The Pre-Feasibility Study on Dannemora in Sweden confirms viable Possibilities for “green” Iron Ore Production

Grängesberg Exploration Holding AB - GRANGEX - presents the results of the completed Pre-feasibility study (PFS) of the conditions for the recommencement of production in the Dannemora mine. The key objective for the PFS has been to investigate the possibility to develop Dannemora as a carbon-free mine operation.

The PFS confirms the possibility of producing a high-grade iron ore concentrate with a much-reduced carbon footprint and that the project should be taken to the final feasibility study stage. The study is a continuation of the Scoping Study presented in May 2021 and shows improvements on many levels. Golder Associates has compiled the PFS report.

"This is promising news for GRANGEX shareholders, the local and regional community, as well as the Swedish mining community, and in fact historical. Through the dedicated and successful process development, Dannemora can be transformed from low quality to a high-quality iron ore producer. The study shows that Dannemora mine has, subject to the environmental permitting process, good possibilities to enter the market in 2025 and be a high-quality iron ore producer with a very low carbon footprint, possibly with a potential future green premium. This just in time to be part of the accelerating sustainable transition of the European steel industry and meeting the market demand of green steel", says Christer Lindqvist, CEO of the GRANGEX group.

Highlights of the report:

  • The financial evaluation of the project carried out as part of the PFS has estimated pre-production capital expenditure of US$ 131 M, (MSEK 1,179), sustainable investments during life of mine of US$ 52.1 M (MSEK 468,9), and closure costs of US$ 3,9 M (MSEK 34.9) giving a total capital expenditure during the life of mine of US$ 187 M (MSEK 1,683). An operating cost, FOB, of US$ 44.7/dmt for production of 68% iron ore concentrate and based on a product price FOB of US$ 125/dmt and 9.00 SEK/US$ give the following financial results, pre-tax[1];
    • Net Present Value at 8% discount rate; US$ 319 million (MSEK 2,869)
    • Internal Rate of Return (IRR) 51 %
    • Payback time less than 3 years, from production start.
  • The annual run-of-mine (ROM) rate has been calculated to 3 Mt resulting in a production of 1.1 Mt (equivalent dry weight) 68 % iron ore concentrate, meeting the requirements for direct reduction iron (DRI) and thus green steel production.
  • A key conclusion of the PFS work is the possibility that the Dannemora mining project can be a high-grade iron ore producer with a very low carbon footprint by operating a fully electrified underground mining and beneficiation process while producing a high-grade magnetite concentrate with Green Steel credentials. Thus, have possibilities to become a preferred supplier in the emerging transition of the steel industry towards the production of green steel.
  • An updated JORC 2012 compliant Mineral Resource Estimate of the mine amounts to 28.19 Mt, at 36.54% Fe, Measured and Indicated; and 5.82 Mt at 33.61% Fe, Inferred[2].
  • The Probable Ore Reserves for Dannemora Mine, on 31st December 2021, is estimated to be 25.36 Mt, with 33.44% Fe at a cut-off grade of 15%, gives a Life of Mine of approx. 9 years.
  • Furthermore, once in operation, the immediate area surrounding the mine has the potential for further development of additional mineral resources, as several of the mineralised bodies are open at depth. There is also a possible resource in the underground deposited tailings from the latest production period.
  • The possibility of extending the life of the mine has been studied and a total of seven different areas in the mine have been identified as exploration targets. These exploration targets have been estimated at 20 to 35 Mt with iron content between 34 and 39%.

[1] Pre-tax calculation chosen due to pending project finance structure

[2] For full details per category, see company website

Source: Grängesberg Exploration Holding AB, GRANGEX Group,

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