Independent audit of today’s allegations concerning Kotka CAM plant to be launched

All companies operating at the construction site are required to comply with Finnish law and uphold workers’ rights.

Today, The Finnish Broadcasting Company (Yle) published a news report presenting allegations about the terms of employment and working conditions of Chinese workers at the Kotka CAM plant construction site. The Kotka CAM plant is an investment of approximately EUR 800 million. The project company is Easpring Finland New Materials Oy (EFNM), of which Finnish Minerals Group Oy owns 28.3%. The main contractor of the construction project is China Harbour Engineering Company Ltd. (CHEC).

The allegations concern, among other things, a change of employer without sufficient notification, changes to the terms of employment, the signing of new contracts, and accommodation and meal deductions made from wages, and possible partial refunding of earned salaries.

Authorities have carried out multiple inspections at the construction site covering various aspects of its operations. Based on these inspections, no evidence of systemic irregularities or structural issues has been identified at the site.

All companies required to comply with the Finnish law

Easpring Finland, CHEC and Finnish Minerals Group take the allegations that have been presented very seriously. The companies are aware that there has been a disagreement between one subcontractor and its employees regarding the terms of employment. The situation was discussed directly with the workers and resolved by mutual agreement.

Companies operating on the construction site are required to comply with Finnish legislation, collective agreements and the requirements of the Act on the Contractor’s Obligations and Liability. In addition, the main contractor CHEC has committed to international ESG and human rights standards, including the ILO fundamental principles, the OECD Guidelines and the UN Guiding Principles on Business and Human Rights.

Independent audit to be launched

Finnish Minerals Group will commission an external, independent audit. It will be carried out by an expert familiar with Finnish labour law and construction industry practices. The audit will examine the matter impartially and establish the facts of what happened, and its results will be made public.

The companies emphasise that labour exploitation, violation of workers’ rights, coercion, intimidation or unlawful clawback of wages are not acceptable. The allegations will be investigated thoroughly, and if necessary, the matter will be handled in cooperation with the authorities and labour market organisations.

Further information:

Vesa Koivisto, Chief Commercial Officer, Easpring Finland New Materials Oy
+358 50 453 6322, firstname.lastname@easpring.fi

Matti Hietanen, CEO, Finnish Minerals Group Oy
+358 40 823 8806, firstname.lastname@mineralsgroup.fi

Easpring Finland New Materials
Founded in 2024, Easpring Finland New Materials Oy produces cathode active materials for the European production facilities of Easpring’s existing and new customers. The majority owner of the company (70%) is Beijing Easpring Material Technology Co., Ltd., one of the world’s leading producers of cathode active materials for lithium-ion batteries. State-owned company Finnish Minerals Group Oy holds a 28.3% stake, and South Korean battery company LG Energy Solution holds 1.7%. www.easpring.fi

Finnish Minerals Group
The mission of Finnish Minerals Group is to responsibly maximise the value of Finnish minerals. We manage the State’s mining industry shareholdings and strive to develop the Finnish value chain of lithium-ion batteries. Through our work, we contribute to Europe moving towards electric transport and a more sustainable future. www.mineralsgroup.fi

Read more