I have recently been following with great interest the news about Talvivaara Mining Company. My interest might be due to the fact that every summer we spend our vacation about 100 kilometers from the mine in Kuhmo.
Visit Kuhmo’s websites: (http://www.kuhmo.fi/index.asp?language=2)
I know that people in Kainuu live for geographically isolated and the unemployment rate in that area is very high. The unemployment rate is 14.8% in Kainuu (Ely-keskus). In Kuhmo the unemployment rate is the area’s worst 20.8%, and the youth unemployment is over 40% (Yle).
When I heard that the Talvivaara mine operations start, I was very happy. I was happy for the people who live there and they get a job. It was wonderful to note that the technology had advanced so much that it was possible to start the mining, even though the ore concentrations were low in that area.
At the beginning the mine seemed to go just fine but then the problems began. At first the local inhabitants began to pay attention to the fact that water of the lakes began to contaminate. Their eyes turned toward the Talvivaara mine.
Kainuu ELY-centre began to request a review of Talvivaara. It turned out that the mine sulphate and manganese were the causes of water pollution. Inhabitants were suggested to avoid using the water. It is not even recommended for use on the sauna heater. It was quite hard to understand in the area where they use lakewater in the sauna.
Along the winter we’ve been hearing episodes what have happened on the mine like leaks, stink detriment and etc. At last, mine was forced to interrupt its operations. Today, Talvivaara has a blog of its own http://paikanpaalla.fi/ where they inform the company’s environmental issues. I think that the blog is very good.
The Emperor Vespanius once said, “Money doesn’t smell”. Did you know that the phrase related to taxation? More specifically said, Vespanius had got a new idea of a new toilet tax. In Finland a new mining tax has been demanded recently. Because of the causes of Talvivaara environmental hazards (like smell) many politicians have started to demand a new mining law. That’s quite amazing because only two Canadian mines make a positive result in Finland. In Finland, all other mines operating at a loss.
Impressive or not? For me it was!
Last week I got Ahjo-magazine in my hands. There was an article about mines. I browsed through the article and it was very interesting.
Did you know that:
- The first mine was opened in 1525 in Juva.
- We have 13 functional mines in Finland.
- Ore mining industry directly employs over 3000 employees.
- The Ministry of Employment and Economy estimates that in the future the mines employ more than 5000 employees.
- Most of the metal that is mined in Finland processed in Finland.
- Metal refining employees in Finland 16000-17000 employees.
- The mining industry needs machines and equipment and their manufacturing employs more than 5000 people in Finland.
- Metal enrichment means that valuable metals are separated from the ore.
- Metal processing means metal production.
- Ore mining -> Enrichment -> Processing/refining ->Bars, sheets, wires and pipes -> Upgrading products.
- 85% of the car weight are minerals and metals, 39 different.
- One computer includes 31 different metals.
Sulphur not broken 😉
Finnish foundries get their jobs from imports. The value of the import enrichments was 1.9 billion euros in 2011 and the export 100 million euros (Ahjo). Concentrates are shipped to Finland via the Baltic Sea. EU sulphur directive will make more difficulties for Finnish exports and imports even further. The EU has adopted a new sulphur directive, which will raise the transportation costs. The directive will enter into force in 2015. At the time, the ships that pass in the Baltic Sea are allowed to use fuel with a sulfur content of not more than 0.1%. Now the figure is 1%.
You can find the directive from here:
David Marsh says the euro is the world’s second most widely used currency after the dollar. Although the value of the euro against the dollar is at a low level, it does not seem to help exports. The world market prices of metals are very low now.
But one’s sorrow is another’s pleasure. I just read in Helsingin Sanomat, Wärtsilä is a market leader in marine sulphur scrubbers manufacturer and production has just begun. Sulphur scrubbers are used in ships to clean sulphur from discharges.
Have you ever visited the Talvivaara websites? You should. (www.talvivaara.com).
Everyone has heard that Solidium is the biggest shareholder (16.7%) in Talvivaara and the Finnish government owns Solidium. The government goes to the projects that it believes to be profitable in the future (and employees’ salaries are low and directors’ high). But did you know that the households own 47% of the Talvivaara share capital? Even I have been thinking if I should buy them.
I just read a book under the title “A short guide about How to get rich now” the writers Sinkko and Vakkuri. Writers compared the ownership to a baby’s dummy. The dummy represented safety and security against other people and brings security to its owner. This somehow came to my mind when I saw the ownership structure of the Talvivaara.
The value of the share has decreased by more than 90% from € 2.17 to € 0.16. If you are interested in shares, and specifically Talvivaara shares, you should buy them now!