Tapojarvi 2021_ENG

NEW SOLUTIONS FOR SUSTAINABLE LIVING 2021 TAPOJÄRVI GROUP

Tullipuistonkatu 2 95400 Tornio

www.tapojarvi.com info@tapojarvi.com

2021 FOR TAPOJÄRVI

CONTENTS Tapojärvi Group Responsibility as an integral part of Tapojärvi Tapojärvi’s growth story Tapojärvi’s history Group structure

Economy and administration 2 3 5 6

Service production Service provider’s responsibilities Pioneering the alliance model for the mining sector A leading industrial circular economy company in 2035 Innovations to business Priority projects Tapojärvi Innovation Challenge

7 8 9 11 12 13

Safety is our most important value Sufficient and highly skilled personnel Measures to enhance wellbeing at work Planned training and induction Digital leap to hybrid model Tapojärvi is of interest to job seekers

22 24 25 26 27 28

Environmental responsibility 15 16 16

Industrial scale climate action Environmental awareness alone is not enough Waste slag is transformed into CE-marked products Circular economy as part of mining activity The carbon footprint calculation supports the setting of goals Our goals for 2022 Environmental actions

Tapojärvi Group comprises seven companies, including Tapojärvi Oy, Tapojärvi Italia S.r.l., Tapojärvi Sverige Ab, and Hannukainen Mining Oy. This report presents key information about the group companies.

1

18 18 19 20 20

A healthy working community

Community spirit Social responsibility plays a key role Supporting local growth The wellbeing of workplace sites is important

Distribution of economic benefits Tax footprint Economy in figures A high-quality and trustworthy partnership is measurable Confidentiality and data security

29 30 31 32 32 33 34

2021 FOR TAPOJÄRVI

RESPONSIBILITY AS PART OF TAPOJÄRVI The job we do has significance Any company can easily be one-sided in people’s opinions, based on their own consumption needs or experiences. For some, Tapojärvi is a mining contractor, for others a slag concentrator.

When you look at the entirety and read these pages, you will notice how much we already do in terms of different production, thanks to our tremendous research and especially what we are for each other – for all Tapojärvi employees.

A good working community is not built by the employer, but by the employees. I can never emphasise enough how important the work of each employee of Tapojärvi is and what a good working community means to us. It is great that we are a company where employees enjoy working and coming to work.

Our values are driven by people. Without people, our work would not be safe, competent, profitable, or efficient, in accordance with our values. Processes, procedures and technology support our values, but the hub of every idea and decision is human interaction.

Responsibility and sustainability have hopefully remained in everyone’s thoughts to guide our actions in a better direction. These issues have been sustained with the activities of Tapojärvi for a long time, but now we are competent at clarifying these as well.

My great dream is to bring the circular economy and mining together, and I think that we are closer than ever before in respect to these themes.

Hannukainen Mining Project. Domestic iron, domestic gold and copper. The global situation has shown that if there is possibility to be self-sufficient to guarantee security of supply, we have a great responsibility to self-sufficient in Finland, and also in Kolari.

The sky is the limit to what Tapojärvi can achieve in the future.

– MARI PILVENTÖ, CEO

“When you look at the entirety and read these pages, you will notice how much we already do in terms of different production, thanks to our tremendous research and especially what we are for each other – for all Tapojärvi employees.”

- MARI PILVENTÖ, ACTING CEO 2

2021 FOR TAPOJÄRVI

Tapojärvi Group Established in 1955 711 employees (12/2021) 13 offices in 3 countries 450 vehicles LTIF 1.79/million hours 19,000 tunnelling metres/a 47.9 Mt of processed material per annum M€5/a for research and development

415 M€

TURNOVER FORECAST

Tapojärvi has been working for decades in a way that is today called the circular economy.

Today, Tapojärvi is a global leader in the industrial circular economy.

2024

249 M€

321 M€ 2022

193 M€

152 M€

103.5 M€ 2020

2026

2028

2030

103,5 M€

107,6 M€

84,1 M€

TURNOVER

2020

2021

100 M€ 50 M€ 0 M€

2019

BREAKDOWN OF TURNOVER BY SECTOR Industrial circular economy 26%

107.6 MEUR

Mining services 74%

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TAPOJÄRVI’S GROWTH STORY

The core expertise of Tapojärvi is mining and plant services, and circular economy solutions.

At present, Tapojärvi operates in six mines and three steel plants in Finland, Sweden, and Italy, responding to the service and development requirements of its customers.

Services at plants and mines reduce climate load and save virgin natural materials.

Tapojärvi provides mining services in Finland at Outokumpu’s Kemi Mine, at the Kevitsa Mine in Sodankylä, at the Sotkamo Silver Mine in Kainuu, at the Agnico Eagle Kittilä Mine, and at the Yara Siilinjärvi Mine.

In spring 2020, a multi-annual service contract was also launched LKAB’s Malmberget Mine in Sweden.

Tapojärvi operates at the steel plant in Raahe, Tornio, and at the Acciai Speciali Terni plant in Italy.

The company has ferrochrome and high-grade steel concentration plants in Tornio and a slag treatment plant in Italy.

Tapojärvi has dozens of ongoing cooperation projects that create new technologies and business activities for the needs of different industrial sectors. Our mining services are always delivered with responsibility, putting safety first.

Service production requires modern, productive, and cost-effective technology. Tapojärvi’s fleet is large and continuously renewable.

“With proactive maintenance, the company ensures the reliable performance of the equipment”, says Juhani Ruokamo, Technical Director.

The company’s financial and material resources are strong, and the goal is to achieve long-term, profitable business. In 2021, the Group’s turnover was MEUR 107.6 and the number of employees was 711 professionals in the sector.

Employees consider Tapojärvi as a good employer.

According to the employee satisfaction survey, the most important things for employees is to achieve a balance between work and leisure time, having professional colleagues and a good team spirit in the workplace.

The hybrid working model, which allows staff to work remotely, was also commended.

According to the customer satisfaction survey, customers value the expertise of Tapojärvi, the ability to react quickly and solve problems. Investing in safety, desire to develop and innovation in considering cost-effective solutions were also considered as important.

Tapojärvi is a family-owned business already operating in its third generation. The company is based on a value system that Esko and Orvokki Tapojärvi have instilled in their descendants. These values are the foundation on which Tapojärvi operates.

“The strategy drawn up earlier was implemented a few years ago. We have expanded our services to Sweden and taken our operations to open pits. In slag processing we have expanded beyond Finland to Europe.”

- MARTTI KAIKKONEN, COO

2021 FOR TAPOJÄRVI

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OUR GOOD REPUTATION IS BASED ON HOW WE WORK: • OUR OPERATION IS WELL-PLANNED, ANTICIPATED AND SAFELY EXECUTED. • ALL OPERATIONS ARE PERFORMED WITHOUT ERRORS AND ON TIME. • WE KEEP OUR PROMISES. • A NEW KIND OF INNOVATIVENESS IS PART OF OUR EFFICIENCY. • OUR COST EFFICIENCY DEVELOPS FASTER THAN OUR COMPETITORS THROUGH OPERATIVE EXCELLENCE AND INTRODUCTION OF NEW TECHNOLOGY.

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2021 FOR TAPOJÄRVI

TAPOJÄRVI’S HISTORY

TAX FOOTPRINT

21.9 MEUR

1955

INCREASE IN NUMBER OF EMPLOYEES

The company relocates to Helsinki and commences gravel haulage.

511

649

711

10%

Esko Tapojärvi purchases a vehicle and starts a business providing transport services.

1966 1972

2019

2020

2021

The company’s name changes to Maansiirtoliike Tapojärvi Ky, Esko’s eldest son, Markku, joins the company.

Operations expand to Sea Lapland.

1980

ALLOCATION OF STAFF BY OPERATING NATION 12%

1995

8%

The company's business is becoming more versatile.

The company’s name changes to Tapojärvi Oy.

2000

80% Finland

Suomi

Ruotsi

Sweden

Italia

Italy

EMPLOYEE NET PROMOTER SCORE (ENPS)

30

2004

56

EUR 96,564

5

The company purchases the ferrochrome concentration plant from Röyttä, Tornio, and starts improving the recovery of ferrochrome together with Outokumpu.

2010

Hannukainen Mining Oy established The company buys mining rights for Kolari.

2015 2018

COMMUNITY SUPPORT AND SPONSORSHIP

The company will carry out a generational transfer and the company will be integrated with Esko’s sons, Markku and Pertti. The form of the company changes to a limited company and machinery contracting services expand nationally.

Slag processing is further expanded.

The high-grade steel processing station is built in Röyttä, Tornio.

2014 NET PROMOTER SCORE (NPS)

Tapojärvi returns to Lapland and work at the Rautuvaara Mine begins.

The company’s third concentration plant is completed in Italy. Tapojärvi starts production of mining services at Yara’s Siilinjärvi Mine. This marks the first alliance model service agreement in Finland. Circular economy services expand into the paper industry.

2021

Tapojärvi globalises.

2015 Tapojärvi Sverige Ab is established, mining operations in Sweden begin in 2017.

The new head office for the Tapojärvi is completed in Tornio.

Tapojärvi Italia S.r.l is established.

Circular economy services expand abroad.

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SUBSIDIARIES Business Control

Tapojärvi Sverige Ab Tapojärvi Italia S.r.l

Sales & Development

Open pits

Mining services

Hannukainen Mining Oy

Underground mines

Service Production

SISTER COMPANIES Tapojärven Kiinteistöt Oy Recurso Oy

Technology

Industrial circular economy

Industrial Services Processing of materials

Business Support Functions

Organisational structure and ownership In 2021, 74 per cent of the turnover of Tapojärvi come from mining services and 26 per cent from the industrial circular economy. Tapojärvi invests EUR 5 million annually in development tasks. This represents 4.6 per cent of the company’s turnover.

99 per cent of the shares and 100 per cent of the voting rights are owned by the founding family of Tapojärvi. Other shares are bound with employment relationships.

The Tapojärvi Group comprises seven companies, including Tapojärvi Oy, Tapojärvi Italia S.r.l., Tapojärvi Sverige Ab, and Hannukainen Mining Oy. Tapojärvi Kiinteistöt Oy is a sister company of Tapojärvi, which builds and manages properties. Built by the company, a terraced building was completed in September 2021 in Petkula, Sodankylä. The seven 80-square metre apartments of the building were built as accommodation for of the employees of

Tapojärvi Oy working at the Kevitsa mine located close to the village.

Recurso Oy is a fleet management company that works in close cooperation with Tapojärvi Oy. It purchases, sells and rents out the machinery mainly for the use of Tapojärvi Oy and its subsidiaries.

“One employee commented that there was no company anywhere else that would build for its employees a new, own terraced building house, including sauna and on-site gym.”

– EVELIINA ROUSU, PROJECT ENGINEER 6

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THE SERVICE PROVIDER IS RESPONSIBLE FOR SAFETY, QUALITY AND THE ENVIRONMENT SERVICE PRODUCTION: MINING SERVICES Tapojärvi’s business is an industrial-scale circular economy that processes industrial by-products in a continuous process, and creating new solutions for the requirements of the mining sector.

Different industrial sectors and the mining industry play a vital role in the production of technologies that slow down climate change.

Industrial raw materials are needed for electric cars, new climate and energy solutions, and for facilitating digital transformation.

Some of the raw materials are recovered by recycling, but this alone is not sufficient to cover the increasing demand for metals, for example, increased by people’s consumption patterns that enhances wellbeing.

As metals need to be excavated, service production must be carried out in a sustainable manner.

MINING SERVICES Tapojärvi is one of the largest mining service

providers in Finland in its own sector. Tapojärvi has been operating in Sweden since 2017.

Mining services include a wide range of expertise in underground and open pit mines. The company has a number of ongoing long service contracts with the aim to continuously improve its operations.

Safety, quality, profitability, and employee satisfaction are key indicators of success.

The company’s growth in the sector is strong, as in addition to the traditional service offering, Tapojärvi focuses on developing mining technology and the circular economy together with customers and partners.

Tapojärvi is committed to promoting sustainable mining and to continuously improving safety culture.

The services provided by the company enable customers to ensure responsible and safe mining operations.

The cost-effectiveness of Tapojärvi is developing through operational excellence and the commis-

sioning of new technologies. This is done by taking responsibility for the work site and continuously improving production performance.

“It’s great to work in a winning team”, says Martti Kaikkonen, Operational Director for Tapojärvi.

The company also stands out from its competitors by being innovative, as it is constantly developing new solutions to minimise the impacts of mining operations.

Development projects focusing on mining technology during 2021: •Covering structures for the waste rock areas of mines •Treatment and stabilisation of mine water •Dust prevention solutions •Mine backfilling •Urban Mining •Safety solutions for mines

“A strong, multi-skilled expert that stands out in the market. Tapojärvi is a good service provider for us. One of their strengths is also a bold approach to different issues. Tapojärvi strives to bring competitive and cost-effective solutions to our attention.”

– CUSTOMER SATISFACTION SURVEY 2021: OUTOKUMPU 7

2021 FOR TAPOJÄRVI

Pioneering the alliance model for the mining sector In the mining industry in Finland, conventional contract-type contracts have been used, where the company orders work performances from the contractor and the contractor charges according to the amount of work done. Both companies optimise their own profits.

Tapojärvi has long contemplated the possibilities for implementing the alliance model for the mining sector, as it had been proven to be functional, for example, in infrastructure construction.

The Noste Project commenced at Yara Siilinjärvi in 2016, when the company initiated competitive bidding for three mining service operational models.

Tapojärvi started to boldly offer implementation of the alliance model and in January 2020, Yara Suomi Oy and Tapojärvi made history by entering into a new partnership agreement in which Yara’s Siilinjärvi Mine and Tapojärvi, responsible for mining services, develop, plan and manage their daily operations in close cooperation.

Yara and Tapojärvi established teams of experts from both operators to design activities, production, equipment, and systems to make data jointly available.

In addition, a completely new organisational model was created and, ultimately, a common organisation was created, because working methods and tasks Change takes time, but the were changed.

For the alliance producresults of the alliance model tion, Tapojärvi ordered can already be measured. a completely new fleet for operating the mining operations in Siilinjärvi. In addition, Tapojärvi invested in remote drilling equipment equipped with new technology.

The acquisition of rock drilling equipment using new technology is a concrete demonstration of the integration of automation and remote control into mining technology.

Mining production produced by the alliance model commenced in the beginning of 2022. The COVID-19 pandemic created big challenges for commencement, but the ore has been hauled well from the outset, and there have been no serious accidents.

The alliance work aims, one step at a time, to ensure activity is planned, managed, and of high quality.

A number of forward developments in mining service provision were based on cooperation through the Yara and Tapojärvi alliance.

“Tapojärvi has the competence to perform the job, while continuing to innovate.

Tapojärvi brings fresh impetus and open-minded solutions to the earth-moving and mining industries.

Tapojärvi delivers extra value for itself and for its customers.”

– CUSTOMER SATISFACTION SURVEY 2021: YARA, SIILINJÄRVI 8

2021 FOR TAPOJÄRVI

we provide circular economy, mining and industrial services for the environment and society WE CREAT A NEW TECHNOLOGY AND BUSINESS FOR INDUSTRY

WE CREATE NEW LIVELIHOODS AND WE CREATE MORE JOBS

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EFFICIENCY REDUCE INDUSTRIAL SIDE STREAMS AND SAVE NATURAL RESOURCES

COMPETENCE We do what we promise to do

“By utilising industrial effluents, we can demonstrate concrete economic, environmental, climatic, and social benefits.”

– HENRI PILVENTÖ, CCO 9

SAFETY

WE ARE OUR CUSTOMER´S FIRST CHOICE AS A SERVICE PROVIDER

2021 FOR TAPOJÄRVI

TAPOJÄRVI’S GOAL IS TO BE THE WORLD’S LEADING INDUSTRIAL CIRCULAR ECONOMY COMPANY IN 2035 SERVICE PRODUCTION: INDUSTRIAL CIRCULAR ECONOMY Tapojärvi handles 47.9 million tons of material annually in mines and plants.

Some of the materials are industrial by-products, which are processed into recycled products by Tapojärvi and provide a new lifecycle for materials and natural resources that have already been used.

The material quantity of the industrial circular economy handled by Tapojärvi corresponds to almost half of the total amount of municipal waste in Finland.

The implementation of the new generation process in Terni, Italy, aimed at processing and recycled slag products, is one example of a forward-looking investment project in the industrial circular economy sector, the profits of which will be measured by longterm contracts in the coming years.

The company sees numerous opportunities for duplicating the process or parts of it, while expanding the industrial circular economy business, in addition to Acciai Speciali Terni, also in other customer sites in Italy and elsewhere in Europe.

The company’s development plan for the next few years will prioritise the commercialisation and sales of slag products, which holds many new business opportunities.

Development of safety and safe operating models, reduction of the industrial carbon footprint, and the unique, international research centre, Eco Innovation Research Centre, are examples of Tapojärvi’s development projects for the industrial circular economy.

By commercialising by-products and utilising recycled materials, products and applications made from virgin materials are replaced, and the quantity of materials to be disposed of is reduced.

We recycle metals for the needs of modern society The industrial circular economy business also increases business opportunities for Tapojärvi as a provider of mining and plant services.

The EU has verified 30 raw materials used by industry as being critical. If these continue to be used at the same level or further increase, these raw materials will be entirely depleted. Access to critical

raw materials must be improved to ensure Europe’s security of supply.

For example, by separating and restoring metals for processing, natural resources can be spared, as there is no waste to be disposed of, and the need to produce rock material from virgin raw materials is significantly reduced.

Tapojärvi, in cooperation with Alva and Elker, has created an innovation that enables the efficient reuse of each valuable material that is already in use. The urban mining export product, developed for the international markets, enables mining without extraction.

In the ground-breaking WEEE recovery plant, harmful chemicals are removed and critical materials are collected efficiently, and in a clean manner. For example, gold and copper are directly suitable for use as industrial raw materials.

Previous recycling technologies for waste electrical and electronic equipment (WEEE) have been based on, among other things, smelting, where rare earth metals have been lost among other metals and slag.

The benefits of the circular economy services produced by Tapojärvi are directly reflected in environmental impacts, wellbeing at work, safety, and the economy.

“The Urban Mining export product is based on hydrometallurgical method that has been tested in a demo plant. Next in line are industrialscale tests, followed by the commercialisation of the solution.”

– JUHA KOSKINEN, DEVELOPMENT MANAGER 10

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FROM INNOVATION TO BUSINESS SERVICE PRODUCTION: SALES AND DEVELOPMENT Tapojärvi has a sales and development unit, which creates new solutions for the sustainable business of industrial sectors. Tapojärvi’s development activities are directed at industry, because this is where the greatest requirements and volumes exist for developing the circular economy. Additional sales will be generated once these industrial products are launched.

In Terni, Italy, new innovations already generate turnover, while other Tapojärvi development projects will ramp-up production in 2023–2024.

During 2021, the targets set for the sales and development teams were largely met. In Terni, Italy, production began, the test structure of the geopolymer covering structure went as planned and a cooperation project with UPM started with the commercialisation of green liquor sludge. Terni’s slag is still undergoing commercialisation.

The Tapojärvi sales and development team does not simply use any experts, but international veterans with experience of achieving real results. Each development project selects the best in-house experts who can understand the needs of the customer and solve the problem, and develop new commercial products or services.

New solutions that the company can utilise in its business activities. The sales and development function supports the development and renewal of the company’s existing products and services, and facilitates the creation of new products and services.

Commercialisation of green liquor sludge • UPM’s pulp business and Tapojärvi Oy are working together to utilise the pulp mill’s by-products in a new project where green liquor sludge is commercialised.

• Construction products that are brought onto the market contribute to the circular economy and reduce the carbon footprint of the construction industry.

Geopolymer covering structure • The sulphide waste rock of mines must be covered in order to prevent the release of harmful substances into the groundwater along with precipitation.

Geopolymer is an alternative covering structure to replace, for example, HPDE lining.

• Geopolymer is a concrete-like material with high concentrations of silicon and aluminium. Industrial by-products such as steel slag are used as raw materials.

• Tapojärvi has been testing a geopolymer test structure in a small area in Kittilä since 2018. In 2021, a test structure of about 4,500 square metres was implemented as a covering structure for the mine. The test structure went as planned and the covering structure will continue to be monitored over the next few years.

Geofix • Fast-setting ecological patching material made of recycled material for the repair of road ruts, which can withstand salt and frost stress.

• The product is many times more durable than cold-asphalt patch repairs. Can also be used in freezing temperatures (-10 °C).

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Growth layer Top layer Geopolymeric layer

Sulphuric waste rocks

2021 FOR TAPOJÄRVI Hannukainen mining project

WEEE recovery plant, gold mine for recycling • Urban mining export product developed for the global market, which is based on a hydrometallurgical method. Behind the innovation are circular economy specialists Alva, Tapojärvi and Elker.

• The joint project facilitates the recycling of electronic waste circuit boards in a responsible manner.

• At the WEEE recovery plant, precious metals and critical materials are recycled for re-use.

For example, gold and copper are directly suitable for use as industrial raw materials.

• Improves the recycling and security of supply of materials in Europe – industrial activity will continue – even if China restricts exports of critical raw materials.

• Urban mining allows mining operations without extraction – the recoveries are 100 times higher than conventional mining.

• The processing capacity of the commercial facility is one fifth of all Europe’s silicon disc waste and its potential annual turnover is MEUR 700.

• The old mine in Kolari is to be reopened in order to ensure sustainable and domestic exploitation of the natural resources, therefore safeguarding our industrial self-sufficiency.

• The mine will not be opened on virgin soil, rather it is located in an area where there has been earlier mining activity. Rautaruukki and Outokumpu operated in the area in the 1960s through to the 1990s.

• The Hannukainen bedrock can be sustainably exploited to the tune of billions. Iron and gold-copper concentrate can be extracted from the bedrock.

Iron, gold and copper are essential building blocks for modern society.

• The multimetallic deposit will be utilised sustainably, using domestic efforts.

• The mine will create hundreds of new jobs for 20 years in northern Finland.

• The mine is designed to utilise Finnish circular economy innovations in, for example, covering structures and water treatment. New solutions and models will be developed during the course of operations, which can be commercialised and also used in other mines around the world.

RDI projects and network:

ECO INNOVATION RESEARCH CENTER – 30 JUNE 2022 • Preparations for the industrial-scale research centre COMMERCIALISATION OF GREEN LIQUOR SLUDGE – 31 DECEMBER 2023 • Circular economy investment grant for the commercialisation of UPM green liquor sludge

WEEE DEMO PLANT – 30 SEPTEMBER 2022 • Assessment of the feasibility of investing in pre-commercial facilities for SE waste HIGH VALUE SLAG-BASED HYDROMETALLURGICAL MODULAR PILOT PLANT – HVP - 30 SEPTEMBER 2022 • Development of the process of treating the slag in Italy and the production of recycled slag products DIGITAL CIRCULAR PRODUCTION – DCP – 31 JANUARY 2023 • Development of the production of slag-based chemical products and autonomous electrical material handling MINE WATER STABILISATION – TYPKI – 31 DECEMBER 2023 • Mine water stabilisation technology as a new export product

NEW ECO-INNOVATIVE MATERIALS FOR MINING INFRA – MINECO - 26 JANUARY 2023 • Development of shotcrete and mine backfilling

Eco Innovation Research Centre • One-of-a-kind planned research centre facilitating industrial-scale experimentation.

• Investigates, develops and produces solutions for the commercialisation of industrial by-products.

• Tests methods, services, products, and applications that preserve and do not burden nature: • Where possible, industrial by-products are used to build the research centre and its site.

• The research centre has the opportunity to implement laboratory, pilot, and factory-scale experiments.

A HUMAN-CENTRED INTERNET OF THINGS PLATFORM FOR THE SUSTAINABLE DIGITAL MINE OF THE FUTURE – Dig_IT – 30 APRIL 2024 • Development of the digitalisation of mines

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2021 FOR TAPOJÄRVI

TAPOJÄRVI INNOVATION CHALLENGE CHALLENGES STUDENTS TO DEVELOP NEW BUSINESS FOUNDED ON INDUSTRIAL BY-PRODUCTS SERVICE PRODUCTION: INDUSTRIAL CIRCULAR ECONOMY A year ago, Tapojärvi founded the Innovation Challenge, a competition for the University of Oulu’s Master of Science and Engineering students, in order to recruit new talent and to acquire modern ideas for the commercialisation of industrial by-products. Two of the members of last year’s winning team were recruited by Tapojärvi.

In 2021, the competition was organised again. The theme was to develop business-based applications for steel industry slag, mining tailings and, forest industry slurry.

23 multidisciplinary student groups worked on new innovations in the autumn, and the four best ideas were selected from the pre-qualification to the final. The winning group was awarded a cash prize of EUR 10,000 by Tapojärvi and the other finalists received prizes of EUR 2,000 and EUR 1,000. In addition, the groups had the opportunity to develop their ideas in cooperation with Tapojärvi.

The innovation competition aims to promote students' understanding of the challenges of the industrial circular economy and to help them develop sustainable solutions for industrial by-product flows through new product and service innovations.

“Competition fits in perfectly with the Tapojärvi strategy, as we always strive to be pioneers and make advances. Competition creates employment opportunities for young people already during schooling years. At the same time, we can promote circular economy expertise and perhaps find new ways to conserve natural resources.”

– MARI PILVENTÖ, ACTING CEO 13

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COMMUNITY SPIRIT: GOOD REPUTATION COMES FROM GOOD DEEDS

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SOCIAL RESPONSIBILITY PLAYS A KEY ROLE COMMUNITY Tapojärvi bears social, environmental and economic responsibility in accordance with the company’s values and principles.

The goal of sustainable development is to ensure responsible production and sustainable development in all activities, so that the company can secure good living opportunities for present and future generations alike. Commitment to responsible operations is a key part of the daily operations of Tapojärvi.

The environment, people and the economy are taken into account in decision-making and day-to-day operations. The way in which the operations are conducted is governed by the company’s strategy and values, national laws and regulations in the countries in which Tapojärvi operates. Practical work is guided by human rights principles, personnel, administrative, safety, quality and environmental policies, and by principles of responsibility and ethical guidelines.

The responsibility for implementing the principles of sustainable

development is the responsibility of every employee of Tapojärvi. Responsibility is managed as part of the business.

Each location of Tapojärvi is responsible for the implementation of sustainable and responsible operations and for the necessary resources. The operations are supervised and managed by the operational management of the Tapojärvi together with the Board of Directors.

Stakeholder expectations need to be met Tapojärvi’s main stakeholders are customers, owners, personnel, equipment and materials suppliers, financiers, development partners, and audit firms.

Tapojärvi’s priorities for responsibility are realised through the main impacts of service activities and the expectations of stakeholders.

Tapojärvi’s operations have significant impacts, especially on employees, the growth and development of customer companies, and the environment.

Job satisfaction is monitored regularly.

At the end of 2021, Tapojärvi conducted a survey of its employees, which charted the most important issues for its employees. In particular, employees highlighted positively the balance of work and leisure time, good team spirit, and the professional competence of their colleagues. Develop-

ment targets varied from site to site, so the results were reviewed with the personnel at each site separately, and the actions were developed with a site-specific development plan, which is monitored each quarter.

Tapojärvi has built the Tavi and Zulip internal communication channels for our work community, which support both the communications of Tapojärvi and communication between employees, the sharing of thanks, and for the sharing of know-how.

In these communication channels, current information is available to everyone simultaneously. The channel also facilitates interaction between employees and management. For example, during 2021, employees in Finland wanted the introduction of Smartum sports vouchers. The idea was discussed in the management group and the wellbeing vouchers were introduced in the beginning of 2022.

Tapojärvi’s priorities for responsibility work Customers consider Tapojärvi to be a responsible partner, working safely, providing high-quality services, and understanding the customer’s business and its requirements. Tapojärvi regularly conducts customer experience surveys and meets its customers on a regular basis. These meetings also monitor measures and indicators for the development of responsibility.

In the operations of Tapojärvi, responsibility covers the entire value chain: safe working conditions, responsible supply chains, the wellbeing of workers and society, and minimising environmental impacts.

The company operates in accordance with sustainable principles in respect to people and the economy, is committed to legal requirements, customer guidelines and values, and sustainable development.

“We listen to our customers’ expectations and requirements, not only in everyday work, but also in customer meetings.” – HENRI PILVENTÖ, CCO

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2021 FOR TAPOJÄRVI

The Lapland University of Applied Sciences filmed Tapojärvi’s renewable industrial competence group, because educational cooperation has proven to be versatile over the past couple of years. Cooperation has included training cooperation in the mining, machinery, electrical and automation sectors, as well as research and development cooperation. Training cooperation also includes work-oriented project assignments and curriculum designing cooperation. Joint development projects concern, e.g. energy management, automation and digitalisation.

Local growth is supported by procurement and networking The wellbeing of Tapojärvi’s host municipalities and local communities is very important for Tapojärvi.

Local growth is supported by focusing service and material procurement on local enterprises.

Tapojärvi invests in its sector close to its industrial areas. For instance, a terraced building for use as accommodation was built in Petkula, a village near Boliden’s Kevitsa Mine in 2021.

Tapojärvi is involved in numerous working groups and networks sharing expertise to support the vitality and wellbeing of both the industry and local business.

Tapojärvi is involved in the operations of the circular

economy centre in Kemi and promotes the industrial circular economy cluster of Lapland with its expertise and services.

Tapojärvi is also networked in the activities of the mining industry associations. CEO Mari Pilventö, among other positions, is a member of the Board of Directors of FinnMin (Finnish Mining Association).

The work done for the networks is provided free of charge.

The economic impact of the business will be felt through the successes experienced by Tapojärvi’s customers, as a result of the growth of local business and employment.

The wellbeing of workplace sites is important During the financial year, Tapojärvi donated more than EUR 96 000 to support local sports and recreational associations, and school activities.

By supporting the activities of local associations, Tapojärvi ensures that children and young people in the company’s locations have the opportunity to choose from a variety of different pastimes. When life and a variety of recreational opportunities are available, it is good place for employees and their families to live.

“We hold a wish for these active families to evolve into good players and employees in our teams as well.”

– TUOMAS TAPOJÄRVI, BUSINESS CONTROLLER 16

2021 FOR TAPOJÄRVI

Economy and administration: ECONOMIC RESPONSIBILITY IS REFLECTED IN SUSTAINABLE WELLBEING

17

2021 FOR TAPOJÄRVI

DISTRIBUTION OF ECONOMIC BENEFITS Customers, revenue

110.4 million € Distribution of added value Owners

lion €

mil -3.6

dividends and repayments of capital

Suppliers

goods purchased, materials and services

-55.4

million €

Added value created

55

Employees

salaries, remunerations, and social security contributions

Creditors

million €

n€

-42.2 millio

-0.5

interest income/expenses

Corporate income taxes Business development, EUR 8 million €

million €

-0.7 m

illion €

FINANCIAL RESPONSIBILITY Economic responsibility requires us to take good care of our profitability and competitiveness. Thanks to profitable and competitive operations, we are a productive investment, an important employer, a reliable partner and a good corporate citizen. Activities generate economic benefits in the countries in which Tapojärvi operates. An economically strong company responds to the needs of its stakeholders, takes care of social and environmental obligations, and supports activities of public benefit in society.

Tapojärvi promotes the growth of wellbeing in all its service sectors.

At Tapojärvi, financial responsibility is reflected in the growth of business opportunities and jobs, as well as in responsible investments in sustainable development projects. The company pays wages and taxes on time and continuously improves both its customers and its own income, efficiency and profitability.

TAX FOOTPRINT Tapojärvi pays, collects, transacts, and reports its indirect and direct taxes in the correct amount, and at the right time and place, i.e. where the economic activity, value added and work that generates the income actually takes place.

The operations of Tapojärvi are controlled on a commercial and tax-independent basis.

Tapojärvi is a proud taxpayer. We pay our taxes in full in each nation where we operate.

We have calculated our tax footprint, which is shown in the adjacent chart.

21.9 million euros

EUR Turnover Profits before taxes

Finland 82,159,674 4,266,342

Other nations 25,405,596 -310,954

Total taxes paid Corporate tax Property tax Employer’s contributions Capital transfer taxes Vehicle taxes Environmental taxes Others Total taxes to be paid

756,605 65,936 7,824,668 5,200 12,560 0 0 8,664,968

33,605 0 2,000,526 0 17,190 4,879 2,450 2,058,650

Taxes collected Value added tax, net Withholding taxes at source Employee’s health insurance contributions Total taxes levied

1,046,571 8,113,125 423,608 9,583,304

56,832 1,508,244 0 1,565,076

Total tax footprint

18,248,272

3,623,726

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2021 FOR TAPOJÄRVI

During 2021, Avesco delivered Caterpillar loading machines, haul trucks, bulldozers, and graders to Tapojärvi to start operating at the Yara Siilinjärvi Mine.

Operating income

Turnover

107.6 Self-sufficiency ratio

29.3%

Materials and services

-44.8

2.8

THE ECONOMY IN FIGURES 2021 (€ MILLION) Staff costs

Consolidated operating profit for non-recurring items

2

Corporate income taxes

-0.7

-42.2

“During the financial year under review, the Group made a significant number of investments, of which EUR 5 million was spent on research and development projects, and close to EUR 60 million on investments in machinery and equipment.”

- EIJA KANGAS, GROUP ACCOUNTING MANAGER 19

2021 FOR TAPOJÄRVI

A HIGH-QUALITY AND RELIABLE PARTNERSHIP CAN BE MEASURED FINANCIAL RESPONSIBILITY Monitoring quality objectives in everyday work is part of the ever-evolving activities of Tapojärvi. The Group adheres to the values and strategy of the parent company. The procedures and systems in use are also based on consistency across all Tapojärvi companies. Implementation of goals is monitored together with customers.

Quality is based on anticipation, ability to react quickly, activity exceeding customer requirements, solution-oriented and production assurance, even in unexpected situations.

Operational excellence will be implemented as planned. Daily improvement is inherent in all operations and locations of the company and is generally directed at individual operating methods, working methods, and the fine-tuning of these. The fuel that powers daily improvement is good ideas, reported observations, identified deviations, and the measures that these generate.

Project-based improvement focuses on broader entities that have been considered as being important for the company. The entities are identified and selected annually in the company's corporate governance process.

“Only by continuously improving our performance will we remain competitive and profitable”, Aki Pekuri, Development Manager of Operations, states.

Tapojärvi has a digital desktop, which provides all the monitoring data required to support decisionmaking. Monitoring data refers to information such as safety, economy, efficiency, personnel, or even maintenance of equipment.

The safety instrument cluster for different stakeholders was implemented in March 2021.

The quality management system of Tapojärvi Oy is certified by DNV GL – Business Assurance Finland Oy Ab in accordance with ISO9001:2015.

The occupational safety and health management system is based on the ISO 45001 standard, but the system is not certified.

Hannukainen Mining Oy, owned by Tapojärvi, is planning a sustainable domestic mine in Kolari.

During the project period, the company has already committed itself to the responsibility system of the mining network, and uses its tools to carry out a regular self-assessment of mining responsibility systems.

The self-assessments were verified for stakeholder

cooperation and biodiversity management in autumn 2021. The verifier was Markku Siivonen, DQS Finland Oy. 2022 will focus on anticipation and continuous improvement in all service sectors. Better interaction is being used to influence staff satisfaction.

Shift planning and efficiency and training by type of work are also key qualitative priorities. The development of the ISO 14001 environmental management system and the EIRC research centre report will also be completed in 2022. Development projects continue to develop the predictive maintenance programme and the continuous improvement strategy.

Quality 2021 MEASURES PERFORMED • Continuous internal quality audit • Internal and external Audits • Digital desktop tracking reports to support decision making • Competent personnel, continuous training • Confidentiality and professional secrecy • Continuous monitoring, thorough induction

Confidentiality and data security The weakest link in data security is a person. Therefore, Tapojärvi requires an obligation of professional secrecy from all its employees. The confidentiality obligation also applies to trainees.

Confidential work matters must not be discussed in public places or on public transport. No photographs or videos may be taken at the site or premises without the permission of the management and customer.

Tapojärvi always operates proactively and carefully in data security matters. Employees will be trained in data security guidelines and personal data will be subject to the EU’s General Data Protection Regula-

tion (GDPR). Tapojärvi respects the confidentiality of personal data and confidentiality agreements.

Staff will also be continuously instructed on appropriate practices to ensure the implementation of data security.

In 2022 Tapojärvi continues to provide a data security course, which is published on the eLearning training portal.

The data security course ensures that our employees have sufficient knowledge of the content of the GDPR and data security. The course is compulsory for all staff members or persons working in managerial positions.

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2021 FOR TAPOJÄRVI

A HEALTHY WORKING COMMUNITY: “IT’S GREAT WORKING AT TAPOJÄRVI!”

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2021 FOR TAPOJÄRVI

Safety

SAFETY IS OUR MOST IMPORTANT VALUE SOCIAL RESPONSIBILITY Social responsibility at Tapojärvi means, among other things, responsibility for our own employees, safety, competence, and equality. Tapojärvi respects human values and treats others with respect.

As a contractual partner, Tapojärvi is honest and loyal, listening to its stakeholders and engaging in continuous dialogue with them.

Tapojärvi respects all internationally recognised human rights, pays attention to human rights issues in supply chains, and working conditions in countries where human rights violations are most at risk.

At Tapojärvi, unnecessary steps have been deliberately removed and there are no unequal structures.

In a family business, everyone is equal and each employee can take responsibility for and influence their own work. The company encourages staff to train, brainstorm, and develop both themselves and the work community, and the way the company works.

Responsibility lies with everyone Tapojärvi is committed to continuous improvement of the safety culture and is determined to prevent accidents and promote occupational health. The main priorities for safety are the continuous development of the safety culture and the long-term zero accidents target.

In the case of accidents, the target of less than 2.5 incidents per million working hours was achieved at several work sites in 2021.

Safety is based on employee induction, systematic anticipation, and compliance with instructions.

Moments for thought and anticipating work risks are of great importance in everyday safety work.

“Everyone has the opportunity to choose the correct protective equipment, tools and machinery equipment”, says Martti Kaikkonen, COO. Proactive measures include the use of the occupational card model in daily work, work site meetings, safety rounds, and observation reports. Observations are made on events that could have resulted in an accident, a hazardous situation, a deterioration in health, or an adverse impact on the environment. In addition, observation reports are also made of successful actions.

Safety monitoring and intervening in non-conformance are part of the daily work carried out in close cooperation with the clients. “All accidents and incidents will be investigated and efforts are made to establish the root causes of the incidents”, Kaikkonen adds.

The number and effectiveness of HSEQ observation reports are monitored on a daily basis.

At Tapojärvi, every employee has the right and duty to take care of their own safety and the safety of others.

MEASURES PERFORMED • Increased attention has been paid to safety communications and related processes have been developed together with occupational health and safety coordinators.

• The ‘Safety is our value’ logo is used in all materials related to safety communications.

• The work of the occupational health and safety coordinators is summarised, for instance, in the form of regular weekly meetings. The flow of information between working countries has improved significantly.

• Preventive safety work has begun to be measured throughout the company on the basis of the SAF index. In the past, the SAF index has been used in two locations. The SAF index measures preventive safety work per million working hours. At the company level, the aim is to achieve an index of at least 10,000, but the countries themselves are allowed to determine their own goals per site. The indicators used include the number of observation reports, safety rounds, and safety information briefings.

• During 2021, employees made 6,288 observations to improve their operations and correcting faults. This figure represents 1,269 more observations than in 2020.

10

2020

5

2019

6

2018

19

2017

9.07

2020

5.87

2019

17.83

2017

2019 2018 2017

3.58 TRIF 2021

7.57

2018

1.81

2020

“Safety work shall be carried again out every single day and every hour.”

4

ACCIDENTS 2021

0 1.26

1.79 LTIF 2021

3.75

– MARTTI KAIKKONEN, COO 22

2021 FOR TAPOJÄRVI

“People’s diversity is considered to be a richness and it is accepted.”

“At work I can just be myself, which is something I greatly appreciate.”

“Employees feel liberated. Good work results are achieved when you are allowed to be yourself.”

– EXTRACTS FROM THE EMPLOYEE SATISFACTION SURVEY, WHICH WAS CONDUCTED IN NOVEMBER 2021

23

Employees 2021

2021 FOR TAPOJÄRVI

711

SUFFICIENT AND HIGHLY SKILLED PERSONNEL

EMPLOYEES

SOCIAL RESPONSIBILITY Effective action requires adequate and skilled staff for implementation. Human resources must evolve in the same direction as other developments in the organisation.

In order to ensure the best service and expertise, skills are systematically and continuously developed to meet changes and requirements in the operating environment. Tapojärvi’s personnel is its own – this is to be able to ensure the best expertise.

A large proportion of the work tasks at Tapojärvi require special competence. A fully prepared and skilled workforce is rarely available.

In addition, there are special features of working in mining and plant areas, which require employees not only to be competent, but also to be able to work in demanding conditions. Flexibility and multiple skills are required, because at the end of existing contracts and at the start of new contracts, staff will be placed where necessary in other working sites, so the task may also differ from the previous one.

“We do not accept discrimination, nor any form of improper conduct by anyone.”

– MARI PILVENTÖ ACTING CEO The employees are young by age structure; for many employees, Tapojärvi is their first employer.

Tapojärvi appreciates employees’ motivation and the desire to learn and invest in planned induction, training, and skills development.

Equal treatment of staff is ensured through human resource management policies and operating principles that are openly displayed in our communication channels, thereby ensuring all staff are aware of them.

In matters relating to the conduct of business and personal affairs, consultation, respect and trust shall be given to stakeholders. Tapojärvi’s way of working is based on humanity.

Tapojärvi’s reward practices are fair and based on the demanding nature and execution of tasks.

Matters related to salary and rewards are governed by legislation, collective agreements, and local

agreements.

Practical implementation and achievement of the personnel vision in accordance with the principles of human resources are guided by the personnel strategy.

The human resources strategy and its priorities are reviewed annually and these lead to shorter-term objectives.

As part of the annual evaluation and planning of activities, the work community development plan and the training plan are also designed in particular to monitor, maintain and promote the professional competence and equality of employees.

Caring about employees At Tapojärvi, all people are equal and no one is discriminated against by age, origin, nationality, language, religion, convictions, opinions, political activities, trade union activities, family relations, for reasons of health, disability, sexual orientation or other personal reasons.

Management and managerial work take into account the diversity of staff, and recruitment offers all qualified applicants equal opportunities to be selected.

Induction training takes into account the needs of people with different cultural and linguistic backgrounds.

Cases of discrimination and bullying are effectively addressed and inappropriate treatment is not acceptable from anyone, in any form.

A diverse working community and an all-encompassing culture are made with behaviour, attitudes and choices made by Tapojärvi employees. Everyone is treated with respect for human values.

A good working community and working environment are key factors at the workplace. One of the conditions for the entire organisation to learn is the ability of the personnel to work together as a team with a common goal. This will allow employees to learn from one another and to openly share knowledge. In such a working environment, you can also ask and request help, if necessary.

The responsibility for safe and healthy working conditions and a functioning working community is held by the Tapojärvi in all its activities. Every employee has the right to both physical and psychological safety.

94%

6%

AVERAGE AGE

38 years TYPE OF EMPLOYMENT RELATIONSHIP 1% 10% Permanent Temporary Part-time 89% OPERATIONS PERFORMED •The Tapojärvi does not accept or use child labour.

• Tapojärvi does not accept or practice forced labour.

• An ethical reporting channel in accordance with the Whistleblowing Directive is used on the Tapojärvi website. Through this channel, the employee or other stakeholder representative can report any behaviour that is contrary to ethical principles. The notification can be made by name or anonymously, and the anonymity of the notifier is protected by Tapojärvi.

• Tapojärvi has equal pay and bonus systems.

• The financial security of the company creates humane security.

• Employees have the opportunity to influence their own work, and to contribute to the development of their work and its results.

• Business is based on values, operations in line with legislation and collective agreements, labour protection regulations, and other obligations.

• Tapojärvi respects the privacy and data protection of workers and job seekers by following the EU’s General Data Protection Regulation (GDPR).

• Tapojärvi respects internationally recognised human rights and observes fundamental principles of the ILO.

24

2021 FOR TAPOJÄRVI

In connection with the Family Day, Tapojärvi organises driving skill competitions for its employees. The award winners received an incentive trip to Málaga, where they will explore, among other things, the Caterpillar Training Centre.

The Tapojärvi Cooper run is organised every year. Participation is voluntary.

MEASURES TO IMPROVE WELLBEING AT WORK SOCIAL RESPONSIBILITY Wellbeing at work is an entirety that consists of work and its sense of meaning, health, safety and wellbeing.

The key to wellbeing at work is that every employee has the necessary skills, tools and work instructions to perform his or her tasks in a professional and safe manner.

Attention is paid not only to physical safety, but also to psychological safety and to the development of the working community so that each employee feels valued and accepted.

In practice, working conditions are created in such a way that challenge and workload are evenly distributed and everyone has the opportunity to develop themselves.

Wellbeing and working life are monitored in various weekly meetings, employees development discussions, one-to-one meetings between the supervisor and the employee, and early support discussions.

Employee satisfaction surveys are also carried out at regular intervals.

The working capacity of all employees in the company is supported in accordance with the employment protection and occupational health and safety action plans of Tapojärvi and the early support model. Work-related activities in the workplace are organised in cooperation with the occupational health care service provider.

Training assists the support of staff retention and maintaining professional skills.

Sufficient human resources and sufficient professional competence are ensured by taking into account the specific needs of employees of different ages.

The daily activity of employees is supported by a wide range of employee benefits, good ergonomics and annual physical challenges. The Finnish sites measure the distance of exercise and the time spent during the year. No target has been determined for this challenge. In 2021, the exercise challenge registered 4,027.99 hours of physical activity covering a

total of 42,848.67 kilometres.

In an employee survey carried out in 2021, Finnish employees highlighted positively in their open answers the equality of physical exercise benefits, which contributed to the implementation of the SmartumPlus service.

The SmartumPlus service provides better ways to improve the wellbeing of employees with a wide variety of sports activities, and benefits all employees, regardless of location or premises.

Because the numbers of musculoskeletal system disorders in particular have increased sickness absences, Tapojärvi offers its employees, not only a traditional exercise benefit, but also massage services.

In order to support employee coping at work, there is also the Tapojärvi Sport Club, which aims to encourage people to have a healthy lifestyle and be active. Annual Cooper test runs are hosted at the Tapojärvi locations. Participation in the run is voluntary. Tapojärvi’s Cooper strengthens the physical and psychological fitness of employees. Community spirit has also grown with various joint events.

Tapojärvi Cooper test 2021 • Total of 246 participants • Average age of runners 39.23 years • Total distance covered by runners 527.95 km • The average number of metres run per runner was 2,146.13 metres • A total of EUR 57,900 was paid as prize money

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2021 FOR TAPOJÄRVI

PLANNED TRAINING AND INDUCTION SOCIAL RESPONSIBILITY The competence and development of the personnel are key to achieving the company’s goals.

The employee’s competence and training requirements are assessed during the recruitment phase, during initial induction and work instruction, and during the employment relationship.

In particular, competence and training requirements are considered when the workplace or tasks change or working procedures change.

Successful induction training, continuous improvement and competence development are the foundation of the success of Tapojärvi.

Employees are provided the opportunity to influence and participate in the development of both their own work and the way our company operates.

Staff will be offered long careers, which will allow them to develop their own professional skills and advance their careers.

The potential of employees, for example, in the role of a trainer or a supervisor, is constantly being recognised and they are encouraged to develop their careers. The aim is to offer self-educated people the opportunity to take part in a job rotation or on-thejob training.

Education Occupational safety card training Hot work card training Emergency first aid card training Blaster refresher course Senior blaster training Apprenticeship training Technical supervisor studies Project competence development training Daily negotiation scenario training Process Academy Project

persons 64 53 25 36 1 21 1 13 10 2

The development of induction was one of the development projects for the financial year of 2021.

In order to develop the skills and competences of supervisors and managers, a training entirety was organised via Teams and covered the responsibilities and tasks defined in the job descriptions of produc-

tion managers and supervisors.

The training entirety is intended to provide continuous, regular training that will be further developed on the basis of the feedback received.

Face-to-face language training for employees was interrupted due to the COVID-19 pandemic, but language training was also enabled for those wishing to study using the WordDive online course (English/ Swedish/Italian).

Training in management/senior clerical positions according to the GDPR was provided as an online training course. Individuals belonging to this target group were required to complete the online GDPR course.

During 2022–2023, employees will be trained on site to perform different tasks in order to maximise the number of multi-skilled operators in the various job phases.

In addition, operators are trained at the Raahe and Tornio sites, who will be able to work flexibly on both sites in the future.

Training will be organised for all professional groups to use the IT systems and software required for the tasks.

Tapojärvi is considered to be a meaningful workplace According to the employee satisfaction survey, the employees of Tapojärvi Oy felt the most relevant and well-implemented matter is the balance between work and leisure time. Among other things, the various shift systems were considered to be well functioning. The hybrid working model, which allows staff to work remotely, was also commended.

The recognition of the skills and competences of employees was also brought up. Cooperation with professionals in different sectors is perceived as a richness and their own expertise is an opportunity to utilise and develop on a daily basis.

A working environment where everyone can be themselves was also highly valued. The areas of pay and benefits in kind, management work, and

opportunities for career advancement were highlighted as areas requiring further development.

As a measure to improve the above-mentioned issues, the criteria for determining salaries and the development of remuneration models will be clarified during the 2022 financial year.

For developing supervisory work, managers working as supervisors will be subjected to a 360 management review in two groups during April–June.

The overall satisfaction of employees will be monitored in the future by measuring overall satisfaction with a goal of +80 on a scale of -100 to +100. Overall satisfaction of the personnel during the 2021 financial year was +76.

“The survey confirmed that the community spirit at workplaces is considered important and well-functioning.”

– JANNE ALATALO, DIRECTOR OF ADMINISTRATION 26

2021 FOR TAPOJÄRVI

North Finland

84%

East Finland

14%

West Finland

1%

The domiciles of the employees of Tapojärvi Oy are located in different parts of Finland.

DIGITAL LEAP TO HYBRID MODEL

South Finland

1%

SOCIAL RESPONSIBILITY At Tapojärvi, there is a positive attitude to remote working and the flexibility it provides. The exceptional circumstances brought about by the COVID-19 pandemic shifted some Tapojärvi employees to work remotely, in tasks that facilitated such. Business travel was minimised and a separate permit was required for each visit to a Tapojärvi site. Digital remote connections were widely deployed throughout the Group.

Remote working and the hybrid model were considered as positive aspects in the 2021 personnel survey. This model facilitates flexibility in terms of job execution. Implementation is agreed on a case-by-case basis, taking into account the requirements of the task in question.

The employee does not have a subjective right to remote working, rather this is agreed on the basis of the job, whether and under what conditions remote working is possible. Furthermore, the employee is not obliged to accept remote work, if they hasve been assigned a specific place of work.

The hybrid model is a form of remote working where part of the work time is done at the office or other employer premises, and part is conducted remotely.

As a general rule, remote working does not alter the rights and obligations of the employer and the employee in relation to the employment relationship, and therefore, for example, the right to work is maintained by the employer, in the same way as for on-site work.

When working in a hybrid job model, more attention is paid to the employee’s coping at work, as the workload can increase unnoticed. The employer is also responsible for the occupational safety of the remote worker, and therefore any harmful factors to the health and safety of the worker arising from remote working are monitored regularly and systematically at the workplace. This includes both physical and mental safety and work-related stress factors. The employee also has a responsibility for their own wellbeing, and this is emphasised when working remotely.

“It is possible to work using the hybrid model at Tapojärvi for those tasks that can be performed equally as well remotely as on-site. The hybrid model must always be first agreed with the supervisor. The hybrid

model means that part of the working time is done at the office or other employer’s premises and part is done remotely.”

– JANNE ALATALO, DIRECTOR OF ADMINISTRATION 27

2021 FOR TAPOJÄRVI

TAPOJÄRVI IS OF INTEREST TO JOB SEEKERS SOCIAL RESPONSIBILITY Recruitment has committed to equality, non-discrimination, and making choices based on aspects that predict job success. The selection of people is marked by competence, training, and motivation.

Versatile operation in mining and industrial processes provides work tasks for professionals of different sectors. The aim is to anticipate the needs of employees as accurately as possible, which is challenging because of the temporary duration of contracts and the frequent need to react quickly to changes in staff numbers and recruitment needs.

Competition for a skilled workforce is fierce, which is why a good personnel policy, employer image and proactive cooperation with stakeholders play an important role in ensuring the availability of the necessary labour force.

“We have worked on a plan-based and long-term approach to improving the employer’s image and now these results are apparent. It is important that the organisation is fully functional and that its employees are taken good care of. Building the employer’s image starts from the deep inside structures. The reputation of the Tapojärvi is formed from how we conduct our work”, says Mari

Pilventö.

The best talent can only be attracted by holding a strong image. This is why HR, together with communications, has made different job descriptions well known, described employees’ career stories, and targeted messages on the employee market via digital channels.

“It has been a pleasure to receive positive feedback and comments that employees have made about us and shared with us. Thank you so much! There are always satisfied employees behind a healthy work community. This is very important for us”, Pilventö emphasises.

During the 2021 financial year, there were 1,176 job seekers, a total of 1,313 applications were received, as some applicants applied for several different positions.

If the turnover of personnel is similar to that of previous years, it can be estimated that approximately 150 new employees will be recruited during the financial year 1 January 2022 – 31 December 2022.

Happy haul truck driver Kari Kenttälä applied for a job at Tapojärvi on the recommendation of his son, Henri. Kari has never regretted his decision, rather he enjoys having a meaningful and pleasant job as a member of a good team.

Kari works for Tapojärvi at Outokumpu’s Kemi Mine operating a mine haul truck.

The working days of haul truck operator often start at seven in the morning. The shift starts with Kari going to the shift-change facilities takes a list and looks at what kind of task is to be done. Usually, the whole week is driven using a certain system. Kari works alternate weekly shifts – working every other week, with every other week off.

“It’s great to have a week of work and a week of free time. I think everyone feels capable of working for a week knowing that a whole week off is approaching”, Kari says.

Kenttälä loves his job and feels energised when it comes to working with younger “I am a happy haul truck operator. You can see that, just by looking at me”, Kari employees. says with a large smile.

“They're always wondering why I come to work every morning whistling. If you sometimes have to do somewhat heavier work, you have to be able to enjoy yourself as well.”

According to Kenttälä, the equipment used by Tapojärvi is “top-class”. Machinery is in good condition which make the work pleasant to do. In the quiet cabins, it’s great to listen to music while driving.

“I have enjoyed my work. Night shifts and long working days worried me most before I started work here, as I had never had to do such before, but this was not a problem at all. If my health maintains and I have the opportunity to work on this team, I want to stay employed by Tapojärvi for as long as I can”, Kari says.

“Motivated, flexible and skilled workers are

the company’s factors for success.”

– ANSSI RYTKÖNEN, DIRECTOR OF MINING SERVICES 28

2021 FOR TAPOJÄRVI

ENVIRONMENTAL RESPONSIBILITY: INDUSTRIAL SCALE CLIMATE ACTION

29

2021 FOR TAPOJÄRVI

ENVIRONMENTAL AWARENESS ALONE IS NOT ENOUGH – ACTION IS ALSO NEEDED Environment and climate

ENVIRONMENTAL RESPONSIBILITY Tapojärvi is constantly developing new ways of conserving natural resources.

The company will commercialise by-products from industry and develop new business activities around these materials to avoid the generation of disposable waste. The company produces products and services that are sustainable for the living environment, and creates new technology and business for industry.

Tapojärvi develops and uses binding agents for a smaller carbon footprint and also utilises industrial by-products. Through its new innovations, the company promotes biodiversity in order to preserve and restore natural biodiversity.

“In general, the use of industrial by-products reduces the carbon footprint and reduces consumption of virgin natural resources”, states development manager Juha Koskinen.

Tapojärvi reduces its emissions through the use of available renewable energy sources, energy efficiency and efficient logistics, and slows down climate change and promotes the sustainable use of natural resources.

New, sustainable solutions and working practices directly affect the wellbeing of the environment. In order to function, industry needs raw materials to respond to growing consumption demands.

Work in the extractive sector consumes natural resources, but it also enables technologies that slow down climate change. Demand for many metals is growing rapidly with the increase in demand for electric vehicles, solar panels, and electronics.

At present, much of the metals that Europe needs are produced outside Europe. Tapojärvi produces mining services in Finland and Sweden, which increases Europe’s self-sufficiency and reduces transport emissions from the haulage of concentrates.

Tapojärvi is aware of the environmental impacts of mining operations. Climate change sets a framework for business operations that the company will take into account in its risk assessment and strategy work. The company identifies risks related to climate change both in its own business and in its customers’ business, and is seeking solutions to minimise environmental impacts.

“For us, sustainable mining means safety and continuous production development. There is a lot of potential in the sector that has yet to be fully utilised, and it requires everyone to take on responsibility”, says Anssi Rytkönen, Director of Mining Services.

“In general, the use of industrial by-

products reduces the carbon footprint and reduces consumption of virgin natural resources.”

TAPOJÄRVI’S ONGOING ACTIONS: • Involved in several sustainable development projects and studies across Europe • Developing security in the sector • Reducing the carbon footprint of industry • Planning a unique, international research centre to research sustainable solutions for industrial-scale projects PROJECTS: • Solutions for the covering of mine waste rock areas • Treatment and stabilisation of mine water • Dust prevention solutions • Mine backfilling • Urban Mining ACTIONS AFFECTING CARBON FOOTPRINT: • We develop and use binding agents with a smaller carbon footprint and we also utilise industrial by-products • Acquisition and commissioning of the emission mitigation counter • Upgrading lighting to new, low-energy solutions, such as LED lighting • Purchase of energy efficient household appliances in buildings and work site apartments • Use of solar power plant for heating the Tornio headquarters • Sorting and recycling of waste, and recovery of waste electrical and electronic equipment • Material and furniture purchases are made taking into account recyclability and lifecycle duration • Making use of digital remote meetings, reducing business travel

– JUHA KOSKINEN, R&D MANAGER 30

2021 FOR TAPOJÄRVI

WASTE SLAG BECOMES CE-MARKED PRODUCTS ENVIRONMENTAL RESPONSIBILITY Just a few decades ago, Tapojärvi provided industrial and mining services in the conventional manner through contracting.

When the work was being performed, it was discovered that valuable raw materials were lost during various stages of production, and eventually a large proportion of the valuable materials ended up being disposed of.

Tapojärvi started to work with its customers to find solutions for a more sustainable use of natural resources. It created a new business that benefits the environment first and foremost, but also creates

direct cost savings for customers.

“By utilising and re-commercialising materials classified as industrial and mining waste, we reduce the amount of waste that is disposed of, and conserve natural resources”, Commercial Director Henri Pilventö calculates.

The quantity of waste generated by industry is significant and has substantial impacts on environmental and climate wellbeing.

The AST steel plant in Italy are located close to Terni’s city centre. In the past, the steel plant slag

was sent to the dedicated stockpiling area. Slag has been waste that has been subject to taxation.

It has also caused damage to the environment and inhabitants.

The steelwork started to solve the problem and concluded a slag handling agreement with Tapojärvi. The joint goal of the agreement is to give Terni a central role in the processing of industrial by-products.

During 2021, a slag treatment plant was completed in Italy, where CE-labelled products produced from slag as a by-product of steel production will be manufactured during 2022.

“Our trump card is achieving the highest possible metal recovery from the slag. We are leading the

world in this respect, and as a result, slag can be used to manufacture multi-purpose materials.”

– HENRI PILVENTÖ, CCO 31

2021 FOR TAPOJÄRVI

CIRCULAR ECONOMY AS AN INTEGRAL PART OF MINING ENVIRONMENTAL RESPONSIBILITY Tapojärvi owns Hannukainen Mining Oy, which is seeking a permit to re-open the old mine in Kolari.

The aim is to reopen the mine in order to make sustainable use of the natural resources derived from the Finland, thereby safeguarding Finland’s industrial self-sufficiency: iron, gold, and copper are essential building blocks for modern society.

In the production area planned for the Hannukainen mining project, there has been mining activity in the past. By opening an old mine and utilising new circular economy solutions in the production of the mine, there are significant benefits and impacts achievable from domestic mining operations.

The use of circular economy in mining is diverse.

For example, Tapojärvi has developed solutions for the use of industrial by-products in mining covering structures and in shotcrete applications. Hydrometallurgical treatment of electronic waste is also an extension of mining operations.

“In the mining project in Hannukainen, we have designed stability for waste rock stockpiles, which reduces the need for costly water treatment and other expenses this incurs. The recycling of mine water and the use of a stabiliser in the mine’s infrastructure improves the internal recycling of the

“The recycling of mine water and the use of a stabiliser in the mine’s infrastructure improves the internal recycling of the mine, thereby mitigating the environmental impacts of the mine.”

– JAANA KOIVUMAA PROJECT DIRECTOR, HANNUKAINEN MINING OY

mine, thereby mitigating the environmental impacts of the mine. The stabilisation materials can utilise the mine’s own secondary streams, such as tailings or, for example, by-product flows in industry”, says Jaana Koivumaa, Project Manager at Hannukainen Mining.

Many other types of work in the extractive and industrial sectors can also benefit from the circular economy.

“By focusing our services on industry, we can have

the greatest impact on the condition of the environment. In Europe, the sector is governed by a number of different laws, responsibilities and obligations. In addition, the industry actors want to independently monitor and reduce CO2 emissions, increase production safety, and develop responsible solutions for its operations. The production of metals in third nations is an option, but is this responsible sourcing?”, asks Mari Pilventö, CEO of Hannukainen Mining.

CARBON FOOTPRINT CALCULATION SUPPORTS THE SETTING OF SUSTAINABILITY TARGETS ENVIRONMENTAL RESPONSIBILITY Tapojärvi started calculating and monitoring carbon footprint in 2020. Carbon footprint is primarily an internal tool for the Tapojärvi, in order to support the setting of goals and to assess the impacts of the measures performed. The company continuously improves the accuracy of the carbon footprint calculation. Tapojärvi also trains its experts to monitor carbon footprint.

Tapojärvi’s carbon footprint is relatively high, as a large proportion of the carbon footprint comprises emissions from the equipment used. In addition, the carbon footprint is influenced by the consumption of electricity and heat in the buildings of the sites, indirect emissions from electricity production, and from business travel.

During 2021, Tapojärvi made extensive machinery acquisitions in an alliance that began at the Siilinjärvi Mine. It is not possible to keep electrically powered equipment at Siilinjärvi, so the acquisition of new equipment focused on environmental values and technological solutions that reduce the carbon footprint compared to old equipment.

“We are involved in an international fleet project to investigate technological solutions suitable for the sector, such as electricity, hydrogen and the exploitation of smart technology. The project will commence in 2022”, says Seppo Ahola, Director of Innovation.

Each machine and device used by Tapojärvi has a calculated life cycle expectation. Periodic maintenance, repairs and recycling help to achieve set goals, and even exceed them.

“We have conducted emission calculations and we

are aware of both the role and potential of Tapojärvi in this matter. We have taken practical action in a number of different ways. For example, the UPM project will significantly reduce CO2 emissions in cement use”, says Mari Pilventö.

Sustainability is an integral part of the Tapojärvi brand. Purchases are considered, time and consumption durable, and have been produced responsibly.

Focus is placed on electronics with forecasting, maintenance, and internal rotation. The aim is to provide as long a life cycle as possible for the equipment acquired by IT management. After the cessation of the guarantee term, the equipment that has been decommissioned will be emptied and reused as spare equipment, and as service equipment.

Equipment is not scrapped, rather when equipment reaches the end of its life cycle, it is recycled in accordance with the WEEE recycling guide.

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2021 FOR TAPOJÄRVI

GOALS FOR 2022 FINANCIAL RESPONSIBILITY – Profitability develops with excellence 1. Improving production efficiency and profitability 2. Site-specific development actions and monitoring 3. Increasing operational excellence 4. Expanding slag product services in Europe

SOCIAL RESPONSIBILITY – It’s great working in a winning team 1.

2.

3.

4.

Increasing interaction Shift planning Training by type of work is a key qualitative priority High-quality skills development

ENVIRONMENTAL RESPONSIBILITY – New solutions for sustainable life 1. Manufacture and sale of slag products 2. Introduction of new technologies 3. Completion of the research work for the ISO 14001 environmental management system 4. Completion of the EIRC Research Centre report

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2021 FOR TAPOJÄRVI

ENVIRONMENTAL ACTIONS: We create new technological solutions for sustainable industrial activity.

We enable the transition to a low-carbon society.

We develop services to support customers in meeting climate change challenges and stakeholder expectations.

We develop and use binding agents for smaller carbon footprints and also utilise industrial by-products for these.

The use of industrial by-products reduces the carbon footprint and reduces consumption of virgin natural resources.

We will increase regional security of supply and allow European industrial production to continue.

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NEW SOLUTIONS

FOR SUSTAINABLE LIVING 2021 TAPOJÄRVI GROUP

Tullipuistonkatu 2 95400 Tornio

www.tapojarvi.com info@tapojarvi.com