Possible mines opened in Finnish Kanta-Häme would have positive impact on the region's economy

The Somero-Tammela rare element -RE -pegmatite region is located in the Häme belt, between the town of Somero and the municipality of Tammela in SW Finland. The Häme belt in central Finland mainly consists of volcanic rocks intercalated with greywackes and metapelites. The succession is intruded by gabbros, diorites, granodiorites, tonalites and the youngest magmatic rocks, K-granites as well as pegmatites. Photo: The Geological Survey of Finland (GTK)

The Geological Survey of Finland (GTK) reports, that in this region there is high potential to discover gold, lithium and copper deposits leading to mining operations.

The GTK and the Ruralia Institute of the University of Helsinki have surveyed the ore potential of the most interesting ore types in Kanta-Häme and the impact of possible mining operations on the region's economy.

GTK was in charge of ore geology, ore deposit models and the geological part of mine modelling in the Kanta-Häme area. The aim of the Ruralia Institute was to estimate the impact of three potential mining types, gold, lithium and copper mines, on the economy of Kanta-Häme, especially in terms of employment and regional GDP.

The three most potential ore types and target areas in the Häme belt, on which the survey focused, are the Tammela–Somero gold deposit, the Tammela–Somero lithium deposit and the Jokioinen–Forssa–Tammela (Kedonojankulma–Liesjärvi) copper, gold and ore system.

To evaluate the possible mineral resources in the Häme belt, including undiscovered resources, the selected deposit types were compared with similar known deposits and ore belts in Finland and in other countries. The impact of potential mines on the region's economy were evaluated by using a regional general equilibrium RegFinDyn model, based on the investment and production figures of similar operational or starting mines as benchmarks.

On the basis of the survey, the most potential ore types in the Häme belt are gold as in Jokisivu in Huittinen, lithium pegmatite in Somero–Tammela and, as a new type, porphyry-type copper and gold deposits. 

Mines to be possibly opened in Kanta-Häme would have significant positive impact on the region's economy. The employment situation is estimated to improve by 200–400 person-years in the region and by 300–600 person-years in the whole country, depending on the mine type. Opening a mine and starting mining operations would increase the region's economy by EUR 125–250 million by the end of the mine production phase.

On the basis of the survey results, a gold, lithium or copper mine would each produce significant positive impact on the employment and economy of Kanta-Häme. 

During its 16-year operating period, a lithium mine would produce the highest positive impact on the employment and economy of Kanta-Häme. However, it would also require the highest initial investments. A gold mine would produce the most significant impact considering its initial investments. After all, such a mine would have the lowest investment costs.

On the basis of the ore prospecting situation in Häme belt, gold shows the highest potential in order to open a new mine during the next 10–20 years. Many attractive gold exploration targets are known in the region, and there is already an operating gold mine and concentrating mill in the town of Sastamala, that make it easier to open a new mine. 

Varied types of ore deposits have been formed in the Häme belt and only some 10 percent of the possible mineral resources in the Häme belt are known today. In this respect, there is high potential to discover new deposits and more mineral resources in order to open new mines in the Kanta Häme area.

The results released in GTK's survey report will help mining companies to allocate their exploration investments and offer a new perspective for regional planning. For people living in the area, reports on the exploration situation and future outlook help to understand the future and reduce any uncertainties.

The 2015 European Regional Development Fund (ERDF) coordinated by the Helsinki–Uusimaa Regional Council acted as the main financier (80 percent) in the project. In addition, the project has been supported by the town of Forssa, the municipality of Tammela and Tammela Minerals Oy, as well as GTK and the Ruralia Institute through self-financing.

For further information, please contact:
Geological Survey of Finland, geologist Markku Tiainen, tel. +358 (0)29 503 2557, markku.tiainen@gtk.fi