Kaunis Iron looks ahead to future mining operations in Tornedalen

There is a clear and shared conviction within Kaunis Iron, from the board to management, that mining will continue in Tornedalen in the future. Ahead of next week’s anticipated court ruling on the company’s environmental permit for existing and planned mining operations, Kaunis Iron emphasizes that its vision for a long-term operation rooted in the local community, creating value for Norrbotten and contributing to the development of society in Pajala, remains unchanged.

“We believe in this place, in the people here, and in the future of a sustainable mining industry in Tornedalen. Regardless of the verdict, we will continue to work purposefully to build on what we’ve started,” says Hans Djurberg, Head of Sustainability at Kaunis Iron.

The permit determines the pace, but not the direction
Kaunis Iron is in a critical development phase, where new deposits such as Sahavaara and Palotieva have the potential to create significant value both locally and in meeting Europe’s need for sustainably produced iron ore.

A decision from the Land and Environment Court of Appeal to grant a permit for expanded mining operations would, of course, be an important step – but it is not the whole solution. Even with a favorable court decision, the ruling must become legally binding, and the market conditions must support investments before new open pits can be developed. Meanwhile, mining production in Tapuli is continuing as planned until the end of December 2027.

“The original plan was to offset a decline in production in Tapuli with the start-up of new deposits. But this requires both the right market conditions and a permit. The longer the permitting process is delayed, the higher the risk of a temporary halt in mining operations before new deposits can be brought online. The current situation, awaiting a decision, creates a period of uncertainty that affects our long-term planning, our employees, and the local community,” says Djurberg.

A part of Europe’s sustainable future
The iron ore industry is cyclical, and market conditions are currently challenging. At the same time, Kaunis Iron has a stable foundation. The measures implemented during autumn 2024 have strengthened the company’s resilience for the future. 
In the longer term, the need for sustainably produced iron ore is greater than ever. Europe’s ambition to increase its self-sufficiency requires a high-quality raw material, and Kaunis Iron has the resources, the expertise, and the commitment to contribute.

“This is not just about our operations, but about a broader transition in which we play an important role – to contribute long-term to that work,” says Hans Djurberg.