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June 17, 2015

Finland to invest $126m to restructure Talvivaara nickel mine

Finland's Government is set to invest a further €112m ($126m) in restructuring troubled nickel mine Talvivaara.

Talvivaara nickel mine

Finland’s Government is set to invest a further €112m ($126m) in restructuring troubled nickel mine Talvivaara.

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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.

"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."

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.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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