Canadian iron ore producer Champion Iron limited announced that it has entered into an agreement to acquire all shares of Norwegian high-grade iron ore producer Rana Gruber ASA for approximately NOK 2.93 billion ($289 million).
The transaction received unanimous support from Rana Gruber's executive management and board of directors, while shareholders representing approximately 51 percent issued shares, have provided advance acceptance obligations to participate in the bidding.
Durable, high quality asset in a stable jurisdiction
The acquisition provides Champion Iron with a durable iron ore asset located in a politically stable jurisdiction, benefiting from access to renewable electricity.
Rana Gruber is a well-established producer with an annual production volume in excess of 1.8 million tons of high-quality iron ore. Its operations consist of an underground mine and several nearby open-pit mines, supported by an extensive resource base capable of maintaining current production levels for decades.
The Norwegian producer currently produces two hematite iron ore concentrates and is advancing a project to upgrade production to 65 percent Fe iron ore concentrate, which is closely linked to growing demand from the green value chain steel.
Using renewable electricity, Rana Gruber operates with one of the lowest carbon emission rates per tonne of iron ore concentrate in the world, strengthening its appeal as a low-carbon feedstock
