SKANSKA DESIGNS NEW SORTING PLANT FOR THE DANNEMORA MINE

SKANSKA DESIGNS NEW SORTING PLANT FOR THE DANNEMORA MINE

Dannemora Mineral has concluded an agreement with Skanska IME for the detailed design of the new sorting plant at the Dannemora Mine. The design work is the first stage in a cooperation agreement under which Skanska IME will also be responsible for completion of the plant. The design work starts immediately and will be based on the requirements specification and preliminary planning previously conducted.

"It was important to find a contractor with experience from similar projects and therefore the expertise to provide the company with a cost-effective construction project and cost-effective operating plant," says Staffan Bennerdt, CEO and Group President of Dannemora Mineral.

The sorting plant is being designed for an annual capacity of 2.0 million tonnes of finished products in the proportion of 60% lump ore and 40% fines. At the preliminary stage, the investment cost is estimated at approximately SEK 210 million. The plant's annual capacity of 2.0 million tonnes will exceed the annual production capacity of 1.5 million tonnes stated in the feasibility study.

"Provided the financing falls into place as planned, the sorting plant will be ready for operation in spring 2012," says Staffan Bennerdt.

Skanska IME is Skanska's organisation for industrial projects in Northern Sweden.

"We are proud to be entrusted with this assignment and to contribute towards Dannemora Mineral's resumption of operations in this historical iron ore mine," says Bengt Hedberg , Project Manager at Skanska IME.

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