business
Acquisition of Norwegian mine sparks concern:
Nussir Copper Mine Sale Faces Russian Links Scrutiny
The CEO of the company seeking to acquire the Nussir mine has held key roles in companies controlled by Russian oligarchs with close ties to Putin. Now, Norwegian politicians are demanding answers regarding the security assessments that have been conducted.
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In early November, it was announced that the mining company ACG Metals intends to acquire the Nussir mine in Hammerfest, Northern Norway, for approximately two billion NOK. The acquisition also includes Nye Sulitjelma Gruver (NSG), which is set to resume mining operations in Sulitjelma, Fauske.
ACG Metals is an international mining company listed on the London Stock Exchange, with its headquarters in the British Virgin Islands. The company already operates a copper mine in Turkey that recently reached full operational status. Its board of directors includes, among others, former US Secretary of State and CIA Director Mike Pompeo.
The transaction is taking place through the Canadian company Blue Moon, which acquired all shares in Nussir and NSG in 2024. The acquisition by ACG Metals is scheduled to be completed on November 30.
However, the sale has sparked strong reactions following revelations about the CEO of ACG Metals, the Russian-British businessman Artem Volynets.
“When Russian businessmen with past ties to oligarchs close to Putin are involved in this acquisition, alarm bells should be ringing. I want answers from the Minister of Trade and Industry regarding what assessments have been made,” says leader of the Progress Party, Sylvi Listhaug to NRK.
The consequence is that less of the critical and strategic metal copper will reach Europe.
"Copper is critical in Europe"
Nussir is Norway’s largest known copper deposit and was granted strategic status by the EU last year. Copper is one of the world’s most important metals, with growing demand from sectors including the defense industry. The deposit in the Nussir mountain in the Norwegian Arctic is considered one of the largest in Europe. The area also contains significant quantities of gold and silver.
The mine is under development, with a planned start-up next year.
Nussir director Øystein Rushfeldt has spent 18 years developing the project and will continue as project manager following the acquisition. He is also a shareholder in Blue Moon himself.
Rushfeldt believes the new ownership could help strengthen Europe’s own copper production. He also warns of the consequences of rejecting the acquisition.
“The consequence is that less of the critical and strategic metal copper will reach Europe, which puts the EU in an even more difficult position—compounding a situation that is already critical today,” he tells VG.
Rushfeldt reacts to the attention surrounding Volynets' background, describing the reactions as a form of discrimination.
Although Volynets is the founder, chair, and CEO of the company, he owns a smaller share of the company’s stock, Rushfeldt points out.
"The major shareholders are, after all, thoroughly Western, and they are the ones who decide what happens to companies."
Worked for Putin’s oligarchs
Volynets has held key executive positions in companies controlled by oligarchs with ties to Vladimir Putin. Five of his former bosses and colleagues are currently subject to Western and Norwegian sanctions.
From 2003 to 2013, he held key roles in several of Russia’s largest industrial companies, controlled by the oligarchs Viktor Vekselberg, Oleg Deripaska, and Suleiman Kerimov.
All three were sanctioned by the US in 2018. According to US authorities, the oligarchs profited from the Russian regime.
Volynets led, among other things, the negotiations that resulted in the establishment of the aluminum giant UC Rusal, where he subsequently held a senior position from 2007 to 2010. He then became the top executive at Deripaska’s holding company, En+. In 2013, he also served for a brief period as chair of the board of Kerimov’s investment firm, Nafta Moskva.
Deripaska is referred to as "Putin's favorite" by The Guardian, while Kerimov belongs to Putin's "inner circle," according to BBC.
Says he cut ties with Russia
Volynets confirms that he has previously worked for companies linked to the Russian billionaires, but denies having any connections to them today.
On November 3, he told Finansavisen that he broke ties with the Russian business sector in 2013.
However, VG has revealed that Volynets served on the board of the Moscow-based mining giant Norilsk Nickel from 2018 to 2019.
There, he worked with, among others, Vladimir Potanin and Alexey Bashkirov, who were later placed on the US sanctions list. Potanin was sanctioned in 2022, while Bashkirov was sanctioned in 2023.
Volynets states to VG that his board position was related to corporate governance and control, and that the role did not entail representing any specific shareholders. He further adds that he has had no contact with Potanin or Bashkirov since he left the board in 2019.
In 2016, Volynets also attended a Russian economic forum in St. Petersburg, organized by the Russian authorities and often referred to as "Putin’s Davos." There, he presented plans to raise up to $500 million for investments in Russia and neighboring countries, reports VG.
Volynets says that the investments never materialized, and emphasizes that during this period he worked for an international investment firm.
According to Volynets, he last visited Russia in 2020, on a private trip.
Concerns over national security
The acquisition has raised questions regarding the security risks associated with foreign investments in the Norwegian mineral sector.
The Norwegian Police Security Service (PST) has previously warned against acquisitions by states such as Russia and China, whether directly or through proxies and complex corporate structures.
Such investments can create dependencies and be used as a means of pressure, according to the PST's threat assessment for 2025.
The government has carried out various assessments of the sale and has held meetings with ACG Metals.
According to Minister of Trade and Industry Cecilie Myrseth (Labour), there is currently no basis for halting the transactions.
“Security and preparedness are at the top of our list of priorities as we now look to develop more mineral projects in Norway,” Myrseth told NRK.
She did not wish to elaborate on the specific security assessments that have been made.
"But we have tools, including the National Security Act, that allow us to intervene if we deem it necessary for the purpose of conducting security and preparedness assessments."
On Wednesday, the Green Party (MDG) asked the Norwegian Parliament, the Storting, to pause the sale until Norwegian security authorities have determined that the transaction does not pose a security threat. However, the proposal was voted down.
The Minister of Trade and Industry has now requested to brief the Storting on the planned acquisition. This will take place behind closed doors.
The government has the authority to halt the acquisition under the Security Act if the transaction threatens national security interests.
