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Regional State Administrative Agency for Northern Finland has approved Sotkamo Silver’s mine waste management and closure plan

3rd July 2024

Regional State Administrative Agency for Northern Finland has approved Sotkamo Silver’s Silver Mine’s mine waste management and closure plan. With this approval, the temporary annual limits on total mining and flotation have been lifted.

According to the decision issued by the Administrative Court of Vaasa in November 2023, Sotkamo Silver has had to adhere to the mining and flotation limits set by the environmental permit decision granted by the Regional State Administrative Agency for Northern Finland in April 2013, which is 500,000 tons per year, as of the beginning of 2024. The requirement was to remain in place until the company would receive a decision on the mine waste management and closure plan, which has been pending since 2022.

With the approval, these temporary restrictions on total mining and production based on the environmental permit of 2013 have now been lifted, and the Company may resume operations in accordance with the permit received in 2020, in which the maximum total limit for mining is set at 1.8 million tons per year.

According to Sotkamo Silver's management, neither the earlier decision by the Administrative Court's or the approval from the Regional State Administrative Agency are expected to have a significant impact on silver production volumes in 2024 or the Company’s long-term plans.

MORE INFORMATION:

Mikko Jalasto,
CEO, Sotkamo Silver
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+358 50 4821689

Tommi Talasterä,
CFO, Sotkamo Silver
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+358 40 712 6970

The decision of the Vaasa Administrative Court is not seen to have a significant impact on the company's production volumes

29.11.2023

The Administrative Court of Vaasa has rejected the appeals of two associations regarding the environmental permits obtained by Sotkamo Silver at the end of 2020 and the beginning of 2022. In the same decision of the administrative court, the company's mining volumes have been limited to the level of the environmental permit previously granted in 2013, until the company has received a decision on the pending mine waste management and closure plan. According to Sotkamo Silver's management, the decision of the administrative court will not significantly affect the current or future year's production volumes or the company's long-term plans.

The Administrative Court of Vaasa has rejected the appeals of two associations regarding the environmental permits issued by the Regional State Administrative Agency for Northern Finland to Sotkamo Silver at the end of 2020 and the beginning of 2022. In addition to rejecting the appeals, the administrative court also left unexamined the claims for various compensations and rejected the appellants' claim for reimbursement of court costs.

In the environmental permit decisions issued in 2020 and 2022, Sotkamo Silver has been granted permission to expand operations from a total mining of 0.5 million tons to 1.8 million tons per year.

In connection with the rejection of the appeals, according to the Vaasa Administrative Court, Sotkamo Silver must comply with the mining volume of the environmental permit decision issued by the Regional State Administrative Agency for Northern Finland in April 2013, i.e. 500,000 tons per year, until the company has received a decision on the pending mine waste management and closure plan. Until the end of 2023, the amount of mining and flotation may not exceed 42,000 tons per month on average.

Sotkamo Silver's total mining volume can be expanded to 1.8 million tons, when the company has received a decision from the Regional State Administrative Agency for Northern Finland on the pending mine waste management and closure plan. Sotkamo Silver has submitted the plans in question to the Regional State Administration Office at the beginning of 2022 and expects to receive decisions on them in early 2024.

According to Sotkamo Silver's management, the administrative court's decision will not have significant effects on silver production volumes this year or in 2024. Sotkamo Silver's medium-term goal is to produce more than 1.5 million ounces of silver per year.