Products
Iron and iron ore have been associated with human development and progress since time immemorial. Iron and steel were necessary components in the industrial revolution, which began in the middle of the 1600s. Already from the beginning, the Dannemora ore played an important role in Europe's emerging steel industry.
Iron ore products from the reopened Dannemora mine
Dannemora Magnetit is planning for an annual mining of 2.5 million tonnes of crude ore, with an average iron grade of 35.2 percent, in the Dannemora mine. At full production, 1.5 million tonnes of final products are estimated to be delivered from the concentration plant. The products are of two types: lump ore (5-16 mm grain size) with an iron grade of 50 percent and fines (<5 mm) with an iron grade of 55 percent. Around 50 percent of each type will be produced.
The reductions in production volume were most acute in the fourth quarter of 2008, and the quarterly figures fell by 20 percent. The production decline continued in the first half of 2009, with world production falling by 21 percent, having been affected by production cuts in Europe and the USA. In China both steel production and iron ore intake hit record highs during 2009.
However, we are seeing a more positive view of the future in Europe and the USA. In Europe, capacity utilisation now approaching 75%. The demand for steel increased; for example the prices of hot-rolled strips have risen by 25 percent since March this year. This rapid change means that the steelworks in Europe have been finding it difficult to replenish their ore reserves back to their normal levels. The World Steel Organisation (ESA) has revised its forecast for steel use in 2010 to an increase of more than 9 percent and many analysts believe that the prices of iron ore will go up next year.
The iron ore industry can face the future with optimism. The capacities that will meet the strong demand for iron ore, which is expected within a few years, are in most cases no longer based on existing structures, but on new deposits in new locations, with a considerably longer period between project start and delivery, and with a much higher cost structure.
This more optimistic view has led to Dannemora negotiating for trial deliveries to a number of steelworks.
Contacts:
Dannemora Magnetit AB
Market
Box 627
182 16 Danderyd
Telephone+46(0)295-244400
e-mail sales@dannemoramineral.se
Fax +46(0)8-753 4390