Talvivaara Mining to restart production at nickel mine

Finnish miner Talvivaara Mining has received a permit to restart the metals recovery plant at its Sotkamo nickel mine and expects full production to resume by November 25th. Production had been temporarily suspended since November 4th following a gypsum pond leak at the mine.

The Kainuu Centre for Economic Development, Transport and the Environment (Kainuu ELY Centre) granted permission after Talvivaara provided clarification on metal production process control on three separate occasions: November 8th, 13th and 19th.

In addition to these clarifications, the re-start permit was based on the combined inspection conducted on November 19th 2012 by the Kainuu ELY Centre, the Finnish Safety and Chemicals Agency (Tukes) and the Radiation and Nuclear Safety Authority (STUK).

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Following risk assessments undertaken in conjunction with evaluating the re-start permit, the Kainuu ELY Centre also stipulated that Talvivaara must improve the mine's water balance, make dam safety improvements, as well as tighten up on monitoring and reporting.

Speaking exclusively to Sharecast, new Chief Executive Officer (CEO) Pekka Pera explained: "We don't think that that the cost of the improvements will be huge in comparison with what we have already invested over the course of the past year as the reverse-osmosis plant is already built. Although the additional costs relating to the dam construction is still unclear."

The failings at the plant cast doubt on the firm's ambition to increase quarter-on-quarter output in the final three months of the year and cost the former CEO, Harri Natunen, his job.

Talvivaara has stated that it will provide updated production guidance for the full year 2012 during the week commencing November 26th.

CM