STOCK EXCHANGE RELEASE
Talvivaara Mining Company Plc 9 February 2010 at 8.00a.m Finnish time, 06.00a.m
UK time
Talvivaara to investigate the recovery of uranium as a separate product from its
ore body
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") is planning to
initiate the recovery and exploitation of uranium, obtained as a by-product of
other metals, in the form of a uranium intermediate, yellow cake.
Natural uranium is a commonly occurring element which is also present in low
concentrations in the Talvivaara ore body. In Talvivaara's bioheapleaching
process, small concentrations of uranium leach into the process solution along
with the Company's main products. Talvivaara is now investigating the potential
to modify its production process so that the uranium contained in the solution
can be utilised as yellow cake. In the Company's present production process,
extremely small concentrations of uranium are deposited in an engineered gypsum
pond intended for process precipitations.
The Company plans to recover the uranium from its main leaching process by using
a safe and technically simple solvent extraction process which is widely applied
to metals recovery. This process modification will not alter discharge levels or
other environmental impacts of the operations, as defined in Talvivaara's
current Environmental Permit. Talvivaara has drawn up tentative process plans
in cooperation with Outotec Oyj and Norilsk Nickel Harjavalta Oy.
In the Talvivaara area, the bedrock and nickel ore naturally contain uranium.
However, surveys conducted by the Geological Survey of Finland have not revealed
any abnormal radiation levels, with all measured values reported by the Finnish
Radiation and Nuclear Safety Authority (STUK) within normal background radiation
levels. Radiation levels of natural uranium will not change during the solvent
extraction process.
Talvivaara is currently preparing necessary documentation for permit
applications and continuing its investigations relating to the utilisation of
uranium.
The planned investment in the solvent extraction plant is estimated at
approximately EUR 30 million. Annual production costs are estimated at
approximately EUR 2 million and the annual production volume is estimated at
approximately 350 tonnes. The extraction plant is expected to employ around 20
people directly and some 50 people indirectly. Talvivaara is currently in
discussions with leading companies in the industry regarding a potential
cooperation for this project, after which its final financing and operating
model will be determined.
The uranium oxide generated in the solvent extraction process will be packaged
in airtight steel containers and transported for further processing, subject to
appropriate supervision. The product purchaser will handle the further
processing into nuclear fuel abroad, since Finland does not currently have any
conversion or enrichment plants for uranium. Production is controlled by strict
national and international regulations and continuous monitoring which guarantee
safe operation. The volumes produced by Talvivaara would make Finland almost
self-sufficient with respect to uranium.
CEO Pekka Perä commented: "The current project looks at exploiting valuable
metals present in our ore body as by-products, as provided for by the Finnish
mining legislation. The development of our solvent extraction method
demonstrates the innovative skills of our internal team and of our partner
organisations and is a perfect fit with our strategy of carefully recovering
precious and useful substances from our ore.
The recovery of uranium is a major achievement for both Talvivaara and its home
province, Kainuu, further increasing the value, importance and vitality of this
project."
Enquiries:
Talvivaara Mining Company Plc. tel. +358 20 712 9800
Pekka Perä, CEO,
Saila Miettinen-Lähde, CFO
Lassi Lammassaari, Chief Operations Officer
Press conference (in Finnish)
Time: Tuesday 9 February 2010 at 2.30 p.m.
Location: Scandic Kajanus, Meeting Room 3
Present: Talvivaara representatives
Pekka Perä, CEO
Eeva Ruokonen, Chief Sustainability Officer
Lassi Lammassaari, Chief Operations Officer
Local briefing event for citizens of Talvivaara's neighbouring region:
Time: Wednesday 10 February 2010 at 7.00 p.m.
Location: Sokos Hotel Vuokatti, Auditorium
Present: Talvivaara representatives
Pekka Perä, CEO
Eeva Ruokonen, Chief Sustainability Officer
Lassi Lammassaari, Chief Operations Officer
Heikki Kovalainen, Environmental Manager
Experts
Esko Ruokola, Chief Specialist, Radiation and Nuclear Safety Authority (STUK)
Dina Solatie, Head of Laboratory, Radiation and Nuclear Safety Authority (STUK),
Regional Laboratory of Northern Finland
Olli Äikäs, Geologist, Geological Survey of Finland
Presentation and backgraound information: www.talvivaara.com
Talvivaara Presentation:
http://www.talvivaara.com/files/talvivaara/Uranium/Talvivaara_Uranium_presentati
on_09_02_2010_ENG.pdf
Talvivaara Mining Company Plc.
Talvivaara Mining Company 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 metals out of 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 at least 46
years. Talvivaara has secured a 10-year off-take agreement for 100 per cent of
its main output of nickel and cobalt to Norilsk Nickel and signed a long-term
zinc streaming agreement with Nyrstar NV. Talvivaara is listed on the London
Stock Exchange Main Market and NASDAQ OMX Helsinki and is included in the FTSE
250 Index. Further information can be found at www.talvivaara.com.
[HUG#1382004]
