TALV.L Regulatory News (TALV)

1 Oct 2008 09:40



Talvivaara Mining Company Plc

1 October 2008 

First metal production at the Talvivaara mine on 1 October 2008 on time

Talvivaara produced its first metal sulphides on 1 October 2008 as planned. The start-up of metals production followed the commencement of mining operations in April and materials handling and bioheapleaching processes in July this year. 

The EUR 250 million metals recovery plant is scheduled to produce 33,000 tonnes of nickel and 60,000 tonnes of zinc per annum by 2010. Approximately 60% of the planned volumes, some 20,000 tonnes of nickel and 37,000 tonnes of zinc, is expected to be produced in 2009. 

The successful start-up of metals recovery demonstrates that the entire production process at Talvivaara, including bioheapleaching, is now operational. While the production volumes during the rest of 2008 will remain low in accordance with the plan, the main target over the coming months will be to optimize the various processes for commercially significant production from the beginning of 2009 and beyond.

Talvivaara's CEO, Pekka Perä comments: "I am delighted to have produced our first metal! I would like to thank the whole team responsible not only for getting this far, but also for doing so on time and within budget. We have lots more work ahead as we ramp up to full planned production. For today, however, all the team deserve to feel pride in what we have achieved, building a producing mine from what was little more than an idea less than five years ago."

Enquiries: 

Talvivaara Mining Company Plc  Tel. +358 20 7129 800 

Pekka Perä

Saila Miettinen-Lähde 

Merlin  Tel: +44 207 653 6620  Tom Randell  Maria Suleymanova

Anca Spiridon

Talvivaara 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. Bioheapleaching makes extraction of metals from low grade ore economically viable. The Talvivaara deposits comprise one of the largest known sulphide nickel resources in Europe. The ore body is sufficient to support anticipated production for a minimum of 24 years after the now realized production start-up in October 2008. 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.