Veidekke ASA : Mining contract with LKAB for Veidekke and EuroMining
Veidekke's Swedish subsidiary Veidekke Entreprenad has in partnership with Swedish EuroMining signed a contract with LKAB on mining development in Gällivare in Northern Sweden. Veidekke's share of the contract is valued at SEK 150 million excluding VAT, with an option for a further SEK 100 million.
Veidekke and EuroMining will establish a joint company to develop the Vitåfors mine near the community of Malmberget. The contract from LKAB concerns developing and building tunnels for ore mining. 35 kilometres of tunnels will be built over three years, and work will start in the new year of 2014.
"This is a strategic effort for Veidekke and indicates our long-term ambition in the mining industry," says Per Brinck with Veidekke Entreprenad's construction operations.
The contract value is equal for both companies, which means the total value is SEK 300 million with an option for a further SEK 200 million (all figures are exclusive of VAT).
For more information please contact:
Manager Per Brinck of Veidekke Entreprenad Anlegning, tel. +46 70 600 05 81, per.brinck@veidekke.se
Communications Manager Helge Dieset, tel. +47 21 05 77 91 / +47 90 55 33 22, helge.dieset@veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 20 billion (2012) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.