Safety, efficiency and commitment guide our actions

The cornerstones of Terrafames operations – safety, efficiency and commitment – also guide the company's activities in the field of sustainability. We are committed to continuous improvement in both internal and external processes. 

Nearly 1,200 regular employees worked at our mine in Sotkamo in 2016. Slightly more than half of these were Terrafame's own employees, and the remainder were those of our business partners. In addition to the safety of Terrafame employees, we also want to ensure that the employees of our business partners perform their work safely. 

At Terrafame, safety begins with planning and foresight. We address all shortcomings and investigate the underlying causes of risks and accidents. We also require all personnel working in the area to observe the same principles and guidelines.

The environment and local people in focus

Industrial activities always have an impact on the environment. This applies to Terrafame, too. We are constantly striving to decrease the environmental impact of our daily work. We are developing our production methods, which will bring economic benefits, reduce emissions and decrease energy consumption. Our goal is to outperform the regulatory minimum requirements. 

Terrafame wants to meet the expectations of stakeholders through open and honest communications based on correct information. We pay particular attention to timely environmental communications. For example, both the real-time results of water body analyses and reports based on monitoring results are available on our website. 

The ramp-up of operations has increased Terrafame's significance. We provide prosperity to our employees and partners in Kainuu and everywhere else in Finland. 

Management system developed systematically

Terrafame's management system is based on international standards and is driven by the sustainable development policy approved by the Board of Directors. We have set clear targets for EHSQ, i.e., environmental, health, safety and quality issues. EHSQ issues are monitored in operational activities and by the Management Team and Board of Directors. 

In 2016, the entire organisation contributed to the development of our management system, and in February 2017, we received environmental (ISO 14001), safety (OHSAS 18001) and quality management (ISO 9001) certificates. Cooperation with external service providers has also been incorporated into our quality assurance work.

Sustainability analysis emphasises water management and profitability

Terrafame's materiality analysis is a compilation of the views of the company's management and stakeholders on the aspects of corporate responsibility that are particularly essential to the company's operations. In early 2016, we updated the materiality analysis for both management and stakeholders. The analysis is based on surveys, the views of key employees and feedback obtained through different interactions. The results of the analysis were ratified by the Management Team. 

According to the results of the materiality analysis, Terrafame's main themes of responsibility are related to water management and economic viability. Other key areas identified included employment as well as competent and committed personnel, management included. Apart from these, emission control, safety, communication and customer satisfaction were identified as key issues. 

The identified themes will be emphasised in our communications and corporate responsibility report. Environmental subjects are also covered in the annual environmental monitoring reports published on our website.


  1. Water management
  2. Economics
  3. Competent and committed management and staff
  4. Employment
  5. Interaction and communications
  6. Emission control
  7. Occupational health and safety 
  8. Customer satisfaction
  9. Impacts on biodiversity
  10. Risk management
  11. Emergency preparedness
  12. Employee satisfaction
  13. Legal requirements, permits and good governance
  14. Research and development
  15. Raw material efficiency
  16. Energy efficiency
  17. Environmental investments and expenditure
  18. Life cycle of mines
  19. Product safety

Five main sections of the corporate responsibility report

Our corporate responsibility report is divided into five main sections: stakeholders, finance, safety, the environment and personnel. The report is intended for Terrafame's business partners, local residents and communities, and others interested in the company's operations. Naturally, the report also includes useful information for our personnel. 

We report annually on the progress and results of our responsibility efforts. This report covers the year 2016. With regard to Terrafame's business operations and safety figures, the report also includes the details of our partner companies that operate in the area. Any exceptions to this are indicated in connection with the figures in question. Most of the financial responsibility figures can be found in our Financial Statements. 

We apply the G4 reporting guidelines of the Global Reporting Initiative (GRI) Foundation and the guidelines for the extractive industry's Mining and Metals sector to our social responsibility reporting. This report has not been verified by an external party.

 

KEY SUSTAINABILITY FIGURES
      15 Aug - 31 Dec 2015    2016 
Financial          
Nickel production   t 578   9,554
Zinc production   t 1,812   22,575
Net sales   € '000 2,524   101,042
Operating profit (loss)   € '000 -93,090   -136,722
Return on investment   % -77.9%   -79.2
Income tax expense   € '000 0   0
Environmental investments   M€ 3.8   37.2
Environmental operating costs   M€ 17.3   38.8
Provisions for environmental restoration   M€ 162.1   162.1
Collaterals for environmental restoration **   M€ 34.4   41.3
Sponsoring   0   36,000
Employee wages and salaries   € '000 9.9   28,387
Environment          
Ore   Mt 4.1   14.2
Waste rock   Mt 4.4   18.4
Chemicals   t '000 147.1   475.0
Limestone CaCO3 t '000 42.5   112.1
Sulphuric acid H2SO4 (93%) t '000 53.0   150.2
Caustic soda NaOH (50%) t '000 12.3   47.9
Burnt lime CaO t '000 30.1   110.8
Sulphur t '000 2.0   22.2
Chalk t '000 1.7   6.3
Explosives t '000 2.6   11.0
Hydrogen peroxide (50%) t '000 0.8   3.7
Other t '000 2.2   10.8
Total energy use   TJ 531.4   1,757.8
Electricity   TJ 360.6   1,133.9
Light fuel oil   TJ 124.5   494.7
Heavy fuel oil   TJ 46.3   129.2
Total water use   Mm3 3.2 * 3.4
Lake Kolmisoppi   Mm3 0.6 * 0.9
Household water   Mm3 0.02 * 0.02
Recycled water   Mm3 2.4 * 2.6
Total recycled water   % 74.7 % * 71.0 %
Volume of water directed to surface waters   Mm3 8.4 * 9.6
Nickel loading   kg/a 223.3 * 295.7
Zinc loading   kg/a 368.4 * 396.4
Copper loading   kg/a 18.1 * 16.1
Mangese loading   t/a 7.0 * 4.1
Sulphate loading   t/a 14,812 * 17,547
Sodium loading   t/a 3,049 * 3,703
Non-hazardous waste   t 904 * 2,778
Hazardous waste   t 164 * 275
Waste utilised as materials or energy   % 70.0% * 77.0%
Process waste   t'000 4,670   18,952
Gypsum   t'000 272.0   522.6
Precipitate from preneutralization   t'000 4.3   37.3
Waste rock   t'000 4,393   18,392
Utilisation of process waste   % 94%   97%
COemissions   tCO2e 90,774   283,167
Direct CO2 emissions (Scope 1) tCO2e 39,888   110,651
Indirect CO2 emissions from purchased electricity generation (Scope2) tCO2e 27,244   85,593
Other indirect CO2 emissions (Scope 3) tCO2e 23,642   86,923
Sources of greenhouse gas emissions          
Limestone   % 25 %   21 %
Electricity   % 30 %   30 %
Light Fuel Oil   % 11 %   14 %
Propane   % 3 %   0
Burnt lime   % 26 %   31 %
Heavy Fuel oil   % 4 %   3 %
Chalk   % 1 %   1 %
New land used during the year ha 0   153
Cumulative land used % 100   100
Neighbours' environmental observations no. 17   9
PERSONNEL          
Number of personnel at end of period no. 529   584
Average age of personnel year 40.2   40.3
Percentage of permanent employees % 97.54 %   97.5 %
Percentage of female employees % 7.7 %   9.6 %
Percentage of employees from Kainuu % 85.5 %   84.0 %
Blue-collar employees' training days days/person 1   2
Employee turnover person 21   48
Ratio of basic salary women to men   1:1   1:1
OCCUPATIONAL HEALTH AND SAFETY        
Number of accidents (LTI) no. 19 * 9
Number of accidents (LTI)   no./million hours worked 23.3 * 8.4
Number of accidents (TRI) no. 63 * 52
Accident frequency (TRIF)   no./million hours worked 77.2 * 47.6
Seriousness of accidents   days/LTI accidents 1.7   6.7
Occupational diseases   person 0 * 0
Accidental deaths at work   person 0 * 0
Sickness Absences   days/person 4.2   14.0
Sickness Absences   % 5.0   5.3
NA = not available     
CO2 = carbon dioxide     
LTI = accidents leading to more than one day’s absence, does not include accidents during commuting (Lost Time Injury)
LTIFR1 = accidents leading to more than one day’s absence per million hours worked, does not include accidents during commuting (Lost Time Injury Frequency)
TRI = number of accidents (Total Recordable Injury)
TRIF = number of accidents per million hours worked (Total Recordable Injury Frequency)
* Number include full-year 2015 volumes
** Excluding collaterals  for starting operations despite appeal