Wednesday, January 20, 2010

Kemi Chrome Ore Mine Could Be Bigger Than Thought

Outokumpu's Kemi mine has more mineral resources than originally thought and could be mined for hundreds of years at double the planned annual production volumes, the firm said on Tuesday.

"We have ready plans and preparedness to extend the mining operations and to double the ferrochrome production if so decided," Outokumpu CE Juha Rantanen said in a statement.

"The reassessment of our investment decision depends on the economic outlook and market situation as well as on the energy question, as the production of ferrochrome consumes high amounts of electricity," he said.

Outokumpu said based on recent seismic research Kemi's chrome ore deposits extend to the depth of 2-3 kilometres, or even 4 kilometres, while it is possible the chromitite layer extends to at least 2-2.5 kilometres or even deeper.

The Kemi mine is the only chromium mine in the European Union area. It produces chromite concentrates used as raw material in Outokumpu's ferrochrome smelter in Tornio, and has an annual output of about 1,3-million tons of ore.

Source: Mining Weekly

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