Mining company Grängesberg Iron AB and the Swedish Transport Administration have signed a co-operation agreement on investigations regarding future ore train traffic between the iron ore mine in Grängesberg and the Port of Oxelösund. The mining operations in Grängesberg are planned for a re-start by 2015, with the aim of producing 2.5 Mt/y of iron ore products.

“With the co-operation agreement, the framework is now set for analysing the possibilities of transporting the ore products from the mine to the port”, said Kenth Nilsson of the Swedish Transport Administration. The historic iron ore mine in Grängesberg was closed in 1989. Preparations for re-starting the mining operations are now ongoing. The available mineral resources allow for the possibility of nearly 20 years of mining, with the potential for more. Certain preliminary investigations regarding the ore traffic have already been conducted. The co-operation agreement now defines the future investigation work in detail. The results are to be presented during the first quarter of 2012, with a further aim of establishing an implementation agreement.

“Rail transport is a very important part of an iron ore project, due to the large tonnage to be transported”, said Gösta Bergman, Chairman of the Board of Grängesberg Iron. Oxelösund has the most suitable Swedish port for this project. Some of the most important parts of the co-operation agreement between Grängesberg Iron AB and the Swedish Transport Administration define traffic capacity and functional analyses regarding the planned rail traffic, including upgrading the connection of the marshalling yard at the mine in Grängesberg.