Sweden's natural resources

Sweden has a variety of natural resources and is important in the global export market. Two of its major resources and main exports are timber and iron ore. Approximately 10 percent of the world’s timber export is from Sweden. The country also exports paper and wood pulp. Sweden exports approximately 90 percent of its iron ore and ranks in the top ten among iron-ore exporting countries. Hydropower provides much of the energy for manufacturing the many products produced in the country.

The Country

Sweden is located in northern Europe and is part of the Scandinavian Peninsula. It shares land borders with Norway and Finland. It borders the Baltic Sea to the south and west and the Gulf of Bothnia to the east. Sweden’s terrain is primarily flat with a predominance of lowlands. There are mountains in the western and northern part, numerous rivers and lakes, and an abundance of forests throughout the country. Vänern and Vätern, which are two of the largest lakes in Europe, are in Sweden’s southern lowlands. Sweden’s most important resources are hydroelectric power; forests, producing timber and residual wood products; and iron ore. The country’s mineral deposits include uranium, copper, lead, and zinc. Sweden’s economy is highly developed and is oriented to the export market.

In 2021, Sweden was ranked among the most competitive countries in the world by the World Economic Forum. The country’s 2023 estimated gross domestic product (GDP) was $676.353 billion, with a per capita GDP of $64,200. Sweden plays an active role in the global economy, as both an exporter and an importer, with dollar value of exports exceeding that of imports. Sweden’s major trading partners are European countries, especially Germany, Norway, Denmark, and the United Kingdom. The United States is an important export market, and Sweden imports significantly from China.

Forests

Forests cover between 60 and 65 percent of Sweden’s land. Conifers constitute approximately 85 percent of the 28 million hectares of forest, of which about 23 hectares are classified as productive forestland. Norway spruce is the predominant conifer, along with Scots pine, which is located primarily in the north. Birch is the main deciduous species in Sweden. The majority of Sweden’s forest is privately owned by families. These family forests are relatively small, usually covering about 50 hectares of land area. Private companies and the government also own forests in Sweden. The forest owned by families or individuals accounts for approximately 51 percent of Sweden’s forest; the remaining 49 percent is divided almost equally between private companies and the government. Sweden’s forests produce a wide variety of products, including sawed timber, pulp, paper, paperboard, and veneer.

Sweden’s forests have always been the country’s most important resource for both domestic and international use. The products of the forest industry account for approximately 5 percent of Sweden’s GDP. Domestically, the forest industry has provided building materials and a supply of fuel and employment, especially in rural areas. Biofuel has gained an increasing importance in Sweden because of environmental concerns; the residual, or by-products, of the timber harvest, along with peat, are the major source of the country’s biofuel. Forests have always been a source of recreation for Sweden’s population and play a significant role in the tourist industry. At the global level, forest industry products make up about 13 percent of the goods exported by Sweden. These exports account for 60 percent of the products garnered from the forests. In the early twenty-first century, Sweden was among the top ten largest exporters of coniferous sawed wood, wood pulp, and paper and paperboard. Sweden’s exports of sawed timber fluctuate with the rise and fall of construction of both residential and commercial buildings in trade partner countries.

Sweden values its forests for both their economic and environmental importance. During the nineteenth century, much of the forest was clear-cut and devastated, but as early as 1903, Sweden enacted legislation to restore its forests and preserve this vital industry. In 1994, the Forestry Act of 1903 was revised to ensure that it gave equal importance to maintenance and regeneration of the forest and to the use of the forest for economic advantages. In 1998, the Swedish timber industry, in association with the government, initiated research and development programs that required an investment of 480 million Swedish kronor. The annual growth of forests continues to increase each year because of careful attention to the silviculture (the care and development of forests in order to obtain a product or provide a benefit) cycle of the forests and programs for environmentally sound forest management. Sweden is also addressing the issue of marketability of sawed timber and researching new products, such as composite and compressed-wood items. In addition, the forest industry is producing more customized products and building large, high-technology sawmills.

Hydropower

Hydropower, the energy that comes from moving water, has been an important source of power for Sweden throughout its history. Although Sweden has also used other sources of power at various times, hydropower has always played a significant role as a source of energy. Until the nineteenth century, hydropower and wood were the main sources of energy. At that time, imported coal replaced much of the wood used for energy production. As a result Sweden became reliant upon coal and hydropower as sources of energy. In the early twentieth century, imported oil began to replace the coal, and in 1960, Sweden added nuclear power from imported uranium to its power base.

However, hydropower remains a significant source of energy for Sweden. With an abundance of rivers and streams, especially in the north, and more than 100,000 lakes, Sweden has enormous hydropower potential. Since the Middle Ages, Sweden has used small hydropower in the form of waterwheels to run mills and various types of machinery. In the 1880s, the first hydropower stations that provided energy to communities and industries close to them were built. Soon, hundreds of these small power plants were operating and supplying power throughout the country. However, by 1900 Sweden began to develop a system of large-scale hydropower.

Once the technology for large electrical cables was developed, Sweden’s hydropower system changed dramatically. The use of hydropower was no longer limited to the immediate vicinity of the station. It could be transported long distances by large, 400-kilovolt lines. This brought about the establishment of large hydropower stations in the north, where the major rivers are located. The majority of these stations were built in the 1950s and 1960s. These power stations provide energy throughout the country. Utilizing a network of cables, Sweden also participates in the international exportation and importation of electricity with its neighboring countries.

Hydropower provides Sweden with an economical and abundant source of energy that does relatively little damage to the environment. It produces no greenhouse gases, and much of its ecological impact can be controlled. Hydropower stations are either run-of-the-river or based on the use of dams. In both cases, they can cause an inadequate supply of oxygen in the water; this is corrected by aeration. Dams also impede the progress of fish, but fish ladders address this problem. There are still problems that arise from flooding areas to create dams and from interfering with the flow of rivers.

Sweden attempted to address these problems through its Sustainable Energy Act of 1997, acceptance of the Kyoto Protocol and the Paris Agreement, as well as other environmental regulations. The hydropower stations in Sweden are approximately 50 percent owned by the state and 50 percent owned by private companies. In 1998, Sweden passed the Environment Act, which regulates the licensing of hydropower stations. Thus, Sweden is using the economical advantage of hydropower to promote industries that are globally competitive and, at the same time, ecologically sound.

Iron Ore

Iron ore is composed of rocks and minerals; it varies in color and may be yellow, gray, purple, or red. Iron ore is assessed as high- or low-grade depending upon the amount of iron contained in it. Iron ore must contain more than 54 percent iron to be classed as high-grade; any lesser amount classes it as low-grade. Some of the material other than iron must be removed from the low-grade ore to make it marketable, while high-grade ore is sold just as it is extracted. It is sold as lump ore or fine ore, depending upon its size. Lump ore is greater than 8 millimeters in diameter; fine ore is less. Iron ore is important in the steel-manufacturing industry. It is used to make pig iron, which is then used to produce steel.

Mining of iron ore has been an important factor in Sweden’s economy since the Middle Ages. The largest deposits of iron ore in Sweden are located in the north, particularly in Swedish Lapland and near Grängesberg. Originally, iron-ore mining was done by homesteaders who were both farmers and miners, depending upon the season of the year. Mining was done as a cooperative community project and was a local activity. Eventually, the state and private companies became involved in mining on a much larger scale. Sweden became Europe’s largest exporter of iron ore and remained so for more than two hundred years. The quantity of iron ore mined in the late twentieth and early twentieth-first century decreased.

In 2007, Sweden's production of iron ore increased by 6.1 percent as a number of mining projects opened. The two large state-owned mines, one at Kiruna and the other at Malmberget, mined 79 percent of the iron ore produced. A number of foreign companies were also involved in new projects, both in exploration and in plans for reopening the mines. European markets still account for the majority of Sweden’s iron-ore exports. North Africa and the Middle East are also important export markets.

Uranium

Uranium is a metallic element used to fuel nuclear reactors that produce energy. Sweden has the largest uranium deposits that have been discovered in Europe. However, the uranium is low-grade, that is, the concentration of the uranium averages only 136 grams per metric ton. There was intensive exploration for uranium from the 1960s to the 1980s, when the government stopped all exploration for the metal. During the 1960s, uranium was mined at Randstad. The mine produced 195 metric tons of uranium during a four-year period of activity. Sweden’s first nuclear reactor was built in 1964, and several nuclear reactors remained critical in supplying the country’s power requirements into the twenty-first century. However, all uranium used in the reactors has been imported.

Sweden has begun to explore its own uranium resources again with the intention of lessening its dependency on imported uranium. In the early twenty-first century, Sweden ranked among the countries that were conducting the most exploration for uranium. Uranium mining was favored by the government, and major international mining companies are exploring for uranium in Sweden. While the Swedish government is in favor of mining for uranium, environmental considerations still play an important role in decisions to permit or not permit the establishment of uranium mines. The final decision rests with the local municipal government where the mining is proposed.

Copper

Copper is a metal found both in a free state and combined with other metals in ores. Copper is a good conductor of both heat and electricity. It is used for making pipes, in electrical equipment, and in brass and bronze alloys. Copper is mined at the Aitik Copper Mine located near Gällivare in northern Sweden. Although the copper was discovered in the 1930s, the mine was not opened until 1968, after the development of bulk-mining technology. Aitik was the first open-pit low-grade copper mine opened in Europe.

Other Resources

Sweden has a large variety of base metal and industrial mineral deposits. In addition to copper there are economically significant deposits of lead, zinc, silver, gold, and nickel. Chalk and limestone are two of the most important industrial minerals. The Swedish government has encouraged exploration and has worked with both Swedish and foreign mining companies to exploit new sites and to reopen some older mines that have been closed for many years. New mining technology is making the reopening of several of these mines possible.

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