Posted on 20 Mar 2019
In a perfect example of what goes around, comes around, Norway’s Sydvaranger iron ore mine is ready to be launched back into production, the company tells Kallanish.
The mine declared bankrupt and closed in November 2015 at a point when the seaborne iron ore price was in the low $40’s. It was acquired by Norway’s Tschudi Group in April 2016 and is now ready to resume production after having received its mining concession from the Norwegian Ministry of Trade on 19 March. The Kallanish Kore index for 62% Fe fines was at $86.62/dry metric ton on 19 March.
"We are very happy that the permit terms from the ministry are clearly defined and balanced. The concession gives us the necessary predictability crucial for the start-up of a long-term and sustainable operation,” says ceo Peter Larsen.
The company has 35 employees and once in full operation will employ more than 400 people, it confirms. “Now Sydvaranger can continue focusing on completing final studies and planning, recruiting key personnel and building the organisation with a view towards a gradual ramp-up of operations this fall, with first concentrate planned to be shipped out during the spring of 2020,“ Larsen adds.
The mine, then owned by Australia’s Northern Iron, last operated from 2009 to November 2015. It produced 20 million tonnes of ore and 8mt of magnetite concentrate (68% Fe) was sold to Europe, the Middle East and China. Before that, iron ore production had begun in 1910 and had continued through to 1997, when the previous closure of the mine occurred.
