Finland-based nickel and zinc miner Talvivaara Mining Company Plc announced on February 14 that its nickel production fell 19.7 percent year on year in 2012 to 12,916 mt. Talvivaara produced 2,317 mt of nickel in the fourth quarter of 2012, down from the 4,769 mt recorded in the same quarter of the previous year. The company said that its metal production was impacted by the gypsum pond leakage in November and the continuing challenging water balance situation throughout the quarter.
Talvivaara's net sales in 2012 amounted to €142.9 million, falling 38.2 percent year on year, while the company announced an operating loss of €83.6 million, down from the operating profit of €30.9 million in 2011.
Talvivaara said that the company anticipates producing approximately 18,000 mt of nickel in 2013. Commenting on the annual financial results, company CEO Pekka Perä said, "We expect to continue to see the water balance issues impacting our production in the coming months, and our nickel production target for 2013 reflects a more material production ramp-up only during the second half of the year."
Meanwhile, Talvivaara expects volatility to remain high in the near term, and nickel price development to be driven by global growth prospects and anticipated Chinese commodity demand in particular. The company noted that the longer-term nickel price support level may trend at around $20,000/mt.