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UPDATE 1-Talvivaara says Sotkamo mine at 60 pct in 2009

Wed Oct 1, 2008 5:54am EDT

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HELSINKI, Oct 1 (Reuters) - Finnish miner Talvivaara (TALV.L) said its Sotkamo mine in northern Finland produced its first metal sulphides on Wednesday on schedule and would reach 60 percent production capacity in 2009.

"Approximately 60 percent of the planned volumes, some 20,000 tonnes of nickel and 37,000 tonnes of zinc, is expected to be produced in 2009," Talvivaara said in a statement. It said volumes for this year would remain low.

Mining operations at Sotkamo began in April and materials handling and bioheapleaching process started in July.

The company said the mine is expected to produce 33,000 tonnes of nickel and 60,000 tonnes of zinc annually by 2010. It is also expected to produce cobalt and copper.

Talvivaara has a 10-year agreement with Russia's Norilsk Nickel (GMKN.MM) for all nickel and cobalt output.

(Reporting by Azer Sawiris; editing by Karen Foster)



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