business
Graphite Mine in the North Back in Norwegian Ownership
The North Norwegian contracting company Leonhard Nilsen og Sønner has purchased the cornerstone company Skaland Graphite in Senja, Northern Norway.
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LNS Holding announced on Thursday that the company has signed an agreement to acquire Skaland Graphite.
The agreement was made with the Australian registered company Mineral Commodities Ltd (MRC), which is listed on the Australian Securities Exchange.
HNN has previously reported that this purchase was in the making. The initial agreement was subject to several conditions, including a due diligence process that has been ongoing since November last year.
Europe's largest graphite plant
Skaland Graphite produces crystalline graphite and is Europe's largest graphite plant.
“We have conducted a thorough assessment of Skaland Graphite over the past few months, which has resulted in LNS acquiring the company,” says LNS Group CEO Frode Nilsen in a press release.
Nilsen adds that LNS will make the necessary investments in both the mine and the processing plant to increase production. The graphite will also be further refined to ensure the required profitability.
Important raw material for Europe
The acquisition is described as part of the LNS group's focus on graphite extraction, which is an important raw material for Europe. The company points out that the EU defines graphite as a critical and strategic industrial mineral, and that the deposit on the island of Senja is significant in both national and European contexts.
LNS has previously owned the graphite mine.
“It is great to be back on Senja, and I am both pleased and proud that we have brought Skaland Graphite back into the LNS portfolio,” Nilsen concludes.
