Shareholders at Talvivaara Raise Cash for Mine
Talvivaara, the nickel mining company from Finland has asked its shareholders for Eur261 million to pay for the cost of keeping the mine running in light of its penalties from a waste water leak incident. Shareholders have responded positively, putting up the funds to keep its Sotkamo mine up and running.
As a result, share prices increased by 2% in both Helsinki and London bourses. The funds were raised through a heavily discounted sale of shares to the public. This though has kept analysts wary if the company would able to sustain its operations and even break even as constant production problems and low nickel prices compound the issue with its clashes with environmentalists.
The mine was hailed as the first ever to use bacteria to extract nickel from rock in a process named bioheapleaching. This process, despite its hype, has proven to be a disappointment to its investors. The mine reported an operating loss of Eur57 million after the waste water leak last November as well as a worker death and excess rain water flooding the mines.