Finland Times

Talvivaara's Chief Shop Steward Jukka Vetola at Sotkamo mine gate on 7th August 2015. On Friday. Photo – Str / Lehtikuva.

Terrafame Mining Oy, a subsidiary of the fully state-owned company Terrafame Oy, has entered a purchase agreement of the operations and assets of Talvivaara Sotkamo Oy from its bankrupt estate, said a press release of the Ministry of Employment and the Economy.

The agreement will enable the resumption of Talvivaara’s mining operations under the stewardship of the Terrafame Mining.

 

The mining company and the environmental requirements will improve through, among other things, the launch of the quarry.

The employees at the service of the Talvivaara Sotkamo Oy bankrupt estate will be transferred to the Terrafame Mining company.

The arrangement is expected to be finalised in the middle of August after which Terrafame Mining Oy will become responsible for mining operations at Sotkamo.

The goal of the government is to safeguard the environmental conditions of the mine as well as to attract private funding and ownership in order to create long-term operating conditions.

Talvivaara mining company in Sotkamo on Friday. Photo – Str / Lehtikuva.

“Huge amount of work has been done in recent months to resolve the future of Talvivaara mining operations and the management of environmental situation,” said Olli Rehn, the Minister of Economic Affairs in the release.

Rehn added that agreement is necessary to ensure the long-term management of the mine and in order to kick-start the business operations of the mine.

The launching of the mining operations is essential in preventing environmental damage, Rehn said.

Due to the critical time frame the state committed a supplementary budget in the summer of 2015 in recapitalisation of a new mining company, if possibly singlehandedly, Rehn pointed out.

Terrafame Oy has committed a total of 209 million euros in the mine's ownership and arrangement in participation of financing arrangement of the mine.