HELSINKI: The Government has proposed that an additional 112 million euros be earmarked for Terrafame to enable the wholly state-owned special-purpose company to invest more in acquiring the mining operations of the bankruptcy estate of Talvivaara Sotkamo.
Olli Rehn (Centre), the Minister of Economic Affairs, believes it is vital to find a commercially profitable solution for the troubled nickel mine. “The Government must take a more active role in the mine, but not indefinitely. The mine can’t be left in tatters. A solution to the fate of the company is overdue,” Rehn stated in a press conference on Wednesday.
A complete shutdown of the mine should according to Rehn be avoided by all means possible as it would take seven years and cost the Government 300 million euros. The Government is prepared to invest more in the mining operations due to the failure of Audley Capital Advisors to scrape together the funds it requires to take over the operations with the Finnish Government.
The funds allocated in the supplementary budget draft would not be used to cover the costs of the bankruptcy estate, however, but simply to strengthen the capacity of the Government to invest in the takeover. The Government is looking to encourage investors to participate in the takeover by accepting a larger share of the risks.
