TALV Talvivaara

RNS Number:2520H
Talvivaara Mining Company Ltd
08 November 2007


                            Talvivaara Mining Company

                               Operational Update


08 November 2007

Talvivaara Mining Company Ltd ("Talvivaara" or "the Company"), the Finnish
mining company with a primary focus on nickel and zinc, is pleased to update its
shareholders on progress with the development programme at its project in
Sotkamo, Eastern Finland. Construction works have reached the scheduled level
for before the winter season. The removal of the overburden at Kuusilampi mine
began on schedule at the end of October.

Highlights include:


   - The construction of the heap, waste dump and other foundations reached
     in September the level scheduled for before the winter season.

   - A water management system and earth works necessary to contain contaminated 
     water have been completed, allowing the removal of the overburden
     at the Kuusilampi mine to begin on schedule at the end of October.

   - All major equipment for the operational phase of the project has now been 
     ordered, is being manufactured and is expected to be delivered well on
     time.

   - Costs remain within budget, but have seen some escalation within planned 
     contingencies.

   - Recent industrial action elsewhere in Finland has not affected the
     Talvivaara operations and the Company's recruitment programme has continued 
     to be successful, with a number of training courses targeted towards the 
     local community already in operation.

   - Mining is planned to start on schedule during April, with first leaching 
     planned to follow in July 2008, and planned production in the fourth
     quarter of 2008.

Pekka Pera, Talvivaara CEO, commented: "I am very pleased with the progress of
our development programme so far, which now puts Talvivaara well on the way to
start production on time, during the last quarter of 2008. Nonetheless, work
will continue at our operations throughout the winter season. The beginning of
removal of the overburden in particular is a significant operational landmark,
which makes us confident that we can continue to deliver on our operational
timetable on time and within budget."



ENQUIRIES


Talvivaara Mining Company Ltd           Tel: +358 20 7129 800
Pekka Pera                              Tel: +358 40 548 3695
Saila Miettinen-Lahde 

Merlin                                  Tel: +44 207 653 6620
David Simonson
Tom Randell
Anca Spiridon



NOTES TO EDITORS
Company Overview


  * Talvivaara and its subsidiary Talvivaara Project Ltd aims to become an
    internationally significant base metals producer with its primary focus on
    nickel and zinc using a technology known as bioheapleaching to extract metal 
    out of low grade ore

  * The Company's main activity is the development and exploitation of two
    polymetallic deposits, Kuusilampi and Kolmisoppi, in Sotkamo, Finland (together,
    the "Talvivaara deposits") using bioheapleaching technology (the "Talvivaara
    Project")

        The Talvivaara deposits comprise one of the largest known sulphide nickel
        resources in Europe with 266 million tonnes of ore in measured and 
        indicated resources

        Resources are sufficient to support anticipated production for a minimum
        of 24 years, expected to start in late 2008, with an expected annual nickel
        output of approximately 33,000 tonnes; the Company has the potential to 
        provide approximately 2.3% of the world's current annual production of 
        nickel by 2010

        In addition to the mining of nickel, as by-products of the process, the
        mine is also expected to produce zinc (approximately 60,000 tpa), copper
        (approximately 10,000 tpa) and cobalt (approximately 1,200 tpa)

        The mine site is situated close to existing energy and transportation
        infrastructure

 * The Group plans to develop the Talvivaara deposits using bioheapleaching
   technology

        Bioheapleaching harnesses locally occurring, live bacteria for the
        extraction of metals from ore

        This technology is already widely used for other metals, notably copper
        and gold

        During the last two years, the Group has demonstrated the viability of
        using bioheapleaching technology for the extraction of nickel in large on-site
        pilot trials

 * The Talvivaara orebody is well-suited for open pit mining due to the thin 
   overburden, favourable resource geometry and a low waste to ore ratio

        The ore has a nickel content of 0.27 per cent. and is well-suited to
        bioheapleaching due to both its high sulphide content and its low pH, which
        enables rapid leaching with reduced need for chemical catalysis

 * The Company has secured a 10-year off-take agreement for 100 per cent.
   of its main output of nickel and cobalt to Norilsk Nickel

 * With good infrastructure, progressive mining laws and economically and
   politically stable operating environment and readily available mining expertise,
   Finland provides a favourable environment for operating a mine



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCUUGMPGUPMGBM

Talvivaara (LSE:TALV)
Historical Stock Chart
From Jul 2024 to Aug 2024

Talvivaara (LSE:TALV)
Historical Stock Chart
From Aug 2023 to Aug 2024