Jan 20, 2021

Tacora Resources completes acquisition of Sydvaranger Mining

Tacora
Norway
Acquisitions
Dominic Ellis
2 min
Acquisition provides US firm with a four-million-tonnes per year 'shovel-ready' expansion and geographical diversification in a Tier 1 jurisdiction
Acquisition provides US firm with a four-million-tonnes per year 'shovel-ready' expansion and geographical diversification in a Tier 1 jurisdiction...

Tacora Resources, the iron ore and mineral processing company based out of Grand Rapids, Minnesota, has bought Sydvaranger Mining and its subsidiaries, an iron ore mine and processing plant located in Sør-Varanger, Norway.

The parties have agreed not to disclose the purchase price, which is being paid in the form of shares in Tacora.

In a statement, Tacora said the acquisition provides it with a four-million-tonnes per year, 'shovel-ready' expansion opportunity and geographical diversification in a Tier 1 jurisdiction. 

Sydvaranger operated from 1910-1997, and then from 2009-2015 producing high grade iron ore concentrate, with an iron content of 68 percent, for pelletising operations.

Its high quality, low impurity, magnetite iron ore concentrate has significant environmental and cost benefits for steel producers and pelletizing operations, including increased blast furnace productivity, reduced slag volumes, lower CO2 emissions per tonne of steel produced and reduced energy requirements for pelletising, amongst others.

Thierry Martel, the President and CEO of Tacora will lead the expanded organisation. "With this acquisition, we bring together two responsible mining companies with capacity to produce an iron ore concentrate with characteristics very desirable to steelmakers. The Sydvaranger Mine builds upon our strategy to deliver high grade iron ore products to steelmakers globally allowing them to produce more steel per tonne of raw material input and therefore reduce their environmental footprint," he said.

The Tschudi Group, a Norwegian shipping and logistics company, has been involved with the Sydvaranger Mine since 2006. In 2016, the Tschudi Group re-acquired the Sydvaranger assets and has since focused its activities on completing a feasibility study and preparing for restarting the operations. 

The Tschudi Group, a Norwegian shipping and logistics company, has been involved with the Sydvaranger Mine since 2006. In 2016, the Tschudi Group re-acquired the Sydvaranger assets and has since focused its activities on completing a feasibility study and preparing for restarting the operations.

"We are pleased to welcome Tacora as the new owners of Sydvaranger. Since 2016, the Tschudi Group has sought to provide Sydvaranger with the financial and operational capabilities to enable a restart of the mining operations," adds Felix Tschudi, chairman and owner of the Tschudi Group. 

"By introducing Orion Mine Finance as a financial partner in 2018 and by now combining Sydvaranger with the operationally experienced Tacora team, we believe Sydvaranger is in an excellent position to succeed with a restart. 

"The Tschudi Group will remain strong supporters of the Sydvaranger Mine and continue its considerable presence in Kirkenes and the Troms og Finnmark county more broadly through its other business activities in the region."

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

Vale
Nickel
Manitoba
battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.

Global energy transition is boosting the market for nickel

The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.

“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history.  Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.

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