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Western countries are frantically searching for new sources of critical raw materials. One of them is provided by Norge Mining. What’s behind it?
Stavanger – Since the beginning of the coronavirus pandemic, it has been clear to Western countries that the supply of so-called critical raw materials is by no means as secure as expected. Over the years, an infrastructure has been created that enables the most efficient purchase. But as soon as this is paralyzed, be it through lockdowns or sanctions policies, the continent needs alternatives. Norge Mining has found one of them.
“Largest deposit in the world” – Critical raw material treasure is stored in Norway
Founded in 2018, the Anglo-Norwegian company Norge Mining began drilling in southwestern Norway in 2020. His goal: the mining of phosphate rock. What yield does the company hope to achieve and what are the biggest challenges? We asked Michael Wurmser, founder of Norge Mining.
Mr. Wurmser, what kind of deposit are we talking about here?
It is about a large deposit of phosphate rock. In addition to phosphate, vanadium, titanium and iron are also found in the soil. In total, we have covered an area of 500 square kilometers with licenses – there are at least 70 billion tonnes in the upper third of the ore rock in the ground. It is the largest, most significant deposit of phosphate rock in the world. And the most remarkable thing about it is – it is in Europe.
Image montage from Preikestolen in Norway and Michael Wurmser, Mining Norge founder (symbolic photo). Western countries are frantically searching for new sources of critical raw materials. One of them is provided by Norge Mining. What’s behind it? © Norge Mining & IMAGO / Zoonar
Why do we need these raw materials?
For example, phosphate is necessary for the production of fertilizers; This is directly about food security. Phosphorus is also found in car batteries, solar panels, microprocessors and semiconductors. Vanadium is used in energy storage as well as in combined alloys in aerospace. Titanium is particularly important as the main raw material in the aviation industry. We had no idea beforehand how great the demand from the defense industry would be for the critical raw materials that we mine.
If these raw materials are all so important, why did Norway simply forego them?
Norway’s geological survey was well aware of what lay in the earth, but their focus was more on oil and gas. We, on the other hand, focus on the green transition, on batteries and food security.
Delivery within Europe – What makes the critical raw materials round so important
You just called raw materials critical. What does that mean for us?
They are classified as critical because 70 percent of them usually come from China, 15 percent from Russia and the rest from countries such as Kazakhstan, Morocco or African countries. The problem is that China, for example, has stopped exporting phosphate for its own use. The Russians are under boycott. In Morocco and other African countries where phosphate is mined, the political framework is difficult. If industry wants a regular supply of raw materials, it is forced to look for alternative sources.
But the source alone is not enough. How do raw materials get to Western countries once they are mined?
We can also map the entire supply chain. For example, we have three options for investments in ports in Norway. Our shareholders are not only interested in the raw material, but also know how strategically important it is to participate in the entire supply chain, which is also located in the middle of Europe. We position ourselves as the cornerstone in the value creation of western industry.
Michael Wurmser, founder of Norge Mining. © Norge Mining
A pre-feasibility study recently revealed how productive your deposits are. How exactly do you have to imagine this?
We have divided the entire funding area into three zones. In the first of these zones we carried out our pre-feasibility study, which was intended to show how productive the raw material deposits are. This zone number 1 only accounts for about five percent of the deposit, we have 3.2 billion tons of rock there, and we can mine each of the three zones for 50 years. We want to mine 20 million tons per year – that’s enough to supply the whole of Europe with phosphate, vanadium and titanium.
“We don’t have these contaminants” – phosphate rock from Europe
Why don’t you mine the whole 70 billion tons?
This is due to the nature of mining. Typically you can work to a depth of 1,500 meters, but our deposit goes much deeper than that.
What differences are there to, for example, phosphate from African countries?
The big difference is that we have igneous rock. It comes from the very bottom of the Earth’s history. Morocco, for example, has sedimentary rocks. In geology, a distinction is made because impurities can be found in sedimentary rock. Cadmium, for example, is carcinogenic, and there is also uranium in there. This can be done with the tolerance limits of the EU collide. We don’t have these impurities – instead we have vanadium, titanium and iron in the rock. Our deposit became a geopolitical story because of its size, location and significance.
To what extent?
The EU and other global players want funding security. In 2020 we had a visit from the EU Commission because it needs long-term, secure access to critical raw materials. In return, we were promised financial support in the form of guarantees. As a rule, such subsidies amount to two thirds to 70 percent of the production costs.
Biggest problem: time factor – Norge Mining wants to mine critical raw materials
What are the next steps for Norge Mining?
After we publish our study, we will deepen discussions with industries. It is extremely important that you connect there. Acceptance is not the problem. What is sometimes a bit of a hurdle is the speed of the authorities. But that has now also improved greatly in Norway.
What is the biggest challenge you still have to overcome for mining in Norway?
The biggest challenge is always the time factor, i.e. the approval. What we need to do now is the feasibility study, which follows the pre-feasibility study. This won’t show anything different than the last study, but it does go into more detail. There are also environmental studies to follow – we have to show how we can adequately protect the environment. We can do this very well because we use, among other things: renewable energy, i.e. wind energy and solar energy. What helps incredibly is that Norway produces the cheapest electricity in Europe.
