Siv Wiik and Harriet Svensson were hunting for blueberries outside their village of Överturingen on the day they discovered one of the potentially richest gold deposits ever found in Sweden. The two women are negotiating for a contract with Hansa Resources — one of 20 or so firms bidding for mining rights in the area, considered one of the richest gold fields in Europe.

Gold in Sweden is normally found with modern equipment, huge investment capital and patience. It is more rare to come across it while picking blueberries. Photo: Susanne Björkman/Folio and Hussain H. Kabani/www.imagebank.sweden.se

Blueberries to gold

The attention Wiik and Svensson’s discovery has received reflects the growing international interest in prospecting for gold in northern Sweden, which experienced its first gold rush in the 1920s with the establishment of mines such as Boliden (in operation from 1924 to 1967).

Although the Swedish gold industry is relatively small from an international perspective, recent discoveries indicate major possibilities. Karl-Åke Johansson, CEO of Lappland Goldminers AB, says: “Internationally, Sweden is considered to be underexplored despite the fact that we have such a long mining history.”

New boom for old mining town

Lappland Goldminers is based in Lyckelse, a town with a population of about 9,000, in the Swedish province of Västerbotten. The company plans to open Fäboliden, the second new mine in the Gold Line — an area that has been actively explored for about 15 years. Australian company Dragon Mining opened the first mine in 2004.

Sven Roosqvist, head of industry and business for the municipality of Lycksele, says: “Since the mine at Svartliden opened in 2004, the interest in this region has exploded. We’re seeing a lot of international capital, which we’ve never had before.”

The number of international companies descending on the region has also created an opportunity for local entrepreneurship. Anders Brundin, a former manager at Dragon Mining, started Laponia Laboratories in 2006 along with Torbjörn Ylven. Previously, samples have had to be sent abroad for testing, which could take up to a month. This autumn, prospecting companies will be able to receive results with a much shorter turnaround thanks to the local high-tech lab.

“Prospecting is increasing rapidly and there is a clear national market for this [testing service],” Brundin says.  

Ore is stockpiled before being transported to a refinery. The discovery of gold fields in the north of Sweden has already had a ripple effect on business in the greater region. Photo: Dragon Mining 

Gold mining means new jobs and new businesses, and the new mines will hopefully create a huge boost for the region, which has experienced negative population growth for the last two decades. A study done by the Centre for Regional Science (CERUM) at Umeå University estimates that the Svartliden and Fäboliden mines will create over 2,000 new jobs in Lycksele, with a spin-off effect of almost 1,500 positions in the service sector.

International capital and local expertise

In nearby Skellefteå, the gold mining industry is also experiencing an upswing. One company that already has invested close to SEK 60 million (USD 10 million) in the region is Gold-Ore Resources Ltd from Canada. Its major project is exploration at Björkdal, where there has been an active gold mine since the early 1980s. However, the current reserves have been depleted.

Gold-Ore president Robert Wasylyshyn says: “We’ve exposed a lot of new veins underground and in tunnels, and we’re just beginning to mine them.”

He thinks the existing infrastructure made Björkdal a particularly attractive investment. “There was already an operating plant here,” he says. “There was a very efficient team of people working here. All of the permits were in place and the machines were in good shape, they just didn’t have any new veins to mine.

Västerbotten province in the north of Sweden has a wealth of ore below its stunning landscape. Photo: Dragon Mining

“Västerbotten is blessed with a very mining-friendly community and it has a lot of mining and hydroelectricity-related infrastructure. It’s very well positioned for a mining resurgence. This region is one of the world’s best kept secrets in terms of gold mining.” 

Look and you will find

Johansson of Lappland Goldminers concurs. “The long-term perspective is quite good,” he says. “As long as you just spend more money on exploration and develop your properties, then I think you can go on forever, but if you don’t look for it, you’re not going to find it. We expect to be here for the duration.”

For towns like Lycksele, the goal will be to take advantage of the regional development opportunities created by the new mines, as well as ensure they meet stringent environmental requirements.

Roosqvist has a positive outlook, and says: “We are very optimistic, but we still haven’t seen the real boom.”

Charlotte West

Charlotte West is a 27-year-old American writer living in Stockholm. She’s hoping to strike gold the next time she goes blueberry picking.