The Swedish mining company Boliden has announced consultation negotiations affecting its Kevitsa mine in Sodankylä, with up to 285 jobs potentially at risk due to a new mining tax reform.
Boliden, a Swedish mining company, is initiating consultation negotiations at its Kevitsa mine in Sodankylä, Finland, which could impact all of its over 500 employees. The consultations are primarily about the potential layoffs, with 285 employees currently facing the risk of job loss, along with possibilities of changes in job roles and layoffs. The exact number of layoffs is not yet disclosed, but the negotiations are expected to conclude within six weeks.
The driving force behind these consultations is a recent reform of mining tax legislation, which has significantly increased the mining mineral tax. As a result, Boliden has frozen a nearly one billion euro investment decision regarding the Kevitsa mine that would have allowed operations to continue past 2034. This investment freeze raises concerns about the mine's future and the socio-economic implications for the region, particularly related to job security and local economic stability.
Tom Söderman, the managing director of Boliden Kevitsa, emphasized the need for competitive and sustainable operating conditions for the mining of metals such as nickel and copper in Europe. He expressed concerns regarding Finland's chosen taxation policy, hinting that without favorable conditions, the viability of operations like Kevitsa could be threatened, showcasing a broader conflict between environmental policy and economic sustainability in the mining sector.
