Upper Norrland is a key mining region, both at the national and European levels, and has a number of competitive advantages to become a global leader in environmentally sustainable mining. It is Sweden’s most northern region, concentrating 9 out of 12 active mines and providing 90% of the iron ore produced in Europe. Upper Norrland includes two sub-regions at Territorial Level 3 (TL3), Västerbotten and Norrbotten. The former is more densely populated (4.8 inhabitants per km² against 2.6 in Norrbotten) and has a more diversified economy, while Norrbotten is larger (covering 64% of Upper Norrland) and more specialised in mining. The study confirms a number of competitive advantages in Upper Norrland. They include a strong innovation ecosystem with companies at the frontier of environmentally sustainable mining, working closely with research centres and universities, a highly skilled labour force (36% with tertiary education), reliable and green energy infrastructure and high broadband coverage (99% of households connected to broadband).
Upper Norrland can play a key role in the EU’s self-sufficiency strategy of raw materials and global environmental agendas while raising national and regional well-being. The region’s bedrock has a high potential of rare minerals, which are needed for the clean energy transition, and concentrates the largest, non-exploited mineral reserves in the country. Upper Norrland’s mining ecosystem is well placed to meet increasing global demand for high environmental standards in mining operations, as well as for unlocking new opportunities for regional economic development and attractiveness. To this end, Sweden’s policy framework goes in the right direction, by promoting innovation in the mining sector as a vehicle to boost economic growth and accelerate the transition towards a zero-carbon economy.
However, the region must also overcome various bottlenecks to enhance well-being and attain sustainable regional development linked to mining. The region struggles with a shrinking workforce driven by youth outmigration (especially women) and low retention of migrants, a low interaction of municipalities and small businesses with the innovation process of large firms and universities, and low entrepreneurship culture. Furthermore, regional development objectives are not sufficiently linked to land use planning and there is a need to improve training programmes to prepare the workforce for future technological changes and better include young people, especially women, in value-added activities (i.e. in mining and the service sector).
At the national level, the policy framework lacks a strong regional lens and a coherent vision of how mining development can create regional well-being. Sweden’s mineral strategy expires in 2020 and could benefit from greater clarity on the instruments that can mobilise the potential of the local mining ecosystem and implement value creation mechanisms for local communities. Furthermore, the study finds that Sweden’s regulatory framework for mining permits is complex and would benefit from reducing delays, as well as uncertainty on the scope of permit applications. The regulatory framework can also better integrate socio-economic and cultural aspects as well as combined impacts of past, present and future activities of mining into decision-making. Finally, the dialogue and consultation processes for mining development, especially in relation to the Sami people, can further improve trust in the system.