SYDvaranger grUve / KirKeneS

SYDvaranger / KirKeneS LKaB / KirUna

SYDvaranger / KirKeneS LKaB / KirUna

... 32 % iron at Sydvaranger/Kirkenes in the form of iron concentrate

From a 100 % crude iron ore you get...

61% iron at LKaB /Kiruna, in the form of iron pellets

Source:: Mining-technology.com

KirkenesHøybuktmoenAirport

Hesseng

Bjørnevatn

Border to Russia

E6 to Tromsø, Trondheim and Oslo

E105 to Murmansk,St.Petersburg and Moscow

Korsf

jord

en

Neidenfjorden

Langfjo

rden

Bøkf

jord

en

Bjørnevatndeposits

Fisketind Eastdeposits

KIRKENESКиркенес

Kirkenes / Girkonjárga / Kirkkoniemi / Киркенес

Kirke /church/

Nes /headland/

Kirkenes 4. June 1899. Photo by Ellisif Wessel: pioneer in the trade union movement, cultural journalist, author, editor and photographer. She came to Kirkenes in 1886 as the wife of the doctor, Andreas Bredahl Wessel who worked to improve conditions for the poor

The mine grew to become the biggest open cast in Northern Europe, with miners coming in from allof Scandinavia.

The operations of AS Sydvaranger was from the start an important factor in confirming Norwegian supremacyin the border region. The area of Sør-Varanger was under pressure between the two world wars, from the newSovjet Union and from Finnish plans of expansion. AS Sydvaranger made it possible to maintain a large and stable Norwegian inhabitation to balance this.

The mining company built roads and workers housesin addition to sewage and street lighting.

1940-45 Second world war. Kirkenes was strategically important to Nazi-Germany because of the allied supply route to Murmansk. 30 000 solidiers were stationed in the town, and Festung Kirkenes supplied 100 000 troops

Kirkenes was bombed more than 300 times before the Red Army defeated the Nazi forces.As the german troups withdrew, they burntdown everything, using the “burnt soil tactics” to prevent anything to fall in Soviet hands. 2500 people sought refuge in one of the mining tunnels at Bjørnevatn towards the end of the war

A/S SYDVARANGER AT THE START OF A TIMELINE

1900

1910

1920

1930

1940

1914-1918 World War 1 lead to a massive massive need for iron in the rebuilding of Europe, but the economic depression threathened the continued production

1902 mapping of the iron ore at Bjørnevatn

1905 Dissolution of the union between Norway and Sweden

1866 The iron ore at Bjørnevatn is registered by Tellef Dahll

1925-27 Bankruptcy. The Norwegian state gives financial support, while the main interests remain Swedish, with backing of German capital

THE POSITIONING OF A YOUNG NATION STATE IN A PERIOD OF POLITICAL TURMOIL AND WAR

1910 The first train with iron leaves for the port and export toRotterdam on the railroad Bjørnevatn-Kirkenes

1906 Chr.A Anker establishes A/S Sydvaranger after negotiantions with the state. The Same year thecompany was sold to a Swedish-German consortium

Chr.A Anker was an industrial pioneer at the turn of the century, starting chemical factories, sawmills and several mining ventures, iron ore in Sør-Varanger, Marble in Lier and coal at Svalbard

The large number of workers that came to Bjørnevatn had experience from other minesand this lead to an early establishment of trade unions. Sydvaranger was known as a company with minimal workers rights and low security. Numerous conflicts followed

1906 Trade union Nordens klippe established1909 Trade union Grubernes arbeidsmandsforening established

Einar Gerhardsen from the labour partywas prime minister for 17 years between 1945 and 1965.

1945

1950

1960

1980

1970

A/S SYDVARANGER AS A GOVERNMENT PROJECT

After the devastations of the war, the mining company was central in rebuilding the new Sør-Varanger. Roads, sewage and electricity was all developed through Sydvaranger. Later, the company was also involved in planning and financing schools and sportsfacilities. Thereby securing an educated workforce and attractive institutions for families to stay in the area.

The cold war and fear of communist take-over meant a close eye on trade union activities, and basically any other activity this close to the USSR border. Cold war aside, Norway and the Soviet Union cooperated on the construction of several power plants along the Pasvik river.

1978: New economic downturn means less resources to the community and the municipality of Sør-Varanger take over operations for roads, water and sewage.

1952: The rebuilding and modernisation of the mining plant is finalised. WIth reconstructionafter the war came also improvements inworkers rights and security.

1985 the govrenment as main owner adopts the plan to end mining operations at Bjørnevatn.

1981 The state increases its ownership to 87,45%in responce to the need for new capital

In the 1980, AS Sydvaranger met the pressure from mining in a world economy. The combination of low prizes on iron, high wages and expensive mining in Norway and large sections of rock to remove in order to access further iron oremade the mining unprofitable, and theNorwegian government was no longer prepared to cover the expences.

FROM RECONSTRUCTION AND GOLDEN AGE TO POST INDUSTRIAL DOWNTURN

After the 2. world war, AS Sydvaranger was appropriated by the Norwegian government due to the German ownership. The Norwegian state became 43% owner.

1948 State ownership increases to 62% and majority

Good market prices and stable situationmakes Sydvaranger the leading company in Northern-Norwegian Mining industry.

Economic stagnation in the 1960s led to theneed for new products to get higher prices.

The 1950 becomes a golden period with high production and marked prices.

1969: Starting pellets production

1997-2002: Australian Bulk Minerals makes an unsuccessful attempt at operation at Bjørnevatn

A/S SYDVARANGER IN TIME OF TRANSFORMATION

1990

2000

2010

FROM LANDUSE TO PROPERTY DEVELOPMENT - LOOKING FOR NEW OPPORTUNITIES IN A GLOBAL ECONOMY

1996: State support ends and mining operations are stopped

1999: The energy company Varanger kraft buys A/S Sydvaranger from the state

The municipality of Sør-Varanger buys some areas and technical infrastructure and become part-owner of Sydvaranger

February 2006: Sydvaranger is sold to the developerNordberg Eiendom and shortly after bought upby its subsidiary Rådhusplassen 1

May 2006: Rådhusplassen 1 is bought in full by Tschudi Shipping Company (TSC)

Plans were made for the restart of mining under the name Sydvaranger Gruve AS

Autumn 2007: 600 million kroner is invested in the restart of operations at Bjørnevatn through an Emission in Australia. The owner company Northern Iron Limited is listed at the Australian stock exchange

Autumn 2011: The two major share holders ofNorthern Iron Limited, Tschudi Mining and OM Holding, considers a reduced or decontinued ownership in SVG

At its 100 years anniversary, Sydvaranger operated as a real estate company. With plans for housing and center development.

The increased focus on the Arctic, and new activities in oil industry and offshore drilling brought new interest forinvestment in Kirkenes, and especially the port and loadingfacilities that was developed by Sydvaranger.

With increasing prices on iron ore, the possibility of reopening the mining operations became an importantfactor when the municipality decided to sell Sydvaranger.

Northern Iron Limited is registered in Australia as the owner company of the Sydvaranger mines

Substantial Shareholders (as at 30th June 2011)

Tschudi Mining: ~26.5 %OM Holdings Ltd: ~15.6 %IOOF Holdings Ltd: ~8.4 %Eley Griffiths Pty Ltd: ~5.2 %

Kirkenes at the turn of the century.The church at the penninsula.

1910, building the steam power station, Sydvaranger Dampsentral

Sydvaranger production facilities atKirkenes. Briquette works and rails.

Kirkenes after 4. July 1944. Bombed and burnt.

Bergen Group Kimek shipbuildinghall makes the steam central small.

Centre of Kirkenes today, no longer just a mining town.

FROM MINING TOWN TO URBAN COMMUNITY

2nd World War

1969:startingpellet production

1925-1927:Bankruptcy

Iron Ore Price $ per Metric Ton

Populationgrowth ofSør Varanger

Number ofemployeesShowing thetendency

1980s: the iron ore at Kirkenes becomes unprofittable

1911-1913 - plants finished and extended for full operation

1st. World War and following depression led the industry in economic turmoil

1952: A rebuilt and modernised plant was ready

1960s: stagnation led to productionof pellets to increase product prices.

1970s: Sydvaranger became the leading company in Norther-NorwegianMining industry.

1930s: rebuilding andrearmament in Europemeans increased production

2009: Restart mining as Sydvaranger Gruve

1996: AS Sydvarangerends mining

1906: A/S Sydvarangerestablished

1000

1910

10919

10010

1907

1906

1900

1915

1912

1921

1924

1925

1938

1937

1945

1947

1952

1969

1975

1977

1985

1982

1991

1996

1997

2002

2005

2008

2010

2011

2012

1450

380

1250

200

1660

390

1000

1530

19

24028,11

60,8

179,63

15,3

398341

5

1000

Gabbro / plutonic mafic igneous rocks

Geological composition

Mineral resources / mapping by NGU

Kirkenes

Quartzite / metamorphic rock from sandstone

Mica-gneiss, mica-schist / metamorphic rock

Granite / intrusive felsic igneous rock

Of great importance

Of importance

May be of importance

Of no importance

Sørvaranger Gruve mining prospects

Sørvaranger Gruve concession area / 35km2

Iron oreOpen cast

Bjørnevatn deposit / 110,8 Mt / 32,5 % Fe

Fisketind east deposit / 7,8 Mt / 30,9 % Fe

Kjellmannsåsen deposit / 13,7 Mt / 33,2 % Fe

FieLDS OF eXPLOraTiOn

LiMiTS OF eXPLOiTaTiOn

The iron ore reserves cover an area of 35 km2 and consist of 23 separate ore deposits that differ in size and quality. Sydvaranger gruve has the rights to all of them. 85 % of the remaining iron ore is located at the Bjørnevatn deposits.

estimated amount of available iron ore: appr. 130 Mt

aimed annual production rate: 5-6 Mt

Lifespan of mine: 20 - 25 years

2035?

2012:

100m

0

-100m

-200m

-300m

-400m

BJØrnevaTn irOn Ore DePOSiTS

Sources : independent technical report on the norwagian mineral properties of northern iron limited - rSg global

Sources : independent technical report on the norwagian mineral properties of northern iron limited - rSg global

Kirkenes

Primary crushing at mine

Secondary & tertiary crushing in Kirkenes

Concentrate drying, storage & shipping

Non magnetic rejects

Concentrate thickening

Tailling thickening

Waste disposalin sea deposit

Primary crushed ore railed to concentrator

Primary & secondarymilling & magnetic separation

PLaYgrOUnD FOr giganTS

Concentrator

Main office

0 200m

Secondary and tertiary

crushing

Crushed ore silo8.000T

Pellet storage460.000T Transformer

yard

railroad to Bjornevatn

railwayworkshop

Bentonitemilling

Bentonitesilo

Docks

Pump houseSalt water

Traveling ship lauder

Quais

irOn CaSTLe

The crushing and concentrator facilities rests like a citadel or acropolis, with large structures overlooking Kirkenes

WHaT TO DO WiTH THe WaSTe ?

The extraction of iron produce two diferent kind of wastes. The non-magnetic rejects, are separated at the Bjornevatn site and deposed around the mine, creating fan-like shapes when spreading out.

after the crushing, the taillings are discharged in the sea. The seadeposit in Langfjorden was used until 1974 when the fjord reached capacity. a pipeline of 275m was constructed in 1973 to discharge taillings in Bjokfjorden.

+

+ +

+BJORNEVATN

?

MINING IMPACT ON THE ENVIRONMENT

DUST

Penetration of toxic water in the groundPlants, agriculture ?

The drumps of waste form a protection to dust for the landscape around the mine detourning the wint. But it still have an impact on the vegetation and the population.

Consequenses on poeples : -Silicosis due to inhalation of quartz dust-Mezothelioma from exposure to asbestos -Industrial deafness -Asthma from fugitive dust emissions -Respiratory problems from exposure to solvents or welding fumes -Exposure to hazardous substenses as dioxins

Limitation for water pumping to keep the lakes levels stable

After the process, the water is dump in the fjord.

The waste was bring to Langfjorden were it was trought into the sea.

5 km

The compagny is now using a pipeline for waste dispersal in Bjokfjorden. But dumping tailling and used water, which might have been in contact with chemicals, in the fjord have consequenses on the fauna and the flora. Between 1989 and 1990, investigations have shown moderate disturbances to bottom fauna up to 7km around kirkenes and detectable disturbances up to 13km away. This phenomene will for sure become worth if Kirkenes become the strategic point she aspires in the barent sea.

KIRKENES

The waste from the 1st crushing in Bjornevatn is deposed around the mine, extending the surface of the site, destroing the vegetation, and preventing revegatation because of thegeochemistry of the boulder’s ground

envirOnMenTaL iMPaCT

KIRKENES

NIKEL

ZAPOLJARMYJMURMANSK

RUSSIAN RAILWAY

BRITAIN

GERMANY

CHINA

KIRKENES

NIKEL

ZAPOLJARMYJMURMANSK

RUSSIAN RAILWAY

BRITAIN

GERMANY

CHINA

KIRKENES

NIKEL

ZAPOLJARMYJMURMANSK

RUSSIAN RAILWAY

BRITAIN

GERMANY

CHINA

BJOrnevaTnextraction

rUSSian raiLWaY

KirKeneScrushing

CHina

greaT BriTain

gerManY

WaSTe

envirOnMenTaLiSSUeS

KirKeneS Mining FLOWS

KIRKENES

NIKEL

ZAPOLJARMYJMURMANSK

RUSSIAN RAILWAY

BRITAIN

GERMANY

CHINA

KIRKENES

NIKEL

ZAPOLJARMYJMURMANSK

RUSSIAN RAILWAY

BRITAIN

GERMANY

CHINA

CHinagerManY

greaT BriTain

irOn eXPOrT in KirKeneS

PAYBACK TIME?

OIL TAX.

78 %MINERAL INDUSTRY

.

28 %Of net profits

Regular company tax

+Annual fee for mining operations

100 kr per 10.000 m2

IS THERE A LIFE AFTER MINING?

Half the workforce was employed by the public sector, ten years after the mine closed down in 1996. Still, a range of small and medium sized enterprises form a varied economy and competence base.

The new mining operations, and the political decision makers are faced with a more mixed group of stakeholders in the local community.

Agricultureand fisheries

Industry, mining,oil and gas

Building andconstruction

Vehicle services

Merchandise

Hotel and restaurant

Transport andcommunication

Other businessservices

Public administrationand armed forces

Education

Medical and social services

Other social andpersonal services

4469

Total number of employed people in the Municipality ofSør-Varanger 2006

53 % publicsector

153

730

202

302

316

108

528

1084

214

455

158

111

398Total number of employees atSydvaranger Gruvein 2011

Public services and institutions

Shops, businesses and hotels

Offices and administration

Industry, workshops and storage

Housing

URBAN FABRIC IN THE SQUEEZE

Centrum and housing area meets in a wedge between the Sydvaranger industrial area on thehill to the west, and the sprawled industrial area along the coastline to the west.

KIRKENES STRUCTURE

Centrum area

Sydvaranger industrial area

Housing

Housing

Mix industryand businesses

Coastal ferryterminal

TownHall

School

Hospital

Ship wharf

Arbeidergata 3 AS Development and sale of property

Operation of harbourKirkenes Industrial Logistics Area AS

Tschudi Kirkenes AS Property management Kirkenesvannet Eiendom AS

Tschudi Kirkenes Eiendom AS

Tschudi Aggregates AS

(Sydvaranger AS)

SpeditionTschudi Bulk Terminals AS

(Sydvaranger Maritime Industrial Park AS)

(Sydvaranger Bulk Terminals AS)

Tschudi Shipping Company AS

Tschudi Rederi AS Rederiet Otto Danielsen A/S Estonian Shipping Company Ltd (Esco) Tschudi Shipping Estonia Oü Tschudi Shipping Company Oü Tschudi Arctic Transit AS Tschudi Logistics Oy Tschudi Logistics Holding AS Rådhusplassen 1 AS Itc Management Bv Itc Ships Holding Bv Boreal Offshore AS Tschudi Mining Company AS Tschudi Ship Management AS Tschudi Ship Management Iom Ltd

(Kirkenes Transit AS) Loading and unloading

KIRKENES AND TSCHUDI ... OR

Tschudi Shipping Company is owned and run by Felix Henry Tschudi

Traditionally Tschudi Shipping has operated as a ship owner and operator in cargo vessels, tankers, bulk carriers, with particular focus on the east-west trades of cargoes and projects involving the Northern regions of Norway and Russia.

SYDVAR ANGER AS

1

2

3

4

Kirkenes Industrial Logistics Area AS

Sydvaranger Maritime Industrial Park AS SMIP

Tschudi Shipping Company AS

Sydvaranger industrial park developed with focus on companies serving the coming oil and gas industry in the Barents Sea and Maritime transport and logistics

SMIP Area for developmentAdditional 200 metres of deep water quay

SMIP deep water quayApproximately 400 metres in length

Bergen Group KIMEK. Shipbuilding hall, servicing the Russian fishing fleet

ONE STOP SHOPPING

Center of Kirkenes public services and private companies

SERVING THE OIL AND GAS INDUSTRY AND MARITIME TRANSPORT IN THE BARENTS SEA

Or CreaTing a neW naTiOnaL aTTraCTiOn?