A mining venture in southwest Norway has achieved a significant milestone, with the Norwegian Government fast-tracking the project to secure essential minerals crucial for various industries, including food security, semiconductors, electric vehicle batteries, green technologies, and defence. The Eigersund Project, spearheaded by Anglo-Norwegian mineral exploration firm Norge Mining, has successfully completed a pivotal Pre-Feasibility Study (PFS) for its first zone, demonstrating the project’s potential viability.
The Eigersund Project, located within Norge Mining’s expansive Storeknuten exploration area, represents a major step forward in Europe’s strategy to establish a more secure and integrated supply chain for critical raw materials. The project, which covers 26 square kilometres, has a JORC-compliant mineral resource statement amounting to 3.2 billion tonnes. This initial zone, accounting for just 5% of the total exploration area, has shown a net present value (NPV) of US$2.01 billion, with projections suggesting this figure could rise as further optimisations are made.
John Vergopoulos, CEO of Norge Mining, highlighted the importance of this development, saying, “Today’s announcement marks a crucial advancement in ensuring a reliable supply of essential minerals. With the current global reliance on a limited number of producers, such as China and Russia, it is vital for Europe to build a resilient supply chain. Our project not only supports the industries crucial to our daily lives but does so while maintaining the highest standards of environmental and social sustainability.”
The PFS outlines a plan for the extraction of phosphate, titanium, vanadium, and ferro magnetite from the first zone, with operations expected to commence with an annual output of 20 million tonnes per annum (Mtpa) over the first 23 years. The project’s total capital cost is estimated at US$2.31 billion, covering expenses related to open-pit mining, tailings management, beneficiation, and infrastructure development.
Norge Mining received extraction rights for the Eigersund Project and its other exploration areas from the Norwegian government in June 2024. This marks the largest area of extraction rights ever awarded in Norwegian history. The project is set to play a pivotal role in addressing Europe’s strategic minerals needs, mitigating reliance on imports, and supporting the development of green and high-tech industries.
In addition to its mining operations, Norge Mining is committed to sustainable practices. The company has established NM R&D in Norway to explore alternative uses for mining tailings, potentially turning them into valuable resources for construction and agriculture. This initiative aims to minimise tailings deposits and enhance the project’s economic viability.
Following the completion of the PFS, Norge Mining will conduct a bridging study to identify further optimisation opportunities, including tailings utilisation. This will be followed by a Definitive Feasibility Study (DFS) to provide a comprehensive evaluation of the project’s potential.
Norge Mining has also been exploring downstream activities related to the Eigersund Project, particularly in the production of white phosphorus, phosphoric acid, titanium metal, and vanadium. The company has established NM Deutschland GmbH in Germany to assess and develop these downstream opportunities, recognising the need for high sustainability standards throughout the supply chain.
As the project progresses, it is expected to play a crucial role in securing Europe’s supply of critical minerals, ensuring that industries across the continent have access to the essential materials needed for technological advancements and green initiatives.
For further information, please visit www.norgemining.com
