Investments in companies - 9.2.2010
Government-owned investment company Finnish Industry Investment Ltd has subscribed NOK 6 million (EUR 765,000) for shares in Norwegian mining company Nordic Mining ASA. The mining companys Finnish subsidiary, Keliber Oy, owns one of Europes largest lithium deposits in the Länttä area of Ullava in Central Ostrobothnia. The company aims to start mining operation and expects to be the first in Europe to produce lithium carbonate.
Global demand for lithium carbonate will grow strongly over the coming years as electric and hybrid vehicles, portable tools and other industrial battery applications fuel the worlds need for accumulators and batteries. Currently, all mobile phones and 90% of portable computers contain a lithium battery. Lithium combined with other minerals makes modern batteries lighter and more energy-efficient and enables the automotive industry to be more environmentally friendly.
Keliber estimates that it has altogether over three million tonnes of lithium reserves in the Central Ostrobothnian Länttä area, of which almost two million tonnes are exploitable enough to last for 10 years. The mineral reserve is expected to be expanded through further exploration work.
We are warmly welcoming Finnish Industry Investment Ltd. as a shareholder in Nordic Mining. FIIs broad experience from mining investments and the companys extensive network in Finnish industry will be valuable for the further development of Nordic Minings projects and in particular for the Keliber lithium project in Ostrobothnia region, says Kelibers Board Chairman Lars. K. Grøndahl.
The proceeds from the private placement will be used to develop our projects at Engebøfjellet (titanium dioxide) and Gudvangen (anorthosite) in Norway and Keliber (lithium) in Finland. For Keliber, focus in the coming months will be on exploration with objective to identify additional mineable lithium resources. Marketing and product development in order to prepare the project commercially will also have high priority.
Keliber is a part of the Nordic Mining Group and it has large lithium deposits in Finland, comments Director Kimmo Viertola from Industry Investment.
Industry Investment has so far invested in six mining companies, three of which are now in its investment portfolio.
Keliber Oy is a Finnish mining company owned by Nordic Mining ASA (68%) and private individuals in Finland. Keliber was established in 2001 as a company focusing on mining research and development. The company has developed a tailored production process for the lithium reserves in Central Ostrobothnia, which enables competitive production operations. The companys main product will be lithium carbonate. Keliber, a part of the Nordic Mining Group, has mining and exploration permits for three lithium deposits and reservations for a significant acerage in the Ostrobothnia lithium province.
Finnish Industry Investment Ltd is a government-owned investment company whose mission is to promote and stimulate Finnish business, employment and economic growth through capital investment. Finnish Industry Investment invests in growth companies, directly and through funds, together with private co-investors. Capital investments are needed for financing the growth of investee companies, internationalisation, spin-offs, major industrial investments, and sector and corporate restructurings. The targets are in all sectors. The investments of Finnish Industry Investment amount to some MEUR 620.
- Keliber Oys Board Chairman, Lars K. Grøndahl, Nordic Mining ASA,
tel. +47 901 60 941, lars.grondahl (at) nordicmining.com
- Kimmo Viertola, Director, Finnish Industry Investment Ltd,
mobile +358 50 309 2734, kimmo.viertola (at) industryinvestment.com