Ahtium
File:Talvivaaralogo.PNG | |
Company type | Public (LSE: TALV, Nasdaq Helsinki: TLV1V) |
---|---|
Industry | Mining |
Founded | 2004 |
Headquarters | Espoo, Finland |
Key people | Pekka Perä (Chairman) Harri Natunen (CEO) |
Products | Nickel and zinc mining |
Revenue | €231.2 million (2011)[1] |
€30.9 million (2011)[1] | |
€(5.2) million (2011)[1] | |
Website | www.talvivaara.com |
Talvivaara Mining Company plc (Finnish: Talvivaaran Kaivososakeyhtiö Oyj) is a Finnish-based nickel mining business operating in Finland. Listed on the London and Helsinki Stock Exchanges, the company is a constituent of the FTSE 250 and OMXH25 indices.
History
The deposits, Kuusilampi and Kolmisoppi, were originally discovered in 1977, by the Geological Survey of Finland (GTK). Although the deposit was large, it was considered too poor for existing technology. Only bioheap leaching could concentrate the nickel enough, but the technology was still untested. The mining rights were eventually obtained by Outokumpu Corporation, which sold them at a nominal price of two euros to a former employee, Pekka Perä. The Talvivaara Mining Company was established in 2004 when it acquired the rights to mine sites at Sotkamo in Eastern Finland from Outokumpu. In 2006 a metals recovery trial was completed and the necessary financing was secured.[2] Perä proceeded to list the company in London Stock Exchange in 2007 and later to Helsinki Stock Exchange in 2009.[3]
The appropriate permits to commence mining were obtained in 2007 and metals production started late in 2008.[4] The construction of the mine cost 560 million euros in 2007–2008, and an additional 22 million from HEX in 2009 enabled investments that increased production by 45%.[5]
In 2010 the company announced the commencement of uranium production as a by-product from its normal mining operations in Sotkamo. The uranium produced will be in the form of yellowcake with an estimated annual production of approximately 350 tons. At a yellowcake price of $40/lb the uranium production could result in an additional €20m annual revenue. The capital investment costs were €30m and estimated annual production costs are €2m.[6] The resulting uranium production is estimated to meet 80% of Finland's annual uranium demand, although reprocessing and enrichment would be required to be conducted abroad, and would effectively double the production of uranium in the EU.[7] Currently, the uranium is deposited into the gypsum pond.
State support and control
In the Talvivaara startup were present three ministers of Centre Party of Finland environmental minister Paula Lehtomäki 2007-2011, Minister of Trade and Industry Mauri Pekkarinen and prime minister Matti Vanhanen.[8] Family of Paula Lehtomäki (mother, husband and two underaged children) acquired Talvivaara stocks a few weeks before its announcement of uranium. Husband of environmental minister Paula Lehtomäki had €270,000 ownership in Talvivaara.[9] Paula Lehtomäki assigned the controlling authority Mr Kari Pääkkönen as director of the local environmental office in 1.11.2007.[10]
Finnish state owns 8.89 % of Talvivaara. In addition, the pension funds Ilmarinen, Varma and pension fund of state and municipal sector have stocks. Minister of Economic Affairs (Finland) Jyri Häkämies National Coalition Party (concervative) have been responsible for control. Häkämies resign the minister vacancy on 19h November, 2012 to join Confederation of Finnish Industries.[11]
Sales
Norilsk Nickel, the world's leading producer of nickel, has made a 10-year contract with Talvivaara Mining Company to purchase the latter's entire output of the nickel and cobalt production at market prices.[12]
Operations
Location | |
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Location | Sotkamo |
Country | Finland |
Production | |
Products | Nickel, Copper, Zinc, Cobalt |
Owner | |
Company | Talvivaara Mining Company |
The Talvivaara mine is one of the largest nickel mines in Finland.[13] The mine is located in Sotkamo in Eastern Finland and employs 400 people.[14] It is an open-pit mine, 22 km from Sotkamo and 28 km from Kajaani. The mine consists of two deposits 3 km apart, Kuusilampi and Kolmisoppi,[15] and has an annual production capacity of over 10 million tonnes of ore. The mine has reserves amounting to 1 billion tonnes of ore grading 0.22% nickel, 0.13% copper, 0.5% zinc and 0.02% cobalt thus resulting 2.2 million tonnes of nickel, 1.3 million tonnes of copper, 5 million tonnes of zinc and 0.2 million tonnes of cobalt.[13] 90% of the nickel is deposited in black schist rock, which contains 31% sulfides, most of which consist of iron sulfide minerals. Nickel-bearing sulfide minerals pentlandite, altered pentlandite and pyrrhotite are present in low concentrations, but are accessible by bioheap leaching.[16]
The metals are extracted by bioheap leaching, a method where natural bacteria living in the rock accelerate metal leaching by oxidation. In conventional leaching, a coat of porous sulfide rock is left behind on the shrinking core of nickel in the grain. In contrast, in bioheap leaching, the oxidation of sulfides causes eventual disintegration of the porous rock, exposing more area than achievable by chemical means only. The ground ore is built into heaps 1.2 km long and 400 m wide, and a recycling irrigation system is used to keep the grains wet. The heat produced by the bacterial oxidation keeps the heap warm throughout the year. Extraction is done twice in primary and secondary heaps.[16] In a pilot heap, over 90% of nickel and 80% of zinc was recovered within 500 days of leaching. Cobalt and copper recoveries were lower, 14% and 2%, respectively.[16] The resulting green-colored solution is then refined to the metals.[17][18] Treatment with hydrogen sulfide precipitates copper sulfide, then zinc sulfide and finally nickel-cobalt sulfide.[16]
In 2011 Cameco signed an agreement with Talvivaara, where Cameco would pay US$ 60 million to construct a uranium extraction circuit at the mine in Sotkamo. Talvivaara would then pay back the initial construction costs in the form of uranium concentrate; once the initial costs are paid Cameco would continue to purchase the uranium concentrate at a pricing formula based on market price on the day of delivery.[19]
A railway track was built in order to transport the nickel-cobalt concentrate to a Norilsk Nickel smeltery in Harjavalta, Finland.
Environmental impacts
The operation has caused controversy because of its environmental impacts. Sulfate concentration in the effluent (8000 mg/m3) has exceeded the permitted levels (130 mg/m3), causing severe pollution in the water course.[20] Insufficient mixing caused the formation of an artificial halocline in a lake where effluent was discharged, which led to the lake bottom becoming anoxic.[21] Reduction of sulfate into hydrogen sulfide by bacteria caused odour problems. Also, dust emissions are reported. The case is currently under police investigation.[22]
MEPs Sirpa Pietikäinen and Satu Hassi have asked the EU to examine whether Finnish officials have adequately monitored discharges from the Talvivaara mine.[23] Both say that environmental officials have not efficiently taken issue with the violations, and have thereby violated Finland’s EU obligations.[24] Minister of the Environment Ville Niinistö indicated that the state may intervene the operations unless the environmental impacts are brought under control.[25] The European Commission launched an investigation in June 2012 into how Talvivaara will comply with EU directives on mining waste.[26] The Government of Finland responded in October 2012 with the conclusion that the local state authority, the Kainuu ELY Centre, has adequately monitored Talvivaara's operations.[27]
Unfortunately, in November 2012, there was a major leak from the gypsum waste pond, which is contaminated with nickel, uranium and other toxic metals.[28] Finland's Environment Minister visited the site, after calling it "a serious environmental crime". The mining firm posted a 4.3 million euro loss in the third quarter of 2012, blaming weak output and low nickel prices. On the same day, Finland's largest newspaper, Helsingin Sanomat, published an editorial column that labeled the company "a large-scale failure, that casts a shadow on the efficiency of the Finnish society as a whole", criticizing Finnish officials for not taking administrative action against the mining company for its environmental problems.[29]
The Talvivaara waste water pond leaked uranium and other toxic metals into the environment. Earlier than normal winter conditions provide an additional challenge to manage this problem. Freezing temperatures should help solidify the dams that are being built for the winter, but this temporary advantage will be lost in the spring. Teams of army conscripts and local volunteer firefighters continue to work with the company around the clock. Helicopters are in use, in addition to large-scale earth-moving equipment. About 200 people continue to be involved in the hasty repair effort[30] According to the company, the leak has been stopped.[31]
Finland's Permanent Secretary at the Ministry of Employment and the Economy informed that the company's operations cannot continue before further studies are completed. He said that results from waste water samples indicate that the environmental permits issued were not in line with its current operations. The Safety Investigation Authority, a government agency responsible for investigation of major accidents, has started an investigation about Talvivaara.[32][31]
The government agency Finnish Environment Institute (SYKE) determined that the individual metal plumes released into Lumijoki are concentrated enough to cause local fish kills far downstream. The largest problem is accumulation of aluminum into the gills, but nickel, zinc, cadmium and uranium are also expected to cause ichtyotoxicity. However, no prohibitions of fishing have been imposed, because aluminum and cadmium only accumulate in parts that are discarded as offal (gills and livers, respectively).[33][34][35] The Finnish National Institute for Health and Welfare (THL) has declared that waste water leaked from the Talvivaara mining "has no immediate serious effects on human health".[36] The Finnish Radiation and Nuclear Authority (STUK) reported uranium levels 3.5 times higher than the recommended limit of 100 micrograms per liter, but not high enough to be acutely dangerous to humans.
The mining company's CEO Harri Natunen stated that "We have [a] legally mandated liability insurance that covers expenses if we’re unable to pay". [37] It was not clear, however, if all cleanup expenses would still by covered if the company went into bankruptcy. Natunen also stated that the risk for future leaks would be eliminated. He further promised that the leak at the mine would be its last. Local weather conditions have continued to improve this week, which should allow work crews to carefully inspect the repairs, and provide evidence based evaluations of the current situation. Preventative aerial application of lime has commenced, to curtail the spread of the toxic metal plume in the naturally acidic soil of the region.[38]
Safety at work
At the beginning of 2012, an employee was killed in Talvivaara's Sotkamo site.[39] Preliminary reports say that the death was caused by a lethal concentration of hydrogen sulfide in the air.[40] Authorities shut the plant down temporarily until some rudimentary safety mechanisms were installed. The plant was later cleared to continue operation.
Later hydrogen sulfide poisoning was confirmed the cause of death of the worker. According to The Finnish Safety and Chemicals Agency (Tukes) deficiencies in the planning and safety control of the plant for the metal recovery were the cause of the accident. A lethal concentration of hydrogen sulfide was released outside the leach residue pond of the metal recovery plant. The mining company had already before noticed the hazard, but the reasons for increased concentrations of hydrogen sulfide were not found out systematically. Shortage of defining responsibilities, flow of information, operations and working habits of the organisation were also discovered in the investigation of Tukes. [41]
References
- ^ a b c "Preliminary Results 2011" (PDF). Talvivaara Mining Company. Retrieved 14 April 2012.
- ^ Talvivaara Mining Company Ltd. announces successful completion of a €33 million private placement financing round
- ^ Talvivaara applies for secondary listing on the NASDAQ OMX Helsinki
- ^ Talvivaara produces first metal on schedule
- ^ Manninen, Kari: Kaivosyhtiöt hakevat lisärahaa kestääkseen nousukauteen. Savon Sanomat, 8.5.2009, s. 17.
- ^ Talvivaara Mining Company plc announces recovery of uranium as a by-product
- ^ Helsingin Sanomat Kuukausiliite 3/2010 page 41
- ^ Talvivaara on kansallinen projekti
- ^ 12.11.2012
- ^ Talvivaara on kansallinen projekti
- ^ [1]
- ^ "About Talvivaara". Talvivaara Mining Company. Retrieved 2009-08-06.
- ^ a b "Geology". Talvivaara Mining Company. 2010. Retrieved 2010-08-30.
- ^ "Operations". Talvivaara Mining Company. 2010. Retrieved 2010-12-27.
- ^ Talvivaara - Kuusilampi, Kolmisoppi mineinfo database
- ^ a b c d Bioheapleaching of Black Schist Hosted Nickel Copper Cobalt Zinc Ore
- ^ YLE: Prisma Studio 29.1.2011
- ^ Talvivaara Black Schist Bioheapleaching Demonstration Plant
- ^ "Cameco logs net earnings of $207 million in Q4 on $673 in revenue". Canadian Press. Retrieved 2011-02-12.
- ^ "Talvivaara ylittää sulfaattipäästörajat rajusti (Talvivaara drastically exceeds sulfate discharge limits)". Helsingin sanomat. Retrieved 2011-11-10.
- ^ Chemicals from mine contaminate lake Helsingin sanomat
- ^ "Talvivaaran kaivoksen päästöt rikostutkintaan (Talvivaara mine discharges under criminal investigation)". Helsingin sanomat. Retrieved 2011-11-10.
- ^ "Demonstrators protest against Talvivaara mine". YLE. Retrieved 2012-04-26.
- ^ "Lakes near Talvivaara mining complex serving as sulphate drains - Two Finnish MEPs appeal to Commission over continued toxic emissions". Helsingin Sanomat. Retrieved 2012-04-27.
- ^ "Minister warns of state intervention at Talvivaara". YLE. Retrieved 2012-05-01.
- ^ "EU probes Talvivaara's environmental record". YLE. Retrieved 2012-07-15.
- ^ http://paikanpaalla.fi/ym-eu-komissiolle-talvivaarasta-valvontasysteemi-toimii-ja-paastoissa-huomattavaa-edistysta/
- ^ http://www.hs.fi/kotimaa/Talvivaara+Vuoto+on+osittain+tyrehtynyt/a1305613598291
- ^ Mukka, Antero (8 November 2012). "Kolumni: Talvivaara on suuren luokan epäonnistuminen". Helsingin Sanomat (in Finnish). Sanoma. Retrieved 8 November 2012.
- ^ http://yle.fi/uutiset/talvivaara_waste_water_pond_still_leaking/6371489
- ^ a b http://www.hs.fi/kotimaa/Onnettomuustutkintakeskus+aloitti+Talvivaara-tutkimukset+/a1305616294416
- ^ http://www.turvallisuustutkinta.fi/Etusivu/1347273387211
- ^ http://www.ymparisto.fi/default.asp?contentid=423950&lan=fi&clan=fi
- ^ http://www.hs.fi/kotimaa/Ymp%C3%A4rist%C3%B6keskus+Talvivaaran+Lumijoen+metallipitoisuus+eli%C3%B6ille+myrkyllisell%C3%A4+tasolla/a1305615994579
- ^ http://yle.fi/uutiset/more_heavy_metals_found_in_waters_around_talvivaara/6375294
- ^ http://yle.fi/uutiset/thl_talvivaara_leak_has_no_serious_health_effects/6373462
- ^ http://yle.fi/uutiset/talvivaara_we_will_pay_for_the_damage/6373876
- ^ http://www.iltasanomat.fi/kotimaa/art-1288516403311.html
- ^ "Police investigate Talvivaara environmental impact report". Helsingin Sanomat. Retrieved 2012-04-14.
- ^ http://www.iltalehti.fi/uutiset/2012051115562418_uu.shtml
- ^ "Talvivaaran työtapaturma johtui turvallisuushallinnan puutteista". YLE. Retrieved 2012-07-15.