HPP advised Mustavaaran Kaivos Oy (“MKOy”) on all aspects of a financing round, in which the company raised 9.7 million euros for the completion of a bankable feasibility study on its vanadium plant in Raahe. The investors participating in the funding included among others Osuuskunta PPO and Finnish Industry Investment, as well as existing main shareholders of MKOy, being Tamares Mining Group B.V., Akkerman Exploration B.V. and Ilmarinen Mutual Pension Insurance Company.
MKOy’s intention is to construct a processing plant at the port of Raahe which will recycle steel slags to extract vanadium. MKOy’s end product of the plant will be ferrovanadium (FeV80) which 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.
More information about the transaction can be found in MKOy’s press release.