Talvivaara Mining Company Plc: Co-operation consultations concluded
August 21, 2013 - London
Stock Exchange Release
Talvivaara Mining Company Plc
21 August 2013
Talvivaara's co-operation consultations concluded
Talvivaara Mining Company Plc ("Talvivaara" or the "Company") has concluded the co-operation consultations started in July regarding the organizational changes to support the Company's cost reduction and efficiency programme. All three corporate entities, Talvivaara Mining Company Plc, Talvivaara Sotkamo Ltd and Talvivaara Exploration Ltd, and all personnel groups were within the scope of consultations.
In the beginning of the consultations the Company estimated the possible employee impact to be the maximum of 250 terminations of employment and/or temporary lay-offs. Following the consultations the reduction of personnel will amount to a total of 68 employees through terminations of employment and retirement. 29 of the total will be production workers and 39 salaried and senior salaried employees. Also some lay-offs will be implemented. In addition, the employment of 96 employees with temporary contracts shall terminate at the end of the agreed contract period without renewal. The employees with temporary contracts include summer trainees currently working for the Company. The Talvivaara Group currently has approximately 670 employees.
The efficiency measures now agreed are part of Talvivaara's efficiency and cost reduction programme started in June. The cost savings from personnel measures are estimated to amount to approximately EUR 5 million on annual basis and to be realized within the next six months.
To the employees made redundant Talvivaara provides services to support their re-employment.
Talvivaara Mining Company Plc Tel +358 20 7129 800
Pekka Perä, CEO
Saila Miettinen-Lähde, Deputy CEO and CFO
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. Further information can be found at www.talvivaara.com
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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE