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Lapland expects 20 years of gold

Gold is currently mined in several parts of the Barents Region, although the Finnish Lapland stands out as the leading European goldminer.

As the price on gold reaches record heights, the Barents Region brings its noble riches to the fore. With an annual output of five tonnes, Lapland is expected to produce gold for at least another twenty years.

Location

Gold is produced in several parts of the Barents Region. In Norrbotten and Västerbotten gold has been mined for years. The Swedish metals company Boliden operates production at the Aitik mine (Norrbotten) and the Boliden Area (Västerbotten). The combined annual production in these two mining areas amounts to about 3.5 tonnes of gold. 

Compared to the total amount of ore processed by Boliden’s mines, gold makes up a very small output share. However, considering the high price on gold these days, the little amount that is produced involves great profits for the company. According to Goldprice, the current price on gold amounts to nearly $40,000 per kilogram. 

The two Swedish mines have been producing gold over a relatively long time, although their output is significantly smaller than Finland’s. Lapland is considered as the number one goldminer not only in the Barents Region, but also in Europe.   

Among the main gold mines in Lapland are Kittilä and Pahtavaara. Also, the Kevitsa (copper-nickel-platinum) mine recently started to produce gold. These mines are operated by Agnico Eagle (Canada), Lappland Goldminers (Finland), and First Quantum Minerals (Canada), respectively.  According to Agnico Eagle, the Kittilä mine is the largest gold-producing mine in Europe. Commercial production began in 2009 and has been growing considerably ever since.

A view over one of Agnico Eagle’s mines.

Agnico Eagle goes underground

Figures from Patchwork Barents show an increase of annual output from 2.7 tonnes in 2010 to 5.7 tonnes in 2012. In 2013, however, gold production at Kittilä went down to 4.8 tonnes. 

The downturn may have been caused by the company’s change of mining method. In November 2012, Agnico Eagle ended its open-pit mining operations at Kittilä. Since then, operations preceded as underground mining only, the company informs.

As for future prospects for Kittilä, Agnico Eagle is optimistic. Production growth is expected over the next three years. Moreover, an expansion in 2015 will increase the mine’s mill capacity from 3,000 to 3,750 tonnes of ore per day. The project has an expected cost of $103 million over a three-year period, Agnico Eagle reports.

The estimated operational lifespan of the Kittilä mine is until 2034, which would mean at least another twenty “golden years” in Lapland.