Finland Times

 In Talvivaara's own estimates, the company's liquidity position has weakened more than anticipated, said an official press release.

Vapaavuori said that the financial difficulties stem from the company's incapability of raising its nickel production volumes to a profitable level, the decline in nickel prices on global markets and failure to manage its environmental issues.

“ During the year, Talvivaara has shown positive development towards solving its environmental problems, even though there area still considerable challenges to tackle with,” said Vapaavuori, adding that steps have been taken to improve the production process. 

He said that the drying up of cash reserves that has continued throughout the year has led to a situation in which, according to its own announcement, Talvivaara's future operations require special measures.

Vapaavuori said that public debate in recent times has emphasised the state's ownership role in the company. 

He pointed out that the state has a considerably more comprehensive interest in the company which is independent on the ownership structure.

“ Talvivaara is a significant employer, both directly and indirectly. The company is important both regionally and in terms of economic policy. In addition, the company's operations have certain environmental dimensions of relevance,” said the minister, adding that all in all, it is natural that the state has kept a close eye on the company's financial development and taken part in related debates.

Vapaavuori, who is responsible for the comprehensive coordination of state interests in relation to this company, confirmed that financial talks are being held as the company announced.

“ The state has actively participated in the talks aiming at finding a financial solution that would ensure the continued operation of the company and provide adequate resources to environmental risk management,” said the minister, adding that this requires a market-based solution, in which both private sector actors and the state participate on an equal basis in the implementation of the financial solution. 

As pointed out by the company itself, there is no certainty that such a solution can be found.

Vapaavuori also said that, due to Talvivaara's role as a publicly listed company, representatives of the state cannot, in further detail than this, comment any questions relating to the situation of the company, the ongoing financial talks or the state's role in the company's future.