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Tacora Resources completes acquisition of Sydvaranger Mining

Acquisition provides US firm with a four-million-tonnes per year 'shovel-ready' expansion and geographical diversification in a Tier 1 jurisdiction

Dominic Ellis
|Jan 20|magazine6 min read

Tacora Resources, the iron ore and mineral processing company based out of Grand Rapids, Minnesota, has bought Sydvaranger Mining and its subsidiaries, an iron ore mine and processing plant located in Sør-Varanger, Norway.

The parties have agreed not to disclose the purchase price, which is being paid in the form of shares in Tacora.

In a statement, Tacora said the acquisition provides it with a four-million-tonnes per year, 'shovel-ready' expansion opportunity and geographical diversification in a Tier 1 jurisdiction. 

Sydvaranger operated from 1910-1997, and then from 2009-2015 producing high grade iron ore concentrate, with an iron content of 68 percent, for pelletising operations.

Its high quality, low impurity, magnetite iron ore concentrate has significant environmental and cost benefits for steel producers and pelletizing operations, including increased blast furnace productivity, reduced slag volumes, lower CO2 emissions per tonne of steel produced and reduced energy requirements for pelletising, amongst others.

Thierry Martel, the President and CEO of Tacora will lead the expanded organisation. "With this acquisition, we bring together two responsible mining companies with capacity to produce an iron ore concentrate with characteristics very desirable to steelmakers. The Sydvaranger Mine builds upon our strategy to deliver high grade iron ore products to steelmakers globally allowing them to produce more steel per tonne of raw material input and therefore reduce their environmental footprint," he said.

The Tschudi Group, a Norwegian shipping and logistics company, has been involved with the Sydvaranger Mine since 2006. In 2016, the Tschudi Group re-acquired the Sydvaranger assets and has since focused its activities on completing a feasibility study and preparing for restarting the operations. 

The Tschudi Group, a Norwegian shipping and logistics company, has been involved with the Sydvaranger Mine since 2006. In 2016, the Tschudi Group re-acquired the Sydvaranger assets and has since focused its activities on completing a feasibility study and preparing for restarting the operations.

"We are pleased to welcome Tacora as the new owners of Sydvaranger. Since 2016, the Tschudi Group has sought to provide Sydvaranger with the financial and operational capabilities to enable a restart of the mining operations," adds Felix Tschudi, chairman and owner of the Tschudi Group. 

"By introducing Orion Mine Finance as a financial partner in 2018 and by now combining Sydvaranger with the operationally experienced Tacora team, we believe Sydvaranger is in an excellent position to succeed with a restart. 

"The Tschudi Group will remain strong supporters of the Sydvaranger Mine and continue its considerable presence in Kirkenes and the Troms og Finnmark county more broadly through its other business activities in the region."

Tacora Resources statement
Mining Global magazine