FINLAND Law and Practice Contributed by: Tarja Pirinen, Marius af Schultén, Fiiu Linninen and Konsta Peussa, Castrén & Snellman
CETA and Investment Protection Finland, as an EU member state, is party to the Com - prehensive Economic and Trade Agreement (CETA) between the EU and Canada. CETA provides invest - ment protection whilst preserving a strong right to regulate in the public interest; Mining Act reforms have been assessed as compatible with these treaty obligations. 5.4 Sources of Finance for Exploration, Development and Mining 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 agree - ments. Early-stage exploration companies often rely on equity capital from specialist mining investors, whilst earn-in and option structures allow larger com - panies to fund exploration in exchange for the right to acquire project interests based on exploration suc - cess. These flexible financing models suit the high- risk, early-stage nature of mineral exploration. Mining Operations Financing Mining operations are typically financed through pro - ject 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 Miner - als 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 Euro - pean Green Deal, according to which Europe aims to
bankability and facilitate access to finance. A criti - cal 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. 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining International Securities Markets Dominate Finnish mining companies typically access capital through international exchanges such as the Toron - to Stock Exchange (TSX), London Stock Exchange (LSE) or Australian Securities Exchange (ASX), which offer deeper pools of mining-focused capital and spe - cialist 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 interna - tional 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 pro - ject financing. This legal framework facilitates both domestic and international lenders in taking security over mining assets, with the public registration sys - tem providing transparency and certainty for secured creditors. 5.6 Security Over Mining Tenements and Related Assets Pledges Over Permit Rights Permit rights and exploration priority can be pledged by notice and entry in the mining register. The author - ity issues receipts confirming registration and main - tains public records of these security interests.
achieve climate neutrality by 2050. Regulatory Support for Bankability
Authorities are enhancing digital permitting systems and co-ordination mechanisms to support project
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