Finnish Industry Investment Ltd has invested EUR 1.5 million in Vulcan Resources Limited, a mining company listed on the Australian stock exchange. All Vulcan’s mining projects are located in eastern and northern Finland. Other principal investors in the financing round now completed are the American company Sempra Metals & Concentrates and a group of investors operating through the Australian company Intersuisse Corporate.
Vulcan will use the capital to accelerate its mining project in Kylylahti, Finland. The Kylylahti bed of multi-metal ore at Polvijärvi in North Carelia is the company’s largest project. The ore contains copper, cobalt, nickel and gold. Although the highest ore content is copper, the company is pinning its hopes on cobalt. Vulcan also has ore prospecting projects in Kuhmo, Pudasjärvi and Tornio.
Finnish Industry Investment (FII) has earmarked EUR 20 million for its mining financing programme, specifically aimed at investing in exploration and mining companies whose projects are located in Finland. FII operates as a co-investor together with both Finnish and foreign venture capital investors.
The driving force for the mining financing programme is foreign investors’ interest in Finland’s ore reserves, because the country’s bedrock is regarded as a promising prospect. Large domestic players have focused on refining instead of mining.
“Finnish Industry Investment is actively seeking investment prospects in the mining industry. New locations for mining operations are primarily situated in Ostrobothnia, Lapland and eastern Finland. Every mine that is opened creates new jobs in other fields also,” says Kimmo Viertola, Director, Finnish Industry Investment Ltd.
Finnish Industry Investment Ltd (FII) is a government-owned investment company. The company invests the proceeds accrued from the privatisation of state-owned companies to promote the growth and internationalisation of Finnish businesses. Finnish Industry Investment invests mainly in venture capital and private equity funds. The company also invests directly in companies. The targets are in all sectors and particularly early- and growth-stage businesses that, without Finnish Industry Investment Ltd, would not receive sufficient private capital. Capital investments are needed for the recipient companies’ seed phase and for financing growth, companies’ spin-off projects, change-of-generation arrangements, major industrial investments and restructurings. Industry Investment acts as a co-investor, investing at most one-half of the capital and limiting its ownership to 50%. The company’s investments and investment commitments amount to some EUR 330 million.
Further information:
Kimmo Viertola, Director
Finnish Industry Investment Ltd
tel. +358-50-309 2734 and kimmo.viertola@industryinvestment.com
Tuomo Mäkelä, Senior Advisor
Finnish Industry Investment Ltd
tel. +358-40-540 0620 and tuomo.makela@industryinvestment.com