Terrafame Ltd.

Terrafame Ltd.

Terrafame Ltd. is a Finnish multi-metal company producing primarily nickel and zinc by bioheapleaching at its mine located in Sotkamo. In August 2015, Terrafame acquired the business operations and assets of Talvivaara Sotkamo Ltd. from its bankruptcy estate and is now carrying on the mining operations in Sotkamo.

Our strategic roadmap

Our mission is to build a sustainable world through high-quality metal products. To accomplish our mission we will take full advantage of our unique assets – extensive mineral resources and the bioheapleaching method. All our operations are based on Terrafame’s three cornerstones: safety, efficiency and commitment.

Our vision is to be a multi-metal company within the top quartile among our peers, measured by cost efficiency. Thanks to the bioheapleaching method, Terrafame provides high-quality and low carbon footprint products to global markets.

To reach our vision, we have set a clear strategic roadmap. We aim to mine and crush annually 18 million tons of ore. Our strategic initiatives also include securing a minimum leaching yield of 70% and the efficient extraction of nickel, cobalt, zinc, and copper.

We aim to set an example in occupational and environmental safety. Here, an important role is played by maximized uptime and improved efficiency of maintenance operations and spare part management, as well as by efficient category management to reduce material costs.  

Governance

We are committed to all aspects of good governance in our business operations. In addition to laws and regulations, we are guided by the cornerstones of our operations – safety, efficiency and commitment – as well as our operating principles.

Terrafame's decision-making complies with the Articles of Association, the Finnish Limited Liability Companies Act and other legislation in force. We also comply with the Finnish Corporate Governance Code where applicable.

Finances

Terrafame’s objective is environmentally sustainable, safe and economically viable mining operations. Our goal is to achieve a positive cash flow during 2018.

The ramp-up of the Terrafame mine in 2015 and 2016 has proceeded even better than planned. Key targets, set in September 2015 when ore mining at the mine recommenced, were achieved below budgeted costs during the company’s first year of operation.

The amount of ore mined has been in line with targets; the bioleaching process, which is vital for the successful ramp-up of the mine, has worked as expected or even better and the utilisation rate of the metals recovery plant has been high. Terrafame has increased production volumes of nickel and zinc as the ramp-up has proceeded. In October 2016 the production took a big leap forward as the second production line of the metals recovery plant went into operation.

In 2016, the net sales of Terrafame Ltd. from metal product deliveries were EUR 100.8 million. Regardless of the price development of metals, mine operations incur costs that are heavily front-loaded, especially during the first year of ramp-up. In January-December 2016, EBITDA amounted to EUR -120.4 million. During the time period, a total of 9,554 tonnes of nickel and 22,575 tonnes of zinc were produced. During the year 2016, the investment expenditure was EUR 84.3 million. Major investments include the construction work related to the expansion of the secondary leaching field and the centralised water treatment plant which was introduced in autumn.

You can read more about Terrafame’s operations and financial situation in our 2015 annual report and interim reports.

Personnel

Terrafame employs approximately 645 skilled professionals. In addition, 550 employees from excavation contractors and other partner companies work at the mine regularly. The work community is young and our average age is approximately 40 years.

Terrafame team consists of a variety of experts from different occupational groups. The development of their professional skills is an important part of our business. We provide our employees with new opportunities to develop their skills through both education and career and job rotation.

Approximately 80 % of our employees and the majority of our contractors live in the Kainuu region. Indeed, many of them have moved to the region after being hired by Terrafame. In addition to Kainuu, some Terrafame employees live in, for example, Northern Savonia and Northern Ostrobothnia.

Personnel safety is key

The safety of our personnel is one of the cornerstones of our operations. In 2016, we managed to reduce the frequency of accidents leading to absences from work (LTIF) to level 8.4. Our permanent goal is zero (0) accidents. In addition, we aim to reduce the partner companies' accident frequency.

All our operations are guided by safety principles: we anticipate and manage safety in all situations, from the planning of work to actual implementation. We pay attention not only to ourselves, but also to our co-workers and subcontractors.

Our managers hold a key position in implementing the safety culture. The Management Team and the department representatives participate in regular “safety tours” at the site.  Regular meetings are held also with our contractors in terms of safety issues.

For new recruits, we emphasize the importance of working safety from the day they arrive at the mine. This means a comprehensive safety orientation training for all people working at the area.

Our Golden Rules

At Terrafame we have two golden rules, which are followed at all circumstances

  • Work will be performed safely, or it will not be performed at all
  • There is always time to do things safely, carefully and by the book
  1. Safety gear – Always use the agreed safety gear!
  2. Hazardous substances – Always follow the rules for handling!
  3. Traffic – Always follow the traffic rules at the site!
  4. Lock out and tag out (zero energy) – Always do as instructed!

Safety-related incentives such as Safety Reward further motivate our personnel to operate safely. For Safety Reward, all our employees are divided into three “trophy groups” based on their department. If the group manages to work for one month without a single accident leading to absence, all employees in the group receive a monetary award.   

As an additional incentive, an extra sum is added to the safety bonus, if there have been no accidents leading to absence during an annual quarter.

We continue to develop the incentive systems together with the representatives of personnel groups.

Contact us

Contact Terrafame:

Terrafame Ltd.
Talvivaarantie 66
88120 Tuhkakylä
Finland

Phone: 020 7130 800
Invoicing:
If possible, please send your invoice in electronic format.
E-invoicing address: 003726950135
Carrier access code: BAWCFI22

Paper invoices should be delivered to:
Terrafame Ltd.
PL 708
00026 Basware
Finland

Terrafame Group Ltd.

Terrafame Group Ltd. owns 84.2% of Terrafame Ltd.

Terrafame Group is a special-purpose company wholly owned by the State of Finland. It is responsible for managing the state ownership and exercising the owner's power at Terrafame. Terrafame Group's mission is to secure private supplementary financing and support the stabilisation and development of the mining company's operations.

Terrafame Group is also responsible for helping the development of new technological solutions related to mine water purification. Read more about the water management pilot project financed by Terrafame Group.