This chapter explores the role of mining in ten European Union (EU) regions, analysing the key assets and challenges of their regional mining ecosystems across economic, social and environmental dimensions. By comparing to OECD benchmarks, the chapter highlights the main priorities of these mining regions to support Europe’s green transition and ensure a reliable supply of mineral raw materials.
Enhancing Regional Mining Ecosystems in the European Union

2. Strengths and challenges in EU mining regions
Copy link to 2. Strengths and challenges in EU mining regionsAbstract
Main findings
Copy link to Main findingsThe ten regions selected for this study have different assets and strengths along the mining value chain. In all of them, mining has played a role in shaping their economies and some of the social characteristics of their communities.
Economic
Most the European Union (EU) mining regions analysed as well as those in Europe have a predominantly rural profile, facing common structural challenges linked to distance to markets and low population density, including economic diversification, demographic change and service provision. Examples include Kainuu, Lapland and North Karelia in Finland, with population densities ranging from 2 to 9 people per square kilometre (km²), among the lowest in the OECD.
The economic relevance of mining varies widely across the ten EU regions. In four of them, mining represents a limited share of regional activity, either because they host a single metallic mining project concentrated in one municipality (e.g. Centro in Portugal, Örebro in Sweden), the link to mining is through research and technology (e.g. Oulu, Finland) or the project is still in its development phase (e.g. Central Ostrobothnia, Finland). In contrast, in the other regions, mining plays a more prominent role in the regional economy and employment. It is the largest direct employer in Kainuu and contributes around 4% of regional gross domestic product (GDP) in Andalusia, Spain.
The impact of mining is highly significant at the municipal level. In the municipalities that host mining projects, the sector is by far the main employer and income source, as observed in Sotkamo (Kainuu), Kittilä (Lapland), Aljustrel and Castro Verde (Alentejo, Portugal) or Boeotiain and Fokida (Central Greece). In these rural municipalities, mining has helped build resilience in the local economy.
GDP per capita in the ten selected EU mining regions grew by approximately 6% between 2005 and 2020, below the OECD rural average (+12.9%) and slightly below the OECD mining regions benchmark (+8%). By 2020, seven of the ten regions had GDP per capita levels above the OECD rural average. While only Alentejo exceeded its national GDP per capita average, 3 regions recorded faster growth than their respective countries: Kainuu (+28%), Central Ostrobothnia (+25%) and Lapland (+20%) compared to Finland (+6%).
The mining and quarrying sector has a relatively high productivity rate but represents a limited share of direct employment in the European Union. The sector employs 0.12% of the total EU workforce in 2022 (250 000 people) and represents about 0.4% of the EU GDP. Metal ore mining’s productivity is almost 2.4 times the EU average, while non-metallic mining is 1.15 times above the EU average. Metal ore mining accounts for a smaller share of employment (20%) but generates around half of the sector’s value-added. Regions with important presence of non-metallic mining (Alentejo, Andalusia and Centro) have a greater share of workers, especially in rural areas, linked to the mining economy but often in less value-added jobs than in areas with metallic mining.
Mining’s impact on jobs extends well beyond the people directly employed at mine sites. In EU mining regions, each direct mining job is estimated to support at least one additional job in the wider economy. Mining employment can be a source of resilience in local economies, offering relatively high wages and formal employment for residents in rural municipalities.
Infrastructure associated with mining – such as transport links and energy grids – can benefit broader regional development. However, the scalability of these investments is often limited once mining projects decline or end, making long-term planning for infrastructure use a key challenge.
Measuring mining impact is complex. Mining accounts for up to 30-35% of regional turnover or exports in some EU regions, but its economic spillovers are difficult to isolate at the subnational level. A limitation of this study is that many impacts are highly localised and may not be well captured in standard regional statistics (e.g. at TL2 or TL3 level1).
Social
The ten mining regions experienced an average population decline of -6% between 2005 and 2022, compared with +3.5% in the rural average OECD region. However, several mining municipalities have shown population growth or stability, particularly where mining is integrated with other economic activities or supported by local services. For example, Kittilä (+7%) (Lapland), Kokkola (+4%) (Central Ostrobothnia), and Kumla (+13.7%) (Örebro) have registered growth illustrating that mining can help anchor population in rural areas.
All regions report difficulties in filling skilled positions and skills mismatch. Companies struggle to recruit qualified personnel – particularly engineers, geologists and technicians – indicating a mismatch between training supply and industry demand. On average across the 10 regions, more than 20% of workers are in roles that do not fully utilise their skills, with Andalusia reporting a mismatch of 25.4%. This is above the OECD average of 18.5%. Strengthening adult learning and technical education could improve workforce alignment.
Women remain under-represented in the mining workforce (around 13% in the European Union). Three of the ten regions (Kainuu, Örebro and Oulu) have male-majority working-age populations, while others (like Alentejo and Centro) count more women overall. Yet those broader demographics rarely translate into higher female participation in extraction jobs, reflecting persistent structural and cultural barriers.
Social acceptance of mining varies across and within regions. It is generally higher in areas where mining brings visible local benefits and is perceived as part of community identity. Where environmental concerns are not well addressed or benefits are perceived as uneven, opposition tends to be stronger.
Environmental
All ten mining regions benefit from relatively low-carbon energy systems compared to typical mining areas. Their average carbon intensity of electricity generation is around 30% lower than the OECD Mining Regions Benchmark and significantly below the overall OECD average. This is due to a high share of renewables – such as hydropower, wind and solar – especially in Finland, Portugal and Sweden, and, in some cases, the contribution of low-carbon sources like nuclear energy.
Water management is a challenge in regions facing scarcity or competing water uses. In arid areas (e.g. Central Greece, southern Spain), mining adds pressure to already stressed hydrological systems, especially during drought years.
Mining waste accounts for a substantial share of national waste production. In Finland and Sweden, over 75% of total waste comes from extractive activities, reflecting the high material intensity of mining relative to other sectors.
Progress on circular economy practices is uneven. While some regions and companies are reprocessing tailings, reusing byproducts in construction or extracting secondary materials, in most cases, the reuse rate remains low. For example, in Finland, only 7.5% of mineral waste is recovered, compared to higher recycling rates in other sectors.
Introduction
Copy link to IntroductionMining is a unique economic sector, bound to the location of mineral deposits, and significantly shapes economic, social and environmental dynamics at the regional level. Mining regions therefore play a strategic role in supporting Europe’s green transition and the European Union’s goals for strategic autonomy in raw materials. Regional conditions – such as available skills, infrastructure and governance frameworks – influence the feasibility of mining projects and their impacts on communities and the environment. In this report, these regional conditions are referred to as the mining ecosystem, meaning all the elements at the regional level needed to leverage mining for local growth and well-being. Recognising the interdependencies within mining ecosystems is essential for effective policy design. Key characteristics of these ecosystems include:
Economic reliance on mining activities: Many mining regions depend on mineral extraction and processing as key economic drivers.
Demographic and labour market pressures: Regions often face skills mismatches, demographic decline and ageing populations, challenging the local labour supply.
Environmental externalities: Mining activities entail land-use changes, emissions and waste, creating high exposure to environmental pressures at the local level.
A snapshot of the ten selected EU mining regions
Enhancing the regional conditions to support more sustainable mining projects has become a priority to attain EU’s green and digital transitions. These regional conditions are referred to in this report as the mining ecosystem, which involves all of the different elements at the regional level that are needed to leverage mining for regional growth and well-being.
The ten regions selected for this study – spanning Finland, Greece, Portugal, Spain and Sweden – reflect the diversity of Europe’s mining ecosystems. These regions have different assets and strengths along the mining value chain. In all of them, mining has historically played a role in shaping their economies and some of the social characteristics of their communities. All ten regions have important geological deposits and strengths in different stages of the mining value chain. Some regions host large mining operations that are relevant to the EU mineral supply (Alentejo, Andalusia, Central Greece, Kainuu and Lapland), while others have top research and education hubs for mineral processing and services (North Karelia, Örebro and Oulu). Other regions have relevant non-metallic mining activities that have shaped their rural communities (Andalusia, Centro Portugal) and industrial hubs to integrate mineral extraction with final materials needed for the green technologies (Andalusia, Central Ostrobothnia, Lapland).
The chapter is structured around three dimensions. First, it examines the economic characteristics of mining regions, including their contribution to value-added and employment. Second, it explores key social trends, such as demographic change, labour market challenges and community dynamics. Third, it analyses the environmental pressures and resource management issues associated with mining activities.
The role of EU mining regions in the raw materials value chain
Copy link to The role of EU mining regions in the raw materials value chainMining regions play a fundamental role in ensuring EU access to essential minerals, contributing to various stages of the value chain, from upstream exploration to midstream processing and downstream applications in clean energy technologies. Their importance extends beyond extraction, as they also host innovation hubs, processing facilities and circular economy initiatives that support industrial modernisation. The diversity of resources across regions strengthens the European Union’s mineral self-sufficiency, particularly for materials critical to the green and digital transitions.
Figure 2.1. The 10 selected EU mining regions in the mining value chain
Copy link to Figure 2.1. The 10 selected EU mining regions in the mining value chain
These mining regions differ widely in their demographic, economic and environmental profiles, influencing their role in the raw materials value chain (Table 2.1). Population density varies significantly, with Kainuu (approximately 3.5 inhabitants per km²) and Lapland (approx. 1.8) among the most sparsely populated regions, contrasting with more densely populated areas like Central Greece approximately 35 inhabitants/km²) and Örebro (approx. 36). The extent of land coverage also differs, with regions such as Alentejo and Lapland spanning large portions of their national territory, whereas Central Ostrobothnia and Örebro are smaller but more industrialised. This variation affects infrastructure, workforce availability and the spatial organisation of mining activities. The economic composition of these regions also reflects their different roles in the mining sector. While tourism is an important driver in Andalusia and Lapland, regions like Central Greece and Örebro have a stronger industrial base. Renewable energy is particularly relevant in Kainuu which integrates mining with bioenergy (e.g. Kajaani’s biomass power plant) and hydropower (e.g. hydroelectric dams on Oulujoki River), while North Karelia relies on forestry as part of its economic model. Mining contributes directly to regional GDP at different scales, with some regions relying more on extraction and others focusing on processing and value-added activities.
The extent of protected areas also varies, influencing how mining coexists with conservation priorities. Alentejo and Lapland host some of the largest shares of protected land, requiring careful land-use planning. In contrast, regions like Central Greece and Örebro have smaller protected areas, which can provide more flexibility for mining expansion but still require adherence to sustainability regulations.
However, challenges remain, particularly in navigating permitting processes, which affect regions like Andalusia and Central Greece, where project approvals can be delayed, slowing down investment and modernisation efforts. Addressing these bottlenecks through streamlined governance frameworks is essential for unlocking the potential of these regions. Similarly, promoting circular economy practices, such as waste recovery and enhanced resource efficiency, could further enhance resilience across the value chain. The EU Critical Raw Materials Act (CRMA) provides a framework for overcoming these challenges, securing domestic supply and increasing the competitiveness of the EU mining sector. The diverse socio‑economic characteristics of these regions provide crucial context for understanding their role in the EU mining ecosystem. Table 2.1 offers an overview of key regional indicators, illustrating their unique contributions to the EU mining value chain.
Table 2.1. Basic information by region
Copy link to Table 2.1. Basic information by region
Region |
Population |
Population density (inhabitants/km²) |
Land area (% of national) |
Main economies (% of GDP) |
Natural protected areas (% of country) |
|
---|---|---|---|---|---|---|
% |
National ranking |
|||||
Alentejo (PRT) |
7 |
4th of 7 regions |
19 |
30 |
Agriculture (10-15), Mining (<1) |
21 |
Andalusia (ESP) |
18 |
1st of 7 regions |
96 |
17 |
Tourism (20), Mining (4) |
20 |
Central Greece (GRC) |
5 |
8th of 13 regions |
33 |
10 |
Manufacturing (27), Mining (5) |
27 |
Central Ostrobothnia (FIN) |
1.26 |
16th of 19 regions |
8 |
2 |
Industry (10), Mining (<5) |
10 |
Centro (PRT) |
21.6 |
2nd of 7 regions |
74 |
30 |
Agriculture (12), Mining (<1) |
12 |
Kainuu (FIN) |
1.25 |
15th of 19 regions |
3.5 |
7 |
Renewable energy (15), Mining (7–10) |
15 |
Lapland (FIN) |
3.4 |
7th of 19 regions |
1.8 |
30 |
Tourism (15), Mining (<5) |
14 |
North Karelia (FIN) |
2.9 |
12th of 19 regions |
9 |
5.6 |
Forestry (16), Mining (5–8) |
16 |
Örebro (SWE) |
3 |
8th of 21 counties |
36 |
2 |
Industry (8), Mining (3–5) |
8 |
Oulu (FIN) |
7.5 |
4th of 19 regions |
12.5 |
10 |
Technology (20), Mining (<5) |
12 |
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Key critical mineral deposits across the 10 EU regions
EU mining regions play a crucial role in producing critical and strategic raw materials, essential for EU’s green and digital transitions. These ten regions host the largest EU producers of seven critical raw materials, including lithium, cobalt and nickel, as well as unique strategic minerals such as tungsten and chromium, which are vital for advanced industrial applications (Figure 2.2). While these regions hold the European Union’s largest known reserves and resources, not all are currently economically viable due to the international market prices of the minerals with respect to the operative costs of extraction. Nevertheless, this production capacity is key to meeting the CRMA target of sourcing at least 10% of the bloc’s critical raw materials through domestic extraction.
Figure 2.2. Selected regions of the EU mining region ecosystem
Copy link to Figure 2.2. Selected regions of the EU mining region ecosystem
Note: The ellipsis indicates that other relevant minerals are also present in the region and some regions host regions beyond the ones displayed.
The deposits in these regions present significant opportunities to align mining activities with broader industrial strategies, particularly in renewable energy and electrification. They also provide an important foundation for strengthening the European Union’s strategic autonomy by reducing dependency on external supply chains. Key contributions include:
Lithium: Central Ostrobothnia and Centro have the potential to play critical roles in the EU lithium supply chain. Central Ostrobothnia is poised to host the European Union’s first integrated high-purity lithium operation, positioning the region as a leader in lithium processing and innovation. Lithium is essential for energy storage systems, particularly in battery production for electric vehicles and renewable energy integration, making these regions key players in the green transition. While Centro has significant lithium deposits currently under the permitting process, its primary mining production today focuses on dimension stone, which contributes to local economic and cultural activity.
Cobalt: North Karelia hosts promising cobalt deposits, with exploration projects underway. Finland remains the only EU country mining and producing cobalt, mainly as a byproduct from nickel mines in Kainuu and Lapland. Cobalt is essential for high-performance batteries and supports industrial decarbonisation and clean energy systems.
Nickel: Kainuu and Lapland are pivotal for EU nickel extraction. Kainuu hosts the European Union’s top nickel mine, employing innovative biological processing and integrating battery production with local resources. Lapland produces low-carbon dioxide (CO2) nickel, aligning with EU sustainability goals. Nickel is vital for battery technologies and stainless steel production, strengthening the European Union’s industrial and renewable energy supply chains.
Copper: Alentejo and Andalusia are significant contributors to copper production in the European Union. Andalusia is its second-largest copper producer, equipped with advanced smelters that support clean energy technologies and industrial electrification. Alentejo complements this production, ensuring the resilience of EU raw material supply. Copper is indispensable for electrification, renewable energy infrastructure and industrial applications, reinforcing the strategic importance of these regions.
Strontium: Granada in Andalusia covers around 35% of global strontium production, making it a key supplier for the European Union. Celestine, the main source of strontium, is extracted at Escúzar and Montevive, while fluorite is mined in the Alpujarra. Mining activities use low-impact methods, including waste heap reuse and reduced use of explosives.
Zinc: Alentejo and Örebro both contribute to zinc production in the European Union, although their roles differ in scale and focus. Örebro accounts for approximately 10% of total EU zinc output, making it a key player in the EU zinc value chain. Alentejo, maintains a notable presence in zinc production alongside other mining activities. Zinc is critical for galvanisation, renewable energy infrastructure and corrosion-resistant materials.
Bauxite: Central Greece is the European Union’s largest bauxite producer, supplying raw materials for aluminium production. Aluminium is critical for lightweight, energy-efficient applications in transport and renewable energy technologies. Central Greece’s contributions are essential for maintaining a secure supply of this versatile material, reducing the European Union’s reliance on external sources.
Chromium: Lapland is the European Union’s sole significant producer of chromium, a critical material for stainless steel and high-durability industrial applications. By producing chromium domestically, Lapland supports the EU strategic autonomy in industrial metals, reducing dependency on imports.
Tungsten: Centro is the European Union’s second-largest tungsten producer, supporting advanced manufacturing and electronics. Tungsten’s high durability and heat resistance make it indispensable for industrial machinery and technological components. This reinforces Centro’s role as a vital contributor to the European Union’s advanced technology sectors.
Gold: Lapland leads the European Union as its largest gold producer. Gold serves both industrial uses, such as in electronics, and financial purposes, contributing to economic stability. Lapland’s production highlights its strategic importance within the EU mining ecosystem.
Integrating mining regions into the EU value chain
Research and development (R&D), education and innovation hubs
R&D is pivotal for modernising the mining sector and aligning it with EU sustainability and climate objectives. By fostering innovation, R&D hubs enhance resource efficiency, reduce environmental impacts and support the transition to greener mining operations. Key regions such as Central Ostrobothnia, Centro, Kainuu, North Karelia, Örebro and Oulu lead the European Union’s efforts in developing advanced technologies and sustainable mining practices. Their contributions are critical to achieving the targets outlined in the CRMA.
Pilot plants: Centro, North Karelia and Örebro (Epiroc) host state-of-the-art pilot plants designed to test and optimise green extraction techniques. These facilities focus on energy-efficient processing methods, waste minimisation and the development of low-impact technologies. By advancing these processes, these regions contribute directly to improving the sustainability of raw material extraction and processing.
Educational and research excellence: Oulu stands out for its advanced educational institutions, fostering a skilled mining workforce and supporting cutting-edge R&D in mining automation, digitalisation and environmental sustainability. Similarly, North Karelia incorporates tailored education programmes linked to its forestry and mining sectors, helping to address skills gaps in mineral exploration and processing. Centro has also initiated collaborative training programmes in mining technologies, engaging universities and vocational schools to align education with regional industry needs.
Research-industry linkages: Örebro and Oulu have established robust linkages between research institutions and the mining industry. These hubs are at the forefront of innovation in areas such as automation, digitalisation and low-impact mining technologies. Örebro benefits from its proximity to world-class mining technology providers like Epiroc, while Oulu’s advanced educational and research capacity supports both regional and EU-wide innovation goals.
Circular economy: Central Ostrobothnia integrates R&D with circular economy initiatives, focusing on recycling and repurposing mining byproducts. Through these efforts, the region demonstrates the potential to close material loops, reduce waste and enhance resource efficiency, aligning with the European Union’s green transition goals.
Upstream global services: Enhancing EU mineral exploration
Upstream activities, including exploration, surveying and feasibility studies, form the foundation for identifying new reserves and advancing mining projects. These activities are essential for diversifying and securing the European Union’s mineral supply, a key objective of the CRMA. Regions such as Andalusia, North Karelia and Örebro are pivotal in strengthening upstream capabilities, leveraging their expertise and advanced technologies to support EU strategic autonomy.
Headquarters of global mining equipment, technology and services companies: Örebro hosts global mining technology providers, including Epiroc, which supports advanced exploration technologies such as geospatial mapping and mineral surveying. Its established mining services ecosystem enhances the European Union’s ability to identify and assess strategic mineral deposits, enabling more efficient and targeted resource extraction.
Advanced mineral research expertise: North Karelia combines traditional mining knowledge with cutting-edge mineral and tailings research, contributing to the European Union’s innovation in exploration techniques. The region plays a key role in testing and developing methods that enhance resource efficiency and environmental performance.
Excellence in geological assessments: Andalusia is recognised for its strong capabilities in geological surveys and pre-mining services. These activities provide critical data to inform investment decisions and advance mining projects. Andalusia’s focus on exploration has positioned it as a leader in upstream services, complementing its strengths in extraction and processing.
Processing and downstream activities in EU regions
The processing of raw materials into high-value products is a critical stage in the raw materials value chain, supporting the European Union’s goal under the CRMA to process 40% of its critical raw material demand domestically. This reduces reliance on external suppliers and strengthens the resilience of industrial ecosystems. Regions such as Alentejo, Andalusia, Central Ostrobothnia, Kianuu and Lapland play key roles in this phase, with diverse capabilities in processing and downstream integration.
Battery component manufacturing: Central Ostrobothnia leads in lithium processing, integrating raw material refinement with downstream applications critical to the EU battery value chain. As the location of the European Union’s first high-purity lithium operation, the region plays a central role in stabilising lithium supply for energy storage solutions.
Nickel and cobalt refining: Kainuu specialises in refining nickel and cobalt, key inputs for clean energy technologies such as batteries and hydrogen production. The region employs innovative processing methods, including biological processes and advanced recovery systems, supporting the EU green transition.
Copper and zinc processing: Alentejo and Andalusia focus on processing base metals, particularly copper and zinc. Their advanced smelting and refining capabilities add value to these materials, ensuring their integration into industrial applications such as renewable energy infrastructure, electric vehicles and decarbonised construction.
A snapshot of the EU mining regions
Copy link to A snapshot of the EU mining regionsThe 10 EU mining regions selected reflect the diversity of Europe’s mining ecosystem, encompassing a range of socio-economic, environmental and governance dynamics. While they share common challenges and opportunities linked to their strategic role in the European Union’s green transition, each region also brings unique strengths and obstacles to the table. The insights presented in Table 2.2 are derived from a methodology that combines three key sources:
Fact-finding missions: Conducted across the ten regions throughout 2023 and 2024, these missions involved in-depth interviews and consultations with key stakeholders, such as local, regional and national governments, private companies (including mining in different steps of the value chain), local communities (including Indigenous) and civil society, among others.
Quantitative data analysis: This involved drawing on the OECD Regional Database and statistical datasets at the national and regional levels to provide robust, evidence-based insights into economic, environmental and social trends (OECD, 2025[1]).
Desktop research: This includes a review of publicly available documents from industry stakeholders, mining clusters, academic studies and regional development plans.
Despite their diversity, the ten EU mining regions tend to perform better than the average OECD mining region in several areas, including lower CO₂ emissions per unit of electricity produced, slightly lower unemployment rates and greater levels of economic diversification. At the same time, they face common structural challenges, such as lower GDP per capita, sharper population decline and a lower share of young people in the workforce mostly due to its rural nature. These patterns are summarised in Figure 2.3,2 which presents the performance of the regions across a selected set of indicators, normalised against the OECD Mining Regions Benchmark. The figure highlights both the relative strengths and weaknesses of these regions in comparison to other mining-intensive territories.
The next section examines these dynamics in greater detail, structured around three dimensions: economic, social and environmental. It identifies the main assets and constraints of each region with the objective of informing more tailored policy responses. Understanding the specific conditions of these mining ecosystems is key to enhancing their contribution to regional development and to broader EU objectives for strategic autonomy and the green transition.
Figure 2.3. A snapshot of the 10 EU mining regions
Copy link to Figure 2.3. A snapshot of the 10 EU mining regions
Note: A number above 100 indicates better performance relative to the average of OECD mining regions. The region with the highest value is represented by the blue circle, and the lowest by the yellow circle. The dark grey rhombus represents the median of the 10 EU regions. Population 2022 refers to population growth during 2001-22; the other variables reflect the latest available value in the indicated year. See endnotes for detailed explanation of the variables.
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Table 2.2. Key takeaways of the 10 EU mining regions
Copy link to Table 2.2. Key takeaways of the 10 EU mining regions
Region |
Demographics |
Economic resilience |
Environmental assets |
---|---|---|---|
Alentejo |
Sparse population (190 inhabitants/km²); significant rural youth outmigration |
8% GDP decline (2010-20); agriculture, mining |
21% of land protected; some circular economy practices but with limited infrastructure |
Andalusia |
Largest population among regions in Spain (approx. 18% of national total); high rural unemployment |
15% GDP decline (2010-20); tourism, agriculture, mining and industry |
20% of land protected; improving waste management practices |
Central Greece |
Mixed urban-rural population trends; urban hubs help stabilise population |
10% GDP decline (2010-20); agriculture |
27% of land protected; low uptake of renewable energy in mining operations |
Central Ostrobothnia |
Population decline and challenges in retaining youth |
5% GDP growth (2010-20); large industrial base |
10% of land protected; sustainability efforts in lithium extraction and processing |
Centro |
Declining rural population; moderate growth in urban hubs |
3% GDP growth (2010-20); industry, tourism |
12% of land protected; emerging circular economy practices in dimension stone and tungsten mining |
Lapland |
Sparse population (19 inhabitants/km²); one of the largest regions by land area |
14% GDP growth (2010-20); mining and tourism |
14% of land is protected; high share of renewable energy in mining operations |
North Karelia |
Ageing population and rural depopulation (90 inhabitants/km²) |
5% GDP growth (2010-20); natural resources and innovation |
16% of land protected; initiatives for sustainable forestry-mining practices |
Örebro |
Stable population, well-integrated into industrial networks |
10% GDP growth (2010-20); mining innovation ecosystems |
8% of land protected; leader in sustainable mining practices and innovation |
Oulu |
Urban hub; population growth of +13% (2010-20) |
13% GDP growth (2010-20); high‑technology mining-related services |
12% of land protected; high environmental standards in technology-intensive mining |
Note: Social acceptance has been assessed through a combination of desk research and direct observations gathered during OECD missions conducted between November 2023 and June 2024.
Source: Regional profiles elaborated over the project are available in the repository of the project.
Box 2.1. Measuring well-being in mining regions – Insights from the OECD Toolkit
Copy link to Box 2.1. Measuring well-being in mining regions – Insights from the OECD ToolkitThe OECD Toolkit to Measure Well-being in Mining Regions provides a comprehensive framework to evaluate well-being across economic, social (community) and environmental dimensions in regions specialised in mining activities. It enables policy makers to identify challenges and opportunities and evaluate and compare well-being outcomes specific to mining regions while benchmarking their performance against the OECD average and other mining-intensive regions, fostering evidence-based policy design and implementation.
The toolkit was developed as part of the OECD’s broader effort to support mining regions, particularly under the OECD Mining Regions and Cities Initiative, launched in 2017 (OECD, 2024[2]). This initiative aims to promote sustainable development in mining regions, leveraging the critical role these areas play in the energy transition and green economy. By focusing on well-being indicators, the toolkit aligns mining activities with long-term regional development goals.
The toolkit integrates 13 individual indicators grouped into three composite indices that capture the complex realities of mining regions: economic, community and environmental well-being. Each composite index aggregates a set of variables that reflect key features of mining regions and enable international comparability (Table 2.3) and is constructed as follows:
Indicators are selected based on their relevance for mining regions and data availability at TL3 level.
Values for each region are normalised on a scale from 0 to 1, using min-max normalisation based on the range of values observed across all OECD TL3 regions.
Once normalised, the values of the individual indicators are averaged within each dimension to construct the composite index.
No weights are applied to the individual indicators; each indicator contributes equally to the corresponding dimension.
Table 2.3. Indicators by dimension
Copy link to Table 2.3. Indicators by dimension
Social dimension |
Economic dimension |
Environmental dimension |
---|---|---|
Education level (tertiary attainment) |
Change in green land cover (2004-19) |
Change in green land cover (2004-19) |
Share of young population (0–14 years) |
Greenhouse gas emissions from electricity generation |
Greenhouse gas emissions from electricity generation |
Share of female in the workforce (sex ratio 15-64) |
Greenhouse gas emissions per capita from energy, industry and transport |
Greenhouse gas emissions per capita from energy, industry and transport |
Death rate |
Soil moisture anomaly (2018-19) |
Soil moisture anomaly (2018-19) |
Population growth (2007-20) |
|
|
Application in 10 Technical Support Instrument (TSI) EU mining regions
The toolkit has been applied to ten EU mining regions participating in the OECD-TSI project, encompassing Finland, Greece, Portugal, Spain and Sweden. These regions exhibit diverse performances across the three dimensions:
Community: Performance varies significantly, with Oulu (111) and Örebro (109) well above the OECD average (100), while Alentejo (61) and Central Greece (78) lag.
Economic: Oulu stands out with a remarkable score of 210, while Andalusia (44) and Alentejo (53) show room for improvement in leveraging economic benefits from mining activities.
Environmental: Lapland (122) leads in environmental indicators, demonstrating strong sustainable practices, whereas Alentejo (111) and Kainuu (102) also score above average, showcasing effective environmental management.
Figure 2.4. Results of the toolkit on the ten selected mining regions
Copy link to Figure 2.4. Results of the toolkit on the ten selected mining regions
Sources: OECD (2023[3]), “Toolkit to measure well-being in mining regions”, https://doi.org/10.1787/5a740fe0-en; OECD (n.d.[4]), Toolkit for Mining Regions Well-being (data visualisation), https://oecd-main.shinyapps.io/mining-regions-wellbeing/.
Economic trends
Copy link to Economic trendsThe economic structure of mining regions within the European Union is defined by their significant contributions through mineral extraction and processing activities, which often bolster regional incomes. However, their reliance on mining can also make them vulnerable to external shocks such as fluctuating commodity prices and global transitions towards greener economies. This dual character presents both opportunities and challenges for these regions. Mining regions frequently enjoy above-average income levels due to the high-value nature of the sector. Extraction activities not only generate direct employment opportunities but also foster indirect jobs across the value chain, such as in equipment maintenance, logistics and regional services. Research indicates that for every job created in mining, additional employment opportunities arise in related industries, amplifying the sector’s economic impact.
Mining regions across the European Union represent a critical economic sector, directly employing over 250 000 people and contributing EUR 125 000 million in net turnover in 2022 (excluding coal, lignite, petroleum and gas) (Eurostat, 2024[5]). The sector’s broader economic impact is evident through a multiplier effect, where each direct mining job supports an additional job indirectly (Moritz et al., 2017[6]). Despite this economic importance, the contribution of mining to regional and national GDP varies significantly across regions, reflecting differences in resource availability, industrial integration and economic resilience.
Box 2.2. Main shared economic characteristics of the 10 selected EU mining regions
Copy link to Box 2.2. Main shared economic characteristics of the 10 selected EU mining regionsDiverse GDP contributions from mining. Mining remains an economic driver in all selected regions, though its contribution to GDP is uneven. The highest shares are found in Kainuu (7‑10%), Central Ostrobothnia (5%) and Andalusia (4%). In contrast, mining contributes less than 1% of regional GDP in Alentejo, Central Greece and Centro.
Uneven economic resilience. Between 2005 and 2020, the ten selected EU mining regions followed diverse economic trajectories. While GDP per capita increased on average, this growth was modest compared to broader benchmarks: +6% for the 10 regions, against +8% for the OECD mining regions benchmark and +15% for the overall OECD average. The top 3 best‑performing regions were Kainuu (+28%), Central Ostrobothnia (+25%) and Lapland (+20%), supported by industrial renewal and linkages to innovation networks. In contrast, Central Greece (‑20%), Alentejo (‑15%) and Andalusia (‑9%) recorded declines. National growth trends also matter. Finland (+6%) and Sweden (+13%) outperformed both OECD and EU averages, making it relevant to assess regions against their respective national growth rates. Five of the ten regions grew above their national averages.
High-wage employment in mining and technology. The mining sector directly employs 250 000 people in the European Union (0.12% of total). While in Finland as a whole, mining accounts for 0.37% of national employment, in Lapland and Kainuu, it represents approximately 2.5% and 10% of total regional employment respectively, making it a critical economic sector. Similarly, in Sweden, mining represents 0.2% of national jobs, yet remains a core industry in Örebro, particularly in mining technology and automation. In Portugal and Spain, where mining represents 0.1‑0.2% of total employment, the sector has higher relative importance in Alentejo, Andalusia and Centro, supporting regional economies and its labour market (especially in non‑metallic mining that is a large employer in these regions’ rural areas) through extraction and processing activities.
Mining shows high labour productivity relative to the broader economy. The mining and quarrying sector presents relatively high productivity levels but accounts for a small share of total employment in the European Union. In 2022, the sector generated approximately EUR 173.6 billion in value-added and employed around 250 000 people across 3 main activities: mining of metal ores (EUR 8 634 million; 55 000 employees), other mining and quarrying (EUR 12.2 billion; 160 500 employees), and mining support services (EUR 3.5 billion; 34 000 employees). Productivity in the mining of metal ores was approximately EUR 157 000 per worker, about 2.4 times the EU average (EUR 66 000). Other mining and quarrying reached EUR 76 000 per worker (15% above the EU average), while support services registered EUR 103 000 (56% above the average).
Mining supports more jobs than those directly employed at mine sites. Recent analysis for European regions estimates that each direct job in the non-energy mining sector generates, on average, about 2.3 additional jobs in the wider economy. These include supply chain roles (e.g. transport, maintenance, equipment) and jobs supported by household spending from mining incomes. As a result, the total employment effect per mine worker is approximately 3.3 jobs. Regional examples such as Andalusia show that a large share of mining-related employment is found in supplier firms, highlighting the broader economic linkages of the sector.
Emerging industries linked to mining. Mining regions are increasingly diversifying through complementary industries, strengthening economic resilience. In Kainuu and Lapland, mining has complemented tourism, while Alentejo has seen growth in cultural tourism linked to former extractive sites. Regions with strong academic institutions, such as Central Ostrobothnia, Örebro and Oulu drive mining technology and automation, while Centro is incorporating circular economy practices in dimension stone and tungsten industries.
Workforce challenges: Many mining regions face demographic and skills-related constraints that impact long-term economic sustainability. Ageing populations and rural outmigration reduce the available workforce, as seen in Alentejo, Andalusia and Central Greece, where younger workers often leave for urban centres. Skills mismatches further complicate the labour market, with gaps in digital, environmental and engineering expertise required for modern mining operations. Some regions, such as Örebro and Oulu, are addressing these challenges through targeted education and training initiatives, while others struggle to align workforce development with industry needs.
Uneven integration into innovation ecosystems. Mining regions exhibit varied levels of technological integration, with some benefitting from strong research networks and others facing barriers to innovation. Örebro and Oulu are advancing automation, digitalisation and sustainable extraction techniques, leveraging partnerships with universities and industry. Conversely, Andalusia and Centro encounter challenges in research adoption and technology transfer, limiting their competitiveness. Expanding regional innovation networks and industrial collaborations could help address these gaps.
Dependence on external markets. These mining regions are highly exposed to global commodity price fluctuations, affecting investment stability and employment. Andalusia, reliant on polymetallic mining, and Central Greece, with bauxite resources, are particularly vulnerable to shifts in international demand. Meanwhile, Finland and Sweden, with stronger integration into European supply chains and advanced processing industries, have shown greater resilience. Reducing reliance on external markets through local processing and diversification strategies could enhance economic stability.
Limited capture of downstream economic benefits. While mining regions are essential for raw material extraction, many struggle to retain value-added activities such as processing, refining and manufacturing. Alentejo and Andalusia primarily export raw materials, limiting local job creation and industrial development. By contrast, regions like Lapland and Örebro, with mining technology clusters and processing facilities, capture a greater share of economic benefits. Expanding downstream industries, such as battery production and metallurgical processing, could strengthen local economies.
Emerging opportunities in circular economy practices. Mining regions are increasingly integrating circular economy models to enhance sustainability and resource efficiency. Centro and Lapland are adopting waste recovery and material reuse initiatives, particularly in tungsten and lithium mining. Central Ostrobothnia is developing lithium extraction with high environmental standards, while Alentejo explores reuse of stone byproducts from marble quarries. These efforts support long-term sustainability while fostering new economic opportunities beyond traditional mining activities.
The development of transport, energy and service infrastructure linked to mining activities faces limitations in terms of scalability. As mining projects decline or close, the long-term economic viability of infrastructure investments can diminish, leading to underutilised assets and maintenance challenges. This underlines the need for careful planning and foresight to ensure that infrastructure can continue to serve broader regional development objectives beyond the lifespan of mining operations.
Mining boosts GDP performance but regional challenges remain
Mining regions in the EU play a key role in regional economies, yet their economic performance varies depending on factors such as industrial diversification, integration into innovation ecosystems and local economic structures. On average, the 10 mining regions analysed saw a 6% increase in GDP per capita between 2005 and 2020, which is below the OECD average (+15%) but close to the OECD mining regions benchmark (+8%). However, these figures also reflect the economic shock of the Coronavirus disease 2019 (COVID-19 in 2020, which disproportionately affected regions with strong industrial and trade exposure (Figure 2.5).
Some mining regions, such as Kainuu (+28%), Central Ostrobothnia (+25%), and Lapland (+20%), recorded significant GDP per capita growth, supported by a range of economic activities including energy clusters, information technology (IT) development, battery production and the bioeconomy. Similarly, Örebro (+15%) leveraged automation and digitalisation in mining technology, while Greece (+14%) showed recovery after a period of contraction. These outcomes also reflect the relatively high labour productivity of the mining sector, particularly in Nordic countries, where productivity levels in mining are well above the EU average (2 times higher) (Eurostat, 2024[5]).
Conversely, Central Greece (‑20%), Alentejo (‑15%) and Andalusia (‑9%) experienced GDP per capita declines. These outcomes reflect the effects of national economic crises, structural limitations and sector-specific vulnerabilities, such as low diversification or climate impacts. While mining continues to support regional incomes and employment, the ability to capture value-added activities remains a key determinant of economic success. Regions with strong processing industries, innovation ecosystems and workforce development strategies – such as Central Ostrobothnia, Örebro and Oulu – have outperformed those where mining remains primarily extractive. Addressing downstream industry gaps, improving local supply chains and investing in skills matching will be critical to ensuring long-term economic sustainability in mining regions.
High-performing regions:
Oulu: With a GDP per capita 210% above the OECD mining benchmark, Oulu exemplifies the economic potential of education, research and information communication technology industry well organised and functioning.
Central Ostrobothnia: GDP per capita growth of 25% between 2005 and 2020 underscores the region’s capacity to create wealth and attract investments around its industrial base. In the coming years, the region will start extracting and processing lithium, the timing of which is propitious given the global demand for renewable energy technologies. However, while growth exceeds the national average, further downstream processing could enhance its competitiveness.
Kainuu: The region recorded a 28% in GDP per capita growth during the same period, driven by modernised nickel (e.g. Talvivaara) and cobalt mining and the adoption of renewable energy technologies.
Örebro: Incorporating automation and digitalisation into its mining ecosystem supported a 15% GDP per capita increase, highlighting the economic benefits of a diversified ecosystem that combines education, the IT sector, mining-related services (e.g. Epiroc) and a large mine (plus smaller ones).
Moderate and struggling regions:
Andalusia: The region’s GDP per capita declined by 9% between 2005 and 2020. Within the regional economy, mining represents 4% of regional GDP, primarily from polymetallic deposits, and helps diversify the regional industrial fabric. Andalusia’s classification as a TL2 region, encompassing eight provinces with varying economic structures, complicates isolating mining’s impact on regional performance.
Centro: Mining plays a smaller role in the regional economy, with tungsten and lithium deposits supporting limited industrial activity. The region faces barriers in scaling up mining-related industries, as reflected in its underwhelming GDP per capita growth, which has lagged behind other mining regions in the European Union.
Lapland: GDP per capita rose from EUR 33 753 in 2005 to EUR 40 514 in 2020 (+20%), supported by mining activities integrated with tourism and renewable energy. These diversified activities provide resilience against sectoral volatility.
North Karelia: North Karelia’s GDP per capita growth remains modest compared to other regions.
Alentejo: The region’s GDP per capita (EUR 32 500 per inhabitant) contracted by 15% between 2005 and 2020, yet it remains above the national average (EUR 30 500). When looking into the municipalities where mining takes place, for example Castro Verde, the municipality performs the highest GDP per capita of all Portugal (Box 2.3).
Central Greece: Economic contraction of 20% over the same period highlights the challenges of primary extraction without modernisation or diversification. The region’s mining ecosystem dependence on bauxite mining leaves it highly exposed to market fluctuations while the broad region has a rich productive agricultural land and important groundwater and surface water resources.
Figure 2.5. GDP per capita, 2005-20
Copy link to Figure 2.5. GDP per capita, 2005-20
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Box 2.3. Economic performance of mining municipalities in Portugal
Copy link to Box 2.3. Economic performance of mining municipalities in PortugalThe economic performance of mining areas can vary significantly at the municipal level. In Portugal, while the Alentejo region recorded a 15% decline in GDP per capita between 2005 and 2020, some mining municipalities reported stronger outcomes. Castro Verde, located in Alentejo and part of the Iberian Pyrite Belt, recorded the highest median monthly earnings in Portugal in 2021, at EUR 1 781 per month (Figure 2.6), compared to the national median of EUR 959. Mining activities, centred on copper, zinc and lead extraction, play a central role in sustaining incomes in the municipality.
Other mining municipalities, such as Aljustrel and Sines, also report higher income levels relative to their surrounding regions, supported by mining, energy production and related industrial activities. However, these trends are not uniform across all mining areas. Municipalities with smaller or less diversified mining operations, such as those in parts of Centro, report more modest outcomes, reflecting the challenges of capturing broader economic benefits without stronger industrial linkages.
These differences underline the contribution of mining to local incomes, while highlighting the limitations of extractive activities alone in promoting wider regional development. Strengthening connections with downstream industries, innovation ecosystems and skills development strategies could be critical to sustaining long-term growth in mining municipalities.
Figure 2.6. Median monthly earnings of employees, Portugal, NUTS III and municipality, 2021
Copy link to Figure 2.6. Median monthly earnings of employees, Portugal, NUTS III and municipality, 2021
Source: INE (2023[7]), “The median earnings of the employees was less than €1000 in 285 (93%) of the 308 municipalities – 2021”, https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=594919704&DESTAQUESmodo=2&xlang=en.
A high productivity sector
At the EU level, the mining and quarrying sector generated approximately EUR 17.3 billion in value-added in 2022, employing around 250 000 people. Productivity differs significantly across mining sub-sectors: metal ore extraction registered around EUR 157 000 per worker (2.4 times the EU average of EUR 66 000), support services reached EUR 103 000 per worker (+56%), while other mining and quarrying stood at EUR 76 000 (+15%) (Eurostat, 2024[5]).
These figures confirm that productivity in mining tends to exceed average levels across the EU economy, although the sector remains limited in employment terms (0.12% of total employment). The relatively high productivity in metal mining is linked to its capital intensity and technological requirements, while quarrying activities and support services exhibit more labour-intensive activities with moderate but still above‑average values in productivity. These differences contribute to explaining varying regional economic outcomes depending on the dominant mining activity.
Addressing socio-economic vulnerabilities
Mining often dominates the economic landscape of these regions, creating risks of over-reliance on global commodity prices and demand for specific minerals. For example, fluctuations in lithium or cobalt markets could disproportionately impact regions like Central Ostrobothnia and Oulu, which are tied to these materials. Similarly, regions reliant on polymetallic deposits, such as Andalusia, face exposure to international market volatility. To mitigate these risks, regions are exploring diversification strategies:
Lapland, Finland: Integration of renewable energy and tourism alongside mining provides a buffer against market volatility and supports long-term economic resilience.
Örebro, Sweden: Investments in automation and digitalisation enhance its competitive edge and reduce dependence on traditional mining activities.
Oulu, Finland: The region’s emphasis on research and innovation fosters high-technology industries, bolstering its ability to adapt to market changes.
A gap in gross value added (GVA) with respect to the national level
While mining contributes significantly to GDP and employment in several regions, differences in regional value-added per capita remain substantial. As shown in Figure 2.7, only two of the ten mining regions, Central Greece and Örebro, record GVA per capita levels above their respective national averages. Central Greece stands out with a difference of over EUR 41 900 and Örebro with approximately EUR 29 500, suggesting a higher-than-average concentration of economic activity relative to their national contexts.
Figure 2.7. GVA difference to national
Copy link to Figure 2.7. GVA difference to national
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
In contrast, the remaining eight regions show negative gaps. The largest disparities are observed in North Karelia (‑EUR 8 410), Kainuu (‑EUR 6 874), and Oulu (‑EUR 5 554), followed closely by Andalusia, Central Ostrobothnia and Lapland, all of which fall between EUR 3 300 and EUR 5 500 below their national benchmarks. Even in regions with active mining projects, such as Alentejo and Centro , the GVA per capita remains EUR 1 426 and EUR 1 910 below the national average respectively.
These gaps highlight differences in the structure and productivity of regional economies. While mining may serve as a key sector, it has not always translated into higher overall economic output relative to national performance. The results also suggest that capturing value-added locally – through complementary sectors or more advanced economic functions – remains a challenge in several regions.
Employment trends
Employment outcomes vary across EU mining regions, reflecting a combination of national effects, labour market structures and the nature of local economic activities. Several regions show unemployment rates below their national averages, suggesting relatively stronger labour market performance. In 2020, Örebro (‑1.1 percentage points, p.p.), Oulu (‑0.2 p.p.) and Lapland (‑1.2 p.p.) all recorded unemployment differentials in line with or slightly better than national levels, consistent with relatively dynamic local economies.
Other regions face higher unemployment, though the drivers are diverse. In Central Greece, unemployment was 3 p.p. above the national average in 2020, a legacy of the broader economic crisis and slow recovery. Andalusia, while showing a differential of ‑0.9 p.p. relative to the national average in 2020, maintains some of the highest unemployment levels in the European Union. This is largely shaped by structural factors at the national level and a reliance on seasonal employment, particularly in agriculture and tourism. Long-term trends also differ. For instance:
Lapland reduced its unemployment rate from 11.7% in 2005 to 9.2% in 2020, reflecting the region’s capacity to modernise its mining industry and integrate it with other economic activities.
Andalusia, in contrast, saw persistently high unemployment, peaking at 31.7% in 2015 before dropping to 22.5% in 2020, a level still well above the EU average. Youth unemployment in Andalusia remains around 40%, yet mining companies struggle to attract local young workers due to limited attractiveness of the sector.
Central Greece exhibited volatility, with unemployment surging to 26.3% in 2015 during the economic crisis and stabilising at 19.7% in 2020, a significant improvement but still indicative of structural challenges.
Figure 2.8. Unemployment rate difference to national, 2020
Copy link to Figure 2.8. Unemployment rate difference to national, 2020
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Job creation
The mining sector is a vital driver of employment across Europe, providing both direct and indirect jobs that underpin regional economies. Across the European Union, metallic mining and non-metallic employ approximately 250 000 people (0.12% of total workers within the European Union), illustrating the sector’s importance in supporting industrial ecosystems and contributing to broader economic development (Eurostat, 2024[5]). Beyond raw material extraction, mining creates cascading economic benefits, sustaining industries such as equipment manufacturing, logistics and environmental management. In regions like Lapland and Örebro, mining forms the backbone of local economies, creating high‑quality jobs and fostering additional employment through diverse value chains. These regions have demonstrated the ability to link mining to complementary sectors, such as renewable energy and tourism, creating a more dynamic and resilient economic base. Mining supports, on average, another job in related sectors (Moritz et al., 2017[6]). This multiplier effect reinforces the role of mining as an economic anchor, with total employment impacts extending well beyond mine sites.
Mining regions are characterised by a dual nature: they offer competitive, high-wage jobs in engineering, management and technology, but they also rely on labour-intensive roles that provide crucial employment opportunities in rural areas. This combination of roles helps stabilise communities, particularly in remote regions with limited alternative job markets. For example, Lapland’s integration of mining with tourism demonstrates how the sector can support both skilled and service-oriented employment, reducing economic dependency on a single industry. However, mining employment is not without challenges. The cyclical nature of mining activities, driven by commodity price fluctuations and global economic trends, makes job stability a recurring concern. Additionally, the eventual closure of mines can leave regions with economic gaps, highlighting the need for proactive policies to ensure long-term sustainability.
Direct employment: Includes roles in extraction, processing, technical management and mine operations, providing stable, high-wage jobs. In regions like Örebro, these positions benefit from the integration of cutting-edge technologies and strong links to research institutions.
Indirect employment: Generated through the mining value chain, such as transport, machinery manufacturing and environmental services. For example, every direct mining job creates additional opportunities in supporting industries, amplifying the sector’s broader economic impact.
While mining creates jobs across the value chain, the quality and accessibility of these opportunities vary significantly between regions. For instance, regions with advanced industrial ecosystems, such as Lapland and Örebro, benefit from high-value roles linked to technological innovation and sustainable practices. Conversely, areas like Alentejo and Central Greece face challenges in creating stable, high-quality jobs due to lower levels of industrial diversification and weaker integration with other sectors. Moreover, these regions are more vulnerable to external economic shocks, such as fluctuating demand for minerals, which can exacerbate unemployment and socio-economic disparities.
One of the most pressing challenges for mining regions is addressing the skills mismatch within their labour markets. The evolution of the mining industry, driven by automation, digitalisation and sustainability standards, has increased demand for highly skilled workers, such as engineers and environmental specialists. However, many regions face shortages of qualified professionals, particularly in remote areas where attracting and retaining talent is more difficult. At the same time, lower-skilled roles in mining are increasingly at risk due to automation and changing operational practices, further widening the gap between labour supply and demand.
Bridging the skills gap: A labour market efficiency challenge
Mining regions often face significant skills mismatches, where the qualifications of the available workforce do not align with the demands of the industry. For instance, about 20.6% of workers in these regions are employed in roles that underutilise their skills, higher than the 18.5% OECD average. This indicates education-job mismatches.
Among the 10 regions of the study, Andalusia and Central Greece exhibit the highest levels of mismatch, with 25.4% and 23.8% of workers respectively in roles that do not fully utilise their skills or qualifications. This gap reflects structural challenges in these regions, including limited educational opportunities, outdated training programmes and difficulties in attracting skilled professionals to rural or remote areas. For example, Andalusia’s vocational training centres are mostly in provincial capitals, making it hard for youth in mining towns (like Almaden or Linares) to access relevant programmes.
In contrast, regions like Örebro (17.6%) and Oulu (16.4%) demonstrate lower mismatch rates, reflecting better alignment between workforce training and industry needs. These regions benefit from robust educational systems and proactive partnerships between mining companies and vocational institutions. For instance, Oulu has integrated technical training programmes that focus on emerging fields such as digital mining and automation, ensuring a pipeline of skilled workers equipped for modern mining operations.
Adult training: The workforce of the present and future
Adult training programmes play a crucial role in addressing skills gaps and preparing workers for evolving industry demands. Across the 10 regions, the average adult training participation is 14.3%, falling below the OECD average of 16%. This shortfall highlights the need for greater investment in lifelong learning initiatives, particularly in regions where traditional mining practices are being replaced by more technologically advanced methods.
Regions like Örebro (18.7%) and North Karelia (16.4%) lead in adult training participation, reflecting their commitment to workforce development. These regions have implemented targeted programmes to reskill workers, focusing on areas such as sustainable mining practices and the adoption of new technologies. By contrast, Alentejo (10.1%) and Centro (10.8%) lag significantly behind, limiting their ability to adapt to industry shifts and exacerbating unemployment risks.
Job vacancies: A measure of economic dynamism
The availability of job vacancies provides a snapshot of regional economic activity and labour market flexibility. Among the 10 regions, Kainuu and Oulu stand out with 12.3 and 13.5 vacancies per 1 000 jobs respectively, well above the OECD average of 9.5. This reflects strong demand for skilled labour, particularly in advanced mining operations and related industries. Conversely, regions like Andalusia (4.7) and Central Greece (5.9) have the lowest vacancy rates.
Labour market performance in mining regions is shaped by varying levels of skills development and alignment between training systems and job market needs. The extent of mismatch between labour demand and available skills differs significantly across the ten regions.
On one hand. regions such as Oulu, Kainuu, and Central Ostrobothnia report the highest vacancy rates, 13.5, 12.3, and 11.8 vacancies per 1 000 jobs respectively, suggesting strong demand for labour. These regions also register relatively high adult training rates (above 14%) and skills mismatches close to or slightly above the OECD average (16.4‑19.8%), indicating an active training environment but also continued challenges in matching skills with job requirements.
In Lapland, vacancy and training rates are slightly lower but the region still faces a mismatch of 20.8%, pointing to a moderate gap between workforce qualifications and labour market needs. North Karelia shows relatively balanced indicators, with a vacancy rate of 9.1, training participation at 16.4% and a skills mismatch close to the OECD average. Örebro stands out with the highest adult training rate among all regions (18.7%) and a relatively low skills mismatch (17.6%), suggesting better alignment between workforce skills and job market needs.
Figure 2.9. Adult training, vacancies per thousand jobs and skills mismatch
Copy link to Figure 2.9. Adult training, vacancies per thousand jobs and skills mismatch
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
On the other hand, Alentejo, Andalusia, Central Greece and Centro face more pronounced challenges. These regions report the lowest training rates, ranging from 10.1% to 12.5%, and the highest levels of skills mismatch, from 21.6% in Centro to 25.4% in Andalusia. Andalusia and Central Greece, in particular, show the highest mismatch levels (25.4% and 23.8% respectively), combined with low vacancy and training rates, pointing to structural issues in labour market functioning and limited responsiveness of education systems to evolving skill demands.
Social trends
Copy link to Social trendsMining regions across the European Union face distinct social challenges and opportunities shaped by their reliance on extractive industries and their evolving socio-economic landscapes. These regions often struggle with declining and ageing populations, uneven population density and outmigration, particularly from rural areas. At the same time, mining activities generate significant economic opportunities that can support population stability and well-being if managed effectively. A comprehensive analysis of the ten mining regions reveals common patterns, as well as specific local dynamics at the national, regional and municipal levels.
Box 2.4. Main shared social characteristics
Copy link to Box 2.4. Main shared social characteristicsPopulation trends: Demographic trends in mining regions are multidimensional, shaped by economic diversification, industrial modernisation, education systems and national patterns. While some regions have stabilised or grown, others, particularly those in remote and less diversified economies, continue to experience population decline. Between 2005 and 2022, the 10 mining regions studied experienced an average population decline of ‑6%, contrasting with the OECD average (+11%) and the OECD mining benchmark regions (+22%) (unweighted average of the 10 regions’ growth rates). However, this trend varies significantly across regions.
Regions with both population decline and low density (Alentejo, Kainuu, Lapland, North Karelia) face the most severe demographic challenges, requiring stronger investments in infrastructure, connectivity and workforce retention.
Regions with population decline and moderate densities (Central Greece, Central Ostrobothnia, Centro) struggle with outmigration despite better infrastructure, underscoring the need to improve economic diversification and local job opportunities.
Some low-density mining regions (Örebro) have managed to stabilise their populations, demonstrating that targeted investments in industry and services can mitigate demographic decline.
Mining regions with urban settlements and moderate densities (Andalusia, Oulu, Sweden’s mining belt) have been able to sustain or grow their populations, highlighting the role of industrial diversification, education and service sector expansion.
Cultural identity and mining heritage: Mining has shaped regional identity, social cohesion, and cultural traditions in Alentejo, Andalusia and Örebro. Andalusia’s Riotinto mining area preserves its legacy through museums and historical sites, while Alentejo’s Cante Alentejano, a polyphonic singing tradition from Aljustrel’s mining communities, was recognised by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 2014. In Örebro, mining heritage supports cultural tourism and innovation hubs, linking history with economic diversification. These examples illustrate how mining traditions continue to influence regional identity, tourism and community life.
Urban-rural disparities: Urban centres in mining regions tend to attract populations due to greater economic diversification and better access to services, while rural municipalities face persistent population decline. This divide is particularly evident in regions where mining activities are concentrated in remote areas with fewer alternative industries. While cities such as Örebro and Oulu have maintained population growth, smaller municipalities in regions like Alentejo and Central Greece struggle to retain residents. The presence of mining alone is not always sufficient to counteract rural depopulation, highlighting the need for integrated regional policies that improve infrastructure and services in less urbanised areas.
Workforce retention: Labour market conditions vary widely across mining regions, reflecting differences in economic structures and diversification. While the EU-wide unemployment rate in 2020 was 7.7%, mining regions had a slightly higher average of 8.4%. However, some regions greatly exceeded this level, including Andalusia (22.3%) and Central Greece (19.2%), where limited economic diversification and reliance on traditional industries contribute to persistent employment challenges. By contrast, mining regions such as Central Ostrobothnia (4.6%), Kainuu (5.3%), and Centro (5.6%) have significantly lower unemployment, below both their national averages (Finland: 7.8%, Portugal: 6.0%). These variations illustrate the importance of linking mining activities with broader industrial and service sector development to sustain local employment.
Social acceptance of mining: Community perceptions of mining activities are shaped by economic benefits, environmental concerns and governance frameworks. Measuring social acceptance is complex, as support can vary between mining-affected municipalities and regional capitals, as well as across different stakeholder groups. Regions with strong mining traditions and economic integration. For instance, certain municipalities such as Kittilä or regions like Lapland, tend to exhibit higher acceptance, while others, like Alentejo and Central Greece, have faced stronger opposition linked to environmental concerns and uneven benefit distribution. Acceptance often fluctuates based on the perceived long-term stability of mining projects and their contributions to local development. In Lapland, the municipality of Sodankylä provides an example of proactive local engagement, having integrated mining into its development plans and promoting itself as “the mining capital of Finland”, with relatively high levels of community acceptance.
Infrastructure gaps: Infrastructure in mining regions is a recurring challenge, particularly in rural areas where accessibility and public service provision are limited. Transport connectivity, digital infrastructure and public investment play a crucial role in determining whether mining regions can sustain economic activity beyond extraction. While urban centres in Örebro and Oulu benefit from robust infrastructure and integration into national economic networks, more remote regions such as Alentejo and Central Greece require targeted investments to improve transport links, digital connectivity and service accessibility due to the more rural settings.
Demographic decline across most of the 10 selected EU mining regions
Between 2005 and 2022, most EU mining regions analysed have faced persistent population decline. The average change across the 10 selected regions was around -6%, contrasting with a growth of +11% in the OECD and +22% in OECD mining regions over the same period. More appropriate comparisons, such as OECD rural regions (+7.9%) or EU predominantly rural regions (-0.1% per year between 2015 and 2020), confirm that the selected mining regions are experiencing demographic pressures above the rural average. These dynamics are shaped by structural trends such as low birth rates, net outmigration of working-age population and rapid ageing.
Population density in mining regions also varies considerably, with important implications for service provision and economic activity. While some regions, such as Alentejo (19 inhabitants/km²) or Lapland (1.9 inhabitants/km²), are among the least densely populated areas in Europe, others such as Andalusia (96 inhabitants/km²) or Örebro (36 inhabitants/km²) are closer to national averages and support higher levels of urbanisation. The ability to attract and retain population is influenced not only by economic diversification but also by proximity to urban centres, infrastructure and service quality. Where population hubs are present, these elements contribute to stronger demographic performance by enhancing attractiveness and labour market access.
Regions with population decline and low density
These regions face structural disadvantages due to remoteness, low birth rates and long-term net outmigration, especially of younger cohorts. Sparse populations increase the cost-of-service delivery and reduce economic agglomeration.
Kainuu (‑25%), Lapland (‑16%) and North Karelia (‑15%), Finland: These regions exhibit among the sharpest population declines, largely due to negative natural change and outmigration. Fertility rates in Finland have declined steadily, reaching historic lows in recent years. Youth and working‑age residents often relocate to larger cities, leading to an ageing demographic profile. Kainuu and Lapland, in particular, have some of the highest elderly dependency ratios in the country. While recent mining investments have supported local employment, they have not reversed demographic decline.
Alentejo (-9%), Portugal: Portugal’s largest and most rural region has seen decades of demographic contraction, driven by low fertility, net outmigration to urban areas and limited in‑migration. The region has one of the highest shares of elderly population in Portugal and one of the lowest shares of foreign-born residents.
Regions with population decline and moderate density
Despite moderate population densities, these regions have experienced population losses. This reflects structural economic conditions and migration dynamics rather than remoteness.
Central Greece (-9%), Greece: The region’s demographic decline reflects broader national trends of low fertility and high outmigration. The effects of the financial crisis in the 2010s accelerated youth outmigration. Birth rates remain low, and population ageing continues.
Centro (-5%), Portugal: Although more urbanised than Alentejo, Centro has experienced population decline due to similar structural conditions. Economic diversification remains limited in many subregions, leading to youth outmigration.
Central Ostrobothnia (-11%), Finland: Despite not being among the lowest-density regions, the region has recorded a significant population loss. Low fertility and the outmigration of younger cohorts have driven this trend. Recent investments in lithium processing may stabilise population in the medium term.
Regions with population growth and low density
Only one region has succeeded in maintaining or increasing population despite low density.
Örebro (+4%), Sweden: The region has benefitted from a diversified economy and proximity to urban centres. Migration, including refugee settlement and internal migration, has contributed to population growth. The city of Örebro functions as a regional hub with access to education and services.
Regions with population growth and moderate density
These are urbanised regions that have experienced population increases, often due to internal or international migration and stronger economic opportunities.
Oulu (+12%), Finland: Oulu has grown well above the national average, benefitting from a strong technology sector, university presence and economic diversification. It retains and attracts a younger population.
Andalusia (+10%), Spain: Growth in Andalusia is linked to net migration inflows. The region has seen a higher growth rate than the national average, supported by urban centres and international migration.
Municipalities with large mining projects have shown demographic resilience
At the local level, mining municipalities experience distinct demographic patterns, shaped by economic opportunities, infrastructure and regional policies. While mining can help stabilise populations, particularly in rural areas, its effects vary widely. Some municipalities retain or attract residents by integrating mining with broader industrial activities, while others – especially in remote areas – continue to face outmigration and ageing populations. Compared to the OECD Mining Regions Benchmark made up of 50 regions with mining caractheristics, the ten selected EU mining regions show mixed demographic results. While mining presence often slows population decline, it does not always prevent it, particularly when economic diversification and service provision are limited. Mining municipalities tend to face sharper demographic shifts than their broader regions, as they are often more exposed to economic cycles and job market fluctuations. In some cases, mining projects attract workers and investment, supporting local stability.
Figure 2.10. Population growth, 2005-22
Copy link to Figure 2.10. Population growth, 2005-22
Note: 2005 = 100.
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Figure 2.11. Population growth in municipalities by region, 2010-20
Copy link to Figure 2.11. Population growth in municipalities by region, 2010-20
Note: Data for Greece could not be found at the municipal level.
Sources: Finland: Statistics Finland (2024[8]), Homepage, https://stat.fi/en; Portugal: Statistics Portugal (2024[9]), Census 2011 - Demographics NUTS II, https://censos.ine.pt/xportal/xmain?xpgid=censos21_populacao&xpid=CENSOS21; Spain: INE (2024[10]), Demografia NUTS II, https://censos.ine.pt/xportal/xmain?xpgid=censos21_populacao&xpid=CENSOS21; Sweden: Statistics Sweden (2024[11]), Population by Region, Marital Status, Age and Sex. Year 1968 - 2024, https://www.statistikdatabasen.scb.se/pxweb/en/ssd/START__BE__BE0101__BE0101A/BefolkningNy/?loadedQueryId=70067&timeType=top&timeValue=3. Spain: INE Datos municipales (INE, 2024[12])
However, in municipalities where industrial integration remains limited, the long-term retention of younger generations remains a challenge. The ability of mining towns to sustain their populations depends on how well they connect mining activities with other sectors, including tourism, manufacturing and knowledge-based industries:
Municipalities with population growth: Some towns have benefitted from mining and economic diversification, allowing them to retain or attract residents. Kittilä (Lapland, +7%) has leveraged tourism, Kokkola (Central Ostrobothnia, +4%) has remained stable due to industry and Kumla (Örebro, +19%) has integrated into regional innovation networks.
Municipalities with moderate decline: Towns still supported by mining activity but struggling with youth outmigration and industrial limitations include Aljustrel (Alentejo, ‑3.8%), Almonaster la Real (Andalusia, ‑3%), Aznalcóllar (Andalusia, ‑3%) and Sotkamo (Kainuu, ‑3%).
Municipalities with steep population losses: Some more remote or less diversified mining towns have experienced significant decline. Castro Verde (Alentejo, -5.2%), Covilhã (Centro, ‑10%), Ljusnarsberg (Örebro, -22%), Outokumpu (North Karelia, -13%), Paltamo (Kainuu, ‑18%) and Pyhäjärvi (Oulu, -17%) illustrate the difficulties in addressing structural challenges of population decline in rural areas, despite mining.
Gender balance in the working-age population
Gender imbalances in the working-age population are a distinctive characteristic in many mining regions, shaped by socio-economic dynamics, migration patterns and the traditionally male-dominated nature of the mining industry. For instance, women constitute only approximately 12% of mining employees on average in the 10 regions, despite making up approximately 50% of the total population. These imbalances influence workforce availability, economic development and the design of inclusive policies, requiring tailored approaches to ensure equitable participation in regional labour markets. Across the ten regions studied, four exhibit a higher proportion of men than women, while six have more women than men.
The OECD Mining Regions Benchmark (104.4) and OECD average (101.6) suggest a general trend of male predominance in mining-intensive regions, reflecting the traditional dominance of men in technical and extraction roles. However, regions such as Alentejo (94.15) and Centro (90.95) deviate significantly from this trend, with a higher proportion of women in the working-age population. Conversely, regions like Kainuu (102.95) and Oulu (101.96) align closely with the OECD Mining Regions Benchmark, reflecting a slight male predominance. Regions with more balanced gender ratios often exhibit diversified economies or urban hubs, providing broader employment opportunities for both men and women. For instance, d Central Greece (100.27) and Örebro (100.56) display near parity, reflecting efforts to integrate women into the workforce and offering a wider range of professional opportunities. By contrast, regions like Alentejo (‑5.85 p.p. below the OECD average) and Centro (‑9.05) experience significant female predominance, likely due to outmigration of men for employment in other sectors or regions.
Gender dynamics also vary within broader national trends. In Spain and Andalusia, the gender ratio indicates mild female predominance, with values of 96.04 and 97.33 respectively. Meanwhile, Finland’s regions, such as Kainuu and Oulu, show slight male predominance, reflecting the stronger pull of the mining sector for male workers. Sweden, with its overall balanced ratio of 101.33, aligns closely with the OECD average and demonstrates successful integration of women into the workforce. Key regional examples:
Regions with male predominance: Kainuu (102.95), Örebro (103.15) and Oulu (101.96), Finland, align with the OECD Mining Regions Benchmark (104.4), reflecting male-dominated employment patterns in mining-intensive sectors. These regions exhibit higher proportions of men due to the demand for male labour in technical, extraction and forestry-related roles associated with mining and resource-based industries.
Regions with female predominance: Alentejo (94.15) and Centro (90.95), Portugal, along with Andalusia (97.33), Spain, and North Karelia (96.45), Finland, exhibit notable female predominance. This trend is influenced by the outmigration of men seeking work in urban centres or other regions, while local economic structures, such as agriculture and service sectors, provide relatively stable employment opportunities for women.
Balanced regions: Central Greece (100.27) and Lapland (100.56), Sweden, exemplify near gender parity. These regions benefit from diversified economies that create broader opportunities for workforce participation across genders, with balanced employment in mining, technology, agriculture and other sectors.
Figure 2.12. Gender balance in the working-age population, 2022
Copy link to Figure 2.12. Gender balance in the working-age population, 2022
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Environmental trends
Copy link to Environmental trendsMining regions, while vital for securing the European Union’s strategic autonomy in critical raw materials, face significant environmental pressures that risk undermining their potential benefits. The environmental dimension is perhaps the most intricate and essential to address, as it underpins the long-term sustainability of these regions and their capacity to support the green transition. These pressures – ranging from greenhouse gas (GHG) emissions and land degradation to energy inefficiencies – highlight the delicate balance between maintaining mining productivity and ensuring ecological sustainability.
Mining regions face a range of environmental challenges that require co‑ordinated efforts at the local, national and EU levels. These include:
Water consumption and pollution: Mining operations require significant amounts of water for extraction, processing and dust suppression, often stressing local water resources. In fact, at least 16% of the world’s critical mineral mining sites are located in areas of high water stress. In arid regions like Alentejo and Andalusia, water scarcity is a critical issue, compounded by competing demands from agriculture and urban use. Contamination risks from mining wastewater, often containing heavy metals and other pollutants, pose additional threats to local ecosystems and human health. Many regions lack modern water recycling systems, which could mitigate these impacts. Investments in water-efficient technologies and stricter water management policies are needed to address these concerns.
(Regions most affected: Alentejo, Andalusia, Central Greece, Centro).
GHG emissions vary widely across the ten EU mining regions, with some far exceeding national and OECD benchmarks: For example, Andalusia leads with about 282.6 tonnes of carbon dioxiode per capita (tCO₂/cap), well above the Spanish and OECD mining sector averages. Other regions with high emissions include Alentejo at 189.1 tCO₂/cap and Centro at 212.2 tCO₂/cap, reflecting reliance on traditional mining practices and fossil fuel energy sources. In contrast, Lapland demonstrates much lower emissions at only 48.1 tCO₂/cap, far below Finland’s national average (approx..225 tCO₂/cap).
(Regions most affected: Alentejo, Andalusia, Centro, Lapland, North Karelia).
Land use and rehabilitation: Mining disrupts natural landscapes, affecting ecosystems, biodiversity and local livelihoods. Land degradation and tree cover loss are common, particularly in regions like Central Ostrobothnia and Oulu, where deforestation due to mining activities has significantly altered local ecosystems. Conversely, some regions, such as Alentejo and Andalusia, have initiated reforestation and land rehabilitation efforts, which show promise in restoring ecological balance. On average, tree cover loss across the 10 regions exceeds 3% in the past decade, with regions like Central Greece and Örebro particularly affected. Effective policies on land-use planning, coupled with community engagement, are critical for sustainable rehabilitation efforts. Alentejo and Andalusia have actually recorded net increases in tree cover (+7.3% and +4.6% respectively) in recent years.
(Regions most affected: Alentejo, Andalusia, Central Greece, Central Ostrobothnia, Örebro and Oulu).
Mining waste production: Mining and quarrying activities generate enormous quantities of waste rock and tailings. In fact, mining waste constitutes a large share of total waste output. EU-wide, the mining sector accounts for about 22.7% of all waste generated (second only to construction). In mining-intensive countries like Finland and Sweden, mine waste dominates national waste streams, making up 76‑77% of all waste produced in those countries. On average, more than 0.5 tonnes of waste is created for every tonne of ore extracted. The vast majority of this mining waste is classified as non-hazardous (over 95%), but it still poses environmental challenges such as land disturbance and potential leaching of pollutants. Proper waste management is therefore critical. Some regions are adopting circular economy practices to reduce and reuse mining waste: for example, Central Ostrobothnia and Lapland have implemented more sustainable waste management, turning waste streams into inputs for other uses. Such best practices help minimise the environmental footprint of mining waste.
(Regions most affected: Alentejo, Andalusia, Central Ostrobothnia, Kainuu, Lapland and Örebro).
Air pollution levels: Mining operations can significantly impact air quality, primarily through dust and particulate matter (PM) from activities like blasting, drilling and transporting ore. Regions with large-scale mining and processing may experience elevated levels of dust, which can harm respiratory health and degrade surrounding air quality. For instance, Örebro struggles with air pollution due to high dust levels from its mining and industrial activities. While efforts are being made (e.g. watering roads to suppress dust, using covered conveyors and installing filtration systems), some mining areas still occasionally exceed recommended air quality limits for PM. In addition, the use of heavy machinery and generators on site can emit nitrogen oxides and sulphur dioxide, contributing to pollution if not well controlled. Addressing these issues requires modern dust control technologies and strict enforcement of air quality regulations. Encouragingly, EU environmental standards (such as the Ambient Air Quality Directive) push regions to monitor and reduce particulate emissions. Mines in compliance often have measures like enclosed crushing facilities and regular air quality monitoring around sites.
(Regions most affected: Alentejo, Andalusia, Central Ostrobothnia, Kainuu, Lapland and Örebro).
Energy transition and carbon footprint: Mining operations are energy-intensive, contributing to high carbon emissions, particularly in regions reliant on fossil fuels for energy production. For instance, Andalusia and Centro currently depend on carbon-intensive energy, contributing to their status as highest emitters per capita among the mining regions. In these areas, outdated energy infrastructure and coal or diesel-based electricity result in a large carbon footprint. By contrast, Lapland has made a strong shift toward renewable energy in its mining operations, which sets a benchmark: it manages to keep CO₂ emissions very low (48.1 tCO₂/cap) while still meeting energy needs. Several regions (Alentejo, Andalusia, Lapland) have committed to supplying mining projects with renewable power sources (such as wind or solar farms), indicating a trend toward cleaner energy mixes. This transition not only cuts GHG emissions but also reduces local air pollution from fossil fuel combustion.
In terms of electricity efficiency, there are clear differences. Lapland again stands out, with about 44.5 megawatt-hour (MWh) of electricity generated per capita in the region’s economy and only approximately 48 tCO₂ emitted per gigawatt-hour (GWh), an indication of very low carbon intensity in power generation. This reflects the successful integration of renewable sources and modern, efficient technologies in its mining sector. On the other hand, regions like Andalusia and Örebro generate much less electricity per capita (around 6.0 MWh and 1.8 MWh per capita respectively), suggesting that their mining operations rely on outside energy or less efficient processes. The low local generation coupled with still-high emissions implies a heavy reliance on imported or fossil-based electricity, highlighting an opportunity to improve efficiency.
By upgrading equipment, recovering waste heat and optimising processes, mining companies can reduce the energy per unit of output. Increasing the share of renewables in the electricity supply of mining regions – for example, using onsite solar panels or wind for mines – further helps shift the energy mix. In summary, a renewables-heavy energy mix paired with investments in efficiency (like energy-efficient motors, conveyors, and ventilation in mines) is proving effective in some regions, and other mining regions can look to those examples to improve their performance.
(Regions most affected: Alentejo, Andalusia, Centro, Kainuu, Lapland, Örebro).
Community engagement and social perception: Public resistance to mining operations is often driven by concerns about environmental degradation and insufficient community benefits. This is particularly pronounced in Andalusia and Central Greece, where mining activities are often seen as environmentally harmful and poorly integrated into local development plans. Building community trust requires transparent communication about environmental impacts, tangible community benefits and inclusive decision-making processes. Regions like Lapland and Örebro provide examples of successful engagement through partnerships with local governments and civil society, fostering broader social acceptance. (Regions most affected: Alentejo, Andalusia, Central Greece, Lapland, North Karelia, Örebro).
The environmental performance of mining regions varies widely, shaped by their industrial practices, energy systems and geographic characteristics. Some regions, like Lapland and Örebro, have made strides in reducing their carbon footprint and integrating renewable energy, setting benchmarks for sustainable practices. Others, such as Andalusia and Centro, continue to grapple with high emissions and limited progress in adopting greener technologies. The environmental sustainability of mining regions is not only critical to their local ecosystems but also central to the European Union’s broader goals for a green and resilient economy.
Table 2.4. Environmental challenges and strengths by region
Copy link to Table 2.4. Environmental challenges and strengths by region
Region |
Environmental strengths |
Environmental challenges |
---|---|---|
Alentejo |
Improved community engagement in environmental practices around mining sites; low CO2 emissions per capita relative to the national average. |
Infrastructure limitations slowing broader environmental improvements; limited adoption of renewable energy in mining operations. |
Andalusia |
Strengthened focus on waste management and reduction of environmental impact in modern mining activities. |
High CO2 emissions per capita; limited energy efficiency; significant challenges in ensuring sustainability across large-scale mining operations due to regional size. |
Central Greece |
Emerging practices in waste management and environmental compliance; regional focus on improving biodiversity near mining sites. |
High CO2 emissions and low tree cover retention; weak public support due to environmental concerns. |
Central Ostrobothnia |
Advanced lithium processing technologies focused on environmental sustainability; energy-efficient practices in extraction activities. |
High CO2 emissions per GWh of electricity generated; challenges with public acceptance of mining’s environmental footprint. |
Centro |
Circular economy practices gradually being integrated into mining operations; moderate CO2 emissions. |
Challenges in scaling renewable energy use within mining operations; infrastructure gaps affecting environmental performance. |
Kainuu |
Sustainable integration of forestry and mining sectors; adoption of renewable energy in operations reducing overall emissions. |
Moderate loss of tree cover; need for modernisation in waste management systems to meet stricter EU standards. |
Lapland |
Strong focus on renewable energy integration in mining operations; advanced circular economy practices; high electricity generation efficiency. |
Low tree cover change compared to OECD average; challenges in managing tourism pressures alongside mining activities. |
North Karelia |
Forestry-mining integration providing synergies in environmental management; emerging bioeconomy initiatives to reduce impacts. |
High CO2 emissions per capita compared to OECD benchmarks; struggles in fully transitioning towards circular economy practices. |
Örebro |
Leader in mining innovation and sustainable practices, particularly in automation and digital technologies; efficient resource use in operations. |
Significant loss of tree cover in recent years; low electricity generation per capita, relying on imported energy sources. |
Oulu |
Comprehensive environmental management linked to mining technologies; moderate CO2 emissions; partnerships supporting sustainable mining practices. |
Increasing tree cover loss compared to national and OECD averages; balancing urban expansion with ecological preservation. |
Emissions and carbon footprint: The challenge of decarbonisation
GHG emissions are a prominent environmental challenge for mining regions, driven by the energy-intensive nature of extraction and processing activities. The data from the 10 TSI regions illustrates significant disparities:
Regions with high emissions: Andalusia leads with 282.6 tCO₂/cap, exceeding the Spanish and OECD averages, yet it has been recently developing new renewable energy projects (e.g. Los Frailes Mine is planning a solar plant to power operations). Alentejo (189.1 tCO₂/cap) and Centro (212.2 tCO₂/cap) also exhibit high emissions, reflecting the reliance on traditional mining techniques and fossil fuel energy systems.
Regions with low emissions: Lapland demonstrates good performance with emissions of only 48.1 tCO₂/cap, far below Finland’s national average (225.3 tCO₂/cap). This achievement reflects Lapland’s focus on renewable energy integration and energy-efficient technologies. These figures highlight the need for targeted decarbonisation strategies, particularly in high-emission regions, to align with EU climate objectives. Investment in green technologies, cleaner energy sources and low-emission mining practices is critical to addressing this issue.
Figure 2.13. Emissions of CO2 per capita
Copy link to Figure 2.13. Emissions of CO<sub>2</sub> per capita
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Energy efficiency: Integrating sustainability into mining operations
Across the ten EU mining regions, energy efficiency – measured by GHG emissions per unit of electricity and electricity generation per capita – shows mixed performance when benchmarked against international standards. Collectively, these regions tend to hover around the OECD mining regions’ carbon intensity benchmark of approximately 326 tCO₂ equivalent per GWh (tCO₂eq/GWh), which is well above the overall OECD average of 251.7 tCO₂eq/GWh. In terms of electricity output, mining regions naturally generate more power per person than typical regions; the OECD mining regions average 37.3 MWh per capita, nearly three times the OECD-wide average of 13.1 MWh. The EU mining regions reflect this pattern, with some exceeding 37 MWh per capita, while others fall well below. The gap between the highest and lowest electricity-generating mining regions in the European Union is stark: the most efficient region produces 25 times more electricity per capita than the least efficient, highlighting major discrepancies in energy performance.
Leading regions in efficiency: Some EU mining regions have successfully integrated renewable energy sources, achieving a balance between high electricity generation and low emissions. One region, for instance, generates 44.5 MWh per capita while emitting only 48.1 tCO₂eq/GWh, an exceptionally clean performance that is 80% lower in carbon intensity than the OECD average. This demonstrates that mining regions can produce abundant electricity while keeping emissions to a minimum, largely due to modernised infrastructure, energy-efficient mining equipment and a high share of renewables in the power mix. These examples set a benchmark for sustainable mining operations, showing that investment in clean energy can yield significant efficiency gains.
Regions needing improvement: By contrast, some mining regions in the European Union still rely heavily on fossil fuels for energy production, leading to higher emissions and lower electricity output. In the least efficient case, a region generates only 1.8 MWh per capita, a level well below the OECD average of 13.1 MWh, suggesting an underdeveloped local energy capacity and a reliance on imported or carbon-intensive electricity. In addition, regions with outdated infrastructure produce five times more CO₂ per unit of electricity than their more efficient counterparts, demonstrating the urgent need for energy system upgrades. In some cases, high emissions result from the continued reliance on coal or diesel-based electricity, which hinders decarbonisation efforts and increases environmental impact.
Enhancing energy efficiency requires a focus on modernising energy infrastructure and increasing the share of energy in the energy mix. Regions like Lapland and Örebro demonstrate how investing in clean energy can simultaneously reduce emissions and improve industrial competitiveness.
Figure 2.14. Efficiency of GHGs and electricity per capita generation
Copy link to Figure 2.14. Efficiency of GHGs and electricity per capita generation
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
Land use and tree cover dynamics
Mining activities inevitably disrupt local ecosystems, affecting land use, biodiversity and natural habitats. Changes in tree cover are a key indicator of these impacts, showing how regions manage the environmental footprint of their mining operations:
Positive trends: Alentejo and Andalusia recorded tree cover increases of +7.3% and +4.6% respectively, reflecting successful reforestation and land rehabilitation efforts. These trends indicate the potential for mining regions to restore ecosystems when proactive policies are in place.
Negative trends: Conversely, Central Ostrobothnia and Oulu have seen declines of -3.5% and ‑4% respectively, highlighting ongoing challenges in land management and ecosystem restoration.
These findings emphasise the need for robust land-use policies and investment in reforestation to offset the ecological impacts of mining. Regions that implement effective land management strategies can mitigate biodiversity loss and enhance the sustainability of mining activities.
Figure 2.15. Change of cover tree coverage, 2019
Copy link to Figure 2.15. Change of cover tree coverage, 2019
Source: OECD (2025[1]), Regions, Cities and Local Statistics, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
References
[5] Eurostat (2024), Businesses in the Mining and Quarrying Sector, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Businesses_in_the_mining_and_quarrying_sector.
[12] INE (2024), Cifras oficiales de población de los municipios, https://www.ine.es/dyngs/INEbase/es/operacion.htm?c=Estadistica_C&cid=1254736177011&menu=resultados&idp=1254734710990.
[10] INE (2024), Demografia - NUTS II, Statistics Portugal, https://censos.ine.pt/xportal/xmain?xpgid=censos21_populacao&xpid=CENSOS21.
[7] INE (2023), “The median earnings of the employees was less than €1000 in 285 (93%) of the 308 municipalities - 2021”, Statistics Portugal, https://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_destaques&DESTAQUESdest_boui=594919704&DESTAQUESmodo=2&xlang=en.
[6] Moritz, T. et al. (2017), “The local employment impacts of mining: an econometric analysis of job multipliers in northern Sweden”, Mineral Economics, Vol. 30/1, pp. 53-65, https://doi.org/10.1007/s13563-017-0103-1.
[1] OECD (2025), Regions, Cities and Local Statistics, OECD, Paris, https://www.oecd.org/en/topics/sub-issues/regions-cities-and-local-statistics.html.
[2] OECD (2024), Mining Regions and Cities, OECD, Paris, https://www.oecd.org/en/topics/mining-regions-and-cities.html.
[3] OECD (2023), “Toolkit to measure well-being in mining regions”, OECD Regional Development Papers, No. 41, OECD Publishing, Paris, https://doi.org/10.1787/5a740fe0-en.
[4] OECD (n.d.), Toolkit for Mining Regions Well-being (data visualisation), OECD, Paris, https://oecd-main.shinyapps.io/mining-regions-wellbeing/.
[8] Statistics Finland (2024), Homepage, https://stat.fi/en.
[9] Statistics Portugal (2024), Census 2011 - Demographics NUTS II, https://censos.ine.pt/xportal/xmain?xpgid=censos21_populacao&xpid=CENSOS21.
[11] Statistics Sweden (2024), Population by Region, Marital Status, Age and Sex. Year 1968 - 2024, https://www.statistikdatabasen.scb.se/pxweb/en/ssd/START__BE__BE0101__BE0101A/BefolkningNy/?loadedQueryId=70067&timeType=top&timeValue=3.
Notes
Copy link to Notes← 1. The OECD divides its territory into two subnational levels to ensure consistency across countries. Territorial Level 2 (TL2) refers to larger regions that generally correspond to the first administrative tier of government. In 2018, there were 389 TL2 regions across OECD countries. Territorial Level 3 (TL3) refers to smaller regions that are typically nested within TL2 regions; in 2018, there were 2 251 TL3 regions across OECD countries. Except in certain cases (for example, Economic Areas in the United States may cross state borders), each TL3 region is contained within a single TL2 region.
← 2. All the variables in the figure have been normalised with the OECD Mining Regions Benchmark set at 100. This is a benchmark of the 50 most relevant and representative OECD mining regions, used to reflect the specific challenges and opportunities of regions with strong mining specialisation.
Description of variables:
Population 2022: Reflects the growth in population from 2001 to 2022.
Young population: Represents the share of youth (0-15 years old) in the total population as of 2022.
Women in the workforce: Indicates the gender balance in the working-age segment (15-64); a higher value means a higher proportion of women as of 2022
Performance in unemployment: Refers to the unemployment rate, calculated as the number of unemployed persons over 15 years old as a percentage of the total population as of 2020.
GDP per capita: Measured in purchasing power parity (PPP), current as of 2015. Latest available data from 2020.
Economic diversification: Calculated using the Herfindahl index, defined as the sum of the squared sectorial shares of the top ten principal sectors in a region to measure its diversification. Data from 2020.
CO2 per unit of electricity generated: Normalised as the number of tonnes of carbon dioxide equivalent per gigawatt hour (tCO2 eq/GWh). Data from 2020.
Change in green land cover: Represents the change in tree cover surface from 2004 to 2019