This is a new project, as many people in central Ostrobothnia still remember the ilmenite project planned for the area in the early 2000s. At that time, more than 20 000 tonnes of ore was extracted on an experimental basis, and the resulting concentrate went on to commercial production. A total of 25 kilometres of drilling was carried out. However, the market price for ilmenite was not sufficient and the operator at the time eventually decided not to start the mining circuit process for the ilmenite deposit. Now the situation is different. The European Union, NATO, the United States and many other countries classify titanium as a critical and strategic metal. Titanium is a crucial metal in many industries, from aerospace and defence to construction and healthcare. This is also reflected in price trends and demand is expected to continue to grow strongly in the near future. Moreover, there is only one mine producing titanium mineral in Europe, and that is located outside the EU in Norway. The Titanor project is therefore to a large extent also about European self-sufficiency and security of supply. The company's prospects are also promising in that it is well advanced for a mining project.

- This is a development project, so we are no longer in the exploration phase, because at the time the project was advanced and there was a lot of investment. The ore has been well discovered and located. It is also known that the deposit is continuing and more of the titanium compound could be found. At the moment we are carrying out, among other things, nature surveys and technical studies. We are also assessing the market for which and for whom our product would be most suitable. We already know that this is a global market product for which there will always be a buyer," says Sopanen.

250 000 tonnes of ilmenite concentrate per year

The Titanor deposit has therefore been extensively explored and designed. At this stage, we are talking about a mining operation that would last for more than 20 years. The company has five identified deposits in the area, all of which have the potential to extend or expand operations. The mine produces a titanium compound, ilmenite, which is the raw material for titanium oxide. Titanium oxide has traditionally been a raw material for white paint. Thanks to its excellent UV protection, it is now widely used as a protective coating in many coatings, including cosmetics, especially sunscreens. Current plans envisage the extraction of around 1.5 million tonnes of ore per year from open-cast mines. It would produce 250 000 tonnes of ilmenite concentrate, which is about 10% of the EU's annual demand. In addition, about 50 000 tonnes of iron ore will be extracted annually. From a logistical point of view, the location of the ore reserves is advantageous, as the ilmenite concentrate would be transported to the world for processing via the port of Kokkola.

Markus Ekberg (left), Chairman of Titanor's Board of Directors, and Board members Harri Takanen and Mikko Sopanen assess the results of the pilot drilling. Mr Sopanen is also Titanor's CEO. Photo by Titanor

- Sibanye-Stillwater's Keliber lithium project is an excellent example of how such a mining project can also have a significant regional economic impact. In the construction phase it would mean hundreds of man-years of work, and we estimate that in the production phase the direct employment impact would be around 140 jobs in total," says Mikko Sopanen.

The Titanor project will be smoothed by the fact that the company will be capitalised in 2025 by Jussi Capital, a family-owned company founded by Jorma J. Takanen in Sievila. Titanium oxide production facilities are located across Europe, including in Norway, Poland, Germany, the Netherlands and Italy. Mikko Sopanen hopes that at some stage hydrogen reduction will be used to reduce ilmenite enrichment.

- As hydrogen reduction in metal processing develops, Titanor wants to be involved in developing and supporting the emergence of European titanium metal processing. Perhaps such a facility could one day be located in Finland. Currently, most of the manufacturing takes place in Russia and China. There is no titanium metal manufacturing in Europe," he says.

"A titanium mine would reduce dependence on China"

Jonne Sandberg, Development Director of the City of Kokkola, considers the Titanor project important for Finland's and Europe's security of supply and self-sufficiency.

- Titanium is a critical and strategic metal that, like many other metals, is imported from China. On top of that, we currently have only one titanium mine in the whole of Europe, so reducing our dependence on China is a very good thing. If you think about the regional economic impact of the Titanor project and the potential processing of ilmenite concentrate, this is a huge opportunity in that sense too," says Sandberg.

EK recently said that Kokkola is one of Finland's most interesting investment destinations. Whether it's the Titanor project or other large-scale investments, the city has to do its part so that when the investment decision is made at some point, the framework for practical implementation is ready.

- This means, for example, that we are constantly pushing ahead with the planning process. For example, we are building roads, developing railways and expanding the port. But you can't do things too far ahead, because investment usually means going into debt. In the worst-case scenario, we suddenly have an increased amount of debt, but no investments to pay off the debt," Sandberg continues.

"Although the company is new, the project is well advanced"

Business developer Jarmo Finnilä from the Kaustinen sub-region has been following the new arrival of the Central Ostrobothnian titanium project with interest.

- The Titanor project is particularly interesting because it no longer needs a huge ore exploration phase, as it has already been done before. Although the company is new, the project is already quite advanced and entirely indigenous. Moreover, Titanor is backed by experienced mining professionals and the financiers have mining experience," says Finnilä, listing the project's strengths.

He says that it is becoming clearer every day to Finns that self-sufficiency and security of supply need to be strengthened. To do this, we need mining projects in Finland.

- We receive a large proportion of our raw materials by sea. What if one day they don't? Finnilä stresses that mining projects are also important for the regional economy.

- Not only do they directly employ a significant number of people, but the operators involved in the projects also buy a lot of services from the surrounding areas, especially once they are up and running. Of course, even during the construction phase, the economic impact is large, as the Sibanye-Stillwater Keliber lithium project has shown.

Mikko Sopanen, CEO of Titanor, hopes that at some stage hydrogen reduction will be used to reduce ilmenite concentrates.