Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Mining Company Plc plans rationalization of its operations

Stock Exchange Release
Talvivaara Mining Company Plc
15 November 2013



               Talvivaara plans rationalization of its operations



Talvivaara  Mining Company Plc ("Talvivaara" or  the "Company") plans changes in
the  group's organization  to support  the Company's  reorganization program and
rationalization  of operations.   Talvivaara believes  that the  planned actions
will  accelerate the efficiency programme started  last summer. The actions will
also  increase productivity  and, together  with a  short term  shut-down of the
metals   recovery   plant   and  reduction  of  outsourcing,  lower  operational
expenditure  and help  create an  organization that  better reflects the current
situation of the group.

Talvivaara  estimates that the  planned changes may  cause redundancies, lead to
part-time  employments and/or lay-offs and may have employee impact on the whole
staff.  The  Company  has  invited  employee  representatives  to  consultations
according  to  the  applicable  legislation.  All  Talvivaara  group  companies,
Talvivaara Mining Company Plc, Talvivaara Sotkamo Ltd and Talvivaara Exploration
Ltd, are within the scope of the consultations. The possible employee impact per
employee  group will  be defined  during the  consultation process.  The group's
current headcount is approximately 570 employees.

The  short-term  actions  to  optimize  production  and  operational expenditure
consist  of, among others, a shut-down of the metals recovery plant, which takes
effect  immediately and is estimated to  be approximately one month in duration,
and  a  temporary  stoppage  of  ore  production.  The  operations of the metals
recovery  plant have not been  cost effective during this  autumn due to the low
metal  concentrations in the  leach solution. As  a result of  the stoppage, the
metal  grades in solution are  expected to rise, as  leaching of the ore stacked
since last spring progresses. The Company plans to discontinue ore production in
the  coming  weeks  for  approximately  six  months.  In the event the Company's
financial  situation improves  significantly already  in the  coming months, the
mining  and materials handling operations can be re-started already earlier. The
temporary  discontinuation of ore production may have a negative impact on water
management and it will likely slow down the ramp-up of production to its planned
capacity.

Talvivaara  has  previously  announced  that  it estimates its nickel production
during the second half of 2013 to exceed 4,508 tonnes, which was achieved during
the  first half of the year. Due to the imminent stoppage of the metals recovery
plant,   the   Company   now  estimates  its  nickel  production  to  amount  to
approximately 4,000 tons in the second half of the year.







Enquiries:

Talvivaara Mining Company Plc          Tel +358 20 7129 800
Pekka Perä, CEO
Saila Miettinen-Lähde, Deputy CEO and CFO

Talvivaara Mining Company Plc
Talvivaara Mining Company is an internationally significant base metals producer
with  its  primary  focus  on  nickel  and  zinc  using  a  technology  known as
bioheapleaching  to extract metals out  of ore. Bioheapleaching makes extraction
of  metals  from  low  grade  ore  economically  viable. The Talvivaara deposits
comprise  one of the largest known sulphide  nickel resources in Europe. The ore
body  is  estimated  to  support  anticipated  production  for  several decades.
Talvivaara has secured a 10-year off-take agreement for 100 per cent of its main
output  of nickel and cobalt to Norilsk Nickel and entered into a long-term zinc
streaming  agreement with Nyrstar  NV. Talvivaara is  listed on the London Stock
Exchange Main Market and NASDAQ OMX Helsink. Further information can be found at
www.talvivaara.com

[HUG#1743491]

Attachments:

Talvivaara plans rationalization of its operations 15.11.2013.pdf