On 11 May 2011, the municipality board in Naustdal municipality approved the industrial area plan in connection with Nordic Mining's contemplated rutile production at Engebøfjellet. The approval was given with solid majority; 17 against 4 votes.

Nordic Mining owns on of the world's largest rutile (titanium dioxide) deposits at Engebøfjellet in Naustdal municipality. The positive resolution in the municipality is 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.

CEO Ivar S. Fossum in Nordic Mining comments: "This is a milestone of vital importance in the political permitting process for the project. The solid majority is evidencing political trust and support for our plans and gives an important foundation for the project development work going forward."

The municipality board also approved an infrastructure agreement (in accordance with Norwegian planning regulations) in connection with the Engebø project. The infrastructure agreement includes measures for upgrading of county road 611. Nordic Mining and Sogn og Fjordane county will contribute with NOK 40 million and NOK 55 million, respectively, in connection with the upgrading when the investment decision for the Engebø rutile project has been taken. Further, a development agreement with the purpose to support regional industrial and cultural development activities in connection with mineral production at Engebø was approved.

The municipality board in Askvoll municipality will today resolve the industrial area plan and related matters in connection with the contemplated rutile production at Engebøfjellet.

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

 

Oslo, 12 May 2011
Nordic Mining ASA

 

 

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