SWEDEN Law and Practice Contributed by: Peter Dyer, Alexandra Thörnroos and Jonna Sjöström, Wåhlin Advokater AB
enous peoples and one of Sweden’s official national minorities. Their minority status means that they have special rights and that their culture, traditions and lan - guages are protected by law. Both the Minerals Act and the Environmental Code provide that holders of rights to the affected land must be notified and/or consulted during the processing of exploration permits, mining permits and environ - mental permits. This means the Sami may have the power to argue, contest or appeal permit applications at different stages. If mining rights affect the Sami’s reindeer herding, compensation will have to be paid. 2.6 Community Development Agreement for Mining Projects Sweden’s dominating iron ore mining company – LKAB, which operates in Kiruna and in Malmberget in northern Sweden – has entered into several develop - ment agreements with the Kiruna municipality. This has been necessitated by the unprecedented urban transformation currently underway due to the effects of LKAB’s mining on the local community. A series of “Mine City Park agreements” has made it possible for LKAB to continue mining the iron ore that slopes in under the current Kiruna city centre. In addition, a substantial part of the entire city is being moved sev - eral kilometres to the east, in a project that is being paid for by LKAB. The LKAB–Kiruna development agreements represent a very special case because of the unique circum - stances in LKAB’s areas of operation. Community development agreements are not a common feature of the Swedish mining industry. 2.7 ESG Guidelines and Regulations In 2017, Sweden’s Riksdag (parliament) introduced a climate policy framework with a new Climate Act (2017:720). The Act establishes that: • the government’s climate policy must be based on the climate goals; • the government is required to present a climate report every year; • the government is required to draw up a climate policy action plan every four years, to describe how the climate goals are to be achieved; and
• climate policy goals and budget policy goals must work together. The action plan includes a review of all relevant legisla - tion and further measures in emissions sectors. There is a particular focus on the transport sector, which is likely to have an impact on the mining industry. 2.8 Illegal Mining There are no known instances of illegal mining in Swe - den. 2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects Good Example A prime example of good community relations and consultation around a mining project is iron ore pro - ducer LKAB’s very long-term and extensive co-opera - tion with the municipality of Kiruna in the north of Swe - den (see 2.6 Community Development Agreement for Mining Projects ). The community is dependent on LKAB for jobs and investment, while at the same time LKAB needs the community to provide infrastruc - ture, homes and services for its workforce. The local municipality and LKAB have entered into a number of agreements for the development of the community, particularly as a consequence of the expansion of the mining area, which has led to large-scale moving and reconstruction of public and private buildings in Kiruna. Bad Example In contrast, one of the most contentious mining pro - jects in Sweden in recent times is the Kallak project in the far north of the country. A UK mining company, Beowulf Mining, has found at least 600 million tonnes of iron ore in the area and has been pressing for a min - ing permit in the face of fierce opposition. Plans for the mine have been opposed by the indigenous Sami people, who have the backing of UN rights experts and the UN cultural organisation UNESCO, as well as climate change activist Greta Thunberg. A UN spokes - man issued a public statement expressing great con - cern about “the lack of good-faith consultations and the failure to obtain the free, prior and informed con - sent of the Sami, and over the significant and irrevers -
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