As in all other countries, exploration for minerals and metals in Sweden has been hit hard by declining commodity prices in recent years. Still, we find that investing in Swedish mining is attractive due to good physical potential, cheap and easy access to key inputs of energy and infrastructure and stable and reliable regulatory and fiscal regimes.
That said, a trend of rising opposition towards mining and recent court rulings might prove to increase uncertainty and unpredictability of licensing procedures, especially harmful for long term and sunk investments in exploration and mining activities. Over time, failure to secure a pool of prospective mines may negatively affect the otherwise strong cluster of service and tech firms centred on Swedish mining. We suggest looking into incentive schemes for smaller exploration companies to maintain strong position.
For further information, please contact Christian Jervelund