State ready to discuss financing of Sokli mine rail transport connections

On Tuesday 25 November, the Cabinet Committee on Economic Policy discussed the State's participation in the financing of the Sokli mine transport investments. The Cabinet Committee informed that the State was ready to start negotiations on the Sokli mine transport investments so that the mine could start its operations in 2020.

A Norwegian company, Yara International Asa, is planning to open a phosphate mine in Sokli, Eastern Lapland. The phosphate would go through beneficiation in Sokli and then be transported to Norway for further refinement via the harbours on the Bay of Bothnia.

The Cabinet Committee on Economic Policy stated that the possible opening of the Sokli mine would create a considerable number of new jobs in Eastern Lapland. In addition, the fees and taxes paid by the mine to the State would cover the State's investment expenses.

With regard to the Sokli mine transport connections, the Cabinet Committee decided to support a direct rail transport link. Direct rail transport would enable long-term operation and provide, in terms of transport economy, a less expensive alternative than transport on road and rail. Rail transport would be a better alternative also as concerns the local people and the environment.

Preparations of the direct railway connection will continue. The State will open discussions with Yara mining company without delay. The starting point is that the State's share of the railway investment's total expenses would be less than 50 per cent.

Inquiries: Mikael Nyberg, Senior Government Adviser, tel. +358 295 342 474 and Juuso Rönnholm, Special Adviser, tel. +358 295 342 325, Ministry of Transport and Communications