Swedish prospecting company Grangex announces completion of a Definitive Feasibility Study (“DFS”) for the restart of operations at the Company’s Sydvaranger mine, located in Kirkenes, Northern Norway.
Key highlights from the DFS include:
- Pre-tax NPV8 of US$1,552m
- Pre-Tax IRR of 37.7%
- 25 years total mine life
- Total production of 63.3mt of 70% ultra-high-grade direct reduction magnetite concentrate
- Life of mine cash operating cost of US$56.1/t of concentrate
- Phase 1 capital expenditure of US$193.6m and Phase 2 capital expenditure of US$223.8m
The DFS was managed by SLR Consulting (“SLR”), a Tier-1 international multidisciplinary consulting firm, and prepared according to international reporting standards.
Grangex’s stated strategy is to restart production of ultra-high-grade direct reduction magnetite concentrate at the Sydvaranger Mine and to become a leading supplier to the European and global steel industries as they undergo the current ‘green steel revolution’.
The currently estimated re-start of operations is in 2026 with first commercial exports in late 2026. The DFS has confirmed Sydvaranger Mine’s techno-economic feasibility to produce an ultra-high-grade direct reduction magnetite concentrate with an Fe content of 70% with low deleterious elements, with the planned processing circuit upgrades. The Sydvaranger Mine is expected to produce 63.3mt of ultra-high-grade direct reduction magnetite concentrate over its 25 year mine life. All produced concentrate will be exported from the Sydvaranger Mines’ captive existing Kirkenes port terminal.
Grangex expects to reach its Final Investment Decision (“FID”) by end of 2025 for the commencement of the required construction and refurbishments at the Sydvaranger Mine to enable re-start of operations. FID remains conditional upon successful raising of the required project financing, a process which has been underway since the completion of a previously announced Preliminary Economic Assessment (“PEA”). Further announcements relating to the project financing will be made by the Company as appropriate.
Christer Lindqvist, Chief Executive Officer of Grangex, states: “It is with great pride that we today announce the successful completion of a positive DFS for Sydvaranger. The DFS confirms Sydvaranger’s strong potential to become a world-class producer of ultra-high grade direct reduction magnetite concentrate and an enabler of the European and global steel industries in their shift towards more sustainable production technologies.
Grangex was established on the fundamental belief that Scandinavia has the potential to be a leader in the sustainable development and operation of world-class mining assets and since the acquisition of Sydvaranger in May 2024, the entire Grangex team has worked tirelessly to confirm that belief.
Sydvaranger will be the largest mining operation in Norway and an economic motor especially for the Finnmark region. I continue to be impressed with the support from the local communities and I look forward to Grangex becoming an integral part of Kirkenes for the next several generations.
I would like to thank the SLR team and all other partners that have worked with Grangex to deliver this DFS – their professionalism is a credit to their respective institutions. I of course also have to thank the whole Grangex team for their absolute dedication in delivering this milestone on time and on budget – every single member of Grangex has made a crucial contribution and as we now move towards construction, I look forward to expanding the Grangex family.
As we now move to project financing and our target final investment decision by end of 2025, I look forward to providing further updates to all our stakeholders”
