Ahtium (known until 2017 as the Talvivaara Mining Company; ) was a Finnish mining company that operated the Talvivaara nickel mine from the company's establishment in 2004 until the mining business was sold to the state-owned in 2015.
Formerly listed on the London and Helsinki Stock Exchanges, the company was a constituent of the OMXH25 index. Its mining business, Talvivaara Sotkamo, went bankrupt in November 2014, and it is bound for liquidation, with at least 98% of equity lost, and €1.4 million debt outstanding. The mine had suffered several leaks of toxic metal-contaminated tailings, which had threatened local waterways. Members of the management were charged with criminal environmental offenses. There has been considerable government involvement, with the Government of Finland being the largest single owner through their investment company Solidium. In 2015, the newly established government-owned corporation Terrafame bought the mining business of Talvivaara. Since February 2017 Terrafame, operating the Talvivaara Mine, have new owners from Singapore Trafigura and its Galena Asset Management.
Ahtium filed for bankruptcy in March 2018.
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. Perä proceeded to list the company on the London Stock Exchange in 2007 and later on the Helsinki Stock Exchange in 2009. The firm was delisted from the London Stock Exchange in 2014, this was to reduce costs according to information on their website.
The appropriate permits to commence mining were obtained in 2007 and metals production started late in 2008. 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%.
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. 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. Currently, the uranium is deposited into the gypsum pond.
Government involvement
The Government of Finland owns 8.89% of Talvivaara, and additionally, the pension funds Ilmarinen, Varma and Keva (the public sector pension fund) own stock. The Minister of Economic Affairs is responsible for management of the stock. The previous minister, Jyri Häkämies (NCP), resigned in 2012 and was appointed as the new CEO of Confederation of Finnish Industries. The government supported the mine project by building 60 million euros worth of infrastructure.
In the Talvivaara startup were present three ministers of Centre Party of Finland: Minister of Environment Paula Lehtomäki 2007-2011, Minister of Trade and Industry Mauri Pekkarinen and Prime Minister Matti Vanhanen. The family of Paula Lehtomäki (mother, husband and two underaged children) acquired Talvivaara stock a few weeks before the announcement of uranium production plans. Minister Lehtomäki's husband owned €270,000 worth of Talvivaara stock. The director of the Kainuu environmental office was appointed by Minister Lehtomäki in 2007.
Finnish state ownership
Solidium is 100% Finnish state owned unit that controls 11 state owned stock companies. According to Solidium in November 2012 the state ownership in Talvivaara was 8,9 % with value of €31 million. In April 2013 state invested €47 million more. The state ownership is 16.7% with value of €60 million. Finnish state has no members in the Talvivaara board of directors.