Finnish Miner Talvivaara Says Close To Bankruptcy

Finland's Talvivaara Mining Company said on Friday it may face bankruptcy following the Finnish government's decision to pull back from a deal relating to a troubled nickel mine in northern Finland. Talvivaara is the former owner of the mine which leaked waste water in 2012 and faced serious production problems, prompting the government to take control of it last year in a bid to protect local jobs and the environment. State-owned Terrafame Mining Company, which currently runs the mine, said on Friday it would back out of a preliminary deal which would have helped step up Talvivaara's debt restructuring. It also demanded Talvivaara immediately pay it 12.8 million euros ($14.3 million) of receivables. "There is a significant risk that Terrafame's demands endanger the continuance of the company's corporate restructuring proceedings and may lead to the bankruptcy of the company," Talvivaara said. Talvivaara deputy CEO Pekka Erkinheimo told Reuters last month the company has been looking to return to business with new mining projects. Read more.
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