Grängesberg Iron AB - history     Sidan på svenska

History of Grängesberg Iron AB
Grängesberg Iron Ore Company AB was formed in late 2007 by Swedish exploration company Roslagen Resources AB, as a subsidiary with a main focus on developing iron ore projects in Sweden, mainly the closed-down iron ore mine in Grängesberg in central Sweden. The Grängesberg mine had, at the time of closing in 1989, still significant iron mineral resources remaining, which due to rising raw material prices once again has become interesting.

Later during spring that year, British mining finance company Mikula Mining Ltd, through its subsidiary Grangesberg Iron Ore plc, acquired 67% of the shares, with a commitment to finance the iron ore company with £3.5 million. Market reasons made Grangesberg Iron Ore plc / Mikula Mining to withdraw from their commitment in the last quarter of 2008, making Roslagen Resources AB once again a 100% owner of Grängesberg Iron Ore Company AB. However, several studies of the Grängesberg project had been arranged, with positive indications regarding the possibilities of re-opening the dormant iron ore mine.

Early 2009, the now wholly Roslagen Resources owned company changed name, to the shorter Grängesberg Iron AB, in order to achive a stronger brand and a more clear and easily discernable corporate identity. Later that year, the historical mineral resources of the Grängesberg mine was classified by the independent mining consultancy company Behre Dolbear. 82.8 million tons (Measured and Indicated), together with 37.5 million tons of Inferred resources, with an average Fe grade of 57%, clearly pointed in the direction of a re-opened mine. A deeper down potential of further 70 Mt, in the homogenous orebody still open at depth, added to the positive indications.

During autumn of 2009, the Board of Directors was considerably strengthened with significant competence from the steel and mining industry, and with brightening market conditions in the spring of 2010, work started for the next financing step in order to enable a pre-feasibility study (PFS) and an application for a mining concession. A subordinated loan of USD 3,5 million in August 2010 made it possible to start the PFS study and the application work for the environmental permits.