Finland’s Government is set to invest a further €112m ($126m) in restructuring troubled nickel mine Talvivaara.
Reuters quoted a minister saying that the government’s latest decision comes after a potential buyer could not arrange financing.
The parent company of the troubled mine Talvivaara is going through debt restructuring, while its key subsidiary Talvivaara Sotkamo, which owns the mining assets, applied for bankruptcy protection in November 2014 over weak nickel prices.
Finland’s funding to create a new company around the mine follows a promised €97m that was announced earlier.
In March, British investment firm Audley Capital Advisors signed a conditional agreement to acquire Talvivaara’s nickel mining operations in Sotkamo, eastern Finland from its Bankruptcy Estate.
Through its wholly owned company Terrafame, Finland, also signed an investment agreement with Audley.
Under the agreement, the Audley Consortium will become the lead investor and operator by owning 85% ownership interest in the new mining company, with the remaining 15% owned by Finland.
Finland Minister of Economic Affairs Olli Rehn told in a news conference that in case the government fails to find a commercially viable solution it plans to shut the mine in the north of the country.
If the mine closes, funding would be used to cover the costs.
Image: Aerial photograph of Talvivaara mine in Sotkamo, Finland in June 2013. Photo: courtesy of Antti Lankinen.