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 21 July 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
December 2026 Estimated decision on the permit application for mining in the water area of Kolmisoppi
December 2025 Estimated submission of the environmental and water management permit application for the water area, including an application for derogation from the objectives of the water management plan, to the Regional State Administrative Agency of Northern Finland
November 2025 Estimated decision by the permit authority on the environmental and water management permit application for land area mining
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 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.

 

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