Economic value of the Swedish Mining Cluster – Today and in the future

Metals are everywhere. We use them increasingly in our everyday life, e.g., for communication and transportation.  Yet, mining tends to be a low interest area from a political point of view. Sweden has an important mining industry, which by working closely together with specialised suppliers, industrial partners and customers in e.g. steel manufacturing, has formed an entire ecosystem around it, also known as “the Swedish mining cluster”.

Copenhagen Economics A/S has been commissioned by Svemin, the Swedish association of mines, minerals and metal producers, to analyse:

• The economic value of the Swedish mining cluster to society
• The future opportunities and potential offered by the mining cluster

We start by defining the Swedish mining cluster, as no official definition exists. Based on input-output modelling and interviews with key stakeholders we estimate its economic contributions to society. Further, we outline the future potentials offered by the mining cluster, as well as barriers which must be overcome.

Specifically, we find that:

• Sweden is an important mining nation in Europe and produces more than 90% of all iron ore in Europe, but also a range of other metals such as zinc, lead and precious metals. Sweden thereby plays a key role in increasing self-sufficiency in raw materials in the EU and ensuring a sufficient supply of metals for the green transition.
• The Swedish mining cluster makes up 3% of the annual Swedish GDP and supports between 100,000-125,000 jobs and around 8% of the total Swedish exports. In addition, the mining cluster is a significant driver of investment both nationally and regionally.
• Mining is part of the transition towards a low-carbon future and Sweden is home to many promising projects – from mining and recycling of mine waste to technology development projects at the research frontier. However, framework conditions and technology represent barriers that must be addressed to help these projects mature and materialise to unlock their economic and environmental potential.