expertise, clarity of effects, safety and prevention of harm at all phases of mining operations; exploitation of all mined minerals that are technically and economically feasible to exploit; and avoidance of harmful environmental effects.

Property-Like Status

Mineral rights have property-like characteristics but remain inherently regulatory and conditional in nature. Permit rights and exploration priority can be pledged by notice and entry in the mining register, supporting their treatment as valuable assets for financing purposes.

National Authority

Tukes, a national agency, grants exploration permits, mining permits (except for uranium and thorium) and gold panning permits. The State Council handles mining area expropriation and uranium or thorium mining permits. In cases involving national security concerns, decision-making may shift to the Ministry of Economic Affairs and Employment.

Grant Under the Mining Act

Permits are granted under the Mining Act rather than through contracts. The application process involves public notification and the receipt of statements, objections and opinions, and decisions must address comments received. Where applicable, environmental impact assessment conclusions must be included in the application and considered by the authority. The Mining Act also regulates transfer of the exploration permits, mining permits, or gold panning permits to another party. In addition, the Administrative Procedure Act as a general act applicable to administrative processes also regulates the processing and decision making of the authority.

Co-Ordination With Other Authorities

Whilst Tukes is the mining authority, the Finnish Supervisory Agency is responsible for environmental permitting and supervision. The Agency, which began operations in January 2026, integrates the former functions of the ELY Centres and Regional State Administrative Agencies into a single national permit and supervision authority. Certain mining permits can be co-ordinated with environmental, water and mineral aggregate permits under co-ordination legislation. Municipal authorities administer binding land-use plans and building permits.

Exploration Permits

Exploration permits are granted for an initial term of up to four years and may be renewed for periods of up to three years at a time, with a total maximum duration of 15 years. Renewal requires substantial implementation of the research plan, effective and systematic work, demonstrated need for further research, compliance with law and permit conditions, and absence of unreasonable harm. After ten years, continuation requires written consent from landowners or administrators covering at least half of the exploration area, or State Council approval if an important public interest requires it. In addition, the term of the exploration permit can be extended by periods of force majeure interruption.

Mining Permits

Mining permits remain, in principle, valid until further notice (subject to ten-year periodic reviews of conditions). However, a mining permit can also be granted for a fixed term, if this is justified in view of the quality and extent of the deposit, the applicant’s ability to meet the conditions for ensuring the commencement of mining activities, and other factors that have emerged during processing of the application. A fixed-term mining permit is valid for a maximum of ten years, with extensions available (either indefinite or up to ten years at a time). Extensions require that the deposit has been efficiently exploited, remains economically viable, and the holder has not substantially failed in its obligations.

Lapse and Cancellation

Mining permits lapse for failure to commence operations within the required timeframe set out in the mining permit, suspension of operations for five years under the holder’s control, failure to obtain necessary land control or ownership within five years, or upon request by the holder with limited postponement options (maximum of twice and in ten years in total).

Operating Conditions and Closure

Mining permits include mandatory conditions addressing health and safety, waste prevention, reporting obligations, phased closure planning, closure security and after-care, vegetation and biodiversity considerations, and prevention of significant environmental and socio-economic harm. Closure must be planned and implemented to ensure that closed mines do not cause significant adverse health or environmental effects, with details potentially specified by decree.

Transferability

Exploration, mining and gold panning permits are transferable with Tukes’ approval. Transferees must meet eligibility, expertise and financial capacity requirements; notifications to landowners are required; and related expropriation permits are aligned upon transfer.

Gold Panning

Gold panning operates under a separate permit regime on state land, granting exclusive rights in contiguous areas of up to seven hectares. Annual operator reporting is required; the authority holds annual public meetings, final inspections occur upon closure, and decisions are copied to Sámi Parliament, the Skolt village assembly and herding co-operatives where applicable.

Authority Structure and Capacity

Tukes serves as the mining authority at national level, whilst the Finnish Supervisory Agency is responsible for environmental permitting and supervision.

Environmental permitting operates at the national level through the Finnish Supervisory Agency. This centralised structure aims to enhance consistency in decision-making and supervision across the country. The consolidation of previously separate agencies into a single authority aims to streamline processes and improve co-ordination between different regulatory functions.

Environmental Permitting Process

Exploration projects typically require less extensive environmental permitting than mining operations, reflecting their smaller scale and temporary nature. Minor exploration activities may proceed with notifications, whilst more intensive work involving significant ground disturbance or water use requires an environmental permit from the Finnish Supervisory Agency.

Mining projects require comprehensive environmental permits addressing the full lifecycle from construction through closure. The permit application must include detailed plans for water management, waste handling, tailings disposal, air emissions and noise mitigation, demonstrating compliance with best available techniques. The Finnish Supervisory Agency reviews applications, publishes them for public comment, and issues reasoned decisions setting specific conditions for emissions limits, monitoring requirements and financial securities.

Comprehensive Environmental Protection Framework

Finnish environmental legislation establishes stringent protection standards for mining operations. The Environmental Protection Act sets out core requirements for preventing pollution and managing environmental impacts. Mining projects must demonstrate compliance with best available techniques and maintain high standards for water protection, waste management and air quality control.

Water protection receives particular emphasis in Finnish mining regulation. Operators must implement measures to prevent contamination of surface waters and groundwater, which is critical given Finland’s abundant water resources. The system also requires careful assessment of impacts on protected species and habitats, with special attention to Natura 2000 areas and other ecologically sensitive zones.

Environmental Impact Assessment

The Environmental Impact Assessment Act establishes a structured process for evaluating significant environmental effects before project decisions are made, with a designated contact authority co-ordinating the procedure, ensuring proper scoping and facilitating public participation through hearings and consultation rounds. The EIA process produces a reasoned conclusion that summarises the anticipated environmental impacts and proposed mitigation measures, which must be annexed to all relevant permit decisions. The Finnish Supervisory Agency is required to integrate this conclusion into its decision-making and ensure it remains current throughout the permitting process, with the EIA serving as a critical information-gathering tool that informs both the authority and the public about potential environmental consequences rather than itself constituting a decision.

Permit Co-Ordination

Certain mining permits can be co-ordinated with environmental, water and mineral aggregate permits under co-ordination legislation, streamlining the approval process. Binding municipal land-use plans (general and detailed plans) govern permitted uses, with building permits administered by municipal building supervision authorities.

Strict Protection Zones

National parks, nature reserves and Natura 2000 sites receive strict protection under Finnish law. Exploration permits cannot be granted for national parks or nature reserves under the Mining Act’s statutory exclusions. Extraction activities are prohibited in these areas, though limited geological research may be authorised if it does not endanger the protection purposes.

The Nature Conservation Act provides for exemption permits in exceptional circumstances, allowing derogations from strict protection requirements where imperative reasons of overriding public interest can be demonstrated and no alternative solutions exist.

Mining Act Permit Obstacles

The Mining Act establishes several statutory grounds that prevent the granting of mining permits in protected areas. A mining permit cannot be granted if the activity would conflict with binding land-use plans, pose national security risks, or cause substantial harm to another livelihood. For exploration permits, the activity must avoid significant environmental harms, material changes to natural conditions, or essential damage to rare or valuable natural occurrences. Environmental impacts are governed by the Environmental Protection Act and the environmental permit. However, the Environmental Protection Act and Nature Conservation Act will also be considered when granting permits under the Mining Act.

Wilderness Areas

Wilderness areas, which largely overlap with Natura 2000 designations, require Government authorisation for mining permits on state-owned land.

Reservation Area Restrictions

Reservation areas designated for mining purposes must exclude national parks and nature reserves. When establishing reservation areas, the Finnish Supervisory Agency must assess potential conflicts with protected areas and ensure that reservation does not undermine existing conservation objectives or restrict future protection measures.

Statutory Public Participation

The Mining Act requires statutory public notice of applications, with documents accessible for at least 30 days and opportunities for objections and opinions from affected parties. Tukes must hold a public meeting for mining permit applications or modifications and continuations unless clearly unnecessary. These meetings provide an opportunity for the applicant to present the project, for authorities to explain the permitting process, and for affected parties to raise concerns and ask questions directly.

Operator’s Duty to Organise Annual Meetings

Annual public meetings are mandatory for both exploration permit holders and mining permit holders. Exploration permit holders must report on completed research work and results, environmental and other impacts of completed research, future research work, and estimated environmental and other impacts of future research. Mining permit holders must present the exploitation schedule, scope and results of the deposit, notify of any material changes to mineral reserves, and describe the impacts of mining operations.

Municipal Involvement

Recent reforms strengthen municipal planning requirements, ensuring local authorities have meaningful input into whether and how mining projects proceed in their jurisdictions. A mining permit cannot be granted unless the area is designated for mining purposes in a legally binding municipal land-use plan. This requirement ensures that mining activities are integrated into local spatial planning and that municipalities exercise control over land use in their territories.

Sámi Homeland Consultation

In the Sámi homeland area, Tukes must conduct a co-operation procedure involving the applicant, Sámi Parliament, Skolt village assembly and reindeer herding co-operatives. This procedure assesses impacts on Sámi language, culture and traditional livelihoods, and seeks agreement on mitigation measures. (For more information on indigenous rights, please see 2.5 Impact of Specially Protected Communities on Mining Projects.)

Process and Documentation

Applicants must provide impact documentation at the outset; stakeholders can comment before co-operation formally begins; and Tukes ensures adequacy of the process and may organise hearings. Tukes runs the co-operation procedure, though the investor provides necessary information and participates actively.

Landowner Consultation

Exploration permit applicants must negotiate with landowners before commencing activities that go beyond the statutory right of access. For mining permits, landowners whose property rights are affected have a statutory right to be heard during the permitting process. Tukes must consider landowner objections when deciding whether to grant permits and what conditions to impose.

Consultation Under Environmental Legislation

Where Sámi rights are engaged under the Mining Act consultation procedures, corresponding consultation requirements also apply under the Environmental Protection Act for environmental permits. This ensures that indigenous rights considerations are integrated across all relevant permitting processes – not only mining permits but also environmental authorisations required for the same project. An EIA procedure (please see 2.1 Environmental Protection and Licensing of Mining Projects) also applies with respect to mining projects.

Sámi and Skolt Peoples

The Sámi are recognised as an indigenous group in the Finnish Constitution. Their indigenous homeland area is located in the northern part of Lapland. The Sámi have linguistic and cultural autonomy in the Sámi homeland. Additionally, the Skolt Sámi (a group within the Sámi people) also have special rights to maintain and promote their living conditions, livelihoods, and culture.

Mining activities on the Sámi homeland must be co-ordinated to safeguard the Sámi’s rights as an indigenous people to maintain and develop their language, culture and traditional livelihoods. No permit may be granted if the activity, alone or cumulatively with other activities, would substantially weaken conditions for Sámi traditional livelihoods or maintaining and developing Sámi culture in the Sámi homeland. Similarly, permits cannot be granted if they would substantially impair Skolt living conditions or livelihoods in the Skolt area, unless permit conditions can adequately mitigate these impacts.

Reindeer Herding Communities

In special reindeer herding areas (in Northern Finland), permits cannot be granted if they would cause significant harm to reindeer herding, unless mitigated by permit conditions. Where mining is proposed on state-owned land in reindeer herding areas, the authority must assess impacts on reindeer herding operations. This protection ensures that traditional livelihoods dependent on state land resources receive appropriate consideration in the permitting process.

Procedural Protections

Mandatory notifications and consultation procedures apply, with permit holders required to notify in advance the Sámi Parliament, Skolt village meeting and relevant reindeer herding co-operatives of field works. Both exploration permit holders and mining permit holders must organise annual public information meetings, unless manifestly unnecessary for mining operations. The Sámi Parliament and Skolt village meeting have standing to appeal mining decisions that affect their respective areas.

No Statutory CDA Requirement

There is no statutory requirement for community development agreements in the Finnish mining law. Community Development Agreements are not standard, but academic work highlights the potential for them to improve mineral governance and address local concerns and Community Development Agreements are considered emerging tools in Finnish mining, moving beyond simple regulation to foster local collaboration.

Embedded Participation Mechanisms

The law embeds strengthened participation, instead, through mandatory public meetings, municipal planning control, and permit tests designed to avoid substantial harm to other livelihoods such as tourism, reindeer herding and wind power. Exploration and gold panning permits cannot be granted where they would cause substantial harm to other business activities, subject to conditions that can remove this bar.

Municipal Development Agreements

Municipalities may enter into development agreements with mining companies to secure local benefits and co-ordinate development. These voluntary agreements can address matters such as infrastructure provision, employment commitments, environmental monitoring arrangements and community investment. While not mandated by the Mining Act, such agreements provide a practical mechanism for municipalities to negotiate local benefits alongside their statutory planning and consultation roles.

2023 Legislative Reforms

The 2023 amendments to the Mining Act introduced explicit ESG-related requirements, including biodiversity-aware siting, vegetation preservation and renewal obligations, prevention of significant environmental and socio-economic harms, and phased closure planning. The rights of the Sámi as indigenous people were also strengthened at this time. 

General Principles

The Act’s general principles now expressly include sustainable resource use, avoidance of harmful environmental impacts, and appropriate mineral management. These principles are operationalised through binding permit conditions addressing environmental protection, social impacts and governance throughout the project lifecycle.

Limited Illegal Mining Problem

Illegal mining is not a particular problem in Finland, and illegal operations are rare.

Enforcement Mechanisms

The legal framework provides enforcement tools including supervision powers, enforcement orders, security requirements and closure obligations, supported by public scrutiny mechanisms to address non-compliance.

Early and Proactive Engagement

Best practice involves engaging stakeholders from the earliest stages of project development, well before formal permit applications are submitted. Operators who initiate dialogue with local communities, municipalities, landowners and other affected parties during the exploration phase build trust and identify concerns that can be addressed in project design. This early engagement allows potential conflicts to be resolved before they become entrenched positions during formal permitting processes.

Ongoing Engagement and Community Relations

Successful operators maintain open communication throughout the project lifecycle, going beyond statutory minimums to establish genuine dialogue with affected communities. Best practice includes regular updates through multiple channels, transparent discussion of both benefits and risks, and demonstrable responsiveness to stakeholder concerns. Operators who actively pursue local employment, supplier relationships, infrastructure investment and voluntary benefit-sharing agreements with municipalities tend to achieve stronger community relations. In areas where Sámi, Skolt or reindeer herding communities are present, cultural sensitivity and respect for traditional livelihoods are essential, requiring operators to recognise that legal compliance represents a minimum standard rather than an aspirational goal.

Guidance on Sustainable Practices

The Finnish Mining Association has developed the Standard for Sustainable Exploration, which provides companies with concrete guidelines for sustainable operation in each stage of exploration. Companies committed to the standard adhere to seven guiding principles: transparency in operations; adherence to best practices and continuous improvement; minimisation of negative impacts on local communities, environment and biodiversity; respect for surrounding communities and their culture and ways of life; active dialogue with communities of interest; protection of health and safety of employees and local communities; and responsible completion of aftercare measures. The standard requires open communication, stakeholder participation in company practices, and environmental management that operates at least in accordance with the No Net Loss principle whilst striving for Net Positive Impact. Sustainability of exploration is assessed through annual self-assessment using three assessment tools covering stakeholders, environment and safety, with five performance levels ranging from basic legal compliance to excellence.

Areas for Improvement

Whilst the legal framework is comprehensive, implementation quality can vary between projects. Enhanced consultation and consent requirements, including the landowner-consent rule after ten years of exploration, may temper some investment but are designed to encourage higher-quality, better-planned projects with stronger social licence.

There are no specific initiatives for to deal with climate change with respect to the mining industry. The initiatives to deal with climate change generally appear as tighter emission limits in environmental permits. Additionally, restrictions on coal usage in power generation and the advancement of renewable energy sources and biofuels, as well as other ways to limit carbon emission, – eg, through the use of specifically elected raw materials or the development of production processes – may affect the mining industry as mining enterprises also seek to lower their carbon footprint.

Finland’s primary climate legislation, the Climate Act (423/2022), establishes the country’s objective of achieving carbon neutrality by 2035. Furthermore, the law seeks to guarantee that greenhouse gas outputs from both the effort-sharing and emissions-trading sectors decline by no less than 60% by 2030 and no less than 80% by 2040 when measured against 1990 baseline figures. The target also includes a 90–95% reduction by 2050. The Act additionally requires Finland to implement domestic measures for climate adaptation by fostering climate resilience and effective climate risk management. State authorities must support these goals through their operations.

The new Government Programme released on 20 June 2023 outlines plans for developing a fresh energy and climate strategy targeting carbon negativity, with clean transition promotion and industrial investments serving as core components.

While Finland does not have a separate sustainable development law for mining, the Mining Act and the Environmental Protection Act incorporate sustainable development principles throughout their provisions. The Mining Act’s general principles expressly require sustainable resource use, avoidance of environmental harms, and comprehensive exploitation and avoidance of waste of minerals in mining operations.

The 2023 Government Programme seeks to address climate issues primarily through efficient emission-reduction approaches, expanding carbon sinks and innovative clean technologies that substitute solutions relying on polluting energy sources and materials both domestically and internationally. A key priority of the Energy and Climate Strategy involves accelerating emission reductions in industrial and energy production sectors. There are also plans to refresh industry-specific low-carbon roadmaps.

Beyond government initiatives, the Finnish mining industry has established the Network for Sustainable Mining (Kestävän kaivostoiminnan verkosto), a voluntary co-operation forum promoting responsible practices. Companies committed to the Mining Responsibility System (Kaivosvastuujärjestelmä, 2016) follow sustainable operating principles across the entire project lifecycle using eight assessment tools (see answer 3.1 Climate Change Effects). In addition, the TSM (Towards Sustainable Mining) programme co-ordinated in Finland by the Finnish Mining Association provides a transparent and comparable framework for assessing environmental and social responsibility in the mining industry. Finnish operators can also report their responsible sourcing practices through the EU’s new Responsible Mineral Information System (ReMIS) platform, which enhances transparency and accountability across mineral supply chains.

The EU Critical Raw Materials list which was updated in connection with the enactment of the EU’s Critical Raw Material Act (“CRMA”) includes several minerals produced in Finland, such as cobalt, nickel, lithium, platinum group metals and phosphate. In March 2025, six projects located in Finland were granted EU strategic project status, three of which were mining projects.

The status of a strategic project granted with the Commission’s decision provides more efficient permitting processes and predictable permitting timelines for the crucial mining projects as set out in the CRMA and will further promote the development of the mineral sector in Finland. Fresh applications to obtain strategic project status for new mining projects located in Finland were also submitted in the second call for strategic projects under the CRMA which ended in mid-January 2026.

Mining Minerals Tax

Finland introduced a special tax for mining companies on 1 January 2024 under the Mining Minerals Tax Act (314/2023). The Mining Minerals Tax Act was subsequently amended by Act 1361/2025, which entered into force on 1 January 2026.

The mining mineral tax functions as a royalty-type levy. The tax is payable by operators that extract mining minerals and hold the necessary mining permits. Following the 2026 amendment, the secondary taxpayer for mining minerals is now the person who supplies the mining mineral for beneficiation or produces the mining mineral if the holder of the mining permit no longer exists. Operators must register before starting taxable operations.

The 2026 amendment significantly increased tax rates: for metallic ores the tax rate rose from 0.6% to 2.5% of the taxable value of the metal content, whilst for industrial minerals, the tax rate increased from EUR 0.20 per tonne to EUR 0.60 per tonne of ore or useful stone. The taxable values for metallic ores are based on international daily market prices and are confirmed annually by the Finnish Tax Administration. The 2026 amendment also expanded the taxable base to include iron and rhodium, reflecting their increasing economic significance. Gold panning falls outside the scope of the tax.

For metallic ores, the tax is assessed when the taxpayer first feeds the mined mineral into the concentration process for the first time. The 2026 amendment changed the assessment point for industrial minerals: the tax is now assessed for industrial minerals when the extracted mining mineral is brought to the surface, whereas under the previously applicable regulations, the tax was assessed at the time of extraction. Mining minerals extracted at a mine where the mineral in question is neither recovered nor produced, nor delivered elsewhere for recovery or production, are now exempt from tax. However, if the mineral is later recovered, it becomes subject to taxation.

The 2026 amendment also reversed the distribution of tax revenues between the State and the municipalities: the State’s share has risen from 60% to 70% and the municipalities’ share has fallen from 40% to 30%.

General Tax Liabilities

Mining companies in Finland are generally also subject to corporate income tax (with the income tax rate currently being 20%), value-added tax (with the general VAT rate currently being 25.5%), energy taxes, and real estate tax under the same statutory framework applicable to other business entities. Finnish tax legislation does not differentiate between Finnish and foreign investors, meaning that a foreign investor who is liable to pay tax in Finland under the applicable double tax treaty or, alternatively, Finnish tax laws, must pay taxes according to the same principles as domestic investors.

The excise duty on electricity in Finland is divided into two tax brackets: the general electricity Tax Bracket I is 2.24 cents per kilowatt-hour, while the lower Tax Bracket II is only 0.05 cents per kilowatt-hour. Electricity used in mining has previously been taxed at the lower rate of Tax Bracket II, which was effectively a tax subsidy. However, following the legislative amendment to the Act on Excise Duty on Electricity and Certain Fuels (1118/2025) that entered into force on 1 January 2026, mining electricity has been moved to general Tax Bracket I, which has increased the price of electricity for the mining sector by 2.19 cents per kilowatt-hour and resulted in an almost forty-five-fold increase in the electricity excise duty. No other tax incentives for mining operations are available in Finland.

Tax stabilisation agreements are not used in Finland. Fundamental rights, such as the rule of law, the principle of legality, and the protection of legitimate expectations, form the foundation of Finnish taxation, and the possible retroactive tax legislation is monitored by the Constitutional Law Committee. Taxpayers can obtain certainty regarding their tax position by seeking advance positions or binding advance rulings from the Finnish Tax Administration.

Companies with a general tax liability in Finland pay tax on profits arising from the sale of assets such as shares or other assets (eg, real estate). The capital gain is calculated as the difference between the sale price and the acquisition price plus other costs and is taxed as part of the entity’s normal corporate income taxation. The applicable corporate tax rate in Finland is currently 20%. The right to tax capital gains of entities with limited tax liability is usually stipulated in applicable double tax treaties. Capital gains are generally taxable for foreign entities if the capital gain can be attributed to a permanent establishment established in Finland. Finland also taxes profits derived from the disposal of real estate or shares in a limited liability company, whether the company is resident in Finland or non-resident, where more than 50% of the total assets either directly or indirectly consist of real estate located in the country. However, the applicable double tax treaty may restrict or prohibit the right to tax the transfer of real estate, and the taxation right must thus always be confirmed in the applicable tax treaty.

In Finland, transfer tax is levied at a rate of 4% on transfers of real estate and 1.5% on transfers of shares. Transfer tax is calculated on the basis of the purchase price or other consideration (agreed in favour of the seller). The transferee is liable for transfer tax. As a general rule, transfer tax is not payable on transfers where neither party is generally tax-liable in Finland, with the exception of transfers where the object of the transaction is real estate or shares in a company whose activities, either directly or indirectly, consist primarily of owning or managing real estate.

Geological Potential and Infrastructure

Finland’s bedrock hosts significant deposits of battery metals (nickel, cobalt, lithium), copper, platinum group metals, graphite and rare earth elements. The country benefits from excellent infrastructure, including developed road networks, reliable power supply and a skilled workforce, enabling year-round exploration activities. The Geological Survey of Finland (GTK) provides nationwide, openly available datasets and map services that underpin efficient area selection and target generation, including the National Drill Core Archive and countrywide aerogeophysical surveys. These resources significantly reduce initial exploration costs and accelerate project development.

Predictable Regulatory Framework

Finland operates under a well-regulated, transparent framework governed by the Mining Act. The permit system uses a priority-based approach: reservation notifications or exploration permit applications establish priority rights. Exploration permits are granted for up to four years, extendable to a maximum of 15 years. The system provides clear procedural steps and defined timeframes for permit validity, supporting project planning.

Stable Investment Environment

Finland’s EU membership, political stability, transparent legal environment and respect for the rule of law provide strong investor confidence. Finnish production ranks highly in global sustainability comparisons, supported by robust environmental legislation and strong domestic expertise in mining technologies and environmental management.

No Mining-Specific Caps

There are no mining-specific foreign ownership caps or restrictions. However, the Mining Act does include the possibility to deny grant of a permit or approval of transfer of a permit under the Mining Act if the activities are deemed to jeopardise national defence, security of supply, the operation of infrastructure necessary for the functioning of society or other comparable national security interests.

General FDI Screening Process

Finland operates a general foreign direct investment screening mechanism that applies across all sectors, including mining. This process is not mining-specific but forms part of the broader national security framework for reviewing foreign investments. The screening assesses whether proposed acquisitions by non-EU investors could pose risks to essential national interests, including national security, public order or other critical societal functions. Defence sector and dual-use product acquisitions require mandatory prior confirmation from the Ministry of Economic Affairs and Employment. Mining companies may be subject to voluntary notification if they are considered critical for vital societal functions – for example, where mining operations are essential for security of supply of critical raw materials, or where they involve significant energy or transport infrastructure. The screening applies when a non-EU/EFTA investor acquires at least 10% of voting rights. If no concerns are raised within specified timeframes, the acquisition is deemed confirmed. Refusal is only possible where necessary to protect extremely important national interests.

Approval for Real Estate Acquisitions of Non-EU/EEA Buyers

Real estate acquisitions by entities from outside the EU and EEA require approval from the Ministry of Defence when acquiring property in Finland. The approval requirement applies based on the buyer’s status (non-EU/EEA) and is assessed against national security, territorial integrity, border security and security of supply criteria. This requirement ensures that land acquisitions connected to mining projects undergo security assessment where appropriate.

Finland does not have investment protection treaties specifically for the mining sector, but it is party to bilateral and multilateral trade agreements as part of the EU.

CETA and Investment Protection

Finland, as an EU member state, is party to the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada. CETA provides investment protection whilst preserving a strong right to regulate in the public interest; Mining Act reforms have been assessed as compatible with these treaty obligations.

Primary Investor Origins

Mining investments in Finland primarily come from Canada, United Kingdom and Australia, reflecting the international nature of the mining sector and Finland’s integration into global capital markets. Financing is sourced through equity and debt in domestic and international markets, with major operators typically being subsidiaries or branches of listed companies.

Exploration Financing Structures

Exploration activities are typically financed through equity raises, earn-in arrangements or option agreements. Early-stage exploration companies often rely on equity capital from specialist mining investors, whilst earn-in and option structures allow larger companies to fund exploration in exchange for the right to acquire project interests based on exploration success. These flexible financing models suit the high-risk, early-stage nature of mineral exploration.

Mining Operations Financing

Mining operations are typically financed through project finance or bank financing arrangements. Once a project reaches development stage with proven reserves and feasibility studies, it can access debt markets and structured project finance.

Through its special purpose vehicle Finnish Minerals Group Oy, the state participates in developing of a responsible battery value chain in Finland and at the same time, contributes to supporting of the European Green Deal, according to which Europe aims to achieve climate neutrality by 2050.

Regulatory Support for Bankability

Authorities are enhancing digital permitting systems and co-ordination mechanisms to support project bankability and facilitate access to finance. A critical factor for securing project finance is obtaining legally final permits that can no longer be challenged through appeals, as lenders typically require certainty that permits cannot be overturned before committing substantial funding.

International Securities Markets Dominate

Finnish mining companies typically access capital through international exchanges such as the Toronto Stock Exchange (TSX), London Stock Exchange (LSE) or Australian Securities Exchange (ASX), which offer deeper pools of mining-focused capital and specialist investors. These markets provide the primary venue for equity raises, particularly for exploration and development-stage companies requiring patient capital from investors familiar with mining risk profiles.

Limited Domestic Market Role

Nasdaq Helsinki provides a domestic listing venue, though the Finnish market is relatively small compared to major international mining finance centres. The domestic market serves as a complementary source of capital, particularly for smaller ventures, but lacks the depth and mining sector specialisation of international exchanges.

Secured Financing Structures

The mining register recognises pledges over permit rights, supporting secured finance structures. This enables mining rights to serve as collateral for project financing. This legal framework facilitates both domestic and international lenders in taking security over mining assets, with the public registration system providing transparency and certainty for secured creditors.

Pledges Over Permit Rights

Permit rights and exploration priority can be pledged by notice and entry in the mining register. The authority issues receipts confirming registration and maintains public records of these security interests.

Statutory Financial Securities

Separate from commercial security interests, statutory financial securities are required for exploration, gold panning and mine closure. These securities are determined in permits, reviewed periodically or upon changes in circumstances, must be readily realisable, and are area-specific to ensure funds are available for rehabilitation and closure obligations. Mining collateral (kaivosvakuus) under the Mining Act is set proportionate to the scale and nature of activities, with Tukes determining the amount based on factors including area size, type of exploration work and potential environmental impacts. Environmental collateral (ympäristövakuus) is required under the Environmental Protection Act to secure proper implementation of environmental permit conditions, monitoring obligations and site remediation. Additionally, waste collateral (jätevakuus) may be required under the Environmental Protection Act for mining waste management facilities to ensure adequate financial resources for proper waste handling, closure and aftercare of tailings facilities and waste rock storage areas.

Implementation of 2023 Reforms of the Mining Act and Impact of the Finnish Supervisory Agency as the New Environmental Permitting and Supervisory Authority

The next few years will see continued implementation of the 2023 Mining Act reforms, which strengthens environmental, social and governance requirements, community engagement mechanisms, municipal planning prerequisites for mining permits, enhanced protections for the Sámi people, and expanded public reporting obligations.

From the beginning of 2026 the Finnish Supervisory Agency (Lupa- ja valvontavirasto) will commence its operations acting both as the new environmental permitting and supervisory authority. This new nationwide authority will consolidate the functions previously carried out by multiple permitting and supervisory bodies (such as the six Regional State Administrative Agencies as the environmental permit authorities and the 15 local Centres for Economic Development Transfer as the environmental supervision authorities and, in some matters, environmental permit authorities – eg, in relation to derogation from nature conservation), replacing the fragmented system with a unified national agency.

Enhanced Environmental Standards

Greater emphasis on phased closure planning, biodiversity-aware siting, and prevention of significant environmental and socio-economic harms will be embedded in permit conditions. Binding water status objectives and co-ordinated permitting procedures will shape project design, timelines and mitigation packages.

Fiscal Developments

During the preparation of the legislative amendments regarding the mining mineral tax, the mining industry proposed a hybrid model in which the tax would be based partly on a royalty model and partly on profitability. In connection with the preparation of the 2026 amendments, the Finnish Parliament required that the Government commence preparation of a new hybrid model so that its implementation could be possible as early as the beginning of 2027.

Energy-Transition Minerals Focus

Energy-transition minerals including lithium, cobalt, nickel, rare earth elements and platinum group metals are expected to drive targeted exploration and selective new project development, aligned with EU critical raw materials strategies.

Balancing Development and Protection

The outlook reflects Finland’s approach of balancing strategic mineral development with robust environmental protection, meaningful community participation and respect for indigenous rights. Whilst enhanced requirements may moderate some investment flows and extend timelines, they are designed to ensure higher-quality projects with stronger social licence and long-term sustainability.