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 in Naustdal in Sunnfjord municipality in Vestland county on the west coast of Norway. The hard rock (ferro eclogite) deposit is one of the world’s highest–grade rutile deposits and is unique due to its substantial content of garnet. Nordic Mining will produce high-quality rutile and garnet products from an annual Run of Mine (ROM) of 1.5 Mt ore. The average production and sales volumes of rutile and garnet will be approximately 35,000 t/y and 180,000 t/y, respectively, for the first 10 years of operation.
Open pit mining will be carried out in the first 14 years, followed by one year combined open pit and underground mining operations. From year 16 and for a period of 18 years, the mining operation will be underground. Production will be extended by approximately 6 years processing lower grade ore that will be stockpiled in the open pit period at the waste rock area.
Three contracts have been signed with the following selected partners:
- Sunnfjord Industripartner AS (EPC1 – Sitewide Earthworks and Underground Infrastructure)
- Åsen & Øvrelid AS (EPC2 – Civil and Buildings)
- Nordic Bulk AS (EPC3 – Structural, Mechanical, Pipework, and Plating)
The EPC contracts are a formalisation of the Letters of Intent signed between the parties in June 2021 and comprise a lump sum price for the agreed scope of work agreed in the contracts. Nordic Bulk’s scope of work has been extended to include the procurement of mechanical equipment for the crushing circuit. The last EPC contract with Normatic AS (EPC4 – Electrical, Control and Instrumentation) is expected to be finalised and signed later in November. In total the four lump sum EPC contracts will cover around 75% of the total plant and mine capital expenditure of $203.4 million. The EPCs partners will continue to work with the owners’ team to further advance selected Detailed Engineering work originally part of the UDFS construction work.
“We are strategically focusing on local and regional partners for the Engebø project. This ensures closeness, quality, and long-term perspective to the Project. It’s great that local companies have proven to be very competitive with major international competitors,” says Project Manager Kenneth Nakken Angedal.
“We are extremely satisfied to be at this milestone in the Project. For Sunnfjord Industripartner AS (SIPA) it is a significant event to sign the contract for EPC 1 for the development of the Engebø Project,” says Jan Støfring, Managing Director SIPA.
“Åsen & Øvrelid is very pleased to have formalised the contact for the Engebø Project and look forward to starting further detailed design and project implementation together with Nordic Rutile and the other EPC contractors”, says General Manger Finn-Ove Øen.
“We are very pleased, taking part in this milestone greenfield project, by Nordic Mining. This contract confirms the good cooperation that has been established, focusing on improved solutions. This is a great confirmation for our skilled team, and we are humble and enthusiastic to get started, says”, says Managing Director in Nordic Bulk AS, Peder Egeland.
