Lapland mines face sharp job cuts as Sodankylä hit hardest

The mining sector in Finnish Lapland is experiencing a wave of layoffs, with Boliden’s Kevitsa nickel and copper mine in Sodankylä threatening to cut up to 285 jobs, Yle reports. The municipality of 8,000 relies heavily on mining wages and tax revenue, making the potential losses a severe blow to local finances.

The layoffs follow recent cuts at other Lapland mines, including 33 jobs lost at the Kittilä gold mine in November and over 100 reductions at Outokumpu’s Tornio steel mill and Kemi chrome mine in December. At Kevitsa, workers like Pasi Alaraudanjoki—who moved to Sodankylä 13 years ago for mining work—face uncertainty despite his relatively secure position as a shop steward. “The mine brought stability to my life. I fixed my finances and built a house,” he said. “Now, no one knows if layoffs will happen or how things will turn out.”

Sodankylä’s municipal director, Jari Rantapelkonen, called Kevitsa “infinitely important” to the community, noting its direct and indirect employment impact. Last year, worker wages contributed roughly €1 million in municipal tax revenue—a figure set to drop sharply if layoffs proceed. The mine also paid €4.4 million in mineral taxes in 2024, though a recent government hike in mining taxes (quadrupled this year) has exacerbated financial pressures alongside cheap Chinese nickel imports and rising electricity costs.

Industry group Kaivosteollisuus ry warns the tax increases deter investment, while environmental groups had supported the hikes. A proposed “hybrid” tax model—tying levies to profitability rather than extraction volume—was mandated by parliament’s finance committee but remains unstalled, according to the Ministry of Finance. Without reform, analysts fear further job losses across Finland’s struggling mining sector.

Tags: mining, Finland, layoffs