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presentation and Q&A session will be held in English and transferred via
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webcast session. The webcast will be available on:
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Summary of important events in 2021 and year to date 2022:
CORPORATE
Milestone first part of project financing for the Engebø Rutile and Garnet
Project completed
In January 2022, Nordic Mining completed the first part of the project financing
equity for the Engebø Rutile and Garnet Project of NOK 132.5 million from a
group of local Sunnfjord investors led by two of the Engineering, Procurement
and Construction (“EPC”) partners for the Engebø Project.
The equity contribution is structured as a loan with conversion rights to shares
in Nordic Mining ASA, with certain obligations on specific terms and milestones
as the project development progresses. The convertible loan will upon conversion
contribute as part of the equity for the project financing package for the
Engebø Project, expected to be around USD 250 million comprising debt, equity
and potential hybrid capital or royalty.
The investment was resolved by the Extraordinary General Meeting (“EGM”) on 4
February 2022.
Successful capital raise of NOK 80 million in February 2021
In February 2021, Nordic Mining completed a private placement with gross
proceeds of NOK 80 million. The capital raise enabled the Company to participate
in Keliber’s equity issue in March/April to retain an ownership of 14.3%. The
ownership in Keliber was in September 2021 diluted to 12.7%. See note 3 for
further information.
ENGEBØ RUTILE AND GARNET PROJECT (100% ownership)
Project Director appointed for the Engebø Rutile and Garnet Project
Nordic Mining appointed in November 2021 Terje Gundersen as Project Director for
the Engebø Rutile and Garnet Project. Mr. Gundersen has extensive experience as
Project Director executing large scale oil and gas and infrastructure projects
for Aibel and Sweco. Gundersen will manage the integrated Engebø owners’ team
and will have the overall responsibility for the delivery and execution of the
project from detail engineering, through construction and into commissioning of
operations.
Kenneth Nakken Angedal, who has had the position as Project Manager for the
Project since August 2018, will take the position as Operations Director Engebø,
and will continue in the Nordic Mining Group management team reporting to the
CEO.
Lump sum contracts covering 75% of the Engebø Project construction signed with
EPC partners
Nordic Mining has, through its wholly owned subsidiary Nordic Rutile AS, signed
lump sum contracts for the Engineering, Procurement and Construction (“EPC”) for
the Engebø Rutile and Garnet project’s selected EPC partners Sunnfjord
Industripartner AS, Åsen & Øvrelid AS, Nordic Bulk AS and Normatic AS. The EPC
contracts comprise lump sum price for the agreed scope of work agreed in the EPC
contracts and cover around 75% of the total plant and mine capital expenditure
of USD 203.4 million.
Full victory for Nordic Rutile
In October 2021, Oslo District Court ruled in favor of Nordic Rutile on all
items in the court case against Artic Mineral Resources (“AMR”). The ruling
confirms that Nordic Rutile’s extraction rights are valid and that the company
has the right to extract and - within the limits of the Norwegian Mining’s Act -
utilize garnet and all other minerals on the Vevring side of the Engebø deposit,
and conversely fully rejects AMR’s claim. The ruling was appealed by AMR in
November 2021. The appeal mirrors the factual and legal arguments that AMR
presented to Oslo City Court, and which the court rejected. The appeal hearing
is scheduled to take place 20-30 September 2022 in Borgarting Court of Appeal.
Nordic Rutile will continue to defend the case rigorously and maintain that
AMR’s claims have no merit.
Updated Definitive Feasibility Study reconfirms Engebø as a world class mineral
project
In May 2021 Nordic Mining ASA completed the Updated Definitive Feasibility study
(“UDFS”) for the Engebø Rutile and Garnet project. The UDFS is an update of the
DFS which was completed in January 2020. The UDFS confirmed Engebø as a
sustainable and economically robust mineral project with reduced financing risk,
improved financial resilience, and attractive financials returns.
Long-term offtake agreements signed for the full rutile production from Engebø
In July 2021 Nordic Mining signed term sheets for offtake of rutile with a
reputable Japanese trading house and Kronos (US), INC., a globally leading
pigment producer and, which subject to the entering into of the final offtake
agreement, will secure sales for all the annual production of rutile for the
first five years of production.
Nordic Mining is currently in constructive discussions with selected partners
for offtake and distribution of garnet to Europe and overseas markets.
Processes ongoing with selected strategic investors related to participation in
project financing
In June 2021, Nordic Mining appointed Clarkson Platou Securities AS (“CPS”) and
SpareBank 1 Markets AS (“SB1M”) to advice on the project financing for the
Engebø project. The Company is currently progressing its assessment of several
financing structures and targets a financial close in H1 2022.
Implementation of best practice Environmental and Social Management System
The company is implementing a comprehensive Environmental and Social Management
System (“ESMS”) prior to construction of the Engebø project. The ESMS is aligned
with good international practice, Norwegian permits and regulations, and
includes management of stakeholders, energy and emissions, extractive waste, and
environmental monitoring programs. A Construction Environmental Management Plan
(“CEMP”) will be finalized in Q1 2022 to ensure adherence to environmental
obligations for owners’ team, contractors, and suppliers throughout the
construction phase. Potential environmental risks are identified, and actions
plans prepared to reduce the risk of environmental accidents and to enhance
environmental performance.
Environmental monitoring will commence mid-February to supervise potential
effects from construction activities related to airborne dust, vibrations and
noise, and risk for emissions to fjord surface water and freshwater bodies.
Nordic Mining has initiated the development of a Biodiversity Plan in
collaboration with DNV GL. The aim is to define biodiversity in relation to the
project area, assess potential for effects, implement measures to reduce and
restore effects and explore options to compensate. Nordic Mining is committed to
apply a mitigation hierarchy to protect biodiversity, with the ambition of no
net loss.
Minviro, a UK based consultant, has been engaged to carry out a Life Cycle
Assessment (“LCA”) for the Engebø rutile product to assess global warming
potential and environmental impacts. The LCA will include benchmarking against
other products in the titanium value chain.
Revised discharge permit confirmed by Ministry of Climate and Environment
In January 2021, the Environment Agency granted a revised discharge permit
implying a substitution of chemicals from the original permit, commenting that
the significant reduction in chemical consumption will have lower impact on the
environment than the previously planned consumption.
The decision was confirmed by the Ministry of Climate and Environment in
November 2021 concluding that the complaints received in relation to the revised
discharge permit do not provide any basis to revoke or change the permit. The
decision from the Ministry of Climate and Environment is final and cannot be
appealed.
Long-term rutile price expectations increase as result of increasing supply
uncertainty
Bulk rutile prices continued to increase in the fourth quarter of 2021 as the
pigment market remained strong over the quarter and feedstock demand continuing
to exceed supply. The tight supply has limited producers from rebuilding
inventories resulting in inventory levels below seasonal norms. The strong
demand cycle for pigment is opting producers to maintain high utilization rate.
Pigment price are now at ten-year highs after announced price increases of up to
USD 280 per tonne announced for Q1 2022, as producers attempt to cover increased
energy and raw material cost.
Nordic Mining is continuing to have constructive discussions with potential
partners for long-term offtake of garnet. Product samples has been supplied for
testing, with results that compare well with industrial reference qualities.
KELIBER LITHIUM PROJECT (12.7% ownership)
Lithium prices have surged in 2021 driven by 160% increase in global EV sales
Electric vehicle (“EV’s”) sales are reported to have increased by 160% globally
in 2021, with deliveries in China expected to double to over 5 million sales in
2022. This has fueled a continuation of the rally in lithium price which, with
spot lithium hydroxide prices in China reported have surged 25% the first month
in 2022 to US$ 60,000 per tonne as battery manufacturers race to secure long
-term supply contracts. In January 2022, the Serbian government revoked the
license for Rio Tinto’s US$2.4 billion Jadar lithium project which, if
completed, would help make Rio a top 10 lithium producer with planned production
to produce enough lithium for 1 million electric vehicle batteries.
Sibanye-Stillwater closes EUR 10 million second tranche of equity investment in
Keliber
In February 2021, Keliber entered into an investment agreement with the leading
international mining company Sibanye-Stillwater Limited (“SSW”) for an initial
phased equity investment of EUR 30 million for approximately 30% shareholding in
Keliber. In line with the agreement the second tranche of SSWs initial
investment of EUR 10 million was closed in September 2021, making SSW the
largest shareholder in Keliber with a shareholding of 26.7%. Following the share
issue, Nordic Mining was diluted from 14.3% to 12.7% ownership in Keliber. The
first tranche of SSWs initial investment of EUR 15 million was closed in March
2021, and at the same time a share issue of up to 250,000 shares was opened to
existing shareholders of Keliber. Nordic Mining was allocated in total 58,975
shares in the share issue at a price of EUR 40 per share corresponding to 23.6%
of the share issue.
Reserves of Keliber’s largest lithium deposit increased by 30%
Keliber announced on 15 September 2021 an update of the company’s ore reserve
estimate, with an effective date as of 31 August 2021. The update is based on
the revised mineral resource estimate, published in May 2021. Keliber’s total
proven and probable ore reserves have increased to 12.30 million tonnes,
representing a growth of 32 percent, compared to the previous estimate published
in December 2019. Keliber’s ore reserve and mineral resource estimates comply
with the JORC 2012 code. See Financial Performance and note 3 on fair value
assessment of the investment in Keliber as per 31 December 2021.
Keliber is expected to complete an update of the DFS early in 2022.
NORDIC OCEAN RESOURCES (NORA) (100% ownership)
Nordic Mining has taken pioneering initiatives related to seabed mineral in
Norway through the subsidiary Nordic Ocean Resources (“NORA”) giving the Company
valuable knowledge for business development. NORA participated in the MarMine
project on marine mineral resources coordinated by the Norwegian University of
Science and Technology (“NTNU”). In 2019, the new Seabed Minerals Act came into
force as result of systematic mapping of seabed minerals by the Norwegian
Petroleum Directorate.
Nordic Mining have in light of the positive developments on the regulation of
seabed minerals, increased the efforts to commercializing the Groups
understanding and positioning on seabed minerals developed through the
pioneering initiatives of NORA.
Oslo, 8 February 2022
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 12.7% 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”.
Kilde
