Finnish nickel mine attracts Norilsk interest

Finnish nickel mine attracts Norilsk interest

Listing-candidate Talvivaara Mining’s planned nickel mine in Finland has drawn interest from two mining giants, Canada’s Inco and Russia’s Norilsk Nickel , a Finnish newspaper reported on Tuesday.

Norilsk Nickel, the world’s largest producer of the metal, has been in talks with Talvivaara’s management and is following progress on the new mine, business daily Kauppalehti quoted Norilsk’s investor relations director, Dmitry Usanov, as saying.

Norilsk spokeswoman Yelena Kovalyova said the company held open dialogue with all major nickel producers with a view to potential cooperation.

“Talvivaara is no exception. We consider the information that has appeared to be a rumour, and we do not comment on rumours,” she said.

Inco declined to comment on the report.

Talvivaara Mining Chief Executive Pekka Pera also declined to comment, but said the company was proceeding with its plans to list on the London Stock Exchange.

The firm said in March it was planning to raise about 100 million euros ($127 million) through an initial public offering in October or November.

Pera said at the time the capital raised would be used to build a new nickel mine in Sotkamo, eastern Finland.

The new mine is expected to cost around 350 million euros and to open by 2008. Annual nickel production from the mine is forecast to be more than 30,000 tonnes.

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