Thu, 19 Nov 2020 16:05:56 +0100

Nordic Iron Ore publishes very positive results from the optimization study for the Blötberget mine.

Whittle Consulting (“WCPL”) has reported on the completed Enterprise Optimisation study for the Blötberget Project.  The final study, of which a summary is now available at the company web page, shows significant upside relative to previously published preliminary result. The optimization of the previously presented feasibility study increases the net present value by circa 50% to USD 172 million.

The optimization study aims to improve the NPV, IRR and unit cash cost OPEX by providing improvements to project planning, mine scheduling and a more detailed basis for the final design engineering and costing prior to construction. The upcoming detailed engineering refers to both mine planning and engineering work around the concentrator, as well as the design of facilities for ore transport and loading of finished products.

At the end of September, the preliminary outcome of the optimization study performed by Whittle Consulting was published. This showed the possibility of increasing the project's net present value, “NPV”, to USD 145.4 million, using a discount rate of 8%. The increase is mainly due to an optimisation of mining schedules, while essentially maintaining the assumptions on which the feasibility study is based.

Thereafter, the work has continued with analysis of scenarios, some of which merely optimise the DFS and others which deviate from the assumptions made in the feasibility study. As an example, the possibility of optimizing the beneficiation process to maximise magnetite output has been modelled. One consequence of this analysis is the introduction of a third product of a coarser ground magnetite concentrate with 67-68%Fe content, which has less power consumption and allows for unused power to be used for additional ore processing. This proved to be able to increase the NPV to just over USD 172 million and deliver an internal rate of return of 21.2% for the project.

Furthermore, reduced investment costs through the use of contractors and simpler design of facilities have been included in some scenarios. For example, the feasibility study has assumed a loading facility designed to handle annual production significantly larger than the 1.5 million tonnes per year necessary for the Blötberget mine. The operating cost per tonne for a simpler design increases slightly, but the net present value increases in spite of this as a result of the reduced capital expenditure.

Another example of modelling is that, according to historical documentation, approximately 5 million tonnes of mineral resources remain in the historical mine, which was omitted in the feasibility study; a simulation has been done with the assumption that this volume is successfully mined. These additional historical mineral resources coupled with refinement of the plant design to reduce investment costs, and the use of contractors further increase the net present value to between USD 180 and 255 million. 

The summary of the optimization study can be read on the company's website under "Technical reports".

About Whittle Consulting

Whittle Consulting (WCPL) is an Australian based consultancy operating worldwide, who specialise in Integrated Strategic Planning for the mining industry.  This involves a combination of methodologies including Activity Based Costing, Theory of Constraints, Ken Lane’s theory on cut-offs, and leveraging geo-metallurgical information whenever it is available.  These methodologies are applied through their proprietary Prober-E software.  The product of 35 years of optimization software development by founder Jeff Whittle, it combines Linear Programming with a sophisticated proprietary Search Algorithm, a Genetic Algorithm, and the ability to harness multiple processors (on 120+ in-house servers or on the Cloud if required).

For further information please contact:

Lennart Eliasson Managing Director
phone: +46 70 640 5177

Nordic Iron Ore Group is a mining company with the ambition to revive and develop the iron ore production of Ludvika Mines in Blötberget and Håksberg. The company also intends to expand its mineral resources, and upgrade them to ore reserves, primarily through exploration and other studies of the connecting Väsman field. The Company has all the necessary permits in place for the mine in Blötberget and will be able to produce iron ore of extremely high quality.

For more information, see

Nordic Iron Ore’s shares and warrants are listed at Nasdaq First North Growth Market. Wildeco is the company’s Certified Adviser ( tel +46-8-545 271 00).

This information is required and provided by Nordic Iron Ore AB (publ) under the EU Market Abuse Regulation. The information was provided through the agency of the contact person set out above for publication at the date and time set above.

Publishes Optimisation Report