Additional capital for Terrafame Group Ltd

Ministry of Economic Affairs and Employment 29.6.2016 14.17
Press release

On 29 June 2016, the Government authorised the Ministry of Employment and the Economy to subscribe for shares in Terrafame Group Ltd and raise the company’s capital by €144 million. The subscribing of the shares will be carried out using the appropriation contained within the second supplementary budget for 2016

Terrafame Group Ltd is an entirely state-owned special-purpose company which was established to make preparations for arrangements regarding the Talvivaara mine. Since the beginning of Autumn 2015, the state has taken a significant role in follow-up measures at the former Talvivaara mine.

The Ministerial Committee on Economic Policy outlined in its meeting of 25 May 2016 that the state will make preparations for the managed closure of Terrafame’s mine in Sotkamo. If necessary, the closure will be implemented in phases so that environmental safety will be ensured under all circumstances. Preparations will be carried out during a transition period that will be completed by the end of 2016. At the same time, negotiations will continue with private, non-governmental financing and investment bodies.

Also, the Ministerial Committee supported a proposal according to which additional capital to the value of €144 million would be assigned to Terrafame Group Ltd in this year’s second supplementary budget.

The additional equity provided when the supplementary budget enters into force will ensure the continuation of mining activities and preparations for managed closure throughout the rest of 2016.

Terrafame Group Ltd can utilise the appropriation to be presented for reserving additional capitalisation and participate as a join investor in the continued financing of Terrafame Ltd’s operations provided that the negotiations with private, non-governmental investment bodies make progress during the transition period.

Further information:
Mika Niemelä, Director of Finance, Ministry of Economic Affairs and Employment, tel. +358 (0)29 506 2135