Description of the company
Terrafame is a multi-metal and battery chemicals company founded in 2015. Its owners are Finnish Minerals Group Ltd, a special-purpose company wholly owned by the Finnish state (56.2%), the Galena funds (Trafigura) (39.3%), and Mandatum Plc (4.4%). The company’s open-pit mine and production facilities are located in Sotkamo. In 2025, Terrafame’s net sales amounted to EUR 566.1 (544.5) million. The industrial site employed an average of approximately 1,800 people, of whom 887 (793) were Terrafame employees.
Terrafame’s production process begins at its own open-pit mine, where ore is extracted. The mined ore is crushed, agglomerated and transferred to bioleaching heaps. The bioleaching process utilizes naturally occurring microorganisms in the ore to separate metals from the ore. Air is blown into the ore heaps and they are irrigated with acidic process solution, creating optimal conditions for microbial activity. The stacked ore is first leached on the primary heap for approximately two years. After this, the ore is reclaimed and transferred to a secondary heap for final leaching. Bioleaching is an energy-efficient production method.
At the metals recovery plant, metals are separated from the production solution circulating in the bioleaching process and precipitated sequentially as nickel-cobalt sulphide, zinc sulphide, copper sulphide. The nickel-cobalt sulphide is fed to the battery chemicals plant located on the same industrial site, where it is refined into battery chemicals, namely nickel sulphate and cobalt sulphate. Ammonium sulphate used as fertilizer is also produced as a by-product of the process. Zinc and copper sulphides are filtered and sold for further processing for use in various industrial applications. In summer 2024, Terrafame also commissioned its uranium recovery plant, where uranium oxide is produced for use as fuel in nuclear energy generation.
Terrafame publishes an annual Sustainability Report, which is available at www.terrafame.com. A Water Review targeted at local stakeholders is published in Finnish and it is available at www.terrafame.fi.
Results according to the TSM Finland Standard
| C | B | A | AA | AAA | |
|---|---|---|---|---|---|
| Community Outreach | |||||
| Biodiversity Management | |||||
| Tailings management | |||||
| Water management | |||||
| Climate change management | |||||
| Mine closure | |||||
| Occupational health and safety | |||||
| Diversity, equity and inclusion (DEI) * | NA |
* The results are self-assessments and will be verified in 2027
Crisis management
| Crisis management preparedness | Internal review | Training and exercises | |
|---|---|---|---|
| Crisis Management Planning – Corporate | |||
| Crisis Management Planning – Site |
Social Responsibility Report
Company in figures
- Production volume: Nickel: 31 970 (29 858) t; Zinc: 56 673 (52 192) t; copper, cobalt and uranium: small amounts.
- Total mining: 53,0 Mt: waste rock 30,9 Mt (58 %); ore 14,9 Mt, (28 %); construction stone7,3Mt (14 %)
- Reported mineral reserves: Measured 581 Mt (Ni 0,27 %, Zn 0,54 %, Co 0,02 %, Cu 0,14 %); Indicated 487 Mt (Ni 0,26 %, Zn 0,55 %, Co 0,02 %, Cu 0,15 %); Inferred 386 Mt (Ni 0,25 %, Zn 0,55 %, Co 0,02 %, Cu 0,15 %).
- Year of commencement: Terrafame commenced operations in 2015. The reserve was found in 1977 and extraction was started in 2008.
- Expected remaining life of the mine: At least 30 vuotta.
- Mining area: approximately 6000 ha (mining district)
- Number of own employees (31.12.): 887 (FTE)
- The main localities of the employees: Kajaani 52 %; Sotkamo 24 %; Kuhmo 3 %; Nurmes 3 %; Oulu 3 %
- Number of permanent contractors (31.12.): 956 (FTE)
- Operating profit EBITDA: 79,5 MEUR (IFRS)
- Paid capital gains tax: 0 euroa (the company's taxable profit for the financial year is covered by confirmed losses)
Information about prospecting
Terrafame does not conduct mineral exploration in new areas. The company’s geological surveys and test drillings are related to existing deposits.
- Number and area of reservation areas: -
- Number and area of exploration permit areas: -
- Number and area of exploration permit application: -
- Exploration permits under appeal: -
- Exploration drilling: -
Environment
| 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 |
- ** ISO 14001, ceritfied
- *** 8, reported to the authorities
- Environmental permit granted: kyllä
- Year of permit: 2022, Terrafame's site-wide environmental and water management permit
- Link of permit: https://ytietopalvelu.lvv.fi/fi-FI/asia/1413213
- Guarantee in accordance with the Environmental Protection Act: 404,871,000 EUR
- Financial guarantee in accordance with the mining act in the mining permit area: 265,060 EUR
- Financial guarantee in accordance with the mining act in mineral exploration permit area: -
Key Figures
- Amount of mining waste: 30,9 Mt waste rock, of which 27.1 Mt black schist (sulphur content >0.3%) and 3.7 Mt mica schist (sulphur content <0.3%).
- Utilixation of extractive waste: During 2025, a total of 30.9 Mt of waste rock was mined from the Kuusilampi open pit. Of this amount, 3.7 Mt of mica schist waste rock (sulphur content (S) 0.3%) was utilized for the shaping and slope construction of the waste rock storage area. The total amount of waste rock utilized was 3.9 Mt, corresponding to approximately 13% of the total waste rock mined.
- Fuel Consumption: 454,7 GWh
- Other energy consumption: Electricity 493,4 (50 %, nuclear power) GWh; district heating 39,7 (83,7 %) GWh; steam 36,3 (72,1 %) GWh. The share of waste heat in total heat energy consumption is 15.6%.
- Energy consumption target: The energy efficiency target is the continuous improvement of specific energy consumption. In 2025, total energy consumption per tonne of MSP nickel produced decreased by more than 5% compared to the previous year, while the amount of recovered energy increased by 7%.
- CO2 emissions from the mine: Scope 1: 138 287 tCO2e; Scope 2 (market based): 100 382 tCO2e; Scope 1-2 CO₂e per tonne of ore: 0.016 tCO₂e; Scope 3: 338 073 tCO2e
- Water consumption: 4.1 Mm³, of which raw water accounted for 81%. Figure covers the entire Terrafame industrial site.
- Discharge of water outside the mining area: 8,3 (10,8) Mm3 of treated discharge water.
- Number of dams in the mining area: 34
- Endangered species are present in the operational area: kylla
- Use of environmentally hazardous chemicals: 10 001 t
- Biodiversity actions: Since the start of operations, Terrafame has regularly monitored flying squirrels and bats within the current mining concession area. Both species are listed in Annex IV(a) of the EU Habitats Directive. The current mining concession area also contains an occurrence of the critically endangered (EN) limestone rim lichen (Lecanora epanora). In connection with the planned expansion of operations, extensive environmental baseline studies and impact assessments have been carried out to establish the current state of the environment and evaluate potential environmental impacts. Surveys have included, among others, the occurrence of moor frogs, flying squirrels, diving beetles and dragonflies. Vegetation and habitat surveys have also been conducted to identify the presence of threatened and noteworthy plant species as well as threatened and protected habitat types. In addition, the natural state of water bodies within the areas has been assessed. Terrafame’s statutory environmental monitoring programme includes comprehensive biological monitoring of aquatic and terrestrial environments, as well as fish population monitoring. Terrafame has been granted exemptions for certain areas from the protection provisions applicable to the tundra emerald dragonfly (Leucorrhinia caudalis), the white-faced darter (Leucorrhinia albifrons), bats, flying squirrels and the lesser butterfly-orchid (Platanthera bifolia), which are protected under Sections 39 and 49 of the Finnish Nature Conservation Act and, in the case of animal species, are listed in Annex IV(a) of the EU Habitats Directive. In accordance with the exemption decisions relating to bats and flying squirrels, Terrafame has installed nesting and roosting boxes in suitable forest habitats surrounding the site to provide resting and breeding places and to mitigate impacts on these species. The Kainuu Centre for Economic Development, Transport and the Environment (ELY Centre) granted Terrafame an exemption permit under Section 48 of the Finnish Nature Conservation Act (KAIELY/259/2020), subject to specific conditions, allowing limited deterioration of the Pirttikallio population of the limestone rim lichen (Lecanora epanora) in connection with a translocation programme. Following approval of the translocation plan by the Kainuu ELY Centre, Terrafame, together with an external specialist organisation, carried out the translocation of a small portion of the lichen population in spring 2023. The success of the translocation will be monitored over a four-year period. Based on monitoring visits conducted in 2023, 2024 and 2025, the translocated parts of the population appear viable in their new location, and the lichen may have begun spreading onto rock surfaces at the recipient site. At the same time, the company will continue to monitor the condition of the original Pirttikallio population.
Personnel and security
| 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, certified.
Key Figures
- Average training days: 3.6 day per person per year
- Sickness absences (excluding contractors): 11.1 day per person per year which equals to, 4.6 % theoretical regular working time.
- Accident frequency: Terrafame's own employees: 1,4; Contractors: 1,6; Combined: 1,5 (LTIFR rolling 12 m)
- Shift systems in use: 37/12h, 17/10h, 27/8h, 15/8h; Monday to Friday day shift with flexi-ble and flextime arrangements.
- Share of women in the labour force: 13,5 %; Employees age distribution: Under 20 vuotta: 1 %; 20 – 29 years: 13 %; 30 - 39 years: 32 %; 40 – 49 years: 26 %; 50 – 59 years: 19; % 60 years or over: 8 %.
Impact on the use and livelihoods of nearby areas
Impact on local livelihoods:
The mining operation is not located within a reindeer herding area. The municipality, local residents, landowners, professional fishermen, tourism operators and environmental organisations are all taken into consideration in the company’s stakeholder engagement activities.
As in previous years, Terrafame’s employment impact in the Kainuu region remained significant, and the company is the third-largest employer in Kainuu. In 2025, the company employed 887 people on a full-time equivalent (FTE) basis, of whom 93.9% (93.9%) held permanent employment contracts. At the end of the year, 76% (80%) of employees lived in Kajaani and Sotkamo. In addition to Terrafame’s own personnel, an average of 956 (1,217) employees of contractors and subcontractors worked at the industrial site during the year, calculated on a full-time equivalent basis.
Impact on nearby recreational use:
Recreational use of the surrounding area is primarily focused on fishing and other forms of water-based recreation. The majority of Terrafame’s treated discharge water is conveyed through a discharge pipeline into Lake Nuasjärvi, a large waterbody located between Kajaani and Sotkamo. There are numerous permanent residences and holiday homes along the shores of the lake, making it an important and significant recreational resource for the Kainuu region. Based on monitoring results, the impact of treated discharge water on the aquatic environment is visible in elevated sulphate concentrations in the water; however, no changes have been detected in fish populations, among other indicators.
Other nearby lakes of significance for recreational use are located approximately 10 kilometres from the industrial site. These lakes have shoreline properties and are used, among other purposes, for recreational fishing. A small volume of treated discharge water is released annually through these lakes. The impacts on water quality are minor and are mainly limited to slightly elevated sulphate concentrations.
The condition of nearby water bodies is described in greater detail in the annual Water Review distributed to local residents and prepared on the basis of annual environmental monitoring reports.
Impact on landscape value:
Storage areas, including waste rock disposal areas and spent ore heap areas, are progressively closed during operations or when the designated areas reach capacity. Once operations have ceased, the entire production area will be landscaped and restored. Environmental impact assessments have included modelling studies, visualisations and visibility analyses to assess the landscape impacts of the operations. Waste rock storage areas and spent ore heap areas will constitute permanent changes to the landscape.
Interaction with stakeholders
Stakeholder cooperation:
Terrafame’s primary external communication channel is the company’s website, where news and announcements relating to the company’s activities are published. Through the website, stakeholders are also provided with an opportunity to submit feedback regarding the company’s operations, including anonymously. Feedback is handled systematically in accordance with established practices. The company’s annual sustainability reports are available on its website.
The company also communicates through media releases and by engaging directly with stakeholders through channels such as telephone and email. Social media is also actively utilised. LinkedIn is the company’s most active social media channel. For recruitment communications, Terrafame uses Facebook (@kykyjentalteenottofi) and Instagram (@terrafameoy).
Internal communications are supported by a broad range of channels, including various meetings, the interactive Teams platform, the company intranet, information screens located throughout the industrial site and, in emergency situations, a text message notification system. In 2025, every quarter, in connection with the publication of its interim report, Terrafame organised an employee event during which the CEO reviewed not only the company’s financial performance but also other current topics. Beginning in autumn 2025, employee events started to be organised approximately once a month.
The company publishes an employee magazine approximately once a month. In Terrafame’s tenth anniversary year, 2025, four of these editions were special anniversary issues. Approximately once every quarter, a dedicated Contractor Extra edition is also published, containing information relevant to partner companies operating at the industrial site. In 2025, five Contractor Extra editions were published and distributed to both Terrafame employees and partner companies. Regular meetings are organised with key contractors operating in the area to discuss, among other topics, safety and current issues.
Since 2022, Terrafame has maintained a dedicated local stakeholder cooperation group comprising representatives with diverse expertise related to the company’s sphere of influence. The aim is for the group to meet one to two times annually. Participation in these meetings has been active, and discussions have covered a broad range of topics concerning Terrafame’s operations and future outlook. The group did not convene in 2025.
Terrafame also engages in active dialogue directly with local residents. In addition, the company provides up-to-date information on its operations through communication channels specifically targeted at neighbouring communities, including a dedicated section on the company website. Local residents are particularly interested in Terrafame’s impacts on water bodies. Since 2019, the company has published an annual Water Review covering the condition of nearby water bodies. The publication is distributed to households across the Kainuu region through local newspapers and is also available on Terrafame’s website. Open and timely communication helps reduce concerns and build trust between the company and local residents.
Local residents are informed of exceptional situations at the industrial site and other current matters through a dedicated group text messaging system. Similar systems are available for Terrafame’s own personnel and contractors operating at the site. The company’s text message system does not replace official emergency communications by public authorities, but it can be used to support official communications with the authorities’ approval.
Terrafame’s industrial fire brigade operates as a contract fire brigade under the Kainuu Rescue Department, which has enhanced the level of rescue services available in the sparsely populated areas surrounding the industrial site. The industrial fire brigade serves as a unit within the Kainuu Rescue Department in areas surrounding the production site. In 2025, the industrial fire brigade responded to 13 assignments outside the industrial site as part of the Kainuu Rescue Department.
Throughout its operations, Terrafame has organised community evenings, information events, family days and other stakeholder events. Under normal circumstances, the company meets approximately 2,500-5,000 people annually through various events. In August 2025, together with local partners, the company organised a celebration marking ten years of Terrafame’s operations. In addition to Terrafame employees, local residents, companies, organisations and visitors were invited to participate.
Sponsorship:
Through sponsorship and partnership activities, Terrafame supports regional vitality, well-being and community spirit while also promoting networking opportunities and activities for students connected to the company’s industry. The company’s sponsorship activities are guided by an annually approved budget and management guidelines, according to which sponsorship is used in particular to strengthen Terrafame’s visibility and impact in Kainuu and Northern Finland.
Terrafame may sponsor and support:
• sports and culture;
• local community activities and the well-being of children and young people; and
• activities of students connected to Terrafame’s industry.
The sponsored partner must promote well-being, regional vitality or cooperation among students connected to the industry. The activities of the supported organisation or group must be consistent with Terrafame’s values and objectives. The company does not sponsor private individuals or religious organisations, nor does it provide direct or indirect support to political parties, political organisations or individual politicians.
Sponsorship applications are reviewed twice a year. Decisions are made in accordance with predefined sponsorship principles, and applicants are informed of decisions through designated contact persons.
In 2025, Terrafame’s most significant sponsorship and partnership activities included Sotkamon SuperJymy and Terrafame Stadium (agreement period 2025-2027), the Kuhakunkku fishing event on Lake Oulujärvi, and the Puolanka Lankafest music festival, for which Terrafame acted as a principal partner. The primary target groups of these partnerships were the company’s employees, local stakeholders and residents of the Kainuu region. Visibility resulting from the partnerships included, among other things, team uniforms, event and media channels, match hosting arrangements and event benefits offered to employees and stakeholders.
The objective of sponsorship activities is to strengthen Terrafame’s local visibility, social acceptance and stakeholder relationships while supporting regional vitality and community spirit.
As part of its broader social responsibility efforts, Terrafame organises annual clean-up campaigns during which the areas surrounding the access roads to the industrial site are cleaned together with cooperation partners. In addition, the company actively participates in local village events, such as events organised in Tuhkakylä, where open dialogue is maintained on topics including safety, environmental matters and regional development.
Research and cooperation projects:
Between 2019 and 2025, Terrafame implemented a total of five two-year apprenticeship programmes leading to a vocational qualification in process industry in cooperation with Kainuu Vocational College and Oulu Vocational College. Three of these groups were established to secure skilled labour for the battery chemicals plant commissioned in 2021. A total of 67 students graduated from these programmes, and the majority were subsequently employed by Terrafame. A fourth group was established to secure labour resources for the uranium recovery plant. Eighteen students graduated from this programme, most of whom were subsequently employed by Terrafame. The fifth group commenced its studies in autumn 2025. Approximately twenty students are expected to graduate from this group and become employed in various production departments at Terrafame.
To ensure the availability of skilled personnel, cooperation with educational institutions continued throughout 2025. Close cooperation was maintained particularly with Kainuu Vocational College, Oulu Vocational College, Kajaani University of Applied Sciences and the University of Oulu. This cooperation took the form of apprenticeships, internships, summer jobs, thesis projects and site visits.
During 2025, approximately fifty Terrafame employees enhanced their competencies through various qualification-based training programmes. The most common qualifications were vocational or specialist vocational qualifications in process industry, electrical automation and vehicle technology.
Terrafame conducts research and development primarily as part of its normal business operations, and these activities are included in ordinary operating expenses. In 2025, the main areas of process development focused on improving bioleaching operations, enhancing the performance of the battery chemicals plant, improving metals recovery and supporting the ramp-up of uranium production. In addition, as part of its normal operations, the company investigates alternative cover and liner structure solutions and their performance, while also carrying out research and pilot projects related to process development, raw materials and the circular economy. Research activities are also undertaken through separate research projects, which are typically longer-term strategic initiatives such as increasing copper recovery rates and recovering rare metals.
Terrafame is actively involved in the development of both European and Finnish battery strategies. The company also carries out active research and development cooperation with several universities and research institutes.