Production uncertain beyond Q2 at iron-ore mine in Arctic Norway

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Mining will continue for another three months, but is uncertain after June. (Thomas Nilsen/Barents Observer)
Mining will continue for another three months, but is uncertain after June. (Thomas Nilsen/Barents Observer)
Iron-ore miner in Kirkenes has secured finances for another three months period, but warns about closure after June if situation doesn’t improve.

Iron-ore price has dropped by nearly 50 percent in 2014, dramatically impacting mining companies in the Barents Region.

Sydvaranger Gruve’s owner Northern Iron today issued an announcement to the Australian Securities Exchange where the company is listed. The update assures the shareholders that the company’s short-term financing arrangements are ok for the period April to June 2015.

This will sustain normal operations and the activities of the business during the second quarter, the announcement reads.

Working to improve financial position

Northern Iron, however, underline that the work to improve the financial position will continue.

“This work has been initiated, but should such endeavours prove unsuccessful it is unlikely that Sydvaranger Gruve will be able to continue as a going concern in its present form beyond the end of the June quarter.”

Sydvaranger Gruve is not the only iron-ore miner in the Barents Region in trouble. In December, Northland Resources outside Pajala in northern Sweden field for bankruptcy. Rana Gruber in Mo i Rana, northern Norway had to sack 50 employees in late November. The largest iron-ore miner in the region, Sweden’s LKAB is also forced to cut staff after the company’s profit plummet by more than 90 percent in 2014, as reported byBarentsObserver.

Canada: Arctic mining – unexpected social negatives for Inuit women, Radio Canada International

Finland:  Does Nordea’s divesting of coal shares signal shift in Nordic market?, Yle News

Norway: Norway announces white paper on Svalbard’s future, Barents Observer

Sweden:  Bids given for Pajala mine in Arctic Sweden, Barents Observer

United States:  Alaska – Judge temporarily halts EPA process on Pebble Mine, Alaska Dispatch

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Thomas Nilsen, The Independent Barents Observer

Thomas Nilsen, The Independent Barents Observer

For more news from the Barents region visit The Independent Barents Observer.

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