Over the last 40 years several Norwegian mines have been shut down because of financial problems and low demand. The mineral prices are now rising once again and prospects for Norwegian mining industry are positive.
– Minerals worth thousand billion NOK (130 bill EUR) is a conservative estimate for the values hidden in Norwegian mountains, says Morten Smelror of Norwegian Geological Surveys.
In comparison the value of the remaining oil and gas resources on the Norwegian Continental shelf is only six to seven times more than this. However, the prices are constantly shifting and estimate like this is not enough to finance the development of a mining project. The development of a mine involves a lot of gambling, due to shifting prices and the costs of development.
Due to the global financial crisis, the growth in mineral prices stopped in 2009. However, now price development is once again positive.
– All estimates show that prices will continue to rise, because large nations like China, India and Brazil are developing rapidly and have a huge demand for minerals. The only factor which could stop the growth of prices is a collapse in these economies, says Smelror.
The most likely mines to be developed are old mines which have been shut down. The iron ore mine Sydvaranger Gruve in the border town of Kirkenes is an example of this. Production in the reopened mine started in 2009 and estimates are that there is iron ore worth 20 billion EUR in this mine.
The Norwegian Mining and Quarrying Industries association has made a statement where the association has directed criticism towards Norwegian politicians. Norwegian politicians seem to be unaware of the values and the importance which the Norwegian mineral resources represent.
– Compared to Finland and Sweden, Norway has neglected the resources which are hidden in Norwegian mountains. All focus is on development of oil and gas resources in Norway, says Smelror.
