The battery chemicals company Terrafame Ltd was founded in 2015 and at the end of 2023, Finnish Minerals Group (FMG), a special-assignment company of the state of Finland, owned 64.4% (67.0), Galena funds managed by Trafigura owned 32.9% (31.0) and Mandatum owned 2.7% (2.0) of Terrafame. Company’s open-pit mine and metals extraction and refining plants are located in Sotkamo. In 2023, Terrafame’s net sales were 560,9 million euro. On average, around 1,900 people work in the company’s industrial area, of which around half are employees of partner companies.
The production process starts at our own open pit, where the ore is mined. The mined ore is crushed, agglomerated and transferred to bioleaching heaps. In the bioleaching process, microbes naturally present in the ore are used to extract the metals from the ore. Air is blown into the heaps and they are leached with an acidic production solution. In this way, optimal conditions are created for the microbial activity within the heaps. The ore is first dissolved for about 18 months in the primary heaps. After that, the ore is unloaded and transferred to the secondary leaching heaps for final leaching. Bioleaching is an energy-efficient production method. In the metal recovery plant, metals are separated from the recycled production solution, through gradual precipitation into nickel-cobalt, zinc and copper sulphides. Nickel-cobalt sulphide is fed to the battery chemical plant (BCP) located in the same industrial area, where it is processed into battery chemicals, i.e. nickel and cobalt sulphates. Zinc and copper sulphides are filtered and sold for further processing.
Terrafame publishes an annual Sustainability Review and a Water Review aimed at local stakeholders, which are available on the company’s website www.terrafame.com
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Community Outreach | Biodiversity Management | Tailings management | Water management | Climate change management | Mine closure | Occupational health and safety |
Crisis management preparedness | Internal review | Training and exercises | |
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Crisis Management Planning – Corporate | |||
Crisis Management Planning – Site |
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Yes | No | |
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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 |
Yes | No | |
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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 |
Terrafame has no operations in the reindeer husbandry area. The municipality, residents of the surrounding area, landowners, professional fishermen, tourism businesses and environmental organizations are considered in the company’s stakeholder group work.
As in previous years, Terrafame’s employment effects in Kainuu were significant. At the end of 2023, the number of personnel was 842 (2022; 763), of which 93.5 (96.2) percent were in permanent employment. The increase in the number of temporary employment relationships was most influenced by the new two-year apprenticeship that started in the fall. At the end of the year, 78.4 (76) percent of the personnel lived in Kajaani and Sotkamo. In addition to our own personnel, a total of 1,038 (733) employees of contractors and subcontractors worked in the industrial area during the year on average (converted to full-time, FTE).
The recreational use of the nearby area is focused on fishing and other recreational use of water bodies. The majority of the treated water effluents are led along the discharge pipe to a large body of water (Nuasjärvi) located between Kajaani and Sotkamo. There are plenty of permanent and leisure settlements on the shores of the lake in question, so the lake is central and significant in terms of recreational use in Kainuu. Based on the monitoring results, the effect of the cleaned effluent waters in the water body can be seen as an increase in the sulphate concentration of the water, but e.g. no changes have been detected in the fishery. In 2023, Natural Resources Institute Finland (LUKE) carried out a sensory evaluation (taste) as part of the Nuasjärvi pike perch project, where the goal was to produce additional information about the quality of Nuasjärvi pike perch as food, and to contribute to increasing the attractiveness of the lake. There is already a lot of information on Nuasjärvi fish over a long time series and for example mercury content of fish is at the level of national average, but in terms of taste, the fish of Nuasjärvi had not been studied before. The final result of the study by LUKE’s expert panel trained in the sensory evaluation of food products was that the Nuasjärvi pike perch were qualitatively as good in taste and texture as the Oulujärvi walleyes. LUKE has published a video about the study and its background in October 2023. It can viewed at the LUKE’s Youtube- channel at youtube. com/@LuonnonvarakeskusLuke.
In terms of recreational use, other closest biggest and most significant lakes in terms of recreational value are located approximately 10 kilometres from the industrial area. There are waterfront properties on the lakes in question and the lakes are used e.g. for recreational fishing. Every year, a small amount of treated effluent water is channelled through the lakes. The effects of these discharges on water quality are minor, mainly limited to slightly elevated sulphate concentrations.
During the previous operator’s time, the cleaned discharge waters have been led through small nearby water bodies in both the north and south direction. As a result of this activity, part of the lakes in question became stratified due to sulphate for a long time, so that the natural autumn and spring cycle of the lakes was disturbed. Elevated metal concentrations were also observed in some of the lakes. In 2012, the authority issued a recommendation to four nearby water bodies that the water from the lakes in question should not be used as sauna or household water. The standing restriction has not been lifted yet. The condition of most of the small water bodies in question has already recovered, but in some small stratification is still observed. For example, the water in Kivijärvi’s basins had been stratified since 2011, but since 2020 the water in Kivijärvi’s basins has partially circulated. Mixing has taken place also in the deepest basin in recent years, and sulphate concentrations have decreased from the level of 2,000-4,000 mg/l in previous years to an average level of 41 mg/l. As regards to the second, shallower basin, there has been a positive development, and the monitoring results indicated in 2023 the partial realization of the autumn cycle throughout the water column.
The company has bought water and land areas in the vicinity of the mining district, in the same areas where the affected small water bodies are located, in connection with future expansion plans. There are no properties currently in use on the banks of the water bodies in question. Part of the small water bodies will be left under construction and the recovery of the remaining small water bodies will be ensured by rehabilitation measures if necessary. One of these small bodies of water is Lake Salminen, which has been permanently stratified since 2012, and has not recovered naturally like other lakes in the vicinity. The Regional Administrative Agency of Northern Finland granted permission for the restoration of Lake Salminen in connection with the main environmental permit granted in June 2022. Terrafame started the restoration work on Lake Salminen in July 2022, and the restoration continued in 2023.
The condition of the local water bodies is communicated in more detail in the annual water body overview, which is prepared based on the annual monitoring reports and distributed to local residents.
Mining areas, such as side rock and secondary bioleaching heaps, are closed during operations when the areas become full. Other landscaping, such as the planting of vegetation on surface soil storage areas, is also done during the operation. The entire production area will be landscaped after the mining operations end. In connection with the environmental impact assessments, the landscape effects of the activity were clarified by modelling observational images and visibility assessments. At the end of closure and reclamation operations the side rock areas and the bioleaching heaps will form permanent landscape change but the effect will be minimized by careful landscaping.
Terrafame’s main communication channel is the company’s website, where news and announcements related to the company’s operations are published. Representatives of stakeholder groups are also offered the opportunity to give feedback on the company’s operations through the website. Feedback can also be given anonymously. Feedback is processed systematically in accordance with established Whistleblowing practices.
Terrafame also utilizes social media. The most active platform for the company is LinkedIn, and in its recruitment communications, Terrafame uses Facebook (@kykyjentalteenottofi) and Instagram (@terrafameoy).
In internal communication, a comprehensive channel package is in place. Alongside various meetings, interactive Teams tools are utilized, information displays are placed around the industrial area, and a text messaging system is used for emergencies. Terrafame holds a staff meeting once a quarter in connection with the interim report, during which the CEO discusses current topics in addition to the financial results.
The company publishes a monthly personnel magazine. Approximately once a quarter, Terrafame publishes a contractor-specific edition from the personnel magazine, which also includes information for partner companies operating within the industrial area. In 2023, the contractor-specific edition was published five times. Additionally, regular meetings are organized for key contractors in the area to discuss matters such as safety and current affairs.
An water body review targeted at local stakeholders is published annually in May as a supplement in a local newspaper. The watershed review was published for the first time in spring 2019. The purpose of this publication is to share up-to-date information about the state of the nearby lakes. The review is prepared based on the obligatory environmental monitoring reports of the previous year. In addition, other current themes are brought up in the review, either related to the company’s operations or according to the wishes of stakeholders. The latest review was published in May 2024 and is available on the company’s website. In addition to the state of nearby lakes, the 2024 review discussed fisheries and interviewed, for example, Pasi Laajala, a special expert at LUKE, who was involved in LUKE’s Nuasjärvi walleye research project.
Terrafame publishes an annual Sustainability report, which tracks the progress of the company’s sustainability program for the years 2020-2024. The reports available on the company’s website. Latest sustainability report was published in June 2024.
The company also communicates its operations through media releases and by holding discussions directly with representatives of stakeholders, for example by telephone and e-mail.
Residents of the nearby area are informed about exceptional situations in the industrial area or other current issues using their own group text message system. Corresponding SMS systems exist for Company’s employees and contractors operating in the area. The company’s SMS system is not emergency communication for the authorities, but it can be used to support official communications with the authority’s permission.
During its operation, Terrafame has organized village hall meetings, information sessions, family days and other events. In total, under normal circumstances, the company meets an average of 2,500 to 5,000 people per year at various events.
In 2022, a local stakeholder group representatives’ working group was also established, to which representatives from the city of Kajaani, the municipalities of Sotkamo and Sonkajärvi, Regional Council of Kainuu, local entrepreneurs’ association and the chamber of commerce, Terrafame personnel and partner companies, the Tuhkakylä village association and the Jormaskylän-Korholanmäki fisheries cooperative society and the Kainuu district organization of the Finnish Association for Nature Conservation were invited. In addition, one expert from University of Eastern Finland, specializing in environmental law and mining liability, has been invited to the group. The goal of the meetings is to talk with Terrafame’s key local stakeholders about topics of interest to them and to tell them about the company’s current affairs. The working group meets 1-2 times a year in the industrial area. In 2023, the working group met twice. The meeting organized in May 2023 discussed the Kolmisoppi project and the expansion of the mining district, as well as the results of the environmental monitoring in 2022. In addition, the working group’s views on the composition and activities of the group were mapped, as well as wishes for future meetings on the topics. At the request of the group, the next meeting, which was organized in November 2023, focused on closure measures, related tests and monitoring. In addition to these meetings, the working group was interviewed in connection with Terrafame’s double materiality analysis. An external expert interviewed the members of the group about their views on the sustainability themes relevant to the company and where, according to their opinion, the company should develop its sustainability program. The double materiality analysis serves as the basis for Terrafame’s preparation for responsibility reporting in accordance with the CSRD directive, i.e. the corporate responsibility reporting directive.
The company also supports local sports and other recreational activities. Each year, Terrafame allocates approximately 60,000 euros to various sponsorships that promote local well-being and vitality in Kainuu. Sponsorship is also targeted at the joint activities of students studying the field. In 2022, e.g. student activities were sponsored through Oulu University’s Prosessikilta ry.
Terrafame mainly supports sports, culture and safety in Kainuu, as well as the activities of students related to the process industry. The company allocates around 60,000 euros annually to different sponsorship targets. In 2023, the company’s most significant targets were Sotkamon Jymy, which plays in the Superpesis series, and the Finnish Biathlon Union. In addition, the company supported chemistry and mining industry students. Sponsorship applications are processed 2-3 times a year with the sponsorship team and it is used to ensure that the activities of the supported organization or group are in accordance with Terrafame’s values and goals.
Terrafame supports the activities of the local village association. The company also organizes annual environmental campaigns, where the sides of the entrance roads of the industrial area are cleaned from litter together with partners. Terrafame also participated in the village days of Tuhkakylä, where the company presented e.g. rescue equipment and gave the participants the opportunity to discuss safety topics.
Terrafame’s industrial fire department works as a contract fire department of the Kainuu rescue service, thanks to which the level of rescue services in the sparsely populated area around the industrial area has increased. Terrafame’s industrial fire department serves as a unit under the Kainuu rescue service in the nearby areas of the factory area. In 2023, the industrial fire department participated in 18 tasks outside the industrial area as part of the Kainuu rescue service.
During 2019-2023, Terrafame has implemented a total of four two-year apprenticeships leading to a professional degree in the process industry in cooperation with the Kainuu vocational college and the Oulu regional vocational college. Three groups secured the required workforce for the company’s battery chemical plant that started operations in 2021. 67 students graduated from the groups, the vast majority of whom were employed by Terrafame. The fourth group started their studies in the fall of 2023. The group’s approximately twenty students are to be employed mainly at the uranium recovery plant, but also at other Terrafame production departments.
In order to ensure the availability of competent people, cooperation with educational institutions was continued in 2023. Close cooperation was carried out with educational institutions, especially Kainuu Vocational College and Kajaani University of Applied Sciences. The cooperation took the form of apprenticeships, internships, summer jobs, theses and visits.
During 2023, around eighty people from Terrafame developed their skills in various trainings leading to degrees. The most common degrees were basic, professional or specialized vocational degrees in the field of electricity and automation, process industry, maintenance or vehicles. In addition, the personnel of the uranium recovery facility started maintenance training, which will continue in 2024
Terrafame studies and develops its processes as part of normal operations, and these development activities are counted as normal business expenses. During 2023, the focus of process development has been ensuring the operation of bioleaching, supporting the ramp-up of the battery chemical plant and enhancing the recovery of metals. In addition to this, research activities are carried out in separate research projects, which are typically longer-term strategic projects. During the year 2023, the most important research projects were: 1) development of bioleaching yield, 2) closure structure studies and 3) development of battery chemical technology. In addition, as part of its normal operations, the company examines e.g. alternative solutions and functionality for surface and base structures and implement other research and piloting related to process development, raw materials and the circular economy.
Terrafame is also strongly involved in developing the European and Finnish battery strategy. As part of the European IPCEI project related to the process start-up and quality assurance of the battery chemical factory, in 2023, the development of the analytics of process samples and end products was continued in collaboration with our own and external laboratories. Terrafame is also involved in national research and development projects, such as the BATCircle 2.0 project coordinated by Aalto University, which investigates the possibility of using by-products and recycled materials in the production of battery chemicals in the future. The company does active R&D cooperation with several universities and research institutes.