Description of the company

Silver is the opportunity and necessity of tomorrow. Sotkamo Silver is a mining and exploration company that develops and utilizes mineral deposits in the Kainuu region of Finland. The company supports the global transition toward green technologies by responsibly producing the metals required for that transition, with consideration for local stakeholders. Sotkamo Silver also holds mining and exploration rights to mineral deposits in the vicinity of its silver mine in Kainuu.

Sotkamo Silver’s main project is the silver mine located in Sotkamo, Kainuu, south of Lake Pieni Tipasjärvi, approximately 40 kilometers southeast of the town center. The mine began production operations in 2019. In addition to silver, the mine produces gold, zinc, and lead. The ores are processed into concentrates, which are sold to smelters under delivery agreements. The concentrates produced are Silver-Gold-Lead, Zinc-Silver, and Pyrite-Silver concentrates.

The production operations take place in an underground mine and include ore and waste rock extraction, storage, crushing, transportation, and ore beneficiation.

Results according to the TSM Finland Standard

AAA
AA
A
B
C
Community Outreach Biodiversity Management Tailings management Water management Climate change management Mine closure Occupational health and safety

Crisis management

Crisis management preparedness Internal review Training and exercises
Crisis Management Planning – Corporate
Crisis Management Planning – Site
Results as of: 2024
Latest externally verification: 2024

Social Responsibility Report

Company in figures

  • Production volume: A total of 497,000 tonnes of ore was processed. Production resulted in 2,573 tonnes of silver- and gold-bearing lead concentrate and 3,140 tonnes of silver-bearing zinc concentrate. Additionally, 10,667 tonnes of pyrite concentrate were delivered to the customer. The total metal production contained in the concentrates amounted to approximately: – 1,166,000 ounces of silver – 2,595 ounces of gold – 729 tonnes of lead – 1,642 tonnes of zinc
  • Total mining: 715 000 t (ore 70 %, Zero-waste rock 30 %)
  • Reported one reserves: Measured mineral resources: 1.254 Mt Indicated mineral resources: 0.138 Mt Total measured and indicated resources: 1.392 Mt (Average grades: Ag 90 g/t, Au 0.20 g/t, Zn 5.9%, Pb 2.5%)
  • Reported mineral reserves: Measured mineral resources: 0.865 Mt Indicated mineral resources: 3.579 Mt Inferred mineral resources: 4.052 Mt Total mineral resources: 8.496 Mt (Average grades: Ag 54 g/t, Au 0.20 g/t, Zn 5.6%, Pb 2.3%)
  • Year of commencement: The Taivaljärvi deposit of Sotkamo Silver was discovered in 1980, and mining operations commenced in March 2019.
  • Expected remaining life of the mine: approximately 7 years
  • Mining area: 413,5 ha
  • Number of own employees (31.12.): 50 employees
  • The main localities of the employees: Sotkamo 36 % Nurmes 14 % Kajaani 10 % Kuhmo 8 % Pyhäjärvi 6 %
  • Number of permanent contractors (31.12.): Three permanent contractors, employing approximately 100 people in total.
  • Operating profit EBITDA: 995 €
  • Paid capital gains tax: 0

Information about prospecting

In addition to the development projects at the silver mine, Sotkamo Silver is also pursuing future growth opportunities in line with its strategy. Project REX is a local mineral exploration program aimed at developing an attractive mineral resource portfolio and discovering new exploitable mineral deposits in the Kainuu region. Exploration activities have been conducted during 2024 in the municipalities of Sotkamo, Kuhmo, and Nurmes. The exploration has focused on bedrock mapping, rock sampling, and ionic leach soil sampling. The target metals and minerals include gold (Au), silver (Ag), lead (Pb), zinc (Zn), and kyanite.

  • Number and area of reservation areas: Number and area of reservation areas: 0 pcs
  • Number and area of exploration permit areas: Number and area of exploration permit areas: 7 pcs and 2200 ha
  • Number and area of exploration permit application: 6 pcs and 1423 ha
  • Exploration permits under appeal: 0 pcs
  • Exploration drilling: Exploration drilling: 0

Environment

The company's environmental practices:
Yes No
Location in a nature reserve*
Environmental Management System **
Environmental impact assessment required (in accordance with the EIA Act) *
Measurements for dust
Measurements for noise
Measurements for vibration
Environmental risk assessment carried out
Deviations from environmental permits ***
Closure plan for the mine
Plan for the controlled shutdown of the mine in unexpected situations

Key Figures

  • Amount of mining waste: Total amount of mining waste: 699,970 tonnes Waste rock: 31.2% Concentrate tailings: 68.3% Pyrite concentrate: 0.5%
  • Utilixation of extractive waste: Zero-waste rock 100 %, Tailings 18,7%
  • Fuel Consumption: 9,11
  • Other energy consumption: Electricity 24,54 GWh, Underground mine heating (LPG) 2,59 GWh, Heating of concentrator silos 0,10 GWh
  • Energy consumption target: The target for reducing energy consumption per tonne of ore processed (GWh/t) was achieved.
  • CO2 emissions from the mine: Scope 1, 2 (market-based) & 3 emissions: 20,463 tonnes Scope 1, 2 (location-based) & 3 emissions: 8,154 tonnes Corresponding emissions intensity: 0.02 and 0.04 tCO2 per tonne of ore processed, respectively.
  • Water consumption: 1,31 Mm3
  • Discharge of water outside the mining area: 0,6 Mm3
  • Number of dams in the mining area: 4
  • Endangered species are present in the operational area: No
  • Use of environmentally hazardous chemicals: Fuels: 788 tonnes, Processing chemicals: 156 tonnes
  • Biodiversity actions: Fishery compensation, Oulu River watershed waterbody vision ARVOVESI 2 project, Tipasjoki river restoration project.

Personnel and safety

The company's personnel practices:
Yes No
Staff initiative system
Performance appraisals concerning the entire personnel
Staff training plan
Equality plan
Employee representation in company administration
Occupational health and safety management system*
Occupational safety card for everyone working in the area
Own rescue unit
  • * ISO 45001, not certified

Key Figures

  • Average training days: 2,2 days / employee
  • Sickness absences (excluding contractors): 9,3 days / employee
  • Accident frequency: At the end of 2024, Sotkamo Silver’s employee accident frequency rate (LTI) was 22.4, and the contractors’ rate was 11.8.
  • Shift systems in use: Continuous five-shift system, 12 hours per shift Continuous two-shift system, 10 hours per shift
  • Share of women in the labour force: 14 %

Impact on the use and livelihoods of nearby areas

Impact on local livelihoods:

No mining or exploration activities take place within the reindeer herding area. Rural and tourism industry operators, as well as landowners, are considered in the company’s stakeholder cooperation.

Impact on nearby recreational use:

According to the company’s own assessment, its operations have not impacted recreational use in the surrounding area, except for the operational mining site where access is restricted for purposes other than mining activities.

Impact on landscape value:

Landscape values have been taken into account in the company’s operations and environmental impact assessment (EIA) procedures. Efforts have been made to minimize visual impacts through the placement of the facility and structures.

Interaction with stakeholders

Stakeholder cooperation:

  • The company has a regularly convening monitoring group that includes representatives of stakeholders.
  • Social impacts are monitored through communication and joint events.
  • The company supports local education and environmental activities.
  • Channels for stakeholder feedback are in place, and a procedure for handling feedback has been established.

Research and cooperation projects:

  • Kainuu Mining Strategy 2019 – 2025

  • Planning tools and instruments to strengthen climate resilience in the Oulu River watershed (ARVOVESI 2 project)

  • Tipasjoki Fish Stock Restoration Project 2024

Social Responsibility Report
Area of operation
Kainuu
Contact information:
Arttu Ohtonen
Chief Sustainability Officer (CSO).
Sotkamo Silver Oy
+358 40 415 6857

Towards Sustainable Mining – TSM Suomi