Terrafame to expand to uranium mining in Finland (updated)

Sotkamo Silver AB

21/12/2022 09:22

(adds details, comments, background)
       HELSINKI, Dec 21 (Reuters) - Finnish mining company
Terrafame will start extracting uranium by mid 2024 at its
Sotkamo mine in Finland, aiming at output of 200 tons per year
by 2026, the company said on Wednesday.
    Terrafame, in which the Finnish state holds 67.1% and
commodities trading firm Trafigura  TRAFGF.UL  31.1%, already
produces nickel and cobalt suphates for electric car batteries
as well as other minerals at the mine in northeastern Finland.
    Terrafame will recover uranium as a by-product in the same
ore it already mines for its other minerals.
    "The uranium recovered by Terrafame will be transported
abroad for further processing, after which it will be used in
nuclear energy production," the company said in a statement.
    One of Europe's largest nickel producers, Terrafame was
previously known as Talvivaara, which went bankrupt after being
hit by waste water leaks at the mine back in 2012 that led to
long legal proceedings against the former management.
    Finland's government gave its green light for the uranium
production in 2020 but environmental organisations took the
decision to courts, fearing further damage to nature and
waterways around the mine.
    "As the recovery begins, Terrafame will become a Finnish
uranium producer, and thus will also play a role in building
Europe's energy self-sufficiency," Terrafame Chief Executive
Joni Lukkaroinen said.
    Last year, Terrafame produced some 28,600 tonnes of nickel
and 54,400 tonnes of zinc, while it also began producing battery
chemicals from its own minerals at the mine.
    The company has a ready-built uranium recovery plant on
site, which will increase its net sales by approximately 25
million euros per year, from 378 million euros in 2021, it said.
  
 (Reporting by Anne Kauranen
Editing by Mark Potter)
 ((anne.kauranen@thomsonreuters.com; +358401895560;))