Posted by Paul Moore on thirtieth November 2024
Rana Gruber ASA, Norway’s solely producer of iron ore, has signed a brand new contract with the native contractor and long-term associate HJH for operational tasks on the upcoming Stensundtjern open-pit mine, wealthy in magnetite sources. Manufacturing is anticipated to start within the second half of 2025.
HJH, which oversees the present operations on the Ørtfjell open-pit mine, Rana Gruber says will seamlessly transition to Stensundtjern upon Ørtfjell’s conclusion. This continuity maximises gear switch effectivity and helps uninterrupted manufacturing.
“We’re more than happy to proceed our sturdy relationship with HJH,” mentioned Gunnar Moe, CEO of Rana Gruber. “Over the previous years we’ve seen first-hand their operational capabilities with a extremely environment friendly setup, while they on the similar time set excessive requirements for well being, security and environmental concerns. This aligns very nicely with our priorities and values, and will likely be instrumental as we put together to convey Stensundtjern on-line, guaranteeing a steady and sustainable provide of high-quality iron ore.”
Rana Gruber presently controls 4 iron ore deposits situated in Storforshei and Ørtfjell within the Dunderland Valley, simply north-east of Mo i Rana. HJH’s tasks at Stensundtjern will embody blasting, waste rock elimination, transport and each day mining actions, guaranteeing extremely environment friendly manufacturing from day one.
The brand new Stensundtjern open-pit is predicted to spice up Rana Gruber’s magnetite manufacturing to new highs, because of the magnetite-rich ore physique on the web site. Magnetite is a extremely specialised product offered to the chemical trade to be used in water therapy methods, priced at a premium attributable to its extremely high-grade properties with an iron content material above 71%. Rana Gruber has a present run-rate of magnetite manufacturing at 160,000 t yearly, anticipating to extend to 175,000 t in 2025 and 200,000 t in 2026.
The brand new contract reaffirms that Rana Gruber is on observe to satisfy its projected timeline for Stensundtjern, as offered throughout a latest capital markets day. The corporate states: “With manufacturing anticipated to start in 2025, this milestone additional confirms Rana Gruber’s dedication to delivering a steady and high-quality provide of iron ore to European markets. The contract aligns with the corporate’s beforehand communicated capital expenditure plans, requiring no further investments past what was disclosed. Moreover, the goal money value of US$50-55 per tonne stays agency, highlighting Rana Gruber’s dedication to operational effectivity and value self-discipline.”
