“The confirmation of Norge Mining’s business case is a significant step towards delivering a vertically integrated, European supply source of EU Critical and Strategic Raw Materials,” said John Vergopoulos, CEO for Norge Mining. “This has been achieved without compromising our commitment to the highest standards of environmental and social sustainability which are guiding the development of our business.”

The PFS considers an open-pit mine with a life of 23 years, producing 20 million metric tons per year (mt/y) from the first zone. Capital costs for the project are estimated at $2.31 billion for the mine, beneficiation, tailings storage, and infrastructure development.

The Eigersund project is part of Norge Mining’s Storeknuten exploration area, which totals 26 km2 and has a JORC mineral resource totalling 3.2 billion mt. That represents just 5% of the company’s 520 km2 of exploration licences. The Norwegian government awarded extraction rights for the Eigersund project in June along with extraction rights for all the company’s other exploration license areas, the largest ever awarded in Norwegian history.

A bridging study is now being conducted to assess project optimization and opportunities such as tailings utilization. The company said once this bridging study is complete, a definitive feasibility study will commence.