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progress plans and review the Engebø rutile and garnet project with the purpose
to increase its resilience to altered market conditions. Based on current
forecasts and adjusted work plans, Nordic Mining estimates that the existing
working capital is sufficient to fund operations in 2020 and well into 2021.
The COVID-19 corona virus is affecting a variety of markets, including the
supply and demand for mineral and metal products.
Nordic Mining prepares for a prolonged period of uncertainty and volatility
related to the markets for rutile and garnet, as well as to construction
financing opportunities and other resources required to progress the project
towards production. The Company will adjust the progress plan for the further
development activities and review the project with the purpose to improve
robustness and sustainability in altered market conditions. The adjustments
imply that the FEED (front-end engineering and design) and project financing
activities will be delayed and not be implemented as initially planned. Because
of the adjustments and the contemplated project review, the time schedule for
project construction will be affected.
As a high-grade titanium feedstock, Nordic Mining expects rutile to be in
relatively strong demand going forward. Further, the supply from existing rutile
producers is expected to be continuously reduced in the coming years. The demand
for garnet, on the other hand, is expected be reduced both in the waterjet and
blasting segments due to expected lower GDP growth. The blasting segment is
additionally affected from the recent substantial reduction in the oil price.
CEO Ivar S. Fossum comments: “We are now reviewing our activity plans for 2020
with the purpose to increase project resilience. We think it makes good sense to
adapt to a different future until we know more about the outcome.”
For further information please contact CEO Ivar S. Fossum, telephone +47
93096850.
Oslo, 31 March 2020
Nordic Mining ASA
Nordic Mining ASA (www.nordicmining.com)
Nordic Mining ASA (“Nordic Mining” or the “Company”) is a resource company with
focus on high-end industrial minerals and metals. The Company’s project
portfolio is of high international standard and holds significant economic
potential. The Company’s assets are in the Nordic region.
Nordic Mining is undertaking a large-scale project development at Engebø on the
west coast of Norway where the Company has rights and permits to a substantial
eclogite deposit with rutile and garnet. Nordic Mining also holds 16.3% of the
shares in Keliber Oy, which is developing a lithium project in Finland to become
the first European producer of battery grade lithium hydroxide.
In addition, Nordic Mining holds interests in other initiatives at various
stages of development. This includes patented rights for a new technology for
production of alumina and exploration of seabed minerals.
Nordic Mining is listed on Oslo Axess with ticker symbol “NOM”.
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