Tue, 15 Sep, 2015 01:55:50 AM Rehn terms Yara's decision unfortunate FTimes- STT Report, Sep 15  File Photo Lehtikuva. Norwegian company Yara may decide to continue with the Sokli mining project in future, Thor Giaever the acting head of the company's Investor Relations told news agency STT on Monday.
“The final decision will be made in the distant future,” Giaever said.
Yara announced the suspension of the development of the mine located in Savukoski because its profitability is not above the company's required level.
According to Giaever, the price outlook of phosphate and the mine's construction costs weighed on the decision.
Giaever pointed out that setting up of the mine requires huge capital investment.
The decision was also influenced by transportation costs from the mine's production facilities and further markets.
Giaever stressed there was no isolated reason but the decision is based on overall assessment which was reached on the basis of the project's unprofitability.
The suspension remains provisional since Yara announced it was continuing with the application of mining permits.
According to Giaever's assessment, the company will resolve the mining permit issue by the end of the year.
Minister for Economic Affairs Olli Rehn. File Photo Lehtikuva. The sale of Sokli, according to Giaever, is not on the agenda.
“We have no plans at the moment to sell or completely stop the project,” Giaever said.
Minister of Economic Affairs Olli Rehn termed Yara's decision to suspend the development of Sokli phosphate mine project unfortunate from the point of the country's economy and Lapland's regional economy.
According to Rehn, the decision by Yara proves that licensing procedure of significant industrial investment project in the country should be smoothened.
Rehn said the decision by Yara was affected by profitability factors as well as frustration regarding long licensing procedure.
The minister said he received in advance the information from Yara on the suspension of the mining project.
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