Terrafame plans new open-pit mine near Sotkamo in Finland

The state-owned mining and battery materials company Terrafame plans to open a new open-pit mine near Sotkamo, specifically in the northern part of the existing mining area, close to Lake Kolmisoppi. Mining activities in the Kolmisoppi area are expected to begin in 2028, but the available resources are projected to last only until 2033. As a result, Terrafame intends to later apply for permission to partially drain Lake Kolmisoppi and extract ore from its底.

The need for a new mine arises from the fact that the current Kuusilampi open-pit mine will only have resources until the late 2030s unless Terrafame secures approval for the new site. The new open-pit mine would ensure the company’s operations continue into the 2050s. Ore extracted from Kolmisoppi would be transported to the company’s existing crushing system.

Terrafame has submitted an environmental and water management permit application to the Regional State Administrative Agency for Northern Finland. A request for permission to partially drain Lake Kolmisoppi will be made later, as the changes would be significant enough to conflict with current water management laws, potentially leading the agency to not accept the application for review.

Terrafame’s Sustainability Director Veli-Matti Hilla believes that upcoming reforms to water management law could eventually allow for the partial draining of Kolmisoppi. A recent legislative proposal includes a provision for deviating from environmental goals if the project benefits sustainable development more than it harms the environment. The company aims to divide the licensing process into two parts to ensure timely commencement of mining in Kolmisoppi, and seeks designation of the expansion as part of the EU’s strategic raw materials production. Hilla is optimistic about securing this status, citing the potential for battery-grade nickel, cobalt, and copper from Kolmisoppi as strong justification.