Talvivaara Uranium Permitting Update: licence granted by Finnish Government to extract Uranium as a by-product
Stock exchange release
Talvivaara Mining Company Plc.
1 March 2012
Uranium Permitting Update
Talvivaara granted licence from the Finnish Government to extract Uranium as a by-product
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") is pleased to announce that it was granted licence today to extract uranium as a by-product from its existing operations following the decision of the Finnish Government, issued on 1.3.2012 pursuant to the Nuclear Energy Act. The permit is valid throughout the life of the mine, however, no longer than until the end of 2054.
Talvivaara's aim is to start uranium recovery in 2012, as soon as it has all the necessary permits. The start of uranium production is further subject to, among others, Environmental Permit approval and chemical authorisation. The Environmental Permit application for uranium extraction was submitted to the Regional Environmental Permitting Agency in March 2011 and the decision on the permit is expected during Q2 2012. The construction permit for building a recovery plant was already granted to the Company last year. The Finnish Government decision follows European Commission approval for Talvivaara's off-take agreement with Cameco in November 2011 and confirmation from the European Commission under the terms of the Euratom Treaty in January 2012.
Pekka Perä, CEO of Talvivaara, commented: "We are very pleased to have been granted this licence, which is not only a further step towards uranium production at Talvivaara, but also a confirmation that our recovery process meets the highest safety and environmental standards. These standards were a key consideration for us at every step of the planning process and will continue to be so when production is under way. We look forward to the next stage in our strategy of maximising value from the Talvivaara ore."
About Talvivaara's Uranium Recovery Process
Uranium occurs naturally in small concentrations in the Talvivaara area. During Talvivaara's main production process, uranium leaches into the process solution. The recovery of uranium can be adapted to Talvivaara's existing production process by adding a safe and simple solvent extraction process to allow the recovery of the intermediate uranium oxide, also known as Yellow Cake.
Talvivaara estimates that it will produce 300-350tpa of uranium. Safety has been paramount in planning the simple, closed and automated recovery process, which will take place indoors and at low temperatures. The process will be linked to a multiple warning and alert system; in addition, detailed contingency plans will be drawn up for any emergency situations and accidents. No pollutants will be discharged into waters during the recovery process. The uranium will be stored in airtight and durable steel containers and transported abroad for further processing, subject to appropriate supervision. The uranium will be purchased by the Canadian company Cameco Corporation, which will process the uranium further into nuclear fuel to be used in nuclear power plants.
Talvivaara will invest EUR 45-50 million in the recovery of uranium, of which Cameco will cover a maximum of USD 60 million in the form of advance payments. The construction phase will create several hundred jobs, and after completion the recovery plant will employ 20 people directly and an additional 50 indirectly.
Several Finnish and international authorities and organisations who oversee the safe and peaceful exploitation of nuclear power were involved in granting Talvivaara's uranium recovery permit. Talvivaara's process complies with the regulations concerning the safety and related monitoring of operations issued by the Radiation and Nuclear Safety Authority of Finland (STUK), and the Finnish Safety and Chemicals Agency (Tukes), as well as state health and safety and environmental authorities. In addition, the operations will be monitored by the European Atomic Energy Community (EURATOM) and the International Atomic Energy Agency (IAEA).
The organisations involved in the permitting were supportive of the recovery of uranium. It is the view of the Finnish Government that environmental protection was fully taken into account in planning the extraction plant and that recovery will be at least as safe as allowing the uranium to remain in the mine tailings. According to Tukes, the safe recovery of uranium may even increase the overall safety of operations, since there is less uranium directed to the mine's waste and products. In the opinion of the Centre for Economic Development, Transport and the Environment for the Kainuu region, it can be assumed that the environmental effects arising from uranium in the target area are less significant than those resulting from not pursuing the undertaking. The European Commission estimates that Talvivaara's uranium production may increase the security of the EU nuclear fuel supply.
Uranium recovery will enable more efficient use of the Talvivaara deposit, through a responsible process which is fully compliant with the terms of the Finnish Mining Act. If uranium was not recovered from the process solution at Talvivaara, it would end up in the end-products or in waste. Uranium will only be a by-product of the Talvivaara mine, whose main products will continue to be nickel and zinc. Talvivaara will not excavate any ore for uranium production only or become a uranium mine.
ENQUIRIES
Talvivaara Mining Company Plc Tel. +358 20 7129 800
Eeva Ruokonen, Chief Sustainability Officer
Kari Vyhtinen, Chief Investment Officer
Lassi Lammassaari, Chief Operations Officer
Merlin PR Tel. +44 207 726 8400
David Simonson
Anca Spiridon
Talvivaara Mining Company Plc
Talvivaara Mining Company is 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 estimated to support anticipated production for several decades. 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 entered into 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.
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