Sydvaranger Recommissioned Ahead of Schedule
Northern Iron, the Australian company formed to acquire the Sydvaranger Iron Project in northern Norway, has reported Friday that the troubled project in Norway will be re-commissioned ahead of schedule.
Chairman David Griffith informed shareholders at the company's annual general meeting that "the rectification program will be completed four months ahead of schedule and the cost of the rectification program is currently tracking below budget."
The project went live last year four months late last year, which led Northern Iron to seek additional funding but Mr Griffiths said that concentrates were eventually produced and shipped. However, he admitted that there had been some shortcomings on the company’s part as it was not able to produce the quality of concentrate it had previously claimed.
Northern Iron has allocated some $US25 million for development projects that will rectify the project’s operational flaws. Negotiations are under way with UK steelmaker Corus to discuss late deliveries of the mine output.
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