2009 started out in the worst possible way for Rana Gruver, with lay-off notice to several workers, low prices and reduced production. No one thought that this was going to change in near future.
However, recently the mining company has signed new contracts and has now secured full production for the three following years. The production of iron ore will be doubled in 2010, compared to the latest years.
– This is almost like a fairytale. I could never have anticipated this outcome of 2009, with the difficulties we experienced at the beginning of the year, says managing director Arve Lein to Rana Blad.
At the same time Sydvaranger Gruve has recently reopened the iron ore mines in Bjørnevatn, next to the Norwegian-Russian border. However, their current situation is a bit more troublesome than at Rana Gruber. The mining company has had difficulties in achieving full production and the lack of income has forced the company to acquire more capital through credit loans.
Sydvaranger Gruve is owned by the Australian mining company Northern Iron Limited. They are now notifying their share holders that there will be an extraordinary general assembly in January. At the general assembly the company probably will do another emission, which will acquire up to 30 million EUR in extra capital, according to local newspaper Sør-Varanger Avis.
The extra money will be invested in improving production capacity. At present the company is running at 50 percent of full production. The aim is to have 75 percent of full production within short time, while the future plan is to have full production within May 2010, says technical manager Per Helge Høgaas to Sør-Varanger Avis.
