Grängesberg Iron AB

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 still had, at the time of closing in 1989, significant iron mineral resources remaining, which due to rising raw material prices once again became interesting.

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

During the 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 commence the PFS study and the application work for the environmental permits.

At the end of March 2012 a Pre-Feasibility Study for the Grängesberg mine project was completed. The results of the study showed very good possibilities for profitable and cost effective operations in the Grängesberg iron ore mine. On the 14th of May 2013, the Swedish Mining Inspectorate granted Grängesberg Iron AB a mining concession for the iron ore mine in Grängesberg. The mining concession was an important milestone on the road towards re-opening the historic Grängesberg iron ore mine. A mining concession in Sweden is valid for 25 years, and is then automatically renewed every ten years if mining is on-going. The application for the mining concession contains a preliminary environmental impact assessment.