According to Swedish mining company Grangex, the company has entered into a new agreement with British mining giant Anglo American to support the planned resumption of operations at the Sydvaranger mine.
According to Grangex, the company's stated strategy is to resume operations at the Sydvaranger mine and produce about 3.5 million tons per year of direct reduction (DR), an ultra-high-grade magnetite iron ore concentrate. The mining company aims to position Sydvaranger as a key supplier to European and global steel producers as the industry moves towards direct steel production routes to support green steel production.
Shakhter explained that the recently announced agreement confirms and strengthens the strategic relationship between Grangex and Anglo American, supporting the company's efforts to complete the financing process. Grangex added that its previously stated goal of starting operations at the end of 2026 remains unchanged.
Key terms of the Grangex-Anglo American agreement
According to Grangex, the company and Anglo American have agreed on the following framework, which will take effect upon making the Final Investment Decision (R&A) and after the project financing is closed:
- Anglo American will completely terminate the existing royalties of $37 millions, without repayment of the principal amount and future royalty payments.
- Upon termination of the royalty payment, Anglo American will acquire 100 percent of the lifetime
