FINLAND Law and Practice Contributed by: Tarja Pirinen, Marius af Schultén, Fiiu Linninen and Konsta Peussa, Castrén & Snellman
2.7 ESG Guidelines and Regulations 2023 Legislative Reforms
Procedural Protections Mandatory notifications and consultation proce - dures 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 informa - tion meetings, unless manifestly unnecessary for min - ing operations. The Sámi Parliament and Skolt village meeting have standing to appeal mining decisions that affect their respective areas. 2.6 Community Development Agreement for Mining Projects No Statutory CDA Requirement There is no statutory requirement for community development agreements in the Finnish mining law. Community Development Agreements are not stand - ard, but academic work highlights the potential for them to improve mineral governance and address local concerns and Community Development Agree - ments are considered emerging tools in Finnish min - ing, moving beyond simple regulation to foster local collaboration. Embedded Participation Mechanisms The law embeds strengthened participation, instead, through mandatory public meetings, municipal plan - ning control, and permit tests designed to avoid sub - stantial 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 activi - ties, subject to conditions that can remove this bar. Municipal Development Agreements Municipalities may enter into development agree - ments with mining companies to secure local benefits and co-ordinate development. These voluntary agree - ments can address matters such as infrastructure provision, employment commitments, environmental monitoring arrangements and community investment. While not mandated by the Mining Act, such agree - ments provide a practical mechanism for municipali - ties to negotiate local benefits alongside their statu - tory planning and consultation roles.
The 2023 amendments to the Mining Act introduced explicit ESG-related requirements, including biodiver - sity-aware siting, vegetation preservation and renewal obligations, prevention of significant environmen - tal 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 envi - ronmental impacts, and appropriate mineral manage - ment. These principles are operationalised through binding permit conditions addressing environmental protection, social impacts and governance throughout the project lifecycle. 2.8 Illegal Mining 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, sup - ported by public scrutiny mechanisms to address non-compliance. 2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects 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, munici - palities, 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 for - mal permitting processes.
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