Mineral Commodities scores €9.2m from EU for Norwegian graphite mine

Wed 18 Jan 23, 12:57pm (AEST)
The European Union flag is photographed in-focus in the foreground while a building with reflective exterior panels lies in the backrground
Source: iStock

Key Points

  • Mineral Commodities’ Norwegian subsidiary Skaland Graphite successful in application for EU mine development grant
  • Funds are to support the implementation of digitization technologies
  • The Norwegian graphite mine, once operating at full production, also plays into European domestic raw materials supply chain initiatives

ASX-listed smallcap Mineral Commodities (ASX:MRC) confirmed its receipt of €9.2m (A$14.2m) from the EU on Wednesday. 

The company’s Norwegian-based subsidiary, Skaland Graphite, was the successful recipient of a grant designed to fund the development of mine digitisation initiatives.

Mineral Commodities owns the Skaland graphite mine in northern Norway and intends to develop that project to allow it access to the EU’s battery metals supply chain ecosystem. 

DINAMINE a diamond 

The “Digital and Innovative Mine of the Future” project is given the acronym DINAMINE. It comprises a funding pool and 11 partners from 6 different European countries including three research institutes. 

“To meet the ever-increasing demand and negative market prospects, while mitigating the environmental and societal impacts, the mining industry needs a drastic transformation,” the official EU government webpage for the project reads. 

The project specifically focuses on: 

  • The incorporation of artificial intelligence solutions 

  • Machine automation 

  • Carbon-neutrality research and development

Step change in process

Management see the $14m as a “step change” in process at Skaland, a mine site not without its need for maintenance. 

Aging infrastructure at the location has hampered the execution of optimal performance in the past. What new developments at Skaland the funding revealed on Wednesday will make manifest remains to be seen. 

Management did not highlight any specific purchases the money will go towards at this early stage. 

“The DINAMINE Project provides Skaland with access to not just innovative technologies and systems but also the highly skilled personnel working on this project from the project partners,” Mineral Commodities interim CEO Adam Bick said.

Want to know more? 

Using Market Index’s free company data, a number of initial observations can be made about Mineral Commodities, including but not limited to: 

  • Company’s share price is 6.9c*

  • Market cap of $47.7m*

  • One year performance down -56.8% 

  • One month performance up 6.15%

  • Ranked 353 of 943 companies in the materials sector 

  • Average 4 week volume of 138,627 shares 

  • There are 691.4m shares on issue

  • The company’s latest quarterly report did not contain an appendix showing cash holdings 

*As at 1230 AEST Wednesday 18 January 2023 

A look at MRC's one year chart
A look at MRC's one year chart


Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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