Off the wire
• UN asks people with diabetes to pay attention to eye protection  • 2016 APEC Economic Leaders' Week kicks off in Peru  • Gold down on continued reaction to U.S. election  • Study identifies health risks of "repetitive thought" about work-family conflict  • Year 2016 on track to be hottest on record: UN agency  • Dow extends its record run to third straight session  • EU ministers agree on security, defense plan  • Number of foreign students receiving U.S. higher education tops one million  • Oil prices extend losses amid supply glut concerns  • Obama says U.S. president-elect Trump committed to NATO despite campaign rhetoric  
You are here: 　 Home

Finland not to close troubling major nickel mine

Xinhua, November 15, 2016 Adjust font size:

Finnish Prime Minister Juha Sipila said on Monday the ailing nickel and zinc mine in Sotkamo, northeastern Finland, would not be shut down.

The premier made the remarks during his visit to the mine, which has been operated by state-owned company Terraframe following the insolvency of the earlier operators in 2014.

The latest decision was a nearly total turnaround as the primary alternative was to close the mine half a year ago.

Sipila said the government would not accept a bad deal with an outsider, and had no plan ready for disengaging from the mine.

Last Friday, the government said it would contribute a further hundred million euros to keep the mine operator afloat until new private investors for the company are found.

Olli Rehn, Minister for the Economy, told media that the environmental risks of the operation were low and operational uncertainties were diminished.

Biological heap soaking method was adopted when the Talvivaara mine started operation in 2008. The method had worked well in warmer climates, but encountered problems in northern Finland.

The mine then experienced severe environmental problems as waste water contaminated nearby lakes.

Media reports indicated positive development in efforts to find private investors, but officials refused to mention any names in order not to disturb the talks. Rehn said financing would be assured by the end of this year.

Rehn also pointed out that the economic impact of the mine for the province of Kainuu is tangible. The mine at Talvivaara and its services used to generate 10 percent of the GDP of the area.

Local media noted that over 800 million euros of Finnish public money has been used to keep Talvivaara in operation. This means that each resident of Finland, irrespective of age, has spent 145 euros.

Lauri Ratia, Chairman of Terraframe said the world price of nickel has increased essentially this year. He said the extended government financing will make it possible to carry out talks with potential investors.

The mine is currently running at a loss of ten million euros per month, but Ratia assured the cash flow would be positive in 2018. Endit