Press release

New financing package from the owners for Terrafame’s development

Published on28 Aug 2020

The owners of the multi-metal company Terrafame Oy – Finnish Minerals Group, Trafigura Group’s private investment arm Galena Asset Management and Sampo plc – have reached an agreement with Terrafame on funding rearrangements and further financing of the company. The owners are jointly prepared to ensure that Terrafame will be able to continue the development of its operations under the current uncertain market situation and finalise the investment project for its battery chemicals plant as planned.


The new financing arrangement consists of the restructuring of existing loans as well as a new equity financing commitment:


  • Funds under the management of Galena Asset Management (Galena) and Sampo will convert USD 29 million (approx. EUR 25 million) in long-term loans granted to Terrafame, due to mature in 2020, into ownership in the company by exercising stock options previously granted to them.
  • Finnish Minerals Group and Galena commit to grant new equity financing totalling a maximum of EUR 115 million. The equity investment will be implemented by Finnish Minerals Group and Galena pro rata to their current holdings. Accordingly, Finnish Minerals Group has committed to a maximum of around EUR 80,5 million and Galena to a maximum of around EUR 34,5 million in equity financing.
  • These financing arrangements will be implemented at the same per-share subscription price of EUR 160.42 that has been used in all previous arrangements concerning Terrafame. The share subscription price for options related to long-term loans and equity investments will be harmonised to EUR 176.46 per share.
  • In addition, Trafigura and Sampo will defer the repayment of USD 43 million (approx. EUR 37 million) in long-term loans previously granted to Terrafame, due to mature in 2021, to the end of 2022.
  • Lastly, Trafigura will commit to purchase additional volumes of Terrafame’s zinc precipitates.
    With these financing arrangements, the owners will be able to strengthen Terrafame’s balance sheet as the company prepares to begin the production of battery chemicals. The commercial production of the new plant will start in early 2021.


“The construction of the battery chemicals plant in Sotkamo started in the summer of 2018, the construction work is entering its final stages. The first trial use procedures will be initiated in the near future as the installation work in the main process areas progresses. The operating organisation of the production plant has also been nearly established and personnel training has progressed in the spring and in the summer. The new plant moves Terrafame downstream in the metal refinery chain, as the current intermediate metal product, nickel-cobalt sulphide, is refined into chemicals used in manufacturing batteries for electric vehicles,” says Joni Lukkaroinen, CEO of Terrafame.


Further information: 

Lauri Ratia, Chairman of the Board, Terrafame Ltd, tel. +358 50 2922,

Joni Lukkaroinen, CEO, Terrafame Ltd, tel. +358 (0)20 7130 800 (switchboard),


Terrafame Ltd is a Finnish multi-metal company founded in 2015. Its mine and production plants are located in Sotkamo, Finland. The company's bioleaching-based production process is unique and it has a much lower carbon footprint than conventional nickel production technologies. Terrafame is currently constructing one of the world’s largest battery chemicals production lines, which will move the company ahead in the metal refinery chain from a manufacturer of intermediate metal products to a producer of battery-grade chemicals used in electric vehicle batteries. In 2019, Terrafame’s net sales amounted to EUR 310 million, and the company's industrial site employed approximately 1,500 people, of which around half were employees of its partner companies.