“With the start of operations, Finland is the only European Union member state where uranium is produced.”
Adding to that, here is a news story from Yle.
9 Likes
April–June 2024 in brief
- Revenue was EUR 116.0 (91.4) million, which was 21.2 per cent more than in the comparison period.
- Revenue from the battery chemicals business decreased to EUR 29.4 (32.1) million and accounted for 25.3 (35.1) per cent of the company’s revenue. Revenue was decreased by lower production and delivery volumes as well as the decline in the market price of nickel sulphate.
- Revenue from the metal intermediates business was EUR 86.6 (59.3) million, with production volumes remaining at a high level.
- EBITDA was EUR -2.4 (-17.4) million, which was -2.1 (-19.0) per cent of revenue. EBITDA increased mainly due to improved cost efficiency.
- Operating result was EUR -20.3 (-32.9) million.
- Free cash flow from operating activities was EUR -14.9 (-33.9) million.
3 Likes
Business review January–September 2024 as a video 
and in writing
Terrafame’s net sales and EBITDA declined in a challenging market
The financial information of Terrafame Ltd presented in this release are unaudited IFRS figures. Figures in parentheses refer to the corresponding period of the previous year, unless otherwise stated.
July−September 2024 in brief
- Net sales were EUR 104.8 (142.0) million, which was 26.2 percent less than in the comparison period.
- Net sales from the battery chemicals business rose to EUR 32.6 (28.0) million and accounted for 31.1 (19.7) percent of the company’s net sales.
- Net sales from the metal intermediates business decreased by 36.7 percent to EUR 72.2 (114.0) million. Lower market prices for metals had a negative impact on net sales.
- EBITDA was EUR 12.7 (39.0) million, which was 12.1 (27.5) percent of net sales. Lower market prices for metals as well as the decrease in production and delivery volumes weakened EBITDA.
- Operating result was EUR -14.3 (23.4) million.
- Free cash flow from operating activities was EUR -43.1 (-25.5) million.
January−September 2024 in brief
- Net sales were EUR 350.8 (406.1) million, which was 13.6 percent less than in the comparison period.
- Net sales from the battery chemicals business decreased to EUR 97.6 (126.3) million and accounted for 27.8 (31.1) percent of the company’s net sales. Net sales were reduced by lower production and delivery volumes as well as the decline in the market price of nickel sulphate.
- Net sales from the metal intermediates business decreased by 9.5 percent to EUR 253.2 (279.8) million. Lower market prices for metals had a negative impact on net sales.
- EBITDA decreased to EUR 50.2 (64.4) million and was 14.3 (15.9) percent of net sales.
- Operating result was EUR -11.0 (17.9) million.
- Free cash flow from operating activities was EUR -87.6 (-47.5) million. Cash flow was negatively affected by the weak market situation and the ongoing significant investment program.
- The combined accident frequency rate of the industrial site was 5.1 (5.1).
3 Likes
Terrafame initiates change negotiations due to challenging market situation
"Terrafame’s business environment has remained difficult in 2024, with the main factors being the slower-than-expected progress of transport electrification, especially in Europe, and significantly lower market prices for metals and battery chemicals compared to the previous year. The company estimates that the battery chemicals market will continue to be challenging in late 2024 and early 2025. Terrafame also expects two final permit decisions from the Vaasa Administrative Court (VHO) during 2024; if these are delayed, the interim decisions previously issued by the VHO may have impacts on the company’s production and revenue.
Primarily due to the challenging market situation and its effects on Terrafame’s operations, the company has decided to initiate change negotiations covering all Terrafame personnel for production and financial reasons. According to the company’s preliminary estimate, the reduction in labor needs would amount to a maximum of 75 person-years in total. In addition to potential redundancies, the negotiations will prepare for measures such as temporary layoffs, changes in job roles, and part-time arrangements. At the end of September 2024, Terrafame employed a total of 826 people.
”The market situation for battery chemicals, in particular, has remained challenging, which has been reflected in the demand for Terrafame’s products and thus also in our revenue and profitability. At the same time, Terrafame is carrying out the largest investment program in the company’s history, related to, among other things, the new secondary leaching area required for bioleaching. To improve the company’s profitability, we launched a profitability program at the beginning of the year aiming for annual savings of 10 million euros, which has progressed as planned. Despite the favorable development of cost efficiency, we must now initiate change negotiations due to the continued challenging operating environment,” says Terrafame CEO Seppo Voutilainen.
”Despite the temporary dip in the market, the electrification of transport is inevitable. Terrafame is a significant part of the European battery value chain, and we believe in the demand for battery chemicals in the long term. Our strength is a flexible production process that allows the sale of nickel products as an intermediate product when the battery chemicals market does not meet expectations,” Voutilainen concludes.
In the change negotiations between the company and the personnel, the goal is to find solutions for how human resources, working time models, and work arrangements in general could be adjusted to better meet changed business needs and outlooks. Terrafame will report on the outcome of the negotiations once they have concluded.
Terrafame’s interim report for January–September 2024 was published on 25 October 2024."
2 Likes
Terrafame Seeks Leave to Appeal from the Supreme Administrative Court Regarding Decisions Issued by the Vaasa Administrative Court – VHO’s Decisions Have Significant Impacts
"The Vaasa Administrative Court (VHO) issued two decisions concerning Terrafame in December 2024, one of which related to the company’s environmental and water permit for its entire operations, i.e., the so-called main permit, and the other to the KL1 waste rock area. Terrafame has assessed the impacts of the VHO’s decisions on the company’s operations and has today sought leave to appeal from the Supreme Administrative Court (KHO). In addition, Terrafame requests the KHO to issue an interim decision concerning key operational restrictions.
In its decisions, the VHO confirmed the increase in the annual ore mining volume, previously granted by the Regional State Administrative Agency for Northern Finland (PSAVI), to 18 million tonnes, but limited the waste rock mining volume to 30 million tonnes per year. PSAVI had approved in its own permit decision an increase in waste rock mining from 30 million tonnes to 45 million tonnes per year. The VHO partially restricted the construction and use of the new secondary leaching area SEK5−8 and the new waste rock area KL1 in its decisions.
According to Terrafame, there are strong grounds for overturning the VHO’s decisions and obtaining an interim decision, the most significant of which relate to the following points:
- The waste rock mining volume of 30 million tonnes per year, restricted by the VHO in its decision, limits ore mining such that the 18 million tonnes of ore mining according to the business model will not be achieved in the coming years. Moving to the next mining phase at the end of the decade without production interruption requires an annual waste rock mining of 45 million tonnes to remove a sufficient amount of waste rock from above the ore.
- The VHO restricted the construction of the new waste rock area KL1 and the new secondary leaching area SEK5−8 with its decision. According to Terrafame, the VHO has not correctly assessed the filling rate of the areas, as the volume of the permitted areas is not sufficient until the next blocks can be permitted in a new permitting round. The filling of the KL1 waste rock area is significantly accelerated by the regulation prohibiting the use of black schist waste rock as a backfill layer beneath the secondary leaching area. The regulation is unnecessary from an environmental protection perspective, because the backfill layer beneath the secondary leaching area is constructed with similar base structures as separate waste rock areas. The regulation also requires separate mining of clean mica schist for the base structure. Mica schist is not currently generated in Terrafame’s mining operations, so the VHO’s regulation increases overall mining and is thus contrary to the principles of efficient utilization of raw materials and significantly increases energy consumption and carbon dioxide emissions. The regulation also has significant cost implications.
- The VHO ordered double base structures for blocks 1−6 of the KL1 waste rock area, which do not provide additional environmental protection value. It should be noted that Terrafame has presented structures based on research and tests in its environmental permit application, which correspond to the principles of so-called Best Available Techniques (BAT). PSAVI ordered significant additional reinforcements to the structures in its own decision due to the precautionary principle. Now, the VHO has practically doubled PSAVI’s reinforced structures further based on the precautionary principle, without actual need. According to Terrafame, this is not justifiable from an environmental perspective, and the additional costs incurred by the company due to the reinforced structures become unreasonable.
”From Terrafame’s perspective, it was important that the Vaasa Administrative Court upheld the 18 million tonne annual ore mining volume granted by PSAVI. However, if the other provisions of the Vaasa Administrative Court’s decisions remain in force, they will negatively affect Terrafame’s operations and mean significant additional costs. We consider the grounds presented in our appeal application to the Supreme Administrative Court to be very strong. In our opinion, there are full grounds to overturn the decisions of the Vaasa Administrative Court," says Lauri Ratia, Chairman of the Board of Terrafame Oy.
”Terrafame’s importance to the regional economy and employment in Kainuu is significant, as is the company’s broader impact on Finland and Europe. Today, the company produces 70 percent of the nickel produced in Europe and plays a significant role in the construction of the European battery value chain. The VHO’s decisions unduly weaken Terrafame’s operating conditions and create unnecessary uncertainty in the company’s operational planning. The key restrictions in the VHO’s decisions came as a complete surprise to the company and without any dialogue about their impacts. The current permitting system does not meet today’s requirements, and a clear change is needed for this," Ratia concludes.
Terrafame has reported on the VHO’s decisions in a web news article on December 19, 2024, and on previous interim decisions on January 24, 2024."
2 Likes
Here we go again:
8 Likes
October−December 2024
- Net sales were EUR 193.7 (154.8) million, which was 25.1 percent more than in the comparison period.
- EBITDA was EUR 16.1 (36.2) million, which was 8.3 (23.4) percent of net sales. Lower market prices for nickel sulfate and metals weakened EBITDA.
- Operating result was EUR -1.6 (20.0) million.
- Free cash flow from operations was EUR 1.7 (-5.0) million.
January−December 2024
- Net sales were EUR 544.5 (560.9) million, which was 2.9 percent less than in the comparison year.
- EBITDA decreased to EUR 66.3 (100.6) million and was 12.2 (17.9) percent of net sales. Lower market prices for nickel sulfate and metals weakened EBITDA. Work in progress increased by 4.3 percent and was EUR 269.7 (258.6) million at the end of the year.
- Operating result was EUR -12.6 (37.9) million.
- Free cash flow from operations was EUR -85.9 (-52.5) million. The weak market situation and the ongoing significant investment program negatively impacted cash flow.
3 Likes
3 Likes
Terrafame’s Kolmisoppi project has been granted strategic project status under the Critical Raw Materials Act (CRMA) on March 25, 2025. With the CRMA, the European Union aims to strengthen the value chains of raw materials essential for Europe’s economy and clean transition.
“We are pleased with this decision. The strategic project status under the EU’s Critical Raw Materials Act strengthens the significance of Kolmisoppi and Terrafame for the supply of critical and strategic raw materials in Europe. The status also ensures the progress of permitting processes within the deadlines defined in the regulation, which reduces the schedule risk associated with permitting,” states Seppo Voutilainen, CEO of Terrafame.
The Critical Raw Materials Act covers over 30 raw materials, 17 of which are also strategic. Terrafame produces battery-grade nickel sulfate, cobalt, and copper, which are defined as strategic raw materials.
“Terrafame is already a significant player in the critical materials value chain in Europe, as the company produces over 70 percent of the primary nickel mined in Europe. The planned utilization of the Kolmisoppi deposit will enable Terrafame to responsibly produce battery chemicals with a low carbon footprint far into the future,” Voutilainen continues.
Terrafame applied for strategic project status for the Kolmisoppi deposit in August 2024. Kolmisoppi is Terrafame’s second, as yet unexploited, ore body in Sotkamo. The currently mined Kuusilampi and Kolmisoppi ore bodies together form Europe’s largest nickel ore reserves.
In addition to nickel, the company recovers zinc, cobalt, copper, and natural uranium from the ore. Nickel and cobalt are processed at the company’s battery chemicals plant into battery chemicals for use in electric vehicle batteries. The recovered uranium is supplied by Terrafame to international markets for further processing, after which it is used as fuel in nuclear energy production.
In 2023, Terrafame submitted an environmental permit application for the exploitation of the Kolmisoppi land area ore deposit to the Regional State Administrative Agency for Northern Finland. Terrafame expects a decision during 2025. The company’s goal is to start mining in the Kolmisoppi land area in 2028. Terrafame will later apply for a permit under environmental protection and water laws for the exploitation of the ore deposit located in the Kolmisoppi water area as well.
2 Likes
2024 in brief
Terrafame lightens the carbon footprint of transport by supplying responsibly produced battery chemicals to the global battery industry. Terrafame’s industrial area houses one of the world’s largest production lines for battery chemicals used in electric vehicle batteries. The plant can produce nickel sulphate for approximately one million electric cars per year. The carbon footprint of nickel sulphate produced by Terrafame is one of the smallest in the industry. Terrafame’s integrated, unique, and energy-efficient production process from mine to battery chemicals is located in one and the same industrial area. It offers customers a genuinely transparent, traceable, and European battery chemicals production chain.
Terrafame’s net sales and operating profit (EBITDA) decreased in 2024 due to lower market prices.
Net sales decreased by 2.9 percent from 2023 and amounted to EUR 544.5 (560.9) million. Operating profit (EBITDA) decreased to EUR 66.3 (100.6) million.
The Vaasa Administrative Court (VHO) issued two interim decisions in January 2024, restricting mining and the construction and use of new production and waste areas. Due to delays in final decisions, Terrafame had to suspend mining operations at the end of 2024 as the interim decision’s mining quotas were reached.
In April, Terrafame had to shut down its battery chemicals plant due to national strikes. The plant restarted in June. A planned maintenance shutdown was also carried out during the stoppage.
Despite the challenging market situation, Terrafame succeeded in expanding its customer portfolio and signed agreements with new globally operating customers who value responsibly produced battery chemicals.
Terrafame began natural uranium recovery at its industrial site in Sotkamo in June.
2 Likes
Cash flow still at a loss and revenue is going in the wrong direction. The price cycle is not very favorable for Terrafame at the moment:
5 Likes
The CEO is changing. Antti Koulumies from UPM will become the new CEO.
3 Likes
How long will the state still try to save Terrafame?
Terrafame’s mine turns 10 this autumn. The operating result over the years gives no cause for celebration: it is catastrophically bad – 200 million in the red.
7 Likes
Maybe the light at the end of the tunnel is an oncoming train after all:
7 Likes