Talvivaara Mining Company Plc plans rationalization of its operations
15.11.2013 | Globenewswire Europe
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Talvivaara Mining Company Plc
15 November 2013
Talvivaara plans rationalization of its operations
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") plans changes in
the group's organization to support the Company's reorganization program and
rationalization of operations. Talvivaara believes that the planned actions
will accelerate the efficiency programme started last summer. The actions will
also increase productivity and, together with a short term shut-down of the
metals recovery plant and reduction of outsourcing, lower operational
expenditure and help create an organization that better reflects the current
situation of the group.
Talvivaara estimates that the planned changes may cause redundancies, lead to
part-time employments and/or lay-offs and may have employee impact on the whole
staff. The Company has invited employee representatives to consultations
according to the applicable legislation. All Talvivaara group companies,
Talvivaara Mining Company Plc, Talvivaara Sotkamo Ltd and Talvivaara Exploration
Ltd, are within the scope of the consultations. The possible employee impact per
employee group will be defined during the consultation process. The group's
current headcount is approximately 570 employees.
The short-term actions to optimize production and operational expenditure
consist of, among others, a shut-down of the metals recovery plant, which takes
effect immediately and is estimated to be approximately one month in duration,
and a temporary stoppage of ore production. The operations of the metals
recovery plant have not been cost effective during this autumn due to the low
metal concentrations in the leach solution. As a result of the stoppage, the
metal grades in solution are expected to rise, as leaching of the ore stacked
since last spring progresses. The Company plans to discontinue ore production in
the coming weeks for approximately six months. In the event the Company's
financial situation improves significantly already in the coming months, the
mining and materials handling operations can be re-started already earlier. The
temporary discontinuation of ore production may have a negative impact on water
management and it will likely slow down the ramp-up of production to its planned
capacity.
Talvivaara has previously announced that it estimates its nickel production
during the second half of 2013 to exceed 4,508 tonnes, which was achieved during
the first half of the year. Due to the imminent stoppage of the metals recovery
plant, the Company now estimates its nickel production to amount to
approximately 4,000 tons in the second half of the year.
Enquiries:
Talvivaara Mining Company Plc Tel +358 20 7129 800
Pekka Perä, CEO
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 Helsink. Further information can be found at
www.talvivaara.com
Talvivaara plans rationalization of its operations 15.11.2013:
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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE
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