Nordic Mining ASA (EN Expand:NOM) - Interim report per 31 December 2021

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Please find enclosed Nordic Mining’s interim report and company presentation for the fourth quarter of 2021. The interim report and company updates will be presented digitally today, Tuesday 8 February 2022 at 10.00 (CET). The presentation and Q&A session will be held in English and transferred via webcast. You will have the opportunity to post questions online throughout the webcast session. The webcast will be available on:

Summary of important events in 2021 and year to date 2022:


Milestone first part of project financing for the Engebø Rutile and Garnet Project completed

In January 2022, Nordic Mining completed the first part of the project financing equity for the Engebø Rutile and Garnet Project of NOK 132.5 million from a group of local Sunnfjord investors led by two of the Engineering, Procurement and Construction (“EPC”) partners for the Engebø Project.

The equity contribution is structured as a loan with conversion rights to shares in Nordic Mining ASA, with certain obligations on specific terms and milestones as the project development progresses. The convertible loan will upon conversion contribute as part of the equity for the project financing package for the Engebø Project, expected to be around USD 250 million comprising debt, equity and potential hybrid capital or royalty.

The investment was resolved by the Extraordinary General Meeting (“EGM”) on 4 February 2022.

Successful capital raise of NOK 80 million in February 2021

In February 2021, Nordic Mining completed a private placement with gross proceeds of NOK 80 million. The capital raise enabled the Company to participate in Keliber’s equity issue in March/April to retain an ownership of 14.3%. The ownership in Keliber was in September 2021 diluted to 12.7%. See note 3 for further information.


Project Director appointed for the Engebø Rutile and Garnet Project

Nordic Mining appointed in November 2021 Terje Gundersen as Project Director for the Engebø Rutile and Garnet Project. Mr. Gundersen has extensive experience as Project Director executing large scale oil and gas and infrastructure projects for Aibel and Sweco. Gundersen will manage the integrated Engebø owners’ team and will have the overall responsibility for the delivery and execution of the project from detail engineering, through construction and into commissioning of operations.

Kenneth Nakken Angedal, who has had the position as Project Manager for the Project since August 2018, will take the position as Operations Director Engebø, and will continue in the Nordic Mining Group management team reporting to the CEO.

Lump sum contracts covering 75% of the Engebø Project construction signed with EPC partners

Nordic Mining has, through its wholly owned subsidiary Nordic Rutile AS, signed lump sum contracts for the Engineering, Procurement and Construction (“EPC”) for the Engebø Rutile and Garnet project’s selected EPC partners Sunnfjord Industripartner AS, Åsen & Øvrelid AS, Nordic Bulk AS and Normatic AS. The EPC contracts comprise lump sum price for the agreed scope of work agreed in the EPC contracts and cover around 75% of the total plant and mine capital expenditure of USD 203.4 million.

Full victory for Nordic Rutile

In October 2021, Oslo District Court ruled in favor of Nordic Rutile on all items in the court case against Artic Mineral Resources (“AMR”). The ruling confirms that Nordic Rutile’s extraction rights are valid and that the company has the right to extract and - within the limits of the Norwegian Mining's Act - utilize garnet and all other minerals on the Vevring side of the Engebø deposit, and conversely fully rejects AMR's claim. The ruling was appealed by AMR in November 2021. The appeal mirrors the factual and legal arguments that AMR presented to Oslo City Court, and which the court rejected. The appeal hearing is scheduled to take place 20-30 September 2022 in Borgarting Court of Appeal. Nordic Rutile will continue to defend the case rigorously and maintain that AMR's claims have no merit.

Updated Definitive Feasibility Study reconfirms Engebø as a world class mineral project

In May 2021 Nordic Mining ASA completed the Updated Definitive Feasibility study (“UDFS”) for the Engebø Rutile and Garnet project. The UDFS is an update of the DFS which was completed in January 2020. The UDFS confirmed Engebø as a sustainable and economically robust mineral project with reduced financing risk, improved financial resilience, and attractive financials returns.

Long-term offtake agreements signed for the full rutile production from Engebø

In July 2021 Nordic Mining signed term sheets for offtake of rutile with a reputable Japanese trading house and Kronos (US), INC., a globally leading pigment producer and, which subject to the entering into of the final offtake agreement, will secure sales for all the annual production of rutile for the first five years of production.

Nordic Mining is currently in constructive discussions with selected partners for offtake and distribution of garnet to Europe and overseas markets.

Processes ongoing with selected strategic investors related to participation in project financing

In June 2021, Nordic Mining appointed Clarkson Platou Securities AS (“CPS”) and SpareBank 1 Markets AS (“SB1M”) to advice on the project financing for the Engebø project. The Company is currently progressing its assessment of several financing structures and targets a financial close in H1 2022.

Implementation of best practice Environmental and Social Management System

The company is implementing a comprehensive Environmental and Social Management System (“ESMS”) prior to construction of the Engebø project. The ESMS is aligned with good international practice, Norwegian permits and regulations, and includes management of stakeholders, energy and emissions, extractive waste, and environmental monitoring programs. A Construction Environmental Management Plan (“CEMP”) will be finalized in Q1 2022 to ensure adherence to environmental obligations for owners’ team, contractors, and suppliers throughout the construction phase. Potential environmental risks are identified, and actions plans prepared to reduce the risk of environmental accidents and to enhance environmental performance.

Environmental monitoring will commence mid-February to supervise potential effects from construction activities related to airborne dust, vibrations and noise, and risk for emissions to fjord surface water and freshwater bodies.

Nordic Mining has initiated the development of a Biodiversity Plan in collaboration with DNV GL. The aim is to define biodiversity in relation to the project area, assess potential for effects, implement measures to reduce and restore effects and explore options to compensate. Nordic Mining is committed to apply a mitigation hierarchy to protect biodiversity, with the ambition of no net loss.

Minviro, a UK based consultant, has been engaged to carry out a Life Cycle Assessment (“LCA”) for the Engebø rutile product to assess global warming potential and environmental impacts. The LCA will include benchmarking against other products in the titanium value chain.

Revised discharge permit confirmed by Ministry of Climate and Environment

In January 2021, the Environment Agency granted a revised discharge permit implying a substitution of chemicals from the original permit, commenting that the significant reduction in chemical consumption will have lower impact on the environment than the previously planned consumption.

The decision was confirmed by the Ministry of Climate and Environment in November 2021 concluding that the complaints received in relation to the revised discharge permit do not provide any basis to revoke or change the permit. The decision from the Ministry of Climate and Environment is final and cannot be appealed.

Long-term rutile price expectations increase as result of increasing supply uncertainty

Bulk rutile prices continued to increase in the fourth quarter of 2021 as the pigment market remained strong over the quarter and feedstock demand continuing to exceed supply. The tight supply has limited producers from rebuilding inventories resulting in inventory levels below seasonal norms. The strong demand cycle for pigment is opting producers to maintain high utilization rate. Pigment price are now at ten-year highs after announced price increases of up to USD 280 per tonne announced for Q1 2022, as producers attempt to cover increased energy and raw material cost.

Nordic Mining is continuing to have constructive discussions with potential partners for long-term offtake of garnet. Product samples has been supplied for testing, with results that compare well with industrial reference qualities.


Lithium prices have surged in 2021 driven by 160% increase in global EV sales

Electric vehicle (“EV’s”) sales are reported to have increased by 160% globally in 2021, with deliveries in China expected to double to over 5 million sales in 2022. This has fueled a continuation of the rally in lithium price which, with spot lithium hydroxide prices in China reported have surged 25% the first month in 2022 to US$ 60,000 per tonne as battery manufacturers race to secure long-term supply contracts. In January 2022, the Serbian government revoked the license for Rio Tinto’s US$2.4 billion Jadar lithium project which, if completed, would help make Rio a top 10 lithium producer with planned production to produce enough lithium for 1 million electric vehicle batteries.

Sibanye-Stillwater closes EUR 10 million second tranche of equity investment in Keliber

In February 2021, Keliber entered into an investment agreement with the leading international mining company Sibanye-Stillwater Limited (“SSW”) for an initial phased equity investment of EUR 30 million for approximately 30% shareholding in Keliber. In line with the agreement the second tranche of SSWs initial investment of EUR 10 million was closed in September 2021, making SSW the largest shareholder in Keliber with a shareholding of 26.7%. Following the share issue, Nordic Mining was diluted from 14.3% to 12.7% ownership in Keliber. The first tranche of SSWs initial investment of EUR 15 million was closed in March 2021, and at the same time a share issue of up to 250,000 shares was opened to existing shareholders of Keliber. Nordic Mining was allocated in total 58,975 shares in the share issue at a price of EUR 40 per share corresponding to 23.6% of the share issue.

Reserves of Keliber’s largest lithium deposit increased by 30%

Keliber announced on 15 September 2021 an update of the company’s ore reserve estimate, with an effective date as of 31 August 2021. The update is based on the revised mineral resource estimate, published in May 2021. Keliber’s total proven and probable ore reserves have increased to 12.30 million tonnes, representing a growth of 32 percent, compared to the previous estimate published in December 2019. Keliber’s ore reserve and mineral resource estimates comply with the JORC 2012 code. See Financial Performance and note 3 on fair value assessment of the investment in Keliber as per 31 December 2021.

Keliber is expected to complete an update of the DFS early in 2022.


Nordic Mining has taken pioneering initiatives related to seabed mineral in Norway through the subsidiary Nordic Ocean Resources (“NORA”) giving the Company valuable knowledge for business development. NORA participated in the MarMine project on marine mineral resources coordinated by the Norwegian University of Science and Technology (“NTNU”). In 2019, the new Seabed Minerals Act came into force as result of systematic mapping of seabed minerals by the Norwegian Petroleum Directorate.

Nordic Mining have in light of the positive developments on the regulation of seabed minerals, increased the efforts to commercializing the Groups understanding and positioning on seabed minerals developed through the pioneering initiatives of NORA.

Oslo, 8 February 2022
Nordic Mining ASA

Nordic Mining ASA (

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 12.7% 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 Euronext Expand Oslo with ticker symbol “NOM”.