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Record-high results for Rana Gruber – aims for carbon free production within four years

Rana Gruber delivers record-high results for 2020, boosted by a competitive cost base and a strengthened iron ore market. Now the company aims to become the world’s first CO2-free iron ore producer within 2025.

– It’s impressive to see how the whole organization has adapted to new ways of working and collaborating since the lockdown last March. We were able to maintain our production levels while following strict safety measures due to Covid-19. I’m proud of concluding 2020 with all-time-high results in a challenging year, says CEO of Rana Gruber, Gunnar Moe.

Rana Gruber’s revenues ended at NOK 1,32 billion with operating results before (EBITDA) of NOK 667 million in 2020, compared to NOK 1,1 billion and an EBITDA of NOK 422 million in 2019. Results before tax came in at NOK 354 million for 2020.

– During the pandemic, particularly in the uncertain months of March and April, we managed our operating costs carefully. By producing as much iron ore as possible, all the while keeping the costs as low as possible, we were able to ride out the storm, says Moe.

Strong market

The price of iron ore, which Rana Gruber is a producer of, has doubled at the beginning of 2021 to USD 170 per ton from the beginning of 2020.

– The demand for iron ore and steel has increased significantly, mainly due to China’s quick recovery after Covid-19 and various stimulus packages in Europe and the US aimed – amongst other things – at large infrastructure projects. The market is expected to remain strong going forward, which means that we can benefit from our solid position in the international market of production and processing of iron ore, Moe says.

In April, Rana Gruber signed a contract with Cargill spanning five years, amounting to approximately NOK 5 billion with the prices at that time. The deal secures a pipeline for Rana Gruber’s main production in the period.

Free from CO2-emissions by 2025

Late 2020 Rana Gruber opened a new level in the underground mines – an investment of a total of NOK 200 million over the past years.

The board of directors has also put in place ambitious goals for sustainable mining: By 2025 Rana Gruber’s processes are going to be CO2-free through an electrification of all machinery.

– We have the lowest CO2-footprint in the industry and are now working on becoming completely carbon-free. Substantial investments the past years give us a clear edge in a vast international market, and we are first in line when there are strict demands on sustainability and quality, Moe says.

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