HPP advised Terrafame Group in the sale and purchase of the business and assets of the Sotkamo mine from the bankruptcy estate of Talvivaara Sotkamo Oy. The closing of the transaction took place on August 14, 2015. Terrafame Group Oy is an entity wholly owned by the State of Finland. Terrafame Group consists of Terrafame Group Oy and its operational subsidiary Terrafame Oy. The State of Finland has in its budget reserved 209 million euros for the re-start of the mining operations. Terrafame Oy will re-start the mining operations in Sotkamo immediately. The mine operates by using heap leaching method to produce mainly nickel and zinc.
“HPP’s environmental and mining law expertise combined with a solid track record in transactions and financing projects helped remarkably during the various phases of the project, in the formation of the new mining company as well as in the completion of the transaction” says Matti Hietanen, Government Counsellor, Ministry of Employment and the Economy and the Chairman of the Board of Directors of Terrafame Group.
The HPP team was led by Managing partner Markku Mäkinen and Partner Tarja Pirinen. Due to the scope and duration of the project many HPP Partners, Senior Associates and Associates participated in the project.