Industrialists buy up parts of bankrupt mine in Sweden

The  Northland  iron ore mine brought jobs to the remote northeastern town of Pajala  before going bankrupt. (iStock)
The Northland iron ore mine brought jobs to the remote northeastern town of Pajala, before going bankrupt. (iStock)
Five industrialists have reached into their own pockets and bought parts of the bankrupt Northland iron ore mine in Kaunisvaara, in northern Sweden.

The acquisition, which included the mineral processing facilities and 134 railway cars, was made through a company called Abecede AB.

The transaction is worth SEK 50 million, Swedish Radio News reports.

Real estate, mineral rights, mining concessions and environmental permits were left out of the deal.

Finding a solution

Bert Nordberg, chairman of Danish wind turbine company Vestas, is one of the buyers.

“We’re buying this to give ourselves some time to find a solution,” he says.

The other four buyers are Fastighets AB Balder chief executive Erik Selin, Applied Value Group main shareholder Bruce Grant, Peab AB main shareholder Mats Paulsson and Volvo chairman Carl-Henric Svanberg.

Operations stopped in 2014

Northland opened the Kaunisvaara mine, in the Pajala municipality, at the end of 2012 and stopped operations indefinitely in October last year, laying off 300 people.

The mine had rejuvenated Pajala by providing new job opportunities to the sparsely populated area.

Related stories from around the North:

Canada:  Canadian province of Quebec announces plan for northern development, Eye on the Arctic

Finland:  Finland ‘shot itself in the foot’ creditor says of mining company saga, Yle News

Sweden: Relocation of Arctic town underway in Sweden, Radio Sweden

Norway: Production uncertain beyond Q2 at iron-ore mine in Arctic Norway, Barents Observer

Sweden:  Swedish ore production record in 2014, Barents Observer

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

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