Grangex, a mineral development company in Sweden, plans to complete the acquisition of the Sydvaranger iron ore mine in Kirkenes, Northern Norway, this year.
At the end of June, Swedish company Grangex announced its desire to acquire the Sydvaranger mine in Northern Norway.
Grangex has entered into an exclusivity agreement with Orion Resource Partners to buy Sydvaranger Mining AS. After that, the Swedish company carried out several reviews: Technical, Environmental, Social and Governance investing (ESG), as well as Legal and Financial.
According to the company’s press release, Grangex plans to complete the acquisition of Sydvaranger in 2023.
Besides, the Swedish company also reveals a number of key indicators for an estimated production time of 20 years. According to the announcement, Grangex expects raw ore production of 9.2 million tonnes (Mt) a year. The average production of iron concentrate (68% Fe) is expected to be 3.5 million tonnes per year.
Grangex's green strategy has formed the basis for the assessment of the technical conditions with the aim of complementing and improving the planned mine production to be able to produce an ore concentrate for fossil-free sponge iron production (DRI), which means an improvement in the relative price, the company writes in the press release.
Work to resume production at the Sydvaranger mine has been underway for a long time. This includes repair work to improve the general condition of the mine and equipment.
Based on High North News materials