Anglesey Mining PLC (LSE:AYM) said it has engaged Micon International to update a 2012 pre-feasibility study (PFS) to investigate the re-opening of the Grängesberg iron ore project in Sweden.
Grängesberg produced 180 million tonnes (Mt) of iron ore before it was closed in 1989 when iron ore prices were around US$30 a tonne (compared with current prices of around US$110/tonne). It was the third-largest iron ore mine in Sweden and at one time employed more than 1,500 people.
Anglesey, which owns a 20% stake in the project, will use the updated PFS to assess the options for bringing the Grangesberg mine back into production and on its right of first refusal over an additional 50.1% of the project.
“The Grängesberg mine provides significant exposure to iron ore for Anglesey Mining,” said chief executive Jo Battershill.
“The project has all the attributes of a globally significant iron ore deposit. It has a large resource, the ability to produce a high-grade iron ore concentrate and is situated adjacent to existing rail infrastructure with a direct link to the port of Oxelösund on the Baltic Sea.”
Historical production demonstrated that beneficiation of the ore produces a very high-grade concentrate of more than 68% iron.
“The production of a >68% Fe concentrate in Europe will afford local steelmakers the opportunity to shorten their supply chains and lower overall emissions. The commissioning of the HYBRIT fossil fuel free steel plant in Sweden already demonstrates the huge progress being made with regard to ‘green steel’ in the European region,” Battershill said.
The 2012 PFS demonstrated a probable reserve of 84Mt and annual production of 5.3Mt.