A big boost for the mining industry
Norwegian Mineral Industry applauds Swedish Grangex's acquisition of Sydvaranger. But the trade is also a reminder of the major challenges facing the industry.
"This is a day of joy for the companies, Kirkenes, the whole of Northern Norway, Europe and the world's security policy," said Secretary General Anita Helene Hall at a press conference after the deal was announced.
"Kirkenes will receive tax revenues and 400-500 secure jobs that cannot be moved out of the country. The opening of the mine will lead to growth for schools, shops and other local businesses. Furthermore, it is very positive news for Europe, which is in dire need of iron after the loss of supplies from Russia and Ukraine. And who do not want the risk of being dependent on countries in other parts of the world, such as China, she adds.
Major challenges
Hall says that the agreement is a reminder of the great importance the mining industry has had and still has for Norwegian society. Now she hopes for smooth case processing in the public sector, so that Sydvaranger can be operational in a few years.
She pointed out that it can generally take up to 20 years from the start of mapping an area for minerals and metals until commercial extraction can take place. This is not least due to very long and unpredictable case processing. Public decision-making processes are to a great extent not coordinated and streamlined, which leads to duplication of work and frequent rematches.
"And this is the situation at a time when Europe is crying out for metals and minerals from Norway to secure the industry. They are concerned with ensuring self-sufficiency, and then from countries that take basic human rights seriously, have good HSE and respect for nature," says Hall.
Huge capital requirement
It was early May that it became known that the Swedish company Grangex is buying Sydvaranger Mining from American Tacora Resources. Grangex has already paid just over NOK 16 million for what after the acquisition is called Sydvaranger Mine, and will pay an additional NOK 140 million at the beginning of 2026 at the earliest. The Swedish company has entered into an agreement with the multinational company Anglo American, which is contributing more than NOK 190 million in capital. As part of the agreement, they will receive three percent of future profits.
This means that Grangex can begin the work of reopening the mine in Sør-Varanger. But it will cost a lot of work and a significant amount of money. Total investments to get the mine into operation can be estimated at more than NOK six billion," said CEO Christer Lindqvist of Grangex at the press conference.
Financing of mining projects is a matter close to Hall's heart.
"The lengthy case processing of mining projects results in long-wided processes and great uncertainty. Investors dislike that. A more flexible case processing will make it easier to secure financing for all the projects we should develop to meet Europe's rapidly growing need for metals and minerals," she says and continues:
" Norwegian Mineral Industry is also calling for concrete measures for risk relief and better financing, as the government envisaged in its mineral strategy from last summer. In Finland, the authorities have established a separate mineral fund that invests in the start-up phase of mineral projects, before selling out as the company approaches the market. In other words, not subsidies, but support on commercial terms.
At the bottom there is a link to the press conference (in Norwegian and Swedish). Grangex CEO Christer Lindqvist starts by talking about the acquisition 11.30 minutes into the recording, Hall can be seen from 27.30. Comments from LO's Are Tomasgard, the Progress Party's Bengt Rune Strifeldt and former owner of Sydvaranger Felix Tschudi follow.
Here you can see the recording from the press conference:
Norsk minaralsatsing (youtube.com)
(caption:)
OPTIMISTIC: The moderator John Arne Markussen from the PR agency Geelmuyden Kiese and Secretary General Anita Helene Hall from Norwegian Mineral Industry at the press conference in May.
You can also find this article in Norwegian on the Norwegian Mineral Industry home page:
Markussen og Hall