Engebø DFS update in progress - considerable CAPEX reduction expected

Nordic Mining has appointed engineering companies Hatch and Axe Valley Mining to confirm and develop the opportunities identified by Ausenco in their Value Engineering review for update of Engebø DFS.

The Value Engineering review was initiated as a result of the uncertainties caused by the Covid-pandemic to improve the robustness of the Engebø project.

Realization of the value opportunities is expected to result in considerable reduction in initial capital expenditure, and further improve the economic utilization of the Engebø deposit.

The DFS update will focus on the following optimization opportunities:

• Targeted mining strategy to maximize extraction of high-grade ore and postpone and minimize waste rock mining
• Revisions to underground mining strategy that focus on high-grade ore and increased overall extraction through the application of backfilling
• Reduce process plant footprint by changing construction strategy, and fit-for-purpose infrastructure, lay-out and buildings
• Early involvement of selected suppliers to optimize engineering and costing of main construction packages
• Reduce carbon footprint by use of alternative technologies, including use of electrical dryers
• Optimize initial garnet capacity as a result of the market uncertainty caused by the Covid-pandemic

Nordic Mining plans to complete the update to the DFS in Q1 2021. The company is well financed for the ongoing DFS update and further into 2021 based on current plans and forecasts.

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

Oslo, 7 October 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”.