The Kolmisoppi project strengthens Europe's critical raw materials value chains
Terrafame is already a major player in Europe’s critical raw materials value chain, producing over 70% of the nickel mined within the continent. The utilisation of the Kolmisoppi deposit will enable the production of sustainable battery chemicals with a low carbon footprint well into the future.
The European Commission has granted Terrafame’s Kolmisoppi project the status of a strategic project under the EU’s Critical Raw Materials Act (CRMA). The aim of the regulation is to strengthen the EU’s self-sufficiency in critical raw materials, which are essential for the European economy and the green transition.
The CRMA covers more than 30 raw materials, 17 of which are also classified as strategic. While the EU consumes around 20% of the world’s minerals, it produces only about 3%. The regulation sets ambitious targets. By 2030, the EU aims to ensure that:
- 10% of the raw materials used are mined within the EU
- 40% are processed within the EU
- 25% are sourced through recycling
Terrafame produces strategic raw materials such as battery-grade nickel sulphate as well as cobalt and copper. According to the Commission, the implementation of the Kolmisoppi project is vital for achieving the CRMA targets — particularly in terms of battery-grade nickel — and for securing its sustainable production for decades to come.
Kolmisoppi is Terrafame’s yet unexploited ore deposit in Sotkamo, Finland. The Kuusilampi ore deposit, which is currently being mined, and the Kolmisoppi ore deposit together form the largest nickel ore reserves in Europe. The company aims to begin mining operations in the Kolmisoppi area in 2028.
Where to find more information?
You can follow the progress of the Kolmisoppi project on this page, which will include media releases and news updates related to the topic.
Residents and holiday homeowners in the surrounding area are informed about the project at Terrafame’s annual community evening. They can also submit environmental observations related to the project or other Terrafame operations to the environmental team via the contact form on the “Contact” page by selecting the option “Local issues.”
The project is also discussed in the local cooperation group, which includes representatives from Terrafame, its partner companies, and businesses and environmental organisations from the Kainuu and North Savo regions.
Updated 9 December 2025
| 2028 | Estimated start of mining operations in the Kolmisoppi land area |
| 2027 | Estimated start of overburden removal and construction of access roads and the waste rock area |
|
2027 |
Decision on the environmental and water management permit application covering all operations, including the utilisation of Kolmisoppi (estimate) |
| April 2026 |
The new environmental and water management permit application covering Terrafame’s entire operations: its current activities and the entire Kolmisoppi project, including the extraction of land and water areas (estimate) |
| December 2025 |
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. |
| March 2025 | The European Commission grants the project strategic project status under the CRMA regulation |
| August 2024 | Application submitted for strategic project status under the EU’s CRMA |
| July 2023 | Permit application revised into a two-phase process: Phase one covers land area mining; phase two will apply for expansion into the water area |
| June 2022 | Environmental and water management permit application submitted to the Regional State Administrative Agency of Northern Finland |
| January 2020 | Environmental Impact Assessment (EIA) procedure begins |
The Kolmisoppi page provides updates on the progress of the project (in Finnish only, 21 July 2025)
The Kolmisoppi ore deposit has been granted strategic project status under the EU's Critical Raw Materials Act (25 Mar 2025)
The Terrafame Kolmisoppi project proceeds in two phases (in Finnish only, 17 Feb 2023)
The coordinating authority gave its reasoned conclusion on the Kolmisoppi EIA report (in Finnish only, 21 Feb 2022)
The environmental permit process for the utilisation of the Kolmisoppi deposit is progressing – the Kainuu ELY Centre has announced the EIA report relating to the project (in Finnish only, 20 Jul 2021)
Terrafame delivered the environmental impact assessment programme for the exploitation and expansion of the Kolmisoppi mining area to the Kainuu ELY Centre (in Finnish only, 7 Apr 2020)
Terrafame to launch drilling on the ice of Lake Kolmisoppi (in Finnish only, 17 Feb 2020)
The Environmental Impact Assessment (EIA, materials in Finnish only) procedure for the Kolmisoppi project began in 2020 and concluded in 2022 with a reasoned conclusion issued by the coordinating authority.
Identifying significant environmental impacts supports project planning and guides efforts to mitigate adverse effects.
The project’s most significant positive impacts relate to the regional economy and the potential for long-term battery chemical production. Negative impacts include the partial drainage of Lake Kolmisoppi, effects on surface and groundwater, and dust and noise emissions from mining activities.
The Kolmisoppi area includes both land and water zones. Mining will begin on land, while any potential expansion into the water area will require a separate permitting process. Water-related impacts will be managed through:
- closed-loop water circulation systems
- efficient water treatment
- continuous monitoring of water bodies
During the EIA process, a wide range of stakeholders were consulted, including local residents, authorities, and environmental organisations. Based on the feedback received, the project plan has been refined.
Environmental impacts are continuously monitored. Results are published regularly, and local residents can report environmental observations via the contact form on the website.
Overall Permitting Schedule for the Strategic Critical Raw Materials Project (Regional State Administrative Agency, 25 April 2025, PDF, 112 KB, in Finnish only)
Environmental Impact Assessment (EIA) procedure for the exploitation of the Kolmisoppi deposit and the expansion of the mining concession on Terrafame’s website (in Finnish only)