Talvivaara wants uranium license, but needs to avoid bankruptcy first
Finnish nickel miner Talvivaara (LON:TALV), which is seeking permission to begin uranium operations in the eastern region of Sotkamo, has made last-minute changes to its application as it no longer considers the project a priority.
The company, struggling to avoid bankruptcy, told Yle the firm and its staff were “quite hard-pressed now,” so they didn’t want to “take on any more strain if it can be avoided.”
The cash-strapped miner, scheduled to post results on Wednesday, added it was no longer able to afford paying the guarantees required if operations were to begin.
The news caused investors to panic, with a few shareholders selling their holdings On Monday, which sent the stock price down 11.1% to 6.735p.
Talvivaara’s announcement comes on the hills of a series of radioactive leaks at its nickel mine, followed by a suspension of operations and a filing for corporate reorganization.
The firm faces a US$139,000 penalty unless it complies by mid-May.