The Swedish Mining Inspectorate gas granted Grängesberg Iron AB a mining concession for the iron ore mine in Grängesberg, in the mineral-rich Bergslagen district of central Sweden. The granted mining concession is a step towards re-opening the Grängesberg iron ore mine, which was closed in 1989. The Grängesberg mine project has defined 115.2 Mt of Indicated at 40.2% Fe and 33.1 Mt of Inferred at 45.2% Fe, with a calculated minimum of 82.4 Mt of Probable Mineral Reserves at an average grade of 37.2% Fe. The start of production is planned for late 2016.

Gösta Bergman, Chairman of the Board of Grängesberg Iron AB said “The decision by the Chief Mine Inspector of Sweden is a big step towards re-opening one of Sweden’s largest iron ore mines. Until the closure in 1989, the Grängesberg mine was the third largest iron ore mine in Sweden, next only to the Kiruna and Malmberget mines in the north of Sweden. The re-opening will grow to become one of the main industrial projects in Scandinavia.”

According to the Swedish Minerals Act, an exploitation concession is granted by the Chief Mine Inspector of Sweden, if a mineral deposit has been discovered that can most likely be mined economically, and the deposit is located in an area that is suitable for mining activities.  An exploitation concession is valid for 25 years, and is then automatically renewed every ten years if mining is on-going. The application for the exploitation concession contains a preliminary environmental impact assessment.

The homogenous iron ore body in Grängesberg is of significant size geologically similar to Kiruna, making it well suited for cost-effective production of attractive iron ore products, primarily pellets.

Petter Eriksson, CEO of Grängesberg Iron AB said “The mining concession allows Grängesberg Iron to better define the development timeline. An environmental permit is the next major step for the project, and an application is under completion, to be submitted to the Environmental Court at the end of this year.”

Apart from preparing the application for the environmental permit, procurement is on-going for a Bankable Feasibility Study, to be completed during 2014.