Ministerial body for investments into new holding co.

The Ministerial Committee on Economic Policy supports the initiative to concentrate the Finnish State’s mining industry investments into a new holding and development company, said an official press release.

The new company will be based on Terrafame Group Ltd, which will change its name to Finnish Minerals Group.

As a result, the State’s holdings will be managed and developed according to a common long-term strategy, and the relevant expertise will be gathered in one place. Another outcome is that the State will be able to take a more active role in developing a mining and battery cluster in Finland.

“The battery sector can bring great success for Finland. We have several thriving operators in the sector and significant expertise that can form the foundation for a mining and battery cluster,” said Minister of Economic Affairs Mika Lintilä.

The decision to concentrate the State’s holdings is based on the global transition to electricity-powered transport, which will increase the demand for metals across the world. The number of electric cars is expected to shoot up in the next few years. Finland’s goal is to have at least 25,000 electric cars in use by 2030.

“Finland has battery raw materials, and our goal must be to produce highly refined raw materials and components here in Finland. This will create jobs and generate tax and export revenue,” Lintilä said.

Finnish Minerals Group will be responsible for the State’s holdings and development in the mining and battery sector. It will also promote the development of a battery cluster in Finland.

The new company will continue in its predecessor’s role as the parent company for Terrafame Ltd. This will not affect the activities or holdings of Terrafame Ltd.

The mining investment programme, previously managed by Finnish Industry Investment Ltd, will be transferred to the new company. The arrangement will not increase central government expenditure. Since Finnish Industry Investment has performed strongly, it has still some unused appropriations approved earlier in State budgets for the mining investment programme. The intention is that these appropriations, amounting to some EUR 46 million, will be transferred to Finnish Minerals Group.