Pekka Perä Mining company Talvivaara has edged closer to bankruptcy after its negotiations over a 40 million euro injection needed to cover the costs stemming from debt restructuring fell through late on Wednesday. As a result, the mining company cautions that there are no guarantees that its restructuring plan is approved or, if approved, is successful. The ailing company filed an application for debt restructuring with the District Court of Espoo last Friday.

Talvivaara is currently weighing up its options, which according to CEO Pekka Perä include cost cuts, and assessing whether its current cash reserves are sufficient to implement the restructuring plan. In a bulletin, the mining company underlines that bankruptcy is not in its own interests, nor in the interests of its stakeholders. In the event of bankruptcy, Talvivaara reminds, it would be difficult to control the environmental effects of the mine.

On Tuesday, the Kainuu Centre for Economic Development, Transport and the Environment (ELY Centre) urged the mining company to ensure that its Sotkamo-based mine poses no environmental risks. The statement was issued after the ELY Centre observed during an inspection that several construction projects significant for environmental safety have been suspended at the mine.