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Boliden's Statement on Proposed Tax Changes in Finland

On August 18, 2025, Boliden AB, a leading mining and metals company, issued a statement addressing the Finnish government's recent proposals concerning changes in tax levels for mining and related energy activities. This announcement is particularly significant for Boliden, as it may dramatically impact its operations in Finland, specifically at the Kevitsa copper and nickel mine.

Overview of Tax Proposals

The Finnish government has suggested new tax levels that would notably increase the financial burden on mining operations. Boliden's estimates indicate that these changes could lead to an annual cost increase of between €20 million to €30 million for their Kevitsa mine. A significant portion of these increased costs would result from a substantial four-fold hike in the recently established Finnish mining tax.

In its response to the proposed switch, Boliden has emphasized that this move could have far-reaching implications not just for their operations but also for the investment climate in Finland and the broader European raw materials supply chain. It is important to note that both copper and nickel, alongside other essential metals such as cobalt and platinum group metals (PGMs) mined at Kevitsa, have been classified as critical metals by the European Union.

Issues with the Current Proposal

Boliden has raised critical concerns about the lack of thorough groundwork behind the Finnish government’s proposals. The company claims that the proposals have not undergone appropriate impact assessments, questioning their preparedness and viability. As such, Boliden advocates for a complete withdrawal of the current proposals. Klas Nilsson, Boliden's Director of Group Communications, highlighted the need for responsible taxation policies that not only support environmental and social governance goals but also foster a healthy business environment conducive to investments and sustainable development.

Implications for the Mining Sector

This proposed tax change reflects a broader trend within Finland and Europe of increasing regulatory scrutiny and cost burdens on the mining industry. While governments may view increased taxes as a way to generate revenue, such measures can deter investment in essential mining operations, which are pivotal for securing the materials necessary for future technological advancements and energy transitions.

Moreover, in a time of escalating global demand for critical metals, the minerals sourced from Finnish mines like Kevitsa are vital for various industries, from electronics to renewable energy. Therefore, the impact of such tax increases could resonate across the supply chain, affecting not only producers like Boliden but also customers and end-users who rely on these resources.

Conclusion

Boliden's statement regarding Finland's tax proposals is a wake-up call for policymakers. By signaling the potential adverse effects on both the company and the wider mining sector, Boliden underscores the need for balanced fiscal approaches that do not compromise economic viability for environmental objectives. Moving forward, it will be essential for all stakeholders to engage in constructive dialogue to ensure the health of Finland's mining economy and its contributions to the EU’s targets for critical raw materials.

For additional inquiries, please refer to Boliden’s communication team at [email protected].