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

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