Sydvaranger Mine close to the Norwegian border town of Kirkenes, is to be reopened this year. In a period of financial crisis and dropping iron ore prices, Northern Iron Limited has managed to sign a sales contract with one of the world’s largest steel producing companies, Corus. Pricing for the concentrate is to be based on the Vale Benchmark, Northern Iron Limited reports in a press release.
The six million tons of iron ore concentrate which Corus has sign a contract for, represents approximately 45 percent of Sydvaranger Mines planned annual production. The contract also provides for sales of up to an additional 2.25 million tons of concentrate at the mutual option of both parties.
The Corus Group is a subsidiary of Tata Steel Group, which is the world’s sixth largest steel producer with operations in 26 countries around the world. Corus was one of Sydvaranger’s customers back in the 90ties, before production in the mine was halted in 1997. The British company is therefore familiar with the quality of the concentrate of the Sydvaranger Mines.The contract will be effectuated on July 1st, which is also when Sydvaranger is planning to be ready for production.
