On 12 May 2011, the municipality board in Askvoll municipality has approved the industrial area plan and related matters in connection with Nordic Mining's contemplated rutile production at Engebøfjellet. The approval was given with clear majority; 14 against 9 votes.

As informed in press release 12 May, the industrial area plan was approved in Naustdal 11 May. Consequently, both municipalities have now expressed clear majority support for the planned rutile production at Engebøfjellet.

CEO Ivar S. Fossum in Nordic Mining comments: "Together with the approval in Naustdal, the positive result from Askvoll provides a strong local foundation for the Engebø project. Previously, also the county council in Sogn og Fjordane has given strong support for the project. Broad political support, locally as well as regionally, is of significant importance for the continuation of the project work."

Nordic Mining owns on of the world's largest rutile (titanium dioxide) deposits at Engebøfjellet in Naustdal municipality. The positive resolutions in the two municipalities are an important step towards production and processing of rutile products in Naustdal. Rutile is a highly demanded mineral with current applications i.a. in pigment production and production of titanium metal. Application areas for rutile are steadily expanded within environmental technology ("green-tech"), transport, health and medicine, as well as various consumer products. The market development and outlook for rutile are positive.

The contemplated rutile production at Engebø will have approximately 170 employees. In addition, the project will contribute to considerable regional economic activity in industry and service sectors.

For questions please contact CEO Ivar S. Fossum, telephone +47 930 96 850.

 

Oslo, 13 May 2011
Nordic Mining ASA

 

 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.