Norway's Nussir considers IPO after Arctic copper mine deal (updated)
25/03/2021 10:24
(Adds reaction)
LONDON, March 25 (Reuters) - Nussir ASA is considering
listing its shares in Oslo this year after signing a deal with
local officials to build the world's first fully electric copper
mine in the Arctic, its chief executive told Reuters.
The project, located in Norway's northern Kvalsund area, has
faced opposition from indigenous Sami herders and fishermen who
say the mine could damage summer reindeer pastures and destroy
spawning grounds for coastal cod.
But in a statement on Thursday, Nussir said the mine had
signed a cooperation agreement with the local Hammerfest
municipality.
"We have been successful in reaching very strong support
from the local community," Chief Executive Øystein Rushfeldt
said.
As part of the deal with the municipality, Nussir committed
to use local suppliers and provide jobs, thereby helping to
remedy local population decline and boost the economy.
Approved in February 2019, the project has been viewed as a
litmus test for the Arctic, where climate change and technology
are enabling mineral and energy extraction, shipping and
tourism, but threatening traditional ways of life.
Tailings from the mine, which has a 10-year supply agreement
with Germany's Aurubis NAFG.DE , will be deposited at the
bottom of the fjord using pipelines and will not disturb any
marine life, Rushfeldt said.
While many locals support Nussir's project, others remain
opposed. "Dropping the tailings of the mine in the fjord is
complete madness," fisherman Tommy Pettersen told Reuters. "This
a spawning ground for cod."
Reindeer herders, who use the area for summer pastures, are
preparing legal action to stop production. "We are still opposed
to this mine," reindeer herder Nils Mathis Sara told Reuters.
LISTING
Rushfeldt said a final decision on whether to float its
shares will be made in the coming months.
"It's something that could happen this year once decided,"
he said of the listing.
He said high copper prices had helped to drive interest in
IPOs, particularly on the Norwegian Euronext Growth exchange,
which aims to promote growth among smaller companies.
Cyprus-based Seabird Exploration SBX.OL listed its
deep-sea mining arm Green Minerals GEM-ME.OL on Tuesday on the
exchange. urn:newsml:reuters.com:*:nL8N2LE4YW
The Nussir project hosts 80 million tonnes of copper and is
carrying out an electrification study to avoid the use of diesel
on site, which accounts for many of the emission from mines.
(Reporting by Zandi Shabalala in London, additional reporting
by Gwladys Fouche in Oslo; Editing by Elaine Hardcastle and
Barbara Lewis)
((zandi.shabalala@tr.com;))