Rana Gruber ASA, Norway’s only producer of iron ore, has signed a new contract with the local contractor and long-term partner HJH for operational responsibilities at the upcoming Stensundtjern open-pit mine, rich in magnetite resources. Production is anticipated to begin in the second half of 2025.
HJH, which oversees the current operations at the Ørtfjell open-pit mine, Rana Gruber says will seamlessly transition to Stensundtjern upon Ørtfjell’s conclusion. This continuity maximises equipment transfer efficiency and supports uninterrupted production.
“We are very pleased to continue our strong relationship with HJH,” said Gunnar Moe, CEO of Rana Gruber. “Over the past years we’ve seen first-hand their operational capabilities with a highly efficient setup, whilst they at the same time set high standards for health, safety and environmental considerations. This aligns very well with our priorities and values, and will be instrumental as we prepare to bring Stensundtjern online, ensuring a stable and sustainable supply of high-quality iron ore.”
Rana Gruber currently controls four iron ore deposits located in Storforshei and Ørtfjell in the Dunderland Valley, just north-east of Mo i Rana. HJH’s responsibilities at Stensundtjern will encompass blasting, waste rock removal, transport and daily mining activities, ensuring highly efficient production from day one.
The new Stensundtjern open-pit is expected to boost Rana Gruber’s magnetite production to new highs, due to the magnetite-rich ore body at the site. Magnetite is a highly specialised product sold to the chemical industry for use in water treatment systems, priced at a premium due to its ultra high-grade properties with an iron content above 71%. Rana Gruber has a current run-rate of magnetite production at 160,000 t annually, expecting to increase to 175,000 t in 2025 and 200,000 t in 2026.
The new contract reaffirms that Rana Gruber is on track to meet its projected timeline for Stensundtjern, as presented during a recent capital markets day. The company states: “With production anticipated to commence in 2025, this milestone further confirms Rana Gruber’s dedication to delivering a stable and high-quality supply of iron ore to European markets. The contract aligns with the company’s previously communicated capital expenditure plans, requiring no additional investments beyond what was disclosed. Furthermore, the target cash cost of US$50-55 per tonne remains firm, highlighting Rana Gruber’s commitment to operational efficiency and cost discipline.”
