Assessment
Sweden needs to update the national mining strategy and better connect it with regional development strategies. In doing so, Sweden can become a global leader in environmentally sustainable mining and play a key role in the global agenda of energy transition and in the European Union (EU) self-sufficiency strategy of raw materials supply. Such environmental and self-sufficiency agendas might gain more relevance in the aftermath of the coronavirus pandemic. 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 to a zero-carbon economy. However, the national policy framework lacks clarity on the role of mining in the future development of Swedish regions, on the measures to mobilise the potential of the local mining ecosystems and on the benefit-sharing mechanisms for local communities.
Upper Norrland has currently a number of competitive advantages to become a global leader in environmentally sustainable mining. They include a pool of frontier companies on mining technology that work in collaboration with universities and research centres, a low-cost and reliable green energy supply and a skilled labour force. To unleash the potential of its assets, Upper Norrland needs to connect municipalities with the innovation process of firms and universities, boost the innovation capacity of small- and medium-sized enterprises (SMEs) and entrepreneurship culture, and strengthen the implementation of a broad innovation strategy.
Upper Norrland needs to strengthen its business ecosystem to further diversify the economy and support a sustainable future for people and local businesses. This process requires addressing the shrinking labour force and the outmigration of young people, improving co-ordination among municipalities to support business and employment, and enhancing training and education programmes to prepare the workforce for technological changes and further include women in value-added activities.
Upper Norrland can improve internal and external co-operation to consolidate its vision of development and support global environmental agendas. For this, Västerbotten and Norrbotten need to improve the co-ordination of their development strategies and agree on a regional branding and a unified strategy for international co-operation to support the EU and Arctic environmental goals.
Recommendations
Strengthen and update Sweden’s policy framework to become a lead country in sustainable mining. For this, the national government should:
Define a long-term vision to clarify the role of mining for regional development and support environmentally sustainable mining processes and technologies within the National Strategy for Sustainable Regional Growth, the Swedish Innovation Strategy and Sweden’s Mineral Strategy.
Update the National Mineral Strategy to incorporate the local strategies around mining.
This involves clarifying the role of regions and municipalities in the implementation of the strategy, mobilising the potential of small businesses in mining value chains and helping prepare regions to face global megatrends. The Canada Minerals and Metals Plan is a good example of a national plan that involves both national and regional governments in strategic actions.
Identify mechanisms to help mining regions capture greater value from ongoing and planned mining ventures. It involves evaluating possible monetary and non-monetary benefit-sharing mechanism for mining communities and the framework to make the most out of them.
Strengthen the brand name of Sweden’s mining ecosystem to consolidate it internationally as a “sustainable mining” trademark. This involves creating a single platform to consolidate and diffuse information on national and local mining ecosystems as well as provide advisory services and networking activities.
Enhance the innovation ecosystem in Upper Norrland to become a global leader in environmentally sustainable mining. For this, the regional councils of Västerbotten and Norrbotten should:
Strengthen the integration of municipal governments in the innovation process of universities and mining firms by:
o Formalising co-operation between municipal governments and mining companies around innovation projects. This can be done through formal meetings open to local businesses, research institutions and non-mining and mining municipalities.
o Promoting a formal collaboration among universities and regional and municipal development strategies to improve the innovation capacity of municipal governments. The regional councils can learn from the partnership of Karlstad University and Region Värmland.
Enhance entrepreneurship culture and the innovation capacity of mining suppliers and SMEs by:
o Strengthening the mechanisms to involve suppliers and SMEs in the innovation process of mining firms, especially concerning the transition to environmentally friendly practices. This includes collaborating with the large mining firms in the value chain (from producers to manufacturing) to lift standards and innovation of mining suppliers and associated SMEs. The example of the BHP Billiton accelerator programme for suppliers in Chile can be a guiding practice.
o Boosting entrepreneurship culture and micro companies’ participation in innovation systems. This involves including an entrepreneurial angle to the education and training programmes for the young and working-age population as well as providing insurance support to entrepreneurs, with targeted programmes for women. Furthermore, the ongoing collaboration with universities needs to be expanded to engage smaller firms through training (i.e. personal counselling) and access to universities’ research equipment and staff for business needs.
Reinforce the implementation of smart specialisation strategies by:
o Developing an institutionalised platform for dialogue to monitor the implementation of the strategy and ensure the continuous engagement of all actors. This platform should follow a cluster approach to channel funding for and implement strategies that connect mining innovation with other economic activities. This can follow the model of Georange by expanding it to other sectors and get inspiration from the Lapland approach.
o Leveraging European funds to align municipalities, universities and local businesses with the innovation strategy. This should involve a co-ordinated approach to apply for these funds and to realise policy complementarities among different levels of governments of Upper Norrland.
Strengthen the local business environment to make the most of mining and diversify the economy. For this, both regional councils and municipal governments should:
Develop an institutional body to promote and oversee co-operation among municipalities. This can be done through an institutional body within the regional council or the creation of an inter-municipal development agency, and should centralise economic information, co-ordinate municipal strategies and advise local businesses. Business Joensuu, in North Karelia, Finland, represents a guiding example for this type of structure.
Accelerate the attraction and integration of skilled migrants through better collaboration among municipalities and other regional actors. This should involve enhancing job-matching services and exchange of information on migrants’ skills among municipal governments as well as promoting further partnerships between migrant organisations, unions and businesses. Joint programmes with universities, an industrial PhD programme for example, can retain young people – especially women – and increase attraction of new residents.
Improve training and education programmes to prepare the workforce for technological changes and further include women in value-added activities. This should be done through joint work with mining companies and universities to align vocational education and training (VET) programmes with future industry needs, provide targeted grants for training to workers in jobs at risk of automation (individual training accounts) and leverage technological changes to involve women in mining value-added activities.
Foment internal and external co-operation to consolidate Upper Norrland’s vision of development and support global environmental agendas. For this, both regional councils should:
Define a common vision and brand for mining development in Västerbotten and Norrbotten. This should capitalise in the existing platform Georange to develop a clear regional branding and strengthen international visibility by promoting the mining industry as a green and high technology industry.
Co-ordinate Västerbotten and Norrbotten regional development strategies to develop and internationalise technologies and practices for a carbon-free mining value chain.
This can be materialised through shared flagship projects that unlock synergies among ongoing local initiatives and actors, and attract funding from EU funds and external partners. Georange and the planned battery hub in Skellefteå can trigger such co-ordination.
Take a lead role in EU mining networks and Arctic co-operation to promote the benefits of the carbon-free mining value chain for global environmental agendas. This involves enhancing its participation in international networks and increasing knowledge exchange with other Arctic regions, EU official and environmental actors to position sustainable mining processes as a relevant mechanism to support the EU and Arctic agenda for environmental transition and the EU agenda for self-sufficiency in raw materials.
Introduction
As depicted in Chapter 2, the TL2 region of Upper Norrland is an important economic engine for Sweden and a key player in the national and international mining production. In the short term, the region will face the effects of global slowdown associated with the COVID-19 pandemic, which has particularly affected mining regions (Chapter 2). In the medium and long terms, global megatrends, including demographic change, automation and a transition to a zero-carbon economy, will shape a new future for the mining industry and in turn for the development of the region. Further, the aftermath of this coronavirus crisis can bring new opportunities for Upper Norrland, linked to a renovated global interest to increase self-sufficiency on strategic sectors (i.e. raw materials) and accelerate the transition towards a zero-carbon economy.
To seize the benefits of this future, Upper Norrland needs to mobilise its mining ecosystem and unlock opportunities for a more diversified economy. These strengths include an innovative ecosystem of frontier mining and manufacturing companies that work in co-operation with universities, an enabling infrastructure with low-cost green energy and high-quality broadband coverage, and a skilled labour force.
Nevertheless, Upper Norrland faces a number of bottlenecks in the realisation of its potential and in attaining sustainable growth for people and local businesses. They include a shrinking labour force with outmigration of young women, a lack of co-ordination among municipalities to support local business and employment, challenges for SMEs development and complex framework for mining permits (Chapter 4).
The purpose of this chapter is to identify policy recommendations to realise the potential of Upper Norrland’s mining ecosystem and support a sustainable future for local communities and businesses. The chapter confirms that Upper Norrland is well equipped to become an international leader in environmentally sustainable mining and, thus, along with Sweden, play a key role in global environmental agendas and the EU self-sufficiency strategy of raw materials supply. To this end, Sweden needs to update the national mineral strategy, while the two TL3 regions of Upper Norrland, Västerbotten and Norrbotten, need to strengthen the innovation ecosystem, improve the local business environment and enhance internal and external co-operation to consolidate a unified regional vision on mining development.
This chapter begins with an overview of Sweden’s policy framework relevant to mining development. It then assesses the status of the mining ecosystem in Upper Norrland, identifying its strengths and weakness and its role for economic development and well-being. Finally, it examines the enabling factors for development in Upper Norrland, particularly the innovation ecosystem and set of policies to unleash Upper Norrland’s potential for sustainable development.