Finnish battery chemicals plant owners agree financing package

The owners of Finnish mining firm Terrafame have agreed to invest a further 115 million euros ($136 million) in the firm and restructure its loans to help it launch its battery chemicals plant, the majority owner said on Friday.

Aug 28 (Reuters) - The owners of Finnish mining firm Terrafame have agreed to invest a further 115 million euros ($136 million) in the firm and restructure its loans to help it launch its battery chemicals plant, the majority owner said on Friday.

Finland's state mining investment firm Finnish Minerals Group said it would invest up to 80.5 million euros into Terrafame's equity while Trafigura Group's private investment arm Galena Asset Management would invest 34.5 million euros.

Galena and Sampo will convert $29 million of their loans to equity and defer payment of $43 million of loans to end-2022 from 2021, it said.

Terrafame's battery chemicals plant in northern Finland will process nickel-cobalt sulphide, into sulphates used for the manufacture of intermediate products for lithium-ion batteries.

"With the financing arrangement, Terrafame's owners commit to ensure that the company will continue its development work and begin the production of battery chemicals next year as planned," Matti Hietanen, CEO of Finnish Minerals Group, said in a statement.

($1 = 0.8430 euros)

(Reporting by Tarmo Virki in Tallinn; editing by David Evans)

((tarmo.virki@thomsonreuters.com; +372 564 4562 ;))

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