GEOLOGICAL SURVEY OF FINLAND GTK

GEOLOGICAL SURVEY OF FINLAND GTK A N N U A L R E P O R T 2 0 0 4

Vision Geology will contribute to sustainable growth and wellbeing. Mission The GTK produces and disseminates geological information for use in promoting the controlled and sustainable use of the Earth s crust. The GTK maps and researches the Earth s crust and its natural resources, is responsible for providing a national geological information service, produces services required by customers and operates actively in international projects. Sections of Archaean bedrock (over 2,500 million years old) in a diabase vein. Photo: Jorma Paavola, GTK The GTK in brief The Geological Survey of Finland (GTK) is a national geological research centre operating under the Ministry of Trade and Industry Established in 1886 Based in Espoo, Kuopio and Rovaniemi Staff resources of 836 person-years in 2004 Total cost of operations amounted to EUR 55.4 million in 2004 Income from contract services was EUR 10.25 million The activities were guided by two strategic programmes: bedrock and raw materials land use and environment. CONTENTS Director General s review 2 Message from the Board of Directors 3 Bedrock geology and resources 5 Land use and environment 11 Geoservices 17 International activities 21 Information management 26 Finance and administration 28 Index maps 34 GTK publications and reports in 2004 37 Staff publications in 2004 43 Organization and management 51 Board of Directors 52 Scree formation at Ryläys. Photo: Tapio Väänänen, GTK Front cover: One of a group of 15-metre high stone columns at Otava near Mikkeli, collectively known as Otava s stone church. One of the columns has a large cave at the foot of it. Inside front cover: Kaarnavuori is a granite cliff about 50 metres high at Anttola in Mikkeli. It is popular with climbers. 1 GTK 2004 Photos: Jari Väätäinen, GTK

Geology as a basis for sustainable growth and welfare GTK has special expertise in mapping the Earth s crust and its natural resources. Because of our committed and highly skilled staff, our expertise in the sector is unique, even by international comparison. Our aim is to ensure the availability and sustainable use of raw materials required by industry and society at large. The GTK also helps to promote costeffective and environmentally sound land use and creates opportunities for industrial development and employment in the sector and balanced regional development. In addition to our unique expertise, proactive networking both in Finland and internationally is a critical success factor. One of the most important new forms of collaboration is the cooperation agreement on airborne geophysics between the GTK and the British Geological Survey. In addition to European Geological Surveys, the GTK cooperates with institutes in the USA, Canada and Australia. Cooperation projects were continued with VSEGEI, the All-Russian Geological Research Institute based in St Petersburg, using its well-equipped isotope geology laboratory. The GTK also strengthened university-level cooperation and other research collaboration in Finland by joining NorNet, the Northern Environmental Research Network. The purpose of the network, which is coordinated by the University of Oulu, is to promote cooperation between research institutes in the sector. The mineral processing laboratory in Outokumpu was integrated into the GTK s operating organization. This expertise has created new opportunities for the GTK, enabling it to provide companies in the mining sector with a more efficient service. The laboratory will also be actively developed into an environmental engineering research establishment. Target-oriented work continued according to plan During 2004, the GTK continued its work in line with the performance targets agreed with the Ministry of Trade GTK 2004 2 Photo: Jari Väätäinen, GTK Director General s review and Industry. Demand for the GTK s products and services increased on 2003 and it exceeded its revenue target both for chargeable services and jointly financed operations. Revenue financing and other external funding covered 26% of expenditure. The good financial performance was largely the result of increased mining activity in Finland and significant export projects in Mozambique and Tanzania. Demand for research services focusing on the environmental impact of mining was also greater than before. Research on raw materials focused on the exploration of precious and base metals, industrial minerals and rocks, and research on peat. The GTK reported on two new commercially attractive ore exploration sites to the Ministry of Trade and Industry. It was also active in developing the operating environment for the minerals industry by producing new mapping and research data, especially on bedrock areas with high raw material potential. The distribution of new claim reports over the Internet began in conjunction with the Ministry of Trade and Industry. A significant proportion of the aggregate and groundwater projects in the Land Use and Environment division were carried out with joint funding. Mapping operations focused on the areas that are of key importance for industry and land use planning. Development of the natural-resource accounting system, an important tool for aggregate management, as part of the GTK s management system continued in conjunction with the environmental authorities. Geological values were examined in national projects, such as in the studies carried out in connection with the World Heritage List application for the Kvarken region. Expanding the GTK s online services continued with the introduction of a peat research data service, which will be useful for both peat producers and individual land owners. The GTK web pages registered nearly half a million hits for the year under review, and the GTK s visibility in the media increased compared to the previous year. The GTK was also an active participant in the national Year of Finnish Stone campaign, which aimed to increase awareness of the natural stone industry and to promote the use of stone. EU-funded projects and projects carried out as part of the debt-conversion arrangements between Finland and Russia formed a key part of the GTK s international research activity. Conversion funding was used to drill a 2.5 km deep research borehole in the Outokumpu area, which will provide a large amount of new data on the structures and temperatures of the Earth s crust, and its bedrock groundwater and gas content. Understanding the conditions in deeper regions of the bedrock is also important for research on the disposal of nuclear waste. Revising the strategy In 2004 the GTK prepared a new vision and strategy and organizational reforms to support them. The reforms will improve management and control at the GTK, help it focus on its core activities and clarify the division of responsibilities between its units. Changes to the organizational structure and responsibilities were carried out in the Geoservices Unit and in information management and international project

Message from the Board of Directors exports. A new nationwide service unit was created to take care of the GTK s administrative functions. Work on the GTK s strategy will enter an advanced stage in 2005. The GTK will focus more clearly on its role as a leading expert on natural resources in the Earth s crust and the sustainable use of these resources and on its role as a national geoinformation centre committed to ensuring the availability and diversified use of geological information in society at large. One significant reform was the decision by the Ministry of Trade and Industry to give a stronger regional focus to the GTK s operations by establishing a Western Finland regional unit in Kokkola. The GTK now has a comprehensive network of operations which will help to strengthen regional development still further. At the same time the GTK is shaping its regional activities to better meet the challenges and opportunities in the regions. Highly skilled and committed staff are a key strength at the GTK. At the end of the year, the GTK carried out a personnel survey in which staff attitudes, and the current state of the workplace communities and the organization were assessed, so that development measures can be focused correctly. The survey provided GTK staff with an opportunity to have a say in the development of operations at every level of the organization. The results of the study, which were completed in spring 2005, give an indication of the areas with the greatest need for improvements. Raising awareness of geology among people of all ages During the year under review, the GTK campaigned to raise people s awareness of geology and related issues. The Kuopio unit was made responsible for the service offered to the public whereby GTK experts identify geological samples submitted to them. To encourage people s interest in geology, an in-depth user s guide to rock and mineral identification was published. The GTK continued its cooperation with Metsähallitus and the Finnish Forest Research Institute (METLA) in setting up several geological exhibitions at information centres in national parks and other protected areas. A comprehensive scientific publication on the Quaternary deposits and soil types of northern Finland, and their origins and use was produced during 2004 and published in March 2005. The Espoo unit concentrated on creating a new type of geological exhibition to inform people of all ages interested in geology about the origins of the Earth and its phenomena in an exciting way. The exhibition will open up a new world especially to schoolchildren, because geology is not taught at school. The exhibition also provides information about the GTK and its work. Finally, I would like to express my thanks to the Ministry of Trade and Industry, all our stakeholders and clients and the GTK s staff for their excellent cooperation over this past year. By working together we can make our vision a reality and ensure that geology contributes to a basis for sustainable growth and welfare. Elias Ekdahl Growth in the metal markets is advantageous for the GTK The revival of the world economy in 2004, due principally to the unparalleled growth in China s economy, has had a positive impact on the GTK s operating environment. China s industrial production was up by about 16% on the previous year s figure, and its consumption of metals rivalled that of Europe, which for decades has been the world s leading user of metals. The global increase in industrial production was 4.5%. By contrast, Europe s industrial production was up by only a modest 1.7%. After a long slump the metals markets began to pick up at the end of 2003, and growth continued to be strong during 2004. A good example of the revival in demand for metals is copper, the global demand for which was up by 7%. The demand for copper in Europe was up by only 2%, but in China by as much as 14%. Production growth lagged behind the increase in consumption, producing a sharp rise in the price of copper, from about USD 1,750 per tonne in early autumn 2003 to about USD 3,270 per tonne at the end of 2004. Traditionally, major prices increases resulting from raw-material shortages have led to considerable growth in exploration investment and in the utilization of known sites. The sharp increase in capital flows on the world market in 2004 meant that there was considerable capital looking for new investment targets; these included new opportunities for providing finance for companies engaged in mineral exploration. Global investments in mineral exploration amounted to USD 3,800 million, up by 58% on the previous year. In Europe too, investment was up, reaching EUR 110 million, an increase of 31%. In Finland, investment was EUR 31 million and in Sweden EUR 27 million. Investment focused on the Fennoscandian region, which formed a significant European exploration zone. Some 31 companies are actively engaged in mineral exploration in Finland. The majority of these are foreign companies, which make use of the GTK s services and data. The GTK s order book was in fact very healthy in 2004. It looks as though investment in mineral exploration will continue to be strong in 2005. Tom O. Niemi Chairman 3 GTK 2004

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Bedrock geology and resources Exploration continued at record levels The function of the Bedrock Geology and Resources division is to map and research Finnish bedrock geology and its resource potential and to produce geological information and services for society as a whole and the GTK s stakeholders. The aim is to promote the sustainable use of ores, industrial minerals and natural stone from Finnish bedrock and to be actively involved in creating conditions that are conducive to industrial development in the sector. The Horsmanaho talc quarry in a chromium-rich area at Polvijärvi. The fissure in the rock has acted as a channel for water to flow from the ground surface above. The pictured fissure is more than 10 metres high. Photo: Jari Väätäinen, GTK In 2004, the GTK played a role in improving the operating conditions for the minerals industry by producing new data and improving ways in which information is interpreted, particularly concerning bedrock areas with the best raw material potential, and by making geological information more widely available. Active search for metalliferous ores Exploration activity in Finland was at record levels. About 30 exploration companies have active operations in Finland; most of these are foreign companies. The increased activity has led to an increase in the demand for geological data, expertise and services, and all the exploration companies in practice make use of the GTK s databases and expertise. In accordance with its strategy, the GTK focused on the initial stage of the mineral exploration process, which requires advanced geoscientific competence, the latest methods and diverse use of geoinformation. The aim is to produce basic information about mineral reserves in Finnish bedrock, develop exploration methods and locate new areas of mineral potential. All new discoveries are reported to the Ministry of Trade and Industry so that they can be sold to operators in the industry for further investigation and possible mining operations. The Kettukuusikko gold deposit in Kittilä, which was surveyed by the GTK, was sold in an international tendering process to the US company Taranis Resources, which began further surveys of the deposit. The higher world market price of nickel has also led the industry to conduct further surveys in a number of mineral deposits previously found by the GTK, with the aim of beginning mining activity. The GTK appointed a new research professor with the task of developing survey and exploration methods for precious metals. This post is based in Rovaniemi. In the exploration of metalliferous ores, the focus was on gold, which currently offers the best chances for new mining and in which the industry is also showing the most interest. The most important gold exploration projects were in the eastern parts of Kittilä; in the vicinity of the Porttipahta and Lokka reservoirs; in Kuhmo and the Kalajoki-Nivala-Reisjärvi area; and in the Forssa-Huittinen area. The aim is to find new areas with gold potential. A number of new mineral deposits were identified for future surveys. The multi-year research project on the Kuhmo greenstone belt was concluded, having identified various gold and nickel prospects, and an excellent basic information pack was prepared on the area s geology for the use of exploration companies working in the area. Investigation of the potential for platinum group elements (PGEs) in the layered intrusions in northern Finland was concentrated in Koillismaa, where two disseminated deposits of PGE-nickel-copper were found. The potential for appinite ore in the central Lapland granitoid area was also investigated. A new zinc deposit model for the area around Vihanti was completed and its suitability for exploration will be tested over the next few years. 5 2004 GTK

Active role for GTK in industrial minerals exploration A sample of the rock is taken by splitting it apart. Photo: Jari Väätäinen, GTK This bedrock site at Pernaja was discovered in 1999. The products from the quarry include highquality aggregate for asphalt. Photo: Mika Räisänen, GTK In 2004, industrial minerals exploration focused on pigment minerals, namely calcite, ilmenite and kaolin, and also on pegmatites containing rare elements, mainly lithium. To assist in planning the GTK s exploration strategy, a report was compiled on Finnish industrial minerals production and the need for exploration. The report concluded that the GTK s active role in the exploration and survey of new deposits is essential for continuity and growth in industrial minerals production. Besides the mineral potential, the industrial need and the location are also taken into account in selecting new sites. Efforts are focused on those areas where new mining industry activity is already being established. Exploration for calcite was conducted in southwestern Finland. Most significantly, the surveys of the wollastonite-rich carbonate stone at Kalkkimäki in Nummi-Pusula were completed and a report submitted to the Ministry of Trade and Industry. The reserves of this centrally located deposit, amounting to approximately 7 million tonnes, include pure calcite marble, calcite-dolomite marble and wollastonite-calcite marble. The known reserves of wollastonite-calcite at Kuovila in the municipality of Pohja grew considerably as a result of the boreholes made in 2004; the deposit was found to run vertically to a depth of at least 150 metres. In addition, west of Kuovila, a section of calcite stone 150 metres wide was located at Kiimasuo. Amounting to almost 100 million tonnes, the Kuovila calcite deposit will be a key domestic raw material reserve in the future for the ever growing production of microcalcite. It should also be possible to obtain wollastonite as a by-product of calcite. Carbonate stone was also found in boreholes made in the Rajakangas area in Virtasalmi, where the extent of a large deposit of calcite-dolomite rock was determined. At Sievi, borehole drilling reached the parent rock of the long-known dolomite boulders. This discovery may attract agricultural lime production to the area. Ilmenite surveys were undertaken at Lumikangas in Kauhajoki, where magnetic and gravimetric measurements and boreholes revealed more than 200 million tonnes of apatite-ilmenite-magnetite gabbro with a mineral ore content of about 20%. The main area of Kaolin exploration during the year was at Vittajänkä in Salla, where terrain surveys were completed. The size of the kaolin deposit was estimated to be over 10 million tonnes, with a kaolinite content of 30%. Preliminary beneficiation tests indicate that the whiteness of the kaolin is about 80%, which is sufficient for use as a filler in paper-making. Exploration surveys for spodumene-containing lithium pegmatite were begun in the Kaustinen area. The aim is to support the mining activity being developed there, which has been stimulated by the growing demand for lithium batteries in computers and electric vehicles. The choice of location was determined by the plentiful boulder strips of spodumene stone, most of which were found in mineral surveys conducted by Suomen Mineraali Oy in the 1960s. GTK expertise available to network partners The GTK began a minerals industry development project in eastern and northern Finland. This project focuses principally on the planning of major collaborative projects and the improvement of networking in northern Scandinavia and northwest Russia. The project period is 2004-2006, and the GTK s project partners are the Regional Council of Lapland, the Council of Oulu Region and the NorNet collaboration network of the University of Oulu. Preliminary interpretation of the high-quality material from the FIRE project on GTK 2004 6

Bedrock geology and resources deep seismic reflection sounding was completed during the year. The project work, which was undertaken as part of the debt-conversion funding arrangements between Finland and Russia, revealed completely new information on the deep structure of the Earth s crust in Finland. The results will be useful in, for example, surveys of mineral potential. In Outokumpu, drilling was begun on a research borehole of record depth, for which debt-conversion funding is also being used. In this project, the GTK has commissioned the Russian state-owned deep-drilling specialist NEDRA and the trading house Machinoimport to drill a research borehole to a depth of 2.5 km during 2004-2005. The Outokumpu area was selected as the research location because it is one of the most important and most interesting mineral areas in Finland. Until now, deep drilling has extended to a depth of only about 1,150 metres. The borehole will be used to study the deep structures revealed by the seismic sounding performed in the area. The purpose of the GTK s deep drilling project is not mineral exploration, however, but basic research of the bedrock and use of the borehole as a deep laboratory. The GTK presented and marketed Finland s mineral potential to the industry and developed its stakeholder relationships during 2004. A key event during the year was the world s leading mineral exploration conference, the Prospectors and Developers Association s (PDAC) annual meeting, which was held in Toronto, where the GTK had its own stand for the tenth successive conference. Regional mapping programmes Bedrock surveys focused on the Kainuu-Kuusamo region, where work continued on supplementing the regional 1:250 000 mapping database. In Lapland, mapping for two 1:100 000 map sheets were completed to enable publication of the maps. The mapping target for the year was exceeded, and by a much greater amount than anticipated, thanks to the number of seasonal trainees. The transfer of the large volume of survey data held by Outokumpu Oyj to the GTK s databases continued in line with the agreement made. These datasets will add considerably to the coverage of bedrock mapping, especially in areas of mineral exploration interest. To make it easier to use the map data, all publications in Explanation to the maps of Pre-Quaternary rocks, Geological map of Finland 1:100 000 were made available over the Internet in the form of PDF files. The programme of aerial geophysical surveys proceeded well and the year s target was exceeded by 40%. This raised the programme s surface-area coverage to 86%. In addition, condensed grid measurements were made in areas of mineral potential in the GTK projects at Kaustinen, Vihanti and Sodankylä, in accordance with the objective set for this. The programme of regional gravity measurements proceeded as planned, and the measurements were used to investigate, for example, the layer intrusions in Koillismaa and the structure of the arch complex in southern Finland and to aid industrial mineral deposit surveys in central Ostrobothnia. Bedrock geology and resources 2004 2004 planned implemented Claims related to mineral exploitation 13 16 Significant exploration sites reported to the Ministry of Trade and Industry 4 2 Aerogeophysical surveys, line km - mapping programme 40,000 56,000 - condensed grid measurements 15,000 15,293 Gravimetric surveys, km 2 2,000 2,038 Bedrock mapping, km 2 1,500 3,350 Bedrock maps 1:000 000 4 3 Bedrock observations 5,000 10,312 The drilling tower for the deep borehole at Outokumpu. Photo: Jari Väätäinen, GTK 7 GTK 2004

Finland s deepest borehole drilled in Outokumpu > In April 2004, the GTK began drilling work at Outokumpu on a research borehole of record depth. The drilling was completed in February 2005, a little ahead of schedule. The borehole depth was 2,516 metres. The drilling contractors were the Russian state-owned drilling specialist NEDRA and the trading house Machinoimport, which were responsible for the technical aspects of the drilling. The project The deep borehole drill at Outokumpu. Photo: Jari Väätäinen, GTK was based on an agreement between the Governments of Finland and Russia regarding Russia s partial payment of the state debts of the former Soviet Union in the form of scientific equipment and research services. Outokumpu is one of the most important and interesting mineral areas in Finland, although the actual mining of metalliferous ores was discontinued at Outokumpu in the 1980s. The bedrock in the Outokumpu area has been surveyed and drilled extensively. The previous deep drilling went down to only about 1,150 metres. The aim of the GTK s deep borehole project was to carry out basic research on the bedrock and to use the borehole as a deep laboratory. The deep borehole project is a research project which will be of use in modelling the structures of the Earth s crust in general and especially in investigating the deep structure of the Outokumpu section and studying the composition and origin of the bedrock groundwater. Deep borehole research explains structure of Outokumpu bedrock One of the principal research objectives of the borehole project was to investigate the properties of the particular rock layer in Outokumpu that has been reflecting seismic waves very strongly. The borehole drill breached this stratum at a depth of 1.3-1.5 km. It emerged that the seismically reflective stratum is similar to the rock strata associated with the Outokumpu metalliferous ores. Similar reflective strata appear in eastern Finland across a wide area around Outokumpu. This observation is significant and demonstrates that seismic reflection surveys can be used to directly locate types of rock that are promising for minerals exploration. The groundwater conditions in the deep borehole proved to be very interesting. The rock s hydraulic conductivity was particularly great in the top 500 metres, but diminished rapidly beyond that. At a depth of over 1,000 metres, only a small amount of bedrock groundwater could be pumped for sample-taking. The results nevertheless show that the groundwater in the Outokumpu bedrock has a high salt and gas content. The gas is mainly methane and is of no economic significance, but the observation is scientifically very interesting. The origin of the gas is still not known. The deep borehole project consisted not only of drilling but also a whole range of geophysical measurements in the 22-centimetre diameter borehole. Measurements taken included the electrical conductivity, density, magnetic properties, temperature and composition of the rock, with the aid of various geophysical soundings. The temperature at the base of the borehole is about 40 C. Research to continue through international cooperation The Outokumpu deep borehole remains open following completion of the drilling project so that it can be used as a deep laboratory for various geophysical and geological measurements for some years to come. The research includes more detailed studies of the bedrock groundwater conditions, the pumping of water samples from the fracture zones, and investigation of any organic activity in the bedrock. The detailed structure of the bedrock will also be investigated using the combined interpretation of borehole soundings and geophysical ground-level measurements. The stress state of the rock is also of interest to researchers. The drilling cores raised from a depth of over 2 km broke up into short sections, which is the result of powerful stresses in the bedrock. The deep borehole and its samples will be used in an extensive international research project over the next few years. The project will be led by the GTK and will involve the participation of research groups from research institutions, universities and businesses based in seven different countries. GTK 2004 8

Bedrock geology and resources Crushed stone is of considerable importance to the economy and society at large > In November, the doctoral dissertation of geologist Mika Räisänen was examined at the University of Helsinki. The dissertation states that if more attention is paid to the geological properties of aggregates, this will lead to greater productive, environmental and financial benefits. Aggregate is crushed stone that is used as a construction material either bound in asphalt or concrete, or loose in, for example, structural layers in roads, subsurface drainage and railway track ballast. Aggregate is therefore of considerable importance for the nation s infrastructure. In terms of tonnage, the aggregate industry is Finland s biggest industrial sector: an annual total of about 90 million tonnes of aggregate is consumed in Finland, or about 18 tonnes per inhabitant. The quality of aggregates depends on their geological properties, such as their mineral composition and structure, but also on the crushing process and the intended use. The same aggregate may a high-quality construction material in asphalt, but a poor-quality material in concrete. The quality of aggregates is ultimately related to their geological properties, however. Mika Räisänen s doctoral dissertation investigates the problems involved in mapping and testing aggregates and in environmental and licensing issues, and considers aggregate quality in terms of wear and tear and dust formation. Publication: Mika Räisänen, From outcrops to dust mapping, testing and quality assessment of aggregates, academic dissertation, University of Helsinki, 2004. Publications of the Department of Geology D1, ISSN 1795-3499, ISBN 952-10-2145-4. Blocks of stone at Taivassalon Graniitti Oy s granite quarry at Kivelä in the municipality of Luumäki. Photo: Jari Väätäinen, GTK The Year of Finnish Stone > The Year of Finnish Stone was celebrated in 2004. The idea came from the Finnish Natural Stone Association, which also launched the publicity campaign. In a variety of ways the campaign raised the profile of the natural stone sector and increased awareness of the uses for natural stone and interest in geology in general. The campaign was also successful in encouraging operators in the sector to improve their publicity material. A variety of training and development activities were also organized during the year. The GTK was involved as a key player in many different events, presenting its broad range of expertise on natural stone. Closer and more extensive cooperation was also developed during the year, involving partners in Finland and abroad, all with the purpose of raising awareness of natural stone among both professionals and the general public, including all ages. As part of its contribution to the Year of Finnish Stone, the GTK arranged a number of exhibitions on natural stone and also competitions for schoolchildren on the subject. It also participated in Nordic Stone 2004, an international fair held in Turku, and in an international seminar on natural stone held in Oulu. A design competition for the courtyard of the GTK s Kuopio office was also organized in conjunction with various partners. Identifying different rocks at the Geology Day in Nunnanlahti. Photo: Nike Luodes 9 GTK 2004

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Land use and environment Continuing land-use surveys produce diversity of data The land use and environment division covers the mapping and surveys of Quaternary deposits and their natural resources and research in environmental geology. The aim is to produce information, applications and services for decision-making, land use planning, industry and commerce so that the supply of raw materials and land use can be secured on the basis of sustainable development. The Kellolähde natural spring at Hämeenkoski. Photo: Jari Väätäinen, GTK The activities of the Land Use and Environment division as a whole in 2004 met the targets set for the year. The strong focus on stakeholders and customers meant that it was possible to carry out a high proportion of projects through joint funding. A record eleven new jointly funded projects were begun during the year, which, together with the increased demand for studies on the environmental impact of mining activities, demonstrates the strengthening role of the GTK as an impartial expert in environment issues concerning the Earth s crust. Concentrating the GTK s mapping and exploration activities in areas of greatest importance for business and land-use planning ensured that the benefit and impact of this work could be maximized. In research work the emphasis was on key areas of importance for society at large and for industry. The GTK was able to report the presence of 158 million m 3 of productive peat in 2004, thereby helping to secure raw material reserves for the peat industry. Additional data was produced on the reserves of extractable land resources in areas around the main population centres, and the assembly of a naturalresource accounting system for aggregates continued in collaboration with the environmental authorities. Structural surveys were made in groundwater areas in the form of joint research in conjunction with partners at a number of different locations. The GTK played an active role in international cooperation at EU level and with Finland s neighbouring regions. The extensive environmental geochemistry mapping project focusing on northwestern Russia was completed during the year. The project s international importance is illustrated by the fact that its final results were published by the international publisher Elsevier. Mapping Surficial mapping at 1:20,000/1:50,000 was conducted on the basis of a national needs assessment for areas of land-use importance, namely coastal areas in southern Finland and the Vaasa and Oulu regions. The mapping target was exceeded by a wide margin, particularly due to the good results achieved in the Kvarken region. Marine geology mapping and sounding fell significantly short of the target on account of the operational testing of a new research vessel acquired in conjunction with the Navy. The multi-annual project for producing digitized soil data at a standard scale for the whole country continued as planned, in collaboration with MTT Agrifood Research Finland and the Finnish Forest Research Institute (METLA). The Ministry of the Environment is also contributing to the project funding. The project is based on the shared use, analysis and interpretation of soil data from different sources, with the aid of modern geographic information and image-processing technologies. The end result will be a uniform digital dataset concerning stable ground and unstable surficial material, and the characteristics of both of these. The data will serve a variety of land-use, field cultivation and forest management uses in Finland. The resulting data will also be stored in 11 2004 GTK

the EU s European Soil Bureau information systems for EU soil conservation and other purposes. The final report of Phase I of the three-year KallioINFO development project providing information for building in urban areas and growth centres in the Helsinki sub-region was approved and Phase II begun. The aim of the project is to develop a geological information system and the data models required for it, and an operating system allowing customers to obtain geological data over the Internet. The KallioINFO project is part of the Competitive Rockbuilding development programme run by the National Technology Agency of Finland (TEKES) and covers nine municipalities in the Helsinki sub-region, each of which is also contributing to the project funding. The main aim of Phase II of the project is to develop and test a national drilling information system (Ground Survey Register). Work continued on the GEONAT mapping project covering the land and sea areas of Sweden and Finland in the geologically unique Kvarken region. The aim of the project is to support land-use and environmental management decisions concerning the region in both countries and to further the efforts to have the region named as a new World Heritage Site for geological reasons. The project is part of the EU s Interreg IIIA programme. Susiluola cave is on the northern side of Susivuori hill at an altitude of 116.5 metres above sea level. Although it is located in Kristiinankaupunki, it is owned by the adjacent municipality of Karijoki. The GTK is involved in studying the rocks found in the cave. Photo: Jari Väätäinen, GTK Taking soil samples from a field in Kirkkonummi. Photo: Jari Väätäinen, GTK Resources of surficial Quaternary deposits The collaborative work with the Ministry of the Environment and the Finnish Environment Institute (FEI) on natural-resource accounting for aggregates continued, although it was delayed due to resource problems at the FEI. The delay does not, however, affect the planned completion schedule for the system (ready for use in 2007), although completion of the work concerning the system s licence and extraction notifications was postponed until 2006. Under a separate agreement, the GTK is responsible for the assembly and maintenance of a natural-resource accounting system in its own information management. The accounting system operates via the internet and serves a wide range of users, from aggregate producers to public authorities and citizens. The purpose of the system is to secure aggregate supplies needed by society and to improve the efficient use of materials in accordance with the principles of sustainable development. Fieldwork for the mapping of peat reserves was carried out in eastern Finland, Ostrobothnia and western Lapland. The suitability of these regions was confirmed at a peat survey coordination meeting organized by the Ministry of Trade and Industry, which was attended by representatives of both the peat industry and peat producers. Some 97% of the mapping target set for 2004 was achieved. Peat-reserve mapping results were published for six municipalities, as targeted. The reported volume of peat fit for production exceeded the target significantly. A new section was opened on the GTK website for the purpose of presenting peat data and reports, and this immediately became popular with users. The GTK played a key role at the 12 th IPS International Peat Congress, entitled Wise Use of Peatlands, held in Tampere on June 6-11, 2004. The GTK continued the mapping of esker aquifers of greatest significance for water supplies and located near built-up areas. This was based on joint funding and was conducted in a coordinated manner with the environmental authorities and water cooperatives. The GTK s role is to use geological and geophysical methods to investigate the geological structure of the aquifers and the groundwater storage and flow conditions that form a basis for the sustained use of the aquifer and for other land-use planning. The extensive structural study of the Vihanninharju esker and the groundwater analysis were completed during the year. A risk survey of the Lintharju esker aquifer in Suonenjoki was carried out and the firing range there found to be a significant risk to the groundwater quality. Work to develop the firing range s purification methods will continue at the Outokumpu Mineral Processing Pilot Plant; the project is jointly funded with the Ministry of the Environment and the Finnish Defence Forces. Following the pilot project at Hyvinkää and Kempele, a hydrogeology research project was begun. GTK 2004 12

Environmental geology research Environmental geology research on the use of raw material reserves continued to be very actively pursued. The industry s demand for studies on the environmental impact of mining was particularly high. Work continued on the project to improve the environmental conditions at the former sulphide mines in eastern Finland and to develop remediation solutions there. Research on peatland growth rates and greenhouse gas emissions also continued during the year in collaboration with the University of Joensuu and the University of Helsinki. The project is part of a four-year research programme led by the Ministry of Trade and Industry entitled Greenhouse gas emissions from peatland and from the use of peat in Finland, the aim of which is to produce scientifically competent results for national emissions calculations. The three-year consortium project entitled Environmental technology in mining continued under the direction of Outokumpu Oyj and with funding from the National Technology Agency of Finland (TEKES). The other project participants are the Technical Research Centre of Finland (VTT) and the Finnish Road Administration. The aim of the project is to develop mine-closure technology and expertise that has export potential. Among the studies on regional land use carried out during the year, work continued on the PERMAFROST project. The project is part of the research on the final disposal of nuclear waste and is being carried out within an international research network in collaboration with power companies. Work on the KUNTO project (a tool for preventing water pollution in forest ditching) continued in 2004 as part of the environmental cluster further research programme. Work also continued on two EU-funded research projects: SEAREG (Sea Level Change and Spatial Planning in the Baltic Sea Region) and ESPON-HAZARDS (The Spatial Effects and Management of Natural and Technological Hazards in General and in Relation to Climate Change). Five new projects with partial EU funding were also started during the year, all of them concerning the subjects of land use and the environment. Work on the Barents Ecogeochemistry project and the FOREGS (Forum for European Geological Surveys) Geochemical Baseline Mapping Programme, two extensive international mapping projects focusing on the state of the environment, proceeded to the concluding phases as scheduled. The final report on the Barents Ecogeochemistry project, carried out under the direction of the GTK and in conjunction with various Russian organizations, was completed during the year. The international publishing company Elsevier published the results as an impressive geochemical atlas. The Europe-wide FOREGS geochemical mapping project proceeded to its reporting stage. A wide-ranging investigation on the presence of arsenic in the Finnish environment and its environmental impact and risks was completed and published in the autumn. A book entitled Jääkaudet (Ice ages), covering the history of the ice ages in Finland and the creation of the country s Quaternary deposits and its landscape, was published in 2004. Land use and environment Erratic boulder at Mäkrä. Photo: Tapani Tervo, GTK Artificial groundwater is obtained from the lake water held in this reservoir by letting it soak into the ground. Photo: Jari Väätäinen, GTK Land use and environment 2004 2004 planned implemented Groundwater reserves, availability assessments 10 9 Peat inventory, km 2 300 291 Reported marketable amount of peat, million m 3 90 158 Surficial mapping 1:20,000/1:50,000, km 2 1,500 2,117 Marine geological mapping, km 2 700 250 Marine geological sounding, line km 1,000 400 Marine geological assessments 6 13 Environmental assessments 75 48 13 GTK 2004

Two doctoral dissertations on groundwater were completed at the GTK during 2004. High-quality dissertations on groundwater Groundwater affected by many factors > The doctoral dissertation by Ulpu Väisänen Lic.Phil. was on the subject of groundwater and the factors affecting it. The study compared the factors affecting groundwater in the Rovaniemi region with those affecting groundwater in western Nicaragua. The dissertation was examined in the Department of Geology at the University of Oulu. Groundwater quality and the factors affecting it were studied in the Rovaniemi region of northern Finland and in Nicaragua. The groundwater conditions were compared in these two regions, which differ considerably in terms of their geology, climate and land use. The Finnish bedrock is old, in places over 2,700 million years old. It is covered by soil strata, which were created over a period of 2-3 million years. The soil strata in Nicaragua are composed in many places of old, thick layers of detritus and also eroded material that has reformed into layers. Nicaragua also has many volcanoes and various soil strata created from the products of their eruptions. The research demonstrated that the groundwater in the Rovaniemi region was virtually in a natural state and, for the most part, of good quality, whereas in Nicaragua the pollution of groundwater and surface water is a major problem. The soil has become impoverished and both land and waters are polluted as a result of insufficient diversity in cultivation and the earlier almost exclusive practice of cotton farming and the plentiful use of pesticides. Groundwater quality has improved in southern Finland > Geologist Birgitta Backman s doctoral dissertation examines changes in groundwater quality, particularly acidification, in the period 1969-2002 in the Lammi and Hämeenkoski municipalities in southern Finland. Groundwater quality was monitored regularly at eight different sites. These sites were wells for Groundwater quality in Nicaragua is affected by the bedrock, soil, climate and human activity. This well near Télica volcano was being used by 87 families after a hurricane destroyed the area s other wells. Photo: Ulpu Väisänen, GTK household water and natural springs in sand and moraine districts. Samples were taken six times a year until 1994 and four times a year thereafter. The GTK is still continuing this sampling. The dissertation was examined at the University of Helsinki. The samples were analysed for 26 different water quality variables. By the end of 2002, a total of 1,319 samples had been analysed. The changes occurring in the areas studied during the research period, such as construction, felling, ditching and new land uses, were recorded. The changes affecting wider areas, for instance changes in emissions, deposition and fertilizer use, A concrete-lined well 6 metres deep on a moraine slope in Jahkola village in Lammi. Its water quality has been monitored since 1969. Photo: Arto Pullinen, GTK. were analysed on the basis of statistical data. Significant changes were found in the groundwater quality at the research locations over the 33-year period of continuous monitoring. Some of these changes were common to all monitoring sites and some were specific to particular sites. Significant changes occurred in the water s ph values and sulphate concentrations and in the alkalinity values and heavy metal concentrations that indicate the buffer capacity. The groundwater quality improved considerably in the 1990s. However, at the start of the new century the ph values did fall briefly once again. The doctoral dissertations are available in written form: Väisänen, Ulpu 2004: Groundwater and factors affecting its quality: examples from the Rovaniemi district of northern Finland and western Nicaragua. Geological Survey of Finland, Bulletin, 400. 145 p., 5 apps. ISBN: 951-690-874-8. Price 27 euros (incl. VAT), plus P&P. Backman, Birgitta 2004: Groundwater quality, acidification, and recovery trends between 1969 and 2002 in South Finland. 110 p., 8 apps. ISBN: 951-690-895-0. Price 22.50 euros (incl. VAT), plus P&P. These publications can be ordered from the GTK s offices in Espoo, Kuopio or Rovaniemi, tel. +358 20 550 2450 (Espoo), +358 20 550 3250 (Kuopio) and +358 20 550 4131 (Rovaniemi). GTK 2004 14

The geology of the kvarken archipelago is unique Land use and environment The GTK-led GEONAT project is investigating sustainable land-use planning and environmental management in the Kvarken region. Photo: Municipality of Mustasaari > Finland s Kvarken Archipelago is estimated to comprise about 6,550 islands and islets and 2,840 kilometres of coastline. An area with little variation in elevation Kvarken is nevertheless geologically rich and varied. Traces left by the ice ages are characteristic of Kvarken, making the area unique. Since the end of the last Vistula Ice Age the land has been rising about 8-9 mm a year. About 100 hectares (1 km2) of new land rises from the sea every year. It has been estimated that by the year 4000, a new isthmus will have arisen between Finland and Sweden, turning the Bay of Bothnia into the Bothnian Lake, Europe s largest fresh-water basin. The extensive mosaic of De Geer moraine and transversal moraine formations make Kvarken geologically unique. The extensive boulder fields and rock fields ( devil s fields ) and the littoral shingle deposits covering the tops of low hills are characteristic of the area. The glacial striations and grooves on the surface of glaciated bedrock surfaces are also a legacy of the last Ice Age and indicate that the flow direction of the glacier altered by as much as 90 degrees. The most common type of bedrock is the socalled Vaasa granite. The Söderfjärden meteorite crater, which is about 520 million years old, is located at the edge of the area. There are signs nearly everywhere of old settlements that have advanced along with the land uplift, together with signs of fishing and seafaring. Old stone seamarks or cairns originally placed on rocky shorelines are nowadays in the midst of dense forest. There are also hollows created among the rocks, where fishermen and sealers would spend their nights huddled under sailcloth to protect themselves against the wind and rain. The geology of the region is being studied in a three-year EU project, GEONAT (Geological information and nature values for the sustainable development of the Kvarken area). The project is coordinated by the GTK, with the Geological Survey of Sweden (SGU) as its principal partner. The project is receiving funding from the Interreg IIIA Kvarken Mitt-Skandia programme, the Regional Council of Ostrobothnia, the City of Vaasa, the municipality of Mustasaari and the Metsähallitus (Natural Heritage Services, Western Finland). The aim is to promote sustainable land-use planning and environmental activities and achieve a status as UNESCO world Heritage site. For further information on the GEONAT project, go to http://www.gtk.fi/tutkimus/geonat. 15 GTK 2004

GTK 2004 16 Sampling taking using a precussion drill on the research vessel Geola in the Archipelago Sea. This is part of the VALKO project. Photo: Aarno Kotilainen, GTK

Geoservices Increased demand for a wide range of geoservices The Geoservice Centre is a contry wide service unit within GTK that provides chemical laboratory services, mineral processing research services, geophysical ground, marine and airborne measurement services, and sampling services for the GTK and outside clients. The GTK s geoservices provides for clients a convenient one stop service, with high international quality standards. The service portfolio was enlarged significantly after merging the Mineral processing laboratory in Outokumpu to GTK Geoservices from the beginning of the year 2004. Demand for analysis, survey and sample services within the GTK increased substantially on 2003. In spite of the simultaneous strong growth in external demand, it proved possible to produce services reasonably reliably and in line with internal service agreements. Commissioned services and jointly funded projects for external clients and stakeholders totalled about EUR 6.1 million, out of which just under a third was for the new operating area of mineral processing. The domestic and foreign mining and exploration companies formed by far the largest customer group. Income from overseas projects reached around EUR 0.5 million. Mineral processing was integrated into the GTK s operations The integration of the Outokumpu based mineral processing laboratory into the GTK s operating organization went smoothly. Joint projects were launched and the quality system was standardized. The long-term development plan for the laboratory was finalized and some of the recommendations contained in it were already put into effect during 2004 by bringing forward some of the most important investments. This was possible because operations generated more revenue than had been anticipated. However, a shortfall in research resources prevented some of the development measures at the mineral processing laboratory. Research resources were almost completely tied up by the dramatic increase in orders since 2003. The demand for chemical analysis increased considerably both internally and externally. The total number of samples for analysis increased by 42% on 2003 (from about 90,000 samples to 130,000 samples). In addition to the laboratories in the GTK s main offices, the mining laboratory at Sodankylä continued its operations and its production increased compared to the previous year. The GTK employs about 20 full-time staff in Sodankylä in laboratory work, sample preparation,sampling and related services. International interest in airborne geophysics International cooperation and networking in airborne geophysics continued and became concrete along with the conclusion of an agreement for developing the sector and related technology together with the British Geological Survey (BGS). The Joint Airborne Geoscience Capability (JAC) cooperation was launched in stages during the year. The first joint project was carried out at the end of 2004 in Scotland and preparations for the TELLUS project, to be carried out in 2005-2006 in Northern Ireland, were also completed. The GTK is responsible for managing the JAC and provides expert assistance during a transition and training perod for national airborne geophysical surveys carried out by the BGS. Ownership of the Twin Otter aircraft was transferred from Finnair to the BGS in September, though Finnair continued to manage flight operations. GTK provides the geophysical instruments for the aircraft. Under the agreement, the GTK will coordinate JAC participation in EUFAR (European Fleet for 17 2004 GTK

Airborne Research). The GTK was able to complete more of its domestic mapping programme than anticipated. The results of the airborne mapping project in Tanzania were handed over to the customer and were also presented to other stakeholders in a seminar in Dar es Salaam in March 2004. The environmental geophysics project in Kyrgyzstan was completed and the results were handed over to the customer. Scheduled operations continued as planned Cooperation with the Finnish Naval Research Institute continued as planned. The first sailing season of the jointly owned Geomari research vessel was spent on testing the vessel and its equipment. As the Geoservice Centre s own production a total of about 31,000 m of rock drilling was produced for the GTK s projects. This exceeded the target by 1,000 m. About 27,000 m of drilling was commissioned from external operators, being about 8,000 m below the target. However, as a result of price increases the appropriation reserved for outsourced services was used in full. The expansion of the laboratory information management system to cover the mineral processing laboratory was begun. The development of the integrated quality, safety and environmental management system (IMS) continued as a GTK pilot project. The final version of the IMS handbook was completed. Preliminary environmental and safety aspects have been identified and classified. Due to a shortage in resources the project is still slightly behind schedule. During the year under review, the GTK transferred to a vehicle leasing arrangement and managed to sell most of its vehicle stock. Using the classic Fire Assay method, ore samples are smelted at approx. 1,100 C and then taken out of the furnace and poured from the crucibles into moulds at the Geolaboratory in Rovaniemi. In 2004, the laboratory performed about 65,000 of the Fire Assay determinations for gold, palladium and platinum, mainly for mineral and mining companies operating in Finland. Photo: Reijo Lampela, GTK GTK 2004 18