Social License to Operate of Kittilä mine: Genuine Tourism Benefit or Corporate Illusion?

Abstract

The mining boom has ascended in Finland, especially Lapland due to rising need for minerals globally. This study research social license to operate of Kittilä gold mine and its impacts on the local tourism industry in Levi. Social license to operate (short in SLO) means approval from key stakeholders for company to perform its activities. SLO is usually required when company operates in a way that causes damage to the local community and its environment. In exchange for social licenses to operate, companies aim to benefit key stakeholders by providing benefits such as economic benefits through sponsoring and cooperation. This theses recognizes tourism industry of Levi, Kittilä as a main stakeholder of Kittilä mine, therefore impacts, benefits and social license to operate from Kittilä mine are researched toward tourism industry in Levi.

Research of SLO in Kittilä is important because mining affects communities and environments negatively, causing deforestation and social issues. Mining can have serious negative impacts to nature-based tourism in Levi, which municipality of Kittilä economically relies on. This research was conducted with qualitative research method, and data was collected through semi-structured interviews. The data was analyzed through thematic analysis process, which involved analyzing transcription of data with recognition of emerging codes and themes.

The results of this research show that Kittilä mine is generally accepted due to its positive impacts such as creation of job opportunities and economic benefits to the entire Kittilä municipality. However, the negative impacts to environment and uncertainty toward Kittilä mines’ sustainable narratives cause ambivalence and conditional acceptance in SLO within tourism professionals. The findings suggest that the tourism industry in Levi does not depend on direct benefits from the Kittilä mine, but instead places greater importance on the mine’s environmental responsibility, because clean nature is essential for nature-based tourism.