Regional State Administrative Agency for Northern Finland rejected Terrafame’s application to start mining the Kolmisoppi land area
The Regional State Administrative Agency for Northern Finland requires that the permitting for the exploitation of Kolmisoppi be handled as part of Terrafame’s main permit covering all its operations, which the company plans to apply for in the spring of 2026. The decision makes the permitting schedule even more critical in terms of Terrafame’s strategy execution.
The Regional State Administrative Agency for Northern Finland (PSAVI) has today, 9 December 2025, issued a decision to Terrafame regarding the environmental and water management permit for exploiting the Kolmisoppi ore deposit in Sotkamo, Finland. Kolmisoppi is Terrafame’s second, yet unexploited ore deposit located in the northern part of the mining concession. Exploiting the deposit enables the production of metals and battery chemicals with a low carbon footprint well into the future.
PSAVI’s decision denies Terrafame’s application to start mining in the Kolmisoppi land area. In its reasoning, PSAVI states that, in its view, the Kolmisoppi project is linked to the company’s existing operations to such an extent that the Kolmisoppi permitting must be handled as part of the environmental and water management permit covering Terrafame’s entire operations, i.e., the so-called main permit.
“The permit decision by the Regional State Administrative Agency for Northern Finland regarding the Kolmisoppi ore deposit is not the outcome Terrafame had hoped for. It is our understanding that the application was not rejected due to its content but rather on technical grounds of permitting. One of the underlying assumptions of Terrafame’s new strategy for the years 2026–2030 is that we will be able to start mining at Kolmisoppi in 2028. However, we have not given up on our plans for Kolmisoppi. We still believe we can secure the permit on a faster schedule thanks to its status as an EU strategic project. We are moving ahead with our strategy implemention as planned and will submit the main permit application next spring, with Kolmisoppi included,” states Antti Koulumies, CEO of Terrafame.
“We aim to submit a new permit application in April 2026, covering both Terrafame’s current operations under the main permit and the entire Kolmisoppi project, including mining in the land and water areas. Based on our estimates, we expect a decision on the permit package in 2027”, says Veli-Matti Hilla, Chief Sustainability Officer at Terrafame.
Terrafame’s Kolmisoppi project was granted strategic project status under the European Union’s Critical Raw Materials Act (CRMA) in March 2025. The status guarantees that permitting processes proceed within the deadlines defined in the Act.
“The exploitation of the Kolmisoppi deposit has been recognised as significant also from the EU’s perspective. It secures the long-term production of raw materials in Finland, which are essential to the EU’s clean transition, economy, and self-sufficiency. The permit process launching in spring 2026 will show what significance Kolmisoppi’s status as an EU strategic project has in streamlining the permitting”, Hilla says.
Terrafame divided the original permit process regarding the exploitation of Kolmisoppi into two phases: the company submitted the permit application for mining in the land area in July 2023, and the permit application related to mining in the water area was intended to be submitted at the end of 2025. The project’s environmental impacts have been previously assessed in an Environmental Impact Assessment (EIA) procedure. Terrafame aims to start mining operations in the Kolmisoppi land area in 2028.
Terrafame is the largest producer of nickel in Europe, and the Kolmisoppi and Kuusilampi ore deposits together form the largest nickel ore reserves in Europe. The company produces three raw materials defined as strategic by the EU: battery-grade nickel, cobalt, and copper. Nickel and cobalt are processed into battery chemicals at the company’s battery chemicals plant located on the same industrial site. In addition to these, Terrafame recovers zinc and natural uranium from the ore.
Further information:
Veli-Matti Hilla, Chief Sustainability Officer, Terrafame Ltd., tel. +358 20 7130 800 (switchboard), veli-matti.hilla(at)terrafame.fi
Terrafame s strategy for 2026–2030: The company will remodel its operational logic, streamline processes, and pursue growth through new products (media release, published on 3 December 2025)
Kolmisoppi project - Terrafame
Terrafame enhances low-carbon mobility by delivering responsibly produced battery chemicals to the global battery industry. One of the world’s largest production lines for chemicals used in electric vehicle batteries is located on Terrafame’s industrial site. The plant is capable of producing nickel sulphate for around 1 million EVs per year. The carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry.
Terrafame’s integrated, unique and energy-efficient production process from the mine to battery chemicals is located on a single industrial site. It provides customers with a transparent, traceable and truly European battery chemical supply chain.
Terrafame Ltd was founded in 2015. Its net sales in 2024 were EUR 544.5 million. Around 2,000 people work on its industrial site, approximately 1,200 of whom are employees of partner companies.
