The permitting process, ongoing since 2018, has been long and protracted. Although the ruling from the Land and Environmental Court of Appeal confirms that the operations meet stringent environmental requirements, new deposits cannot be brought into production until the ruling gains legal force. The Supreme Court is now considering whether to grant leave to appeal, which will determine the next step: whether the permit becomes legally binding or the process continues with further review.

“Every step in the permitting process is important, but the uncertainty and extended timeline affect our ability to plan for the future. A positive decision from the Supreme Court is crucial for our long-term perspective. The ability to make new investments is also influenced by the current market situation, which is challenging at the moment. In the meantime, we focus on what we can influence to strengthen our competitiveness and create as much value as possible from the remaining life of Tapuli,” says Hans Djurberg, Head of Sustainability at Kaunis Iron.

Over the past year, Kaunis Iron has adjusted operations to manage the uncertainty in the permitting process and the challenging market conditions. Production at Tapuli continues as planned until the end of 2027, but the opening of new deposits has been delayed, creating a risk of operational downtime. The company is therefore continuously working on cost adjustments and production optimization to maximize the value of existing operations.

At the same time, work continues on a long-term strategy, which would be enabled if the environmental permit gains legal force. In the shorter term, various solutions are being analyzed to maximize output from already known deposits, while in the longer term, new deposits, logistics, and opportunities to shift operations along the value chain are being evaluated.

Kaunis Iron is closely monitoring developments at the Supreme Court and will keep all stakeholders informed on an ongoing basis.