Boliden halts expansion of Lapland copper and nickel mine
A planned €1 billion investment in northern Finland has been put in doubt after the government sharply increased mining taxes on metal ores from 0.6% to 2.5%.
Swedish mining company Boliden said its subsidiary Boliden Kevitsa has launched change negotiations that could affect up to 285 employees as it reviews operations at the Kevitsa open-pit mine, north of Sodankylä in Lapland, Finland.
“Due to the quadrupling of the mining tax in Finland, Boliden Kevitsa has called for change negotiations in preparation for possible operational changes,” the company said in a statement.
The Kevitsa operation, which produces nickel and copper, is one of the largest mines of its kind in Europe.
Boliden said it was “deeply concerned” by the Finnish government’s decision earlier this year to raise the tax on metal ores. The levy is calculated based on the taxable value of the metal, derived from international market prices.
“We believe the mining of metals such as nickel and copper should be safeguarded in Europe through competitive long-term business conditions,” said Tom Söderman, general manager of Boliden Kevitsa.
“Unfortunately, Finland appears to have chosen a path that creates challenges for the capital-intensive mining industry. Contractors are also likely to be negatively affected by this development.”
The company added that the tax increase has forced it to put on hold a planned €1 billion investment aimed at extending operations at Kevitsa beyond 2034.
Boliden reported profits of 9.4 billion Swedish kronor (€879 million) in 2025, representing a net profit margin of around 10%.
