Government grants exploitation concession for Kallak K no 1

The applicant company Jokkmokk Iron Mines AB submitted an application to the Mining Inspectorate of Sweden on 25 April 2013 for an exploitation concession for Kallak K no 1 in Jokkmokk Municipality. The subsequent administrative matter was received by the Government Offices, which has been processing it since 2017. The Geological Survey of Sweden has been aware of the deposit since the mid-1900s, and it is classified as Sweden’s largest known intact quartz-banded iron ore deposit and contains high quality iron ore. There are at present only a few known iron ore deposits left in Sweden that can be classed as economically viable.

An exploitation concession decision mainly determines who has the right to extract the minerals located in the area. The Government has also determined the issue of national interest in the area, which was remitted to the Government by the Chief Mining Inspector.

A concession decision must be accompanied by any conditions that are necessary to protect public interests. The conditions set in this matter are extensive and unique, and must be strictly complied with by the company. They are intended to counteract as far as possible any negative impact on reindeer husbandry.

The company’s application covers areas for mining and areas for installations necessary for operating a mine. The Government considers that the application meets the legal requirements and that it has therefore not been necessary for the company to further supplement or expand its application.

The Government considers that the points made concerning national interests regarding both reindeer husbandry and precious minerals were correct. Reindeer husbandry is an important part of the Sami cultural heritage and is an economic activity. The State has an overall responsibility for ensuring that reindeer husbandry can continue to be part of a thriving Sami culture. This is why the Government is also setting unique and extensive conditions:

1. As regards precautions, protective measures and compensatory measures, the company must use the land in accordance with what is specified in the application, including annexes and supplements, as well as the other commitments made by the company in this matter, in addition to that which is specified in the decision.   
2. Construction work resulting from use of the concession must be done during periods when it has the least possible negative impact on ongoing reindeer husbandry in the surrounding areas. 
3. The concession area must use as little land as possible. As far as possible, impact on reindeer migration routes must be avoided. When using the concession, the company must otherwise ensure the least possible negative impact when migration routes and grazing areas adjacent to the concession are in use. 
4. When using the concession, the additional costs to the Jåhkågasska Tjiellde reindeer herding community resulting from impacts on their ability to use reindeer migration routes and grazing areas must be reimbursed. Compensation will be determined and any disputes concerning compensation examined based on the provisions of the Minerals Act. 
5. If, despite the measures to enable reindeer migration, the Jåhkågasska Tjiellde reindeer herding community needs to use a lorry to transport their reindeer past the concession area, the company must pay for such transport.
6. The company must set up protective fences, dykes or other installations to minimise the risk of accidents involving reindeer in the concession area. The installations must be designed to allow safe crossings for reindeer through or past the concession area. 
7. Each year, the company must prepare a report of the consequences that use of the concession has for reindeer husbandry and present this to the Chief Mining Inspector, the Sami Parliament and the Norrbotten County Administrative Board.
8. The company must regularly consult with the Jåhkågasska Tjiellde, Sirges and Tuorpon reindeer herding communities in order to assess the need for measures and resources to ensure compliance with conditions 1–7, and to otherwise prevent disruptions to reindeer husbandry. Such consultations must be conducted with a view of reaching agreement with the Sami reindeer herding communities and must be documented. The company must present an annual report of the consultations conducted to the Sami Parliament, the Norrbotten County Administrative Board and the Chief Mining Inspector. Following the consultations, the Chief Mining Inspector must determine whether there is any need to change the conditions under Chapter 6, Section 4 of the Minerals Act.
9. When using the concession, the company must engage in dialogue with the Swedish National Heritage Board and the Swedish Environmental Protection Agency to ensure that necessary account is taken of Laponia’s status as a World Heritage Site. 
10. When operations have been completed, the company must ensure that the concession area is restored so that the land can again be used for reindeer husbandry. A post-treatment plan must be drawn up in consultation with the relevant reindeer herding communities at an early stage of the mining operations and updated regularly.   
11. The company must deposit a financial guarantee of SEK 1 000 000 with the Chief Mining Inspector. The guarantee must be deposited no later than when notifying commencement of mining operations under Section 57 of the Minerals Ordinance (1992:285).  
12. Should the applicant intend to use the concession to apply for a permit under the Swedish Environmental Code for mining activities in the concession area, this application must include an in-depth impact assessment carried out in accordance with the principles of the IUCN World Heritage Advice Note on Environmental Assessment, and that has previously been sent to the World Heritage Centre of the United Nations Educational, Scientific and Cultural Organisation.

Now that the exploitation concession has been granted, the company must apply for an environmental permit from the Land and Environment Court. Following that, examinations under the Planning and Building Act, land allocation under the Minerals Act, and other permits, for example under the Roads Act, must still be sought before a mine can be opened.