Swedish Company Grangex Acquires Iron Ore Mine in Norway


The Sydvaranger Mine in Kirkenes. (Photo: Sydvaranger).

The Swedish mineral company Grangex buys Sydvaranger Mining, which owns the iron ore mine in Kirkenes, Northern Norway.

On 30 November, the Swedish mineral company Grangex announced that it has signed a conditional purchase agreement with OMF Fund II H Ltd (Orion) for the purchase of 100 per cent of the share capital and shareholder loans in Sydvaranger Mining AS from Orion.

The total purchase price is 33 million dollars (about 30 million 364 thousand euros).

Sydvaranger owns an iron ore mine in Kirkenes, Northern Norway, where Grangex aims to restart production of ultra-high-enriched iron ore concentrate, in line with its sustainable mining strategy.

On 29 June 2023 Grangex announced the execution of an exclusivity agreement with Orion related to Sydvaranger. Since then, Grangex has completed positive due diligence on Sydvaranger and negotiated the final terms of the purchase agreement with Orion.

The Swedish mineral company also operates the Dannemora mine in Sweden. According to the company, this project, together with Sydvaranger, will enable Grangex to become a leading supplier of high-quality magnetite concentrates, and to play a key role as the global steel sectors seek more sustainable methods of production.

Grangex is pleased to lead this ground-breaking Nordic cooperation in one of Norway's most important regions […]. Well on the way to a successful development of the Dannemora project, we will now proceed with the same speed, energy and enthusiasm to start the development of sustainable and commercially good iron ore production in Sydvaranger. We look forward to re-establishing industrial mining in Eastern Finnmark together with all public and private stakeholders, says CEO of Grangex.

Sydvaranger Mine in Kirkenes, Northern Norway, was in operation from 1910 to 1997. During this period, more than 200 million tonnes of iron ore were produced. 11 years later, the mine was rehabilitated and in 2009 operations were underway again until bankruptcy in November 2015.

Source: Cision