Boliden to shut Kevitsa mine in 2034, cutting nearly 80 jobs immediately

Swedish mining company Boliden will close its Kevitsa nickel-copper mine in Sodankylä, northern Finland, in 2034 and scrap a planned €1 billion expansion, citing tighter mining taxes among the reasons for the decision. The company will also lay off 77 employees and alter the contracts of 128 others with immediate effect, Yle reports.

Sodankylä municipal director Jari Rantapelkonen called the move a severe blow to the region’s future viability, warning that the job losses would shrink local tax revenues by hundreds of thousands of euros. “This is terrible news for people here,” he told Yle, adding that the decision was not entirely unexpected but still devastating.

Local reactions ranged from skepticism to cautious optimism. Juha Alatalo, owner of a service station near the mine, said the area “doesn’t need any more unemployed people.” Resident Paavo Ojuva blamed the government’s tax hikes for the closure, while Vesa Suomalainen speculated that the announcement might be a tactical maneuver by mining firms to pressure authorities.

Geologist Loraine Berthet, a Boliden employee who relocated from France, said the new mineral tax—levied on all extracted material regardless of profitability—created unpredictability. “Mining strategies are long-term. If rules change mid-operation, a profitable project can turn unviable,” she explained.

Analyst Atte Jortikka of Inderes downplayed the tax’s role, noting that commodity price forecasts and ore quality were more critical. While the hike was “clearly negative,” he said efficient mines could absorb it, though marginal operations might see shortened lifespans. Internationally, he added, Finland’s new rate was not exceptionally high, though comparisons were difficult due to differing tax structures.

Some locals, like Sari Mattanen, supported higher mining taxes, arguing that firms “take so much from the land.” She believed Sodankylä would adapt, pointing to growth in tourism and defense-sector jobs as potential buffers.

The Kevitsa mine currently employs over 500 people.