“Prices grew strongly throughout the first half of 2019, which combined with a weak Norwegian currency has contributed to high realized prices. The, demand for the company’s products continues to be good, and we sell everything we produce,” said Gunnar Moe, CEO of Rana Gruber.
During the year, the company continued the introduction of LEAN Mining to reduce waste and contribute to production efficiency. It is expected that this will contribute to significant savings in the years to come.
“With the economic outlook in the industry, we expect a satisfactory return on capital going forward,” said Gunnar Moe.
Rana Gruber has a fully invested mining plan with open-pit mining and underground mining from deposits around the Ørtfjell area, with total accessible reserves of 20.9mt.
The current invested mining plan also includes the development of a new underground level that is nearly completed. The new underground level is expected to come into production during the fourth quarter of 2020. The total investment in relation to the new underground level has and will be approximately NOK 200 million during 2019-2020.
Rana Gruber’s next underground level is expected to be in production from 2025 and has an estimated capital expenditure of NOK 175 million. The next open pit will be established in the Steinsundstjern area.
Based on an annual mine production of approximately 4.8mt, Rana Gruber will be able to maintain its current annual iron ore concentrate production of about 1.7mt.