Business model

Business concept

Nordic Iron Ore’s business concept is to own iron ore deposits in the mining district known as Bergslagen either under its own auspices or with others, and develop them into operational mines with good long-term profitability that can supply high quality products to steel mills in Europe and other parts of the world.

Objectives

Nordic Iron Ore’s operational objectives before the end of 2018 are that the company should have:

  • Resumed mining activities at Blötberget, with an expected annual production of about 1.4 million tonnes of finished product at full operation.
  • Obtained a mining concession and environmental permit for the Väsman field.

Strategy

The business concept will be realised through:

  • Exploration and development of quality iron ore deposits.
    Creating efficient mining, concentration and transport solutions.
    Being an attractive business partner for the chosen customer segment.
  • Producing and marketing a nishe product with very high iron content

Exploration

The company intends to conduct extensive exploration in order to extend and secure its mineral resources and mineral reserves. In particular, exploration will be conducted in the area around Ludvika Gruvor, where the company primarily intends to resume mining operations at Blötberget and Håksberg. The objective of the exploration is to increase the mineral resources adjacent to the deposits where mining is planned, and upgrade them ahead of future calculations of mineral reserves, and to explore the Väsman field sufficiently enough to allow the calculation of the mineral resources for the entire Väsmanfield.

Mining operations

Nordic Iron Ore intends in the first instance to resume mining operations at Blötberget. Underground mining is planned where the existing infrastructure from previous mining operations can be utilised. At Blötberget and Håksberg the planned run of the mine (ROM) is 3.0 million tonnes per year when fully operational. In addition, if the results of the exploration are positive, this could make future mining possible in particular at the Väsman field, but also Håksberg.

Concentration

In connection with the mining region at Blötberget, the company intends to construct a plant for the concentration of ore from Blötberget, with the option of expansion for the Väsman field and Håksberg. The concentration process intends to provide a high quality iron ore concentrate to be produced with an estimated iron content of approximately 69 percent. For mining at Blötberget and Väsman, the concentrator, when fully operational, is expected to deliver about 4.3 million tonnes of iron ore concentrate per year.

Transport

Nordic Iron Ore’s mining region has, through its location in Bergslagen, access to existing railways linking the mining region with several possible shipping ports. The Company will primarily be shiping iron ore concentrate from the deep-sea port at Oxelösund.

Customers

Nordic Iron Ore’s end product, concentrate, is intended to be sold and shipped by train and boat to potential customers in Europe, the Middle East and Asia. As the, by the company, delivered iron ore concentrate must be sintered or pelletised before it is used in the blast furnace, the production is intended for delivery to customers with access to their own sinter or pellet plant.