Agnico Eagle Mines, one of the largest gold producers in Europe, anticipates higher production levels this year as a Finnish court restored the operating permit for its Kittila mine. This decision allows the mine to operate at a capacity of 2 million metric tons per year, up from the previous restriction of 1.6 million tons annually.
The Supreme Administrative Court of Finland overturned a lower court’s ruling that had limited production at the Kittila mine. With this favorable outcome, Agnico Eagle Mines projects an additional 30,000 ounces of gold output in the final quarter, resulting in total annual production estimated to be between 3.24 million and 3.44 million ounces.
Last year, the Regional State Administrative Agency of Northern Finland granted Agnico Eagle Mines environmental and water permits for the mine to expand its storage facility for tailings and construct a new discharge waterline. However, these permits were initially appealed and subsequently returned to the regional administrative agency in mid-2022. Agnico Eagle Mines appealed the lower court’s decision and sought restoration of the permits through the Supreme Administrative Court.
Had the ruling not been in Agnico Eagle Mines’ favor, the company would have faced reduced operations this quarter, resulting in an estimated gold production range of 190,000 to 210,000 ounces for the year. The company has confirmed that no further appeals are available.
This court ruling provides a significant boost for Agnico Eagle Mines, placing it on track to achieve its production targets and contribute to Europe’s gold output.
