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presentation and Q&A session will be held in English and transferred via webcast
at: https://channel.royalcast.com/landingpage/hegnarmedia/20210216_10/
You will have the opportunity to post questions online throughout the webcast
session.
Important events in the fourth quarter of 2020 and year to date 2021:
CORPORATE
Titanium and lithium added to EU’s list of Critical Raw Materials
In September, the EU added titanium and lithium to its list of Critical Raw
Materials to reflect the changed economic importance of the minerals in the
transition towards a green and digital economy, and the need to develop
resilient value chains for Europe’s industrial ecosystems by reducing dependency
on third countries, diversifying supply sources and improving resource
efficiency and circularity.
The minerals which will be produced at Engebø and in Keliber are well aligned
with EU’s requirements and priorities going forward.
ENGEBØ RUTILE AND GARNET PROJECT (100% ownership)Expected reduction in initial
CAPEX in the range of USD 100 million
In January 2020, the Company published the results of the DFS for the Engebø
project. The study reinforced Engebø as a world class rutile and garnet project
with solid financial fundamentals. Following the finalization of the DFS and
because of the uncertainties caused by the Covid-pandemic, Nordic Mining
initiated a third-party Value Engineering review with the purpose to increase
the project’s robustness to future market conditions.
The process to update DFS is progressing in line with expectations, however with
the prolonged Covid-pandemic resulting in minor delays. Preliminary results from
ongoing optimizations and responses from the contractor market indicates a
reduction in the initial capital expenditure in the range of USD 100 million
from the USD 311 million in the DFS from January 2020. In contrast, an expected
reduction in demand for garnet in the short term implies a revision of projected
sales volumes in the first years of production. The full economic results of the
updated DFS optimizations will be presented as soon as the study is finalized.
In light of the abovementioned practical implications of the Covid-pandemic,
Nordic Mining will present the main results of the study at latest in the first
half of April 2021.
The Group is fully financed for the finalization of the DFS update and into H2
2021 based on current plans and forecasts.
Electrical dryers reduce CO\2\ footprint by more than 80%
In the process to update the DFS, Nordic Mining has been able to commercialize a
concept for use of electrical dryers for drying of minerals in the production
process. The concept uses proven technology that has been qualified for
increased production volumes. The use of electrical dryers will reduce the CO\2
emissions from the project with more than 80% and in effect make the process
plant completely free of CO\2\ emissions.
Implementation of environmental and social management systems ongoing
The Company is in the process of implementing an integrated and comprehensive
Environmental and Social Management System (ESMS) for the Engebø project to
ensure environmental and social issues are managed in accordance with IFC
Performance Standards and the Equator Principles, as well as Norwegian permits
and regulations.
The Company has developed a Stakeholder Engagement Plan to strengthen and build
sustainable stakeholder relations prior to construction. The plan defines a
management system for systematic communication and engagement with stakeholders
at a local level, and includes a system for continual stakeholder
identification, defines tools and platforms for communication and engagement,
and a concerns and grievance management system. The plan has been reviewed by
the international mining consultancy firm SRK Consulting (SRK) to ensure its
compliance with International Finance Corporation’s (IFC) standards. As part of
strengthening the stakeholder involvement a local resource group has been
established where key stakeholder groups are invited to participate in the
Company’s environmental monitoring program. The first group meeting was held in
October 2020.
Plans for effective management of extractive waste and efficient energy use are
being developed with support from SRK. The plans will be finalized before start
of construction.
Revised discharge permit granted
Nordic Mining is continuously investigating measures to minimize the
environmental impact of the Engebø project. In June 2020, the Company submitted,
after extensive test work proving that the consumption of chemicals could be
reduced by 99%, an application to the Environment Agency for substitution of
chemicals from the original discharge permit of 2015. In January 2021, the
Agency granted the revised discharge permit, commenting that the significant
reduction in chemical consumption will have lower impact on the environment than
the previous planned consumption.
Operating license completes the main regulatory permits for the project
In June 2020, the Directorate of Mining granted the operating license for the
Engebø project. The license is granted for the life of mine of the project which
includes an open pit and underground phase. The operating license completes the
main regulatory permits for the project.
The Directorate’s decision was appealed by various stakeholders. In November
2020, the Directorate confirmed that the appeals received do not provide any
basis to revoke or change the decision. The matter has therefore been forwarded
to the Ministry of Trade, Industry and Fisheries for final confirmation.
Long-term market fundamentals supportive for Engebø
The market outlook for rutile and garnet remains uncertain in the short to
medium term with reduced economic activity as result of the Covid-pandemic. In
the longer-term, the economic fundamentals for rutile remain solid with global
supply expected to decrease as rutile deposits are depleted, and at the same
time demand is expected to increase driven by value and importance for
industrial processes and applications. The average rutile price in 2020 is
reported to be around USD 1,220 per tonne (FOB), which is around USD 80 per
tonne higher than the long-term price used in the DFS from January 2020.
The garnet demand in 2020 was impacted by reduced economic activity and lower
oil price. Prices to end-customers in the main markets in Europe and USA are to
a large extent reported to remain relatively unaffected, despite demand having
contracted. The existing main producers of garnet are in Australia, China, India
and South-Africa, with no production in Europe. In the USA, domestic production
is significantly short of the demand. Various garnet buyers have indicated that
long-term supply of high-quality garnet from Europe is important for supply
security and efficient logistics. Nordic Mining has provided garnet samples for
testing and is continuing constructive discussions with potential customers for
long-term offtake agreements.
Oslo, 16 February 2021
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 Euronext Expand Oslo with ticker symbol “NOM”.
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