Dannemora signs another iron ore trial delivery agreement
DANNEMORA SIGNS ANOTHER IRON ORE TRIAL DELIVERY AGREEMENT
Dannemora has signed another agreement for trial deliveries of iron ore products. The new agreement, concluded with German steel company Salzgitter AG, covers the delivery of between 13,000 and 18,000 tonnes of iron ore products. These will be shipped from the port of Harg and delivered to Salzgitters's iron ore storage facility in Hamburg during the 2nd quarter. After full-scale trial production in one of Salzgitter's blast furnaces an assessment will be made, on the basis of which negotiations on long-term supply contracts will begin.
Staffan Bennerdt, Group President and CEO comments: "The fact that we have been able to sign a second trial delivery agreement for our iron ore products points to rising demand and is clear evidence that Dannemora's iron ore is an attractive option for European steel companies. It also takes us a step closer to end-financing of the overall iron ore project."
The Dannemora iron ore mine will achieve annual production of 1.5 million tonnes of iron ore products at full capacity. Iron ore production is scheduled to commence approximately 12 months after total financing is secured, and full capacity is expected to be reached within one and a half years of the operational start-up.
The press release can be downloaded from the following link: