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| Swedish mining industry on the rise  Ramboll, a leading Nordic company in engineering, has signed a framework agreement with Nordic Iron Ore AB regarding the planning of 'the optimal mining project'. The ambition is to once again make Sweden a major player in the international iron ore market. The plan is to reopen two mines in the city of Ludvika.Ludvika was an important site for iron ore mining in Sweden until the late 1970s. However, increased international competition resulted in decreasing iron ore prices. Large quarries in Brazil and Australia put pressure on the Swedish mining industry which could not compete on the international market. Since 2003 and 2004 prices are once again on the rise after the EU and the United States started to voice concerns regarding a potential lack of essential metals. Simultaneously China began to import an increasing quantity of raw materials to support its rising economy. These developments have pushed up steel prices, once again making Swedish mines interesting on the international market. This development has convinced Nordic Iron Ore AB to investigate the possibility of reopening two mines in Ludvika. Ramboll will conduct an early prefeasibility study aiming at designing 'the optimal mining project'. The first part of the study includes investigations regarding ore quality as well as the potential earnings from a reopening of the mines. The study will also estimate the investment cost of reopening the mines; early projections point to costs of about 2 billion SEK. The project is challenging because the mines will be integrated even though they are situated on opposite sides of Ludvika and the lake Väsman. Nordic Iron Ore hopes to be able to start production at the turn of 2014/2015 and break about five million tonnes of ore per year. It is estimated that reopening the mine will create 200 new jobs in the region. write your comments about the article :: © 2011 Construction News :: home page |