FINLAND Law and Practice Contributed by: Tarja Pirinen, Marius af Schultén, Fiiu Linninen and Konsta Peussa, Castrén & Snellman
5. Mining Investment and Finance 5.1 Attracting Investment for Mining Geological Potential and Infrastructure Finland’s bedrock hosts significant deposits of bat - tery metals (nickel, cobalt, lithium), copper, platinum group metals, graphite and rare earth elements. The country benefits from excellent infrastructure, includ - ing developed road networks, reliable power supply and a skilled workforce, enabling year-round explora - tion 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 explora - tion 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 estab - lish 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, support - ing project planning. Stable Investment Environment Finland’s EU membership, political stability, transpar - ent legal environment and respect for the rule of law provide strong investor confidence. Finnish produc - tion ranks highly in global sustainability comparisons, supported by robust environmental legislation and strong domestic expertise in mining technologies and environmental management. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors 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 activi - ties are deemed to jeopardise national defence, secu - rity of supply, the operation of infrastructure neces -
sary 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 frame - work for reviewing foreign investments. The screen - ing 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 pri - or confirmation from the Ministry of Economic Affairs and Employment. Mining companies may be subject to voluntary notification if they are considered criti - cal for vital societal functions – for example, where mining operations are essential for security of supply of critical raw materials, or where they involve signifi - cant energy or transport infrastructure. The screen - ing 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 secu - rity of supply criteria. This requirement ensures that land acquisitions connected to mining projects under - go security assessment where appropriate. 5.3 International Treaties Related to Exploration and Mining Finland does not have investment protection trea - ties specifically for the mining sector, but it is party to bilateral and multilateral trade agreements as part of the EU.
134 CHAMBERS.COM
Powered by FlippingBook