Promising results has been achieved for production of alumina from anorthosite in Nordic Mining's and Institute for Energy Technology's (IFE) joint development project. High grade alumina has been produced in laboratory with industrially scaleable process parameters. Nordic Mining's deposit in Gudvangen is estimated to about 500 million tons anorthosite. To illustrate the potential value of the deposit, underground mining of half of the estimated anorthosite volume would give a production value for alumina of approximately NOK 250 billion. In addition by-products might represent substantial value.

CEO Ivar S. Fossum in Nordic Mining states: "We are now getting close to a process solution that can realize the potential of the anorthosite. The estimated 500 million tons anorthosite resource with an alumina content of around 30% is a large deposit with a significant economic potential. We also hope that storage of CO₂ in calcium carbonate can be a positive contribution to solution of greenhouse gas problems. We will continue the process testing and develop a dialog with various authorities so that important aspects for an expanded production activity in Gudvangen can be incorporated in ongoing and future planning."

Project leader Johann Mastin at IFE comments: "We have proved that the concept is technically viable. We have succeeded in making aluminum oxide at moderate process conditions which means low temperature, atmospheric pressure and with moderate acids. The conditions are comparable with operating industrial processes. We have accomplished an important milestone in finding an economic process for commercial production of alumina from the Gudvangen anorthosite."

A new concept for alumina production was developed as a continuation of a pre-project in 2009 (see press release dated 6 January 2011). The concept has been tested through several process activities at IFE's laboratories at Kjeller. The process is based on usage of a common mineral acid where alumina is leached and recovered in different process steps. Calcium carbonate (PCC) is made as a bi-product with addition of CO₂ and might be an economic by-product.

Nordic Mining and IFE will apply Gassnova for a continuation of the project in 2012. The most important steps onwards will be to optimize the process conditions, test methods for recirculation of acid, and develop the technical design for the process as well as undertake a more detailed economic assessment of the process.

Center Manager Harald Johansen at IFE's CO₂ center states: "Throughout most of the 20^th century, the Sogn-anorthosite has been considered to be an supplementary raw material for production of alumina. IFE has been involved for many years in research programs aiming at the utilization of anorthosite as a source of aluminum. Leaching processes with strong acids has been well established in the Norwegian Anortal process. Even though technically successful, the Anortal concept was not found to be commercially competitive. Recent findings constitute a significant step towards development of an economically viable process for aluminum oxide production. Because this new process also incorporates consumption of CO₂it can be considered to have a positive environmental profile."

For illustration purpose, brief process outline and preliminary indicative estimates of in situ values of alumina and calcium carbonate in the Gudvangen deposit are shown in the attached document.

For questions please contact Exploration Manager Mona Schanche, telephone +47 922 81 253.

 

Oslo, 20 October 2011
Nordic Mining ASA

 

 

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