Sydvaranger Mine is planning to increase the annual production of iron ore from 7 million tons to 14 million tons. The increased production will require 125 million EUR in extra investments, which the company still haven’t managed to finance.
Director of Sydvaranger Mine, Per Helge Høgaas, says to local newspaper Sør-Varanger Avis that the reducing prices on iron ore makes it even more important than ever to deliver a quality product for the market.
− By increasing our production of iron ore, we optimize the utilization of our infrastructure and our machines, and this will reduce the costs of production, says Høgaas.
Surveys have shown that there are 450 million tons of exploitable iron ore in the area, which secures production for at least 30 years.
First of all the company must be given a permit to double production by the Norwegian Pollution Control Authorities (SFT). If SFT says OK, then the board will decided whether the company is able to finance the extra 125 million EUR investments or if they will have to postpone the plans. The international price level for iron ore is also set every year on April 1st. What is decided here will probably also affect the board’s decision.
