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Poised to end the year with a much lower production than what had previously been reduced, Talvivaara’s Board of Directors revamped its composition resulting in a change of leadership as its Chief Executive Officer was replaced, a day after the Finland-focussed nickel and zinc producer announced the metals recovery plant is still shut following a 10-day leakage of its tailings pond.
In a statement earlier today, Talvivaara took the CEO seat from Harri Natunen, a Master of Science in Materials Science and Rock Engineering holder, following a leakage of the gypsum pond that prompted the company to halt its metals recovery processing operations, risking a further reduction in the year-end production of nickel from its Sotkamo mine in Finland.
Pera Pekka, founder, first CEO, and 20.66% owner of Talvivaara, will replace Natunen effective today, relinquishing his post as the Board’s Chairman, which will be filled in by Tapani Järvinen.
“Both appointments are of interim nature and in force until further notice and at least until the Company’s operations have been stabilized following the recent events,” the company said.
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The Board also established a committee that, according to Talvivaara, will support it and the management “to ensure that similar events as those experienced recently will not be seen in the future and that the measures taken will under all circumstances be appropriate and sufficient.”
Natunen, who spent eight months as CEO since March 2012, will continue to be employed in the company holding “other executive functions”.
Under Natunen’s watch, Talvivaara’s operation was slowed by heavy rains during the spring resulting in a loss of production, prompting the company to reduce its earlier output target by between 32% and 43% to only 17,000 in August 2012.
A leakage near the centre of its gypsum tailings pond on 4th November 2012, however, moved the company to suspend operations of its metals recovery plant to prevent further disposal of waste water reported to be high in metals concentration and harmful to life forms.
The leakage was stopped 10 days after but the Kainuu Centre for Economic Development, Transport, and the Environment has not yet authorised the restart of the metals recovery plant, which the company hinted yesterday may affect production during the last quarter that will ultimately reduce total production by the end of the year.
In the City, Talvivaara’s share price gained a further 7% to 112 pence by 12:30 PM GMT, after adding more than 25% yesterday, following the announcement. Shares are still down 23.2 pence compared to its share price the day before the leakage happened.
