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22/04/2024
Mining NewsUncategorized

Finland's Terrafame nickel mine has profit potential with new equity

Terrafame mine depts if solved could turn the company in profit making direction.

Terrafame was founded last year as the government took control of the mine, aiming to avert a closure and environmental damage at the site in northern Finland.

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The founder of the mine, Talvivaara Mining Company , filed for debt restructuring in 2014 following a drop in nickel prices, production disruptions and environmental problems.

Terrafame on Thursday reported an operating loss of €53-million from the first quarter but said a ramp-up in operations was proceeding.

“We exceeded our targets for both nickel and zinc production. In the long term, the mine has full potential to turn to profit,” chairperson Lauri Ratia told reporters.

CE Matti Hietanen said the company is in talks with several investors.

The government has injected close to €250-million into Terrafame. It has said it might close the mine if it cannot find investors by 2017.

Talvivaara Mining Company is aiming to have a role in Terrafame in the future. Shares in the company have been suspended since 2014.

Source: Mining weekly

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