Talvivaara Mining Co. (TALV) slumped the most in almost three months in London trading after saying prices were weak in the first half, forcing the Finnish nickel company to fire as much as 40 percent of its employees.
The producer tumbled 14 percent by the close in the city, the steepest drop since April 8, to 11 pence, the lowest level since the company sold shares to the public in May 2007.
Talvivaara may fire or temporarily lay off as many as 250 of its 600-strong workforce to cut costs, the Espoo-based company said today in a statement. Nickel for three-month delivery on the London Metal Exchange declined 12 percent in the first half from a year earlier to average $16,207 a metric ton.
“The company has invited representatives of employee groups to co-operation consultations in accordance with applicable law,” the nickel mining company said.
Talvivaara, which suffered from excess water at the site of its open-pit mine and an 11-day leak of waste water in November, was forced to cut its output forecast three times last year to about 13,000 tons from an initial estimate of as much as 30,000 tons. In April, it completed a 261 million-euro ($340 million) underwritten rights offer to stave off default and bankruptcy.
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