Mining halted in Finnish Posio as company shifts focus to Kuusamo

Posio municipality in northern Finland. File photo. Credit: Municipality of Posio
Posio municipality in northern Finland. File photo. Credit: Municipality of Posio

Mining company Latitude 66 Cobalt Oy has withdrawn three mineral exploration permit applications in Posio, northern Finland, according to the original report. The areas – Muikkuvaara, Muikkuvaara 2 and Suonna – received approval from the Finnish Safety and Chemicals Agency, Tukes, in spring 2024. The decisions were quickly appealed by the citizen groups Kansalaisten kaivosvaltuuskunta and Kitkan Viisaat.

The appeals were reviewed by the Administrative Court of Northern Finland, which upheld Tukes’ decisions. The organisations then sought leave to appeal from the Supreme Administrative Court, which declined to take up the case. The permits would therefore have become legally binding, but before that occurred, Latitude 66 chose to withdraw its applications.

The withdrawal means landowners will not receive the annual exploration compensation of about 32 500 euros that would otherwise have been paid. Notably, the landowners themselves had not appealed the decisions.

Company shifts its focus to Kuusamo

According to Jussi Lähde, who works with responsibility and communications at Latitude 66, the company is now redirecting its priorities.

Preliminary findings from the withdrawn Posio areas will be reported to Tukes and then added to the national geological database maintained by the Geological Survey of Finland, GTK.

Latitude 66 has long pursued plans to develop a gold and cobalt mine at Juomasuo in Kuusamo. The project has faced extensive local debate due to its location near Käylä, close to the Kitkajoki river and near Oulanka National Park – a region valued for its nature, tourism and outdoor activities. Mining proposals in such areas are typically scrutinised carefully, and cobalt extraction in sensitive regions has become increasingly controversial across Europe.

Legal disputes continue around the Juomasuo project

The Juomasuo project has already encountered several legal setbacks. Two years ago, the Administrative Court overturned Latitude 66’s application to extend its mining rights. The company appealed, but the Supreme Administrative Court rejected the request for leave in May 2024.

Despite this, Latitude 66 maintains that work at Juomasuo will continue.

Leaving the three areas in Posio does not represent a retreat from Kuusamo. Instead, resources are now concentrated on one of the company’s most debated projects. Local resistance remains strong, led by environmental groups and tourism stakeholders concerned about impacts on water, ecosystems and the region’s reputation.

Cobalt extraction is also part of a broader international debate. While cobalt is critical for battery production, several European mining proposals have been shelved in recent years due to rising costs, lengthy permitting processes and community opposition. Projects near protected or ecologically valuable areas face particular challenges.

For Juomasuo, the road ahead remains uncertain. Latitude 66 emphasises that exploration in Kuusamo will proceed as planned, while critics argue that the project lacks public support. Given repeated legal disputes and persistent local resistance, further challenges appear likely.

Source: Yle