Mustavaaran Kaivos raises 9.7 M€ to complete final studies on a new vanadium plant at Raahe

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The funding has been made possible through contributions by local investor Osuuskunta PPO and Tesi (Finnish Industry Investment Ltd), as well as existing main shareholders of MKOy, being Tamares Mining Group B.V., Akkerman Exploration B.V. and Ilmarinen Mutual Pension Insurance Company.

With these funds in place, the company will finalize the remaining detailed design of the new vanadium processing plant during the next 9 months.

Recycling slag from steel industry

The project involves the construction of a processing plant at the port of Raahe which will recycle steel slags from SSAB to extract vanadium and iron leaving a slag which can be used in the construction and cement industries.

MKOy’s end product of the plant will be ferrovanadium (FeV80). Ferrovanadium is mostly used in the steel industry as a strengthening alloy to produce high strength steel and tool steels. Such special steels are used in the construction industry and for aerospace applications.

Global steel company SSAB will supply the vanadium containing slag from Finland and Sweden based on a long-term supply agreement. The new innovative and cost-effective process solution will be contributing to a circular economy.

Towards production in 2020

Following a positive implementation decision early 2018, construction of the vanadium plant is expected to take 2 years and requires an estimated investment of 240 M€. MKOy recently engaged BNP Paribas, a global and leading banking institution, to arrange a project financing facility through a consortium with other banks.

“This 9.7 M€ financing is a major achievement for our company thanks to the collective effort of our employees, the owners and the support by PPO and TESI. It strengthens our determination to jointly move forward towards the realization of this promising project to the benefit of all stakeholders including the Raahe community” says Jan H. Akkerman, chairman of the board.

“MKOy is a significant Finnish circular economy project. Growing demand for stronger and lighter steel will increase vanadium consumption globally. Especially steel consumption growth in emerging markets will positively affect the vanadium industry”, comments Tesi’s director Kimmo Viertola.

“MKOy´s vanadium production plant will have a long-term positive effect on employment and economic activity in the Raahe area. It is impressive how determinedly the company has worked towards the production phase by comprehensive planning and mutual co-operation with SSAB and the local community. We are pleased to take part in this project”, comments Osuuskunta PPO´s managing director Kati Peltomaa.

Additional information:

Mustavaaran Kaivos Oy
Jukka Pitkäjärvi, Managing Director
+358 44 488 7200,

Tesi (Finnish Industry Investment Ltd)
Kimmo Viertola, Director, Industrial Investments
+358 50 309 2734,

Osuuskunta PPO
Kati Peltomaa, Managing Director
+358 44 729 1220,

Mustavaaran Kaivos Oy is planning to start vanadium production using steel industry slag as raw material. The vanadium plant will be constructed at the Port of Raahe in Finland and it will offer over 100 permanent jobs once in operation.

Tesi (Finnish Industry Investment Ltd) is a venture capital and private equity company that accelerates companies’ success stories by investing in them directly and via funds. Tesi always invests together with other investors. Our investments under management total 1 billion euros and we have altogether 723 companies in portfolio. | @TesiFII

Osuuskunta PPO is a local investment and development cooperative on the area of Northern and Central Ostrobothnia that creates profit to its members and value to the local community. Cooperative is owned by over 26 000 members. The Investment capital of Osuuskunta PPO is 100 million euros.