Agreement with leading industrial minerals company
Nordic Mining has signed a Memorandum of Understanding ("MoU") with a leading, international producer of industrial minerals. The Parties intend to establish a long term cooperation within development, production, sales, marketing and distribution of garnet products from Nordic Mining's mineral deposit at Engebøfjellet in Norway.
Technical cooperation
The Parties intend to establish technical cooperation related to commercial high quality garnet products. The cooperation will consist of testing, product analysis, process evaluation and process design in order to verify and define an optimal beneficiation process for the Engebøfjellet garnet. The technical work may also include preparation, design and specification of pilot plant configuration for garnet beneficiation.
Offtake and distribution
Subject to a successful development of the Engebø project and establishment of production processes that meet the necessary requirements, the Parties intend to enter into exclusive commercial relations for all garnet produced from Engebø. This may include off-take agreement, joint marketing, sales and distribution arrangements for garnet products to the international markets.
"The MoU is an important confirmation of the significance and potential of the garnet as a valuable by-product from Engebø," says CEO Ivar S. Fossum in Nordic Mining. "We already know that the Engebø garnet tests favourably with high quality products in advanced applications. The position, experience and specialized expertise by our partner in the minerals industry will be valuable for the further technical and commercial development of the project, and we look very much forward to the cooperation".
Garnet products and applications
Garnet is an industrial mineral mainly used for abrasives and for water-jet cutting of metals and other materials. The market for garnet products is growing, and the global market is estimated to approximately 1 million tons per year. Garnet is recognised as an evironmentally friendly mineral and the use of garnet is preferred over use of various sand minerals due to their content of silica.
Preliminary tests have demonstrated production of 96% garnet concentrate from the Engebø mineral resource. Nordic Mining's target for further optimization of the beneficiation process is to reach a level of 98% garnet concentrate.
For questions please contact CEO Ivar S. Fossum, telephone + 47 - 930 96 850.
Nordic Mining ASA
Nordic Mining ASA (www.nordicmining.com) is engaged in the business of exploration and production of high-end minerals and metals. Nordic Mining has a hard-rock rutile resource at Engebøfjellet in Naustdal municipality in Sogn og Fjordane in Norway, and is in the process of developing the resource with the intention to mine and produce high-grade rutile concentrate and industrial products from garnet. In addition, Nordic Mining has production of anorthosite in Gudvangen in Aurland municipality. Further, Nordic Mining is in the process of developing a lithium project in Finland with granted permits for production of high-grade lithium carbonate.
Oslo, 8 February 2010
Nordic Mining ASA