Ceo Comments

2019-03-21

CEO Comments

The mining industry is becoming more knowledge-intensive, and this trend continues at a growing pace. At the same time, the mining industry faces new challenges because of social acceptance needs. In sustainable production, raw materials and energy are used as efficiently as possible during the production process, and emissions from production and product use are minimised. In the medium term, the consumption of renewable natural resources needs to be reduced to avoid the global reduction of biodiversity and destruction of soil, watercourses and groundwater. At the same time, emissions from the use of every natural resource must be limited and reduced so that critical loads are not exceeded. In this, the Nordic mining industry and its products have a crucial task as a raw material source that is environmentally friendly from a global perspective. The sustainable mining industry is one of the essential industrial clusters in the Nordic and Finnish industrial sectors with its support industries.

The bedrock of Finland, Sweden and Norway represent a significant economic potential and a good foundation for the mining industry's development. There are promising deposits in the area, so one can rightly expect that the mining industry and technology, as well as the development companies, will develop further, and new mines will be opened.

Sotkamo Silver's main project the Silver Mine is also part of Finland's most significant battery metal and sustainable mining cluster in the Kajaani area. The company thus contributes to maintaining the prosperity of the region and the Nordic economy as part of the industrial clusters.

Sotkamo Silver's existing operations and the now-started mining operations are based on the current environmental permit that applies until further notice. The refractive volume, clearing ponds and enrichment sand magazine have been designed in accordance with the drawings and regulations of the environmental state. Considering concerns about water quality, we have decided to invest in water treatment by introducing mechanical water treatment at this stage of the project. The Silver Mine's operations and production are mostly from underground mining which leaves the smallest possible footprint in nature.

The company is committed to minimising our carbon dioxide emissions using new modern technology. We improve our energy efficiency by introducing the ore's pre-eminence. We are investigating the possibilities of utilising solar energy and wind power. As far as possible, we strive to use mining side streams and geopolymers to make new products in the future.

At the same time, we focus on managing our organisational change and improving the efficiency and productivity of financial resources. With these measures, we can better control the cyclical cycles and improve productivity over and between periods

In addition to having an excellent geological and technical knowledge within the company, our goal is to grow also through company acquisitions, by utilising the strategic and business expertise and financing expertise of our board and employees. This competence can be employed to create new genuine cooperation with international dimensions. Sotkamo Silver will assess various opportunities to expand its business, the area near the Silver Mine and through possible business arrangements. A consolidation of the Nordic "junior" mining industry is one of the long-term strategies for us.

The mining cluster requires high scientific knowledge, openness to the public, capital and willingness to take risks to develop the significant economic and knowledge potential that the Nordic countries have in the mining cluster. We are very grateful that our shareholders and financiers have shown the necessary support for Sotkamo Silver being able to participate in developing this vital industry for the Nordic region and Europe. We look forward to fulfilling the expectations that you and the public have put on us.

CEO Timo Lindborg

2019-03-21