Raahen gold mine loses environmental permit after repeated violations

The Vaasa Administrative Court has upheld the cancellation of the environmental permit for the Raahe gold mine, ruling that operator Laiva Gold repeatedly violated permit conditions and created serious environmental risks, Yle reports.

The court rejected Laiva Gold’s appeal on April 30, affirming a 2025 decision by the Regional State Administrative Agency to revoke the mine’s permit. The ruling is not yet legally binding, as the company intends to seek leave to appeal from the Supreme Administrative Court—a process that could take up to two years.

Laiva Gold has blamed the mine’s problems on its predecessor, Otso Gold, which filed for corporate restructuring in 2022 before transferring ownership. “We consider it deeply unjust to be penalised for the shortcomings of previous owners,” said mine manager Jim Jackson. The company claims no real environmental risk existed under its operation and that remediation was underway before the permit was revoked.

However, the Finnish Environment Institute (Syke) and permit authorities dispute this. Inspections revealed unresolved issues, including unsecured tailings ponds at risk of collapse, elevated cyanide and arsenic levels in groundwater, and repeated failures to meet legal monitoring requirements. In 2023, the state had to intervene to restore electricity to the site after Laiva Gold failed to maintain supply contracts.

The most severe risk stemmed from an unlined tailings pond filled beyond capacity in 2016. Otso Gold was required to close it with soil cover but failed to do so, leading to unauthorised emergency pumping of contaminated water in 2020. A dam failure could have spread heavy metals and arsenic into surrounding nature. Authorities issued a formal warning to Laiva Gold in late 2023, but the pond was only covered in 2025.

Kai Kokko, professor of environmental law at the University of Helsinki, called the court’s reasoning “consistent” and doubted the Supreme Administrative Court would grant an appeal. Laiva Gold, however, remains defiant. “Not all our justified views were considered,” Jackson stated, adding that the company still plans to resume operations despite the permit’s revocation.

The mine has been idle for over four years. Laiva Gold insists that obtaining a new permit or closing the site are not current options.

Tags: mining, environmental regulation, Finland