Talvivaara Mining Company Plc - Production Update
19.04.2012 | Globenewswire Europe
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Talvivaara Mining Company Plc
19 April 2012
Talvivaara Production Update
First quarter 2012 production impacted by environmental process modifications
and unscheduled improvement measures in metals recovery
Full-year guidance maintained at 25,000-30,000t of nickel
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") announces that it
produced 3,374 tonnes of nickel in the first quarter of 2012. Production output
was adversely impacted by downtime at the metals recovery plant, resulting from
environmental investments and unscheduled occupational safety -related
improvements.
In January, Talvivaara commissioned a new water recycling system reducing raw
water intake by approximately 65-75%. The system marks another proactive step in
executing the Company's sustainability strategy, but at the same time the
installation caused downtime at the metals recovery plant and thereby impacted
first quarter production volumes. As part of the undertaken process changes, the
Company has also temporarily maintained excess water in circulation thereby
somewhat diluting metal grades in solution, which has further impacted output of
the metals recovery plant. Solution grades are expected to develop positively
during the spring as the mine's water balance improves, solution in circulation
warms up and the new primary heap section 2 is taken into production.
Further reduction in production followed from the regrettable fatal incident at
the Sotkamo mine site in mid-March. Following the incident, Talvivaara lowered
solution flow into metals recovery and also started an unscheduled stoppage with
focus on preventative occupational safety -related modifications and
improvements. Occupational safety remains a top priority for Talvivaara and the
Company is focusing its efforts on making the workplace, both technically and
operationally, as safe as possible.
The first quarter production volumes and the negative nickel price development
during the period also had an adverse impact on Talvivaara's financial results.
The nickel price rallied to above USD 21,000 per tonne at the start of 2012 but
subsequently retreated to USD 17,000-18,000 per tonne in February and March
primarily due to prevailing economic conditions. The Company will consequently
report an operating loss for the quarter.
Talvivaara maintains its full-year 2012 production guidance at 25,000-30,000
tonnes of nickel. However, following the first quarter production volumes, the
Company has less flexibility within the guidance range and expects full-year
production to be closer to the lower end of the range.
Regardless of the short-term shortage in metals recovery output, the underlying
development in the Company's operations has continued positively. Recent
analysis of ore samples taken from heap section 3 indicates nickel recoveries of
up to 85% in less than two years of leaching, which exceeds the Company's
expectations. Run-rate crushing and primary heap reclaiming performance has also
improved allowing the Company to accelerate the stacking of new ore. Progress in
bioheapleaching and crushing puts Talvivaara in the position to offset the
recent issues and to achieve the 2012 guidance and ramp up towards full
capacity.
ENQUIRIES
Talvivaara Mining Company Plc. Tel: +358 20 7129 800
Lassi Lammassaari, COO
Saila Miettinen-Lähde, Deputy CEO and CFO
Talvivaara Mining Company Plc
Talvivaara Mining Company is an internationally significant base metals producer
with its primary focus on nickel and zinc using a technology known as
bioheapleaching to extract metals out of ore. Bioheapleaching makes extraction
of metals from low grade ore economically viable. The Talvivaara deposits
comprise one of the largest known sulphide nickel resources in Europe. The ore
body is estimated to support anticipated production for several decades.
Talvivaara has secured a 10-year off-take agreement for 100 per cent of its main
output of nickel and cobalt to Norilsk Nickel and entered into a long-term zinc
streaming agreement with Nyrstar NV. Talvivaara is listed on the London Stock
Exchange Main Market and NASDAQ OMX Helsinki and is included in the FTSE 250
index. Further information can be found at www.talvivaara.com.
Talvivaara Production Update 19.4.2012:
http://hugin.info/136227/R/1603948/507304.pdf
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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE
[HUG#1603948]
Unternehmen: Talvivaaran Kaivososakeyhtiö Oyj - ISIN: FI0009014716