Finland Times

Finnish mining company Talvivaara announced on Thursday that its operating subsidiary Talvivaara Sotkamo Ltd has decided to apply for bankruptcy, as no solution was reached in the short-term financing negotiations.

Prime Minister Stubb claimed at the Finnish Parliament on Thursday afternoon that the government will do its utmost to ensure that the mine in Sotkamo, a western town of Finland, can continue to operate under new ownership, reported Finnish national broadcaster YLE.

"We're actively seeking a new operator from the mining industry, which is a solvent and competent operator that will take care of its environmental responsibilities," Stubb was quoted as saying.

Jan Vapaavouri, the  Minister for Economic Affairs, said earlier on Thursday that the state of Finland, which is the biggest owner of Talvivaara with 15 percent of the stock, would lose around 200 million euros , if the company went bankrupt.

In addition, about 700 jobs in Sotkamo will be under threat, because of the bankruptcy.

Vapaavouri urged the local government to prepare for structural adjustment to support the possible job losers, if the company went bust, according to YLE.

Founded in 2004, Talvivaara, which is listed on the London and Helsinki Stock Exchanges, is a mining business operating in Finland with its primary focus on nickel and zinc.

It has been troubled by heavy financial losses, crushing debt and serious leaks causing environmental damage, since it began to operation in 2008.

In September this year, Talvivaara's four executives were charged with environmental crimes.