Sørvaranger / Kirkenes Kiruna / LKAB
Sørvaranger / Kirkenes
LKAB / Kiruna
Sørvaranger / Kirkenes
LKAB / Kiruna
comparison / Crude ore // Finished product
Source: Mining-technology.com
From a 100 % crude iron ore you get....
61% iron in LKAB /kiruna, in the form of iron pellets
32 % Iron in sydvaranger/ Kirkenes, in the form of iron concentrate
n de jor f n de ei N
E6 to Tromsø, Trondheim and Oslo
en
Bøk fjor den
Киркенес
Ko rsf jo rd
KIRKENES
Kirkenes
Høybuktmoen Airport en rd jo f ng La
Hesseng
E105 to Murmansk, St.Petersburg and Moscow
Bjørnevatn
Bjørnevatn deposits
Bo
rd
er
to
Ru
ssi
Fisketind East deposits
a
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
A/S SYDVARANGER AT THE START OF A TIMELINE THE POSITIONING OF A YOUNG NATION STATE IN A PERIOD OF POLITICAL TURMOIL AND WAR 1866 The iron ore at Bjørnevatn is registered by Tellef Dahll
1900
1902 mapping of the iron ore at Bjørnevatn 1905 Dissolution of the union between Norway and Sweden 1906 Chr.A Anker establishes A/S Sydvaranger after negotiantions with the state. The Same year the company was sold to a Swedish-German consortium
1910
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
1906 Trade union Nordens klippe established 1909 Trade union Grubernes arbeidsmandsforening established 1910 The first train with iron leaves for the port and export to Rotterdam on the railroad Bjørnevatn-Kirkenes 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
The large number of workers that came to Bjørnevatn had experience from other mines and 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
1920 1925-27 Bankruptcy. The Norwegian state gives financial support, while the main interests remain Swedish, with backing of German capital
1930
The mine grew to become the biggest open cast in Northern Europe, with miners coming in from all of Scandinavia.
The operations of AS Sydvaranger was from the start an important factor in confirming Norwegian supremacy in the border region. The area of Sør-Varanger was under pressure between the two world wars, from the new Sovjet 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 houses in addition to sewage and street lighting.
1940
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 burnt down 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 AS A GOVERNMENT PROJECT FROM RECONSTRUCTION AND GOLDEN AGE TO POST INDUSTRIAL DOWNTURN
1945
1950
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 1952: The rebuilding and modernisation of the mining plant is finalised. WIth reconstruction after the war came also improvements in workers rights and security. The 1950 becomes a golden period with high production and marked prices.
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.
1960 Economic stagnation in the 1960s led to the need for new products to get higher prices. 1969: Starting pellets production
1970
Good market prices and stable situation makes Sydvaranger the leading company in Northern-Norwegian Mining industry. 1978: New economic downturn means less resources to the community and the municipality of Sør-Varanger take over operations for roads, water and sewage.
1980
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 ore made the mining unprofitable, and the Norwegian government was no longer prepared to cover the expences.
1981 The state increases its ownership to 87,45% in responce to the need for new capital 1985 the govrenment as main owner adopts the plan to end mining operations at Bjørnevatn.
Einar Gerhardsen from the labour party was prime minister for 17 years between 1945 and 1965.
A/S SYDVARANGER IN TIME OF TRANSFORMATION FROM LANDUSE TO PROPERTY DEVELOPMENT - LOOKING FOR NEW OPPORTUNITIES IN A GLOBAL ECONOMY 1990 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
2000
1997-2002: Australian Bulk Minerals makes an unsuccessful attempt at operation at Bjørnevatn
February 2006: Sydvaranger is sold to the developer Nordberg Eiendom and shortly after bought up by 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
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 for investment in Kirkenes, and especially the port and loading facilities that was developed by Sydvaranger. With increasing prices on iron ore, the possibility of reopening the mining operations became an important factor when the municipality decided to sell Sydvaranger.
2010 Autumn 2011: The two major share holders of Northern Iron Limited, Tschudi Mining and OM Holding, considers a reduced or decontinued ownership in SVG
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 %
FROM MINING TOWN TO URBAN COMMUNITY 10919 10010
1st. World War and following depression led the industry in economic turmoil
1930s: rebuilding and rearmament in Europe means increased production
1911-1913 - plants finished and extended for full operation
1970s: Sydvaranger became the leading company in Norther-Norwegian Mining industry. 1530
1660
1450 1250
1906: A/S Sydvaranger established
2nd World War
1000
Population growth of Sør Varanger
179,63
2009: Restart mining as Sydvaranger Gruve
1980s: the iron ore at Kirkenes becomes unprofittable
1952: A rebuilt and modernised plant was ready 1000
Iron Ore Price $ per Metric Ton
1000 1969:starting pellet production
1910, building the steam power station, Sydvaranger Dampsentral
Sydvaranger production facilities at Kirkenes after 4. July 1944. Kirkenes. Briquette works and rails. Bombed and burnt.
1996 1997
1985
1982
1977
1975
1969
1952
1947
1945
19 1937 1938
1924 1925
1921
1915
1912
1906 1907
1900
Kirkenes at the turn of the century. The church at the penninsula.
Bergen Group Kimek shipbuilding hall makes the steam central small.
341
398
Number of employees Showing the tendency
5 2010 2011 2012
15,3
200
240
2005
390
60,8
28,11
2002
380
1996: AS Sydvaranger ends mining
2008
1960s: stagnation led to production of pellets to increase product prices.
1925-1927: Bankruptcy
1991
1910
Centre of Kirkenes today, no longer just a mining town.
BJORNEVATN’S RESSOURSES OF IRON
Sources : Independent technical report on the Norwagian mineral properties of northern iron limited - RSG Global
ESTIMATION OF IRON RESSOURSES
100m
0
-100m
-200m
-300m
-400m
Sources : Independent technical report on the Norwagian mineral properties of northern iron limited - RSG Global
IRON CRUSHING PROCESS PRIMARY CRUSHING Cobbing plant Non magnetic rejects Primary crushed ore railed to concentrator
Pump house Salt water
Storage
SECONDARY CRUSHING Quais SECONDARY MILLING AND MAGNETIC SEPARATION
PRIMARY MILLING AND MAGNETIC SEPARATION
TERCIARY CRUSHING
Concentrate thickening
Secondary Bentonite and tertiary crushing milling Bentonite silo
Concentrator
Docks
Crushed ore silo 8.000T Main office Pellet storage 460.000T
Transformer yard
Make-up water
Vacuum and pressure filtration Final concentrate
Traveling ship lauder
Tailling thickening
Shiploqder
CONCENTRATE DRYING, STORAGE AND SHIPING
Tailling dilution
TAILING THICKENING AND DISPOSAL
Sources : Independent technical report on the Norwagian mineral properties of northern iron limited - RSG Global
0
200m
Railroad to Bjornevatn
Railway workshop
SYDVARANGER INFRASTRUCTURES
The extraction of iron produce two diferent kind of wastes. The non magnetic rejects, separate on Bjornevatn site itself, is deposed around the mine and create this particular form. After crushing, the taillings used to be discharge in the sea, in Langfjorden. The compagny stop using this site in 1974 when the fjord reached capacity. A pipeline of 275m was constructed in 1973 to discharge taillings in Bjokfjorden.
WHAT TO DO WITH THE WASTE
WHAT TO DO WITH THE WASTE On the site of Bjornevatn : The extensive overburden disposal and the visual intrusion of the waste drumps are the most important issues. It limits the oportunity for revegetation : -because of the geochemistry of the material (reactivity and leaching of heavy metals) -because of the large size of the boulders, but thoses boulders are also a protection for the vegetation around against dust The mine water is pomped and dischage in Landfjorden. Official report :
Health concern : -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 In front of thoses risks, Sydvaranger AS takes some protection mesures to reduce the exposure to dust (ventillation, reduction of use of solvents...) and to noise problems (improved noice abatement equipement, and better use of hearing protections). All the asbesto insulation have been replaced in 1970’s.
Norwegian Pollution Control Autority permit (SFT), cover the disposal of all waste and emissions from site, including the submarin taillings and mine water disposal in Langfjorden (applied in 1998, last complement in 2007). -The impact on the sea floor environment is minimal : the tailling form a stable mass covered with typical flora and supporting fauna -Environmental condition are considerate good at most location in the fjord system -The water from the mine area is clean -Rocks and wastes contain minimal sulphides National Norwegian Water Autorities permit (NVE) freshwater abstractions from the lakes and water laws. -Limitation for water pumping to keep the lake levels stable.
KIRKENES MINING FLOWS KIRKENES KIRKENES
GREAT
ZAPOLJARMYJ NIKEL
KIRKENES ZAPOLJARMYJ
MURMANSK ZAPOLJARMYJ NIKEL
MURMANSK
RUSSIAN RAILWAY
CHINA
MURMANSK
NIKEL
RUSSIAN RAILWAY BRITAIN
RUSSIAN RAILWAY GERMANY BRITAIN
GERMANY
GERMANY
BRITAIN GERMANY
KIRKENES crushing
CHINA CHINA
CHINA
RUSSIAN RAILWAY
WASTE
ENVIRONMENTAL ISSUES
BJORNEVATN extraction
IRON EXPORT IN KIRKENES
KIRKENES ZAPOLJARMYJ
MURMANSK
NIKEL
RUSSIAN RAILWAY
CHINA
GREAT BRITAIN GERMANY
KIRKENES
BRITAIN GERMANY
ZAPOLJARMYJ
MURMANSK
NIKEL CHINA
RUSSIAN RAILWAY
BRITAIN GERMANY
CHINA
PAYBACK TIME?
OIL TAX .
78 % Of net profits
MINERAL INDUSTRY .
28 % Regular company tax
+ Annual fee for mining operations 100 kr per 10.000 m2
.
.
CHANGED ECONOMIC ENVIRONMENT
153 Agriculture and fisheries
Hotel and restaurant
158
730 202 Other business services
302
Public administration and armed forces
Building and construction Transport and communication
316
528 Education
Merchandice
455
Vehicle services
108
214
Industry, mining,oil and gas
4469 Total number of people employed people in the Municipality of Sør-Varanger 2006
Medical and social services
1084 111
Other social and personal services
398 Total number of employees at Sydvaranger Gruve in 2011
KIRKENES AND TSCHUDI ... OR Tschudi Shipping Company is owned and run by Felix Henry Tschudi
Tschudi Rederi AS Rederiet Otto Danielsen A/S Estonian Shipping Company Ltd (Esco) Tschudi Shipping Estonia O체 Tschudi Shipping Company O체 (Kirkenes Transit AS) Tschudi Arctic Transit AS
Tschudi Shipping Company AS
Tschudi Logistics Oy Tschudi Logistics Holding AS R책dhusplassen 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
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.
Loading and unloading
Development and sale of property
Arbeidergata 3 AS
Kirkenes Industrial Logistics Area AS Tschudi Bulk Terminals AS Tschudi Kirkenes AS
(Sydvaranger Maritime Industrial Park AS)
(Sydvaranger Bulk Terminals AS) (Sydvaranger AS) Property management
Operation of harbour
Spedition Kirkenesvannet Eiendom AS Tschudi Kirkenes Eiendom AS Tschudi Aggregates AS
SYDVA RANGER AS
Sydvaranger Industriomr책de
ONE STOP SHOPPING SERVING THE OIL AND GAS INDUSTRY AND MARITIME TRANSPORT IN THE BARENTS SEA
Center of Kirkenes public services and private companies
4 SMIP deep water quay Approximately 400 metres in length
Bergen Group KIMEK. Shipbuilding hall, servicing the Russian fishing fleet
2
Tschudi Shipping Company AS
3
Kirkenes Industrial Logistics Area AS Sydvaranger Maritime Industrial Park AS SMIP
SMIP Area for development Additional 200 metres of deep water quay
1
Sydvaranger industrial park developed with focus on companies serving the coming oil and gas industry in the Barents Sea and Maritime transport and logistics
9755
ROTTERDAM MEGASTRUCTURE KIRKENES
4
OR CREATING A NEW NATIONAL ATTRACTION?
Luossavaara
Kiruna
Kiirunavaara
The town´s original name was Lousavare after the Loussavaara mountian; the mine is situated in between the mountians Loussavaara, Kirunavaara and Haukavaara.
Kriuna is a mining city founded between the two mountains of Kiirunavara and Loussavaara at the turn of the 19th century due to the large reserves of iron ore that was possible to extract after the invention of the Thomas-process, separating the phosphorus from the iron. The town of Kiruna was planned based on the climatic conditions, but without consideration of the geological conditions, leaving the city with a coice between continued mining or an extensive urban transformation in the present day. The heart of the city and numeous of Kirunas oldest buildings will have to be moved to a new site. The state owned mining-company LKAB are argumenting that the city should be moved well out of the vicinity of the mines in an urban transformation process that will take approximately 10 years.
1736
Kiruna timeline
Discovery of iron deposit
Kirunas history
1878
Invention of Thomas process phosporous seperate from iron ore.
Malmberget
1884
Railway construction started
1888
Ore railway between Kiruna and Navik joined. Narvik-Kiruna-Gällivare-Luleå was the worlds northernmost railway
1890
Luossavaara-Kiirunavaara Aktiebolag (LKAB) founded
1900
Architects’ (Per Olof Hallman and Gustaf Wickman) plan to the city was officially accepted
Narvik
Ofotbanen
City planning
Kiruna got it´s official name 1907
tram in operation
1910
Surface mining of Mountain Kiirunavaara In second world war , German used Kiruna to keep refugees and prisoners, the railway was used to ore and transport military equipment.
WWII bombing 1940s
1950 1953
Gropen
1960
City rights money from mines City renovation Kiruna Ariport Tourist industry developed LKAB start using Subsurface mining
1973 1970s
high record of LKAB iron production Steel Crisis mines at Svappavaara, Tuolluvaara and Luossavaara closed
Sources: http://www.kommun.kiruna.se Wikipedia
2000 2004 2007
Relocation of city center decided Actual work on moving started
Kirunas connected locations
va pa
ap
Finland
책 le Lu
Sweden
Bo
de
n
G
채l
liv
ar
e
Sv
Ki
ru
na
ar
N
a
av
ik
NORWAY
Sources LKAB Annual report 2010
LKAB exports // global iron producers
Sources: LKAB Annual report 2010 Steelonthenet.com
6
The Iron Deposit in Kiruna
4 Luossavaara
2
Only mines at Kiirunavaara is still under operation. Mines at Svappavaara, Tuolluvaara and Luossavaara closed in 1977 after steel crisis due to increasing compeition from Asia, Africa, Australia, South America.
3
Lake Luossaj채rv
5
Kiruna (1), Luossavaara (2), Rektorn (3), Henry (4), Haukivaara (5), Nukutusvaara (6) and Tuollovaar (7)
Kiruna
http://www.geo.tu-freiberg.de/oberseminar/ os03_04/Ines%20Kurmies.pdf
Kiirunavaara The total of the original iron ore was 1800 Mt
The total of the current reserve of iron ore is approx. 800 Mt
1
7
Lu
le å
Bo de n
G
äl liv ar e
Ki ru
na Sv ap pa va ar a
av ik N
LKAB´s mines
Svappavaara
Kiruna
N
Malmberget / Gälliväre
Sources: LKAB Annual report 2010 Google maps
LKAB Life expectancy / / Annual production vs reserves Million tons (Mt) 40
LKAB annual production capacity
LKAB Annual Production pr 2010: 27 Mt LKAB annual production capacity: 38 Mt
35
30
LKAB iron ore reserves pr 2010; Crude ore: 1150 Mt Produce: 701 Mt
LKAB current annual production
Kiruna and Malmberget has 1150 Mt crude ore left (probable), which equals to 701 Mt iron produce, which is the data used for the calculations in the diagram.
25
20
15
10
5
2005
2010
2020
2030
2040
year
Sources: LKAB Annual report 2010 Mining-technology.com Calculations: Annabel Danson
Progression of the mine
1910 1920 1930 1940 1950 1960 1965 1970 1980
1900
1960s
began of underground mining
1960-1970
The island called “Ön”, close to the mine, was already phased out during 1960- 1970´s and is now a part of the fenced-in industrial estate
1970s
Part of the lake Luossajärvi has been drained and the road to the LKAB industrial estate has been relocated due to deformations in the ground
1990
TODAY 2013
2000 2004
2005 Exploration pass 2012 1060m
1045m main haulage
Exploration drilling
1365m main haulage
2007
The mining company LKAB applied for changes in the comprehensive plan of central Kiruna The council also decided that the new Kiruna city centre should be situated north west of today’s city centre, at the foot of Mt. Luossavaara actual work on moving the town started
2009
comprehensive plan reviwed for new iron ore deposits
2010
Manicipal decided the city centre to be in eastern part, north-west for toursim and recreation
2011
Mine City Park approved, first part inaugurated in Sep.2011 location of city centre confirmed
the ore // production process
Mining type; sublevel caving mining (underground) http://www.infomine.com/publications/ docs/InternationalMining/Chadwick2010y.
Source: LKAB Annual report 2010
waste management / / production
combustible
landfill
recover some apatite and rare-earth-elements
some rich in iron
waste rock: non-hazardous waste
Recirculation of water in outer system (approx. 75%)
unsorted waste reclaimable paper
mix with ore forms of the mine and are recycled
Water Cycle
non-combustible
tailing dumps: fine grained waste rock
Mine water pumped up from mine
>95% of site waste are sorted:
ENERGY CONSUMPTION* / / production process
Source: LKAB Annual report 2010
* Refers to Kiruna, Svappavaara, Malmberget, Lule책 and Narvik, excluding subsidiaries and sales to external end users. ** Approximately 25% of the electricity comes from surplus heat recovered internally
30 % COAL
50 % electricity **
20 % Oil
Distribution of economic value 2010
Source: LKAB Annual report 2010
Taxes Net Sales Employees
Suppliers
LKAB profits
population growth // LKAB employees In 1900 Kiruna had 222 inhabitants, of which 65 % spoke me채nkieli , 24% sami and 11 % swedeish-speaking. 40000
35000
30000 Kiruna Population 25000
20000
15000
10000 LKAB employees 5000
1900
1920
1940
1960
1980
2000
2020
2040
Sources: LKAB Annual report 2010 Mining-technology.com Wikipedia
mining progression // urban transformation Kiruna Chuch
city hall
railway 1910 1920 1930 1940 1950 1960 1965 1970
1900 Ore processing plants
Railway to Navik
1980
TODAY 2013
2000
2023 2033
2050
1990
2005 Exploration pass 1060m
1045m main haulage Sea level
Exploration drilling
1365m main haulage
progression of deformation
Source: http://www.wilhelmson.se/press.htm
LKAB urban transformation suggestion designed by Wilhelmson based on the comprehensive plan approved by the Kiruna municipality in 2007, which is now revised to a different site.
Navik
urban transformation Alternatives proposed new city center (2007-2009) -foot of Mt. Luossavaara Mount. Luossavaara proposed new recreation & tourism center (2010)-Luossavaara
Lake Luossaj채rv
Kiruna city centre
confirmed new city centre, the main part of new housing and public servic (2010) - eastern part of kiruna
Kiirunavaara E10 Highway Mine City Park buffer zone between the city and the mine
Iron deposit
a new highway E10 and road 870 to be finished by 2015
Train relocation of new railway to be finished by 2012
mine city park border to industrial area train E10 highway Lule책
Airport
kiruna municipality proposal 2011
Source: http://www.kommun.kiruna.se/Stadsomvandlingen/Samhallsplanering2/Skiss/
Source: LKAB profits LKAB Annual report 2010 12.281 million sek
Urban Transformation 2.997 million sek
Other industries in Kiruna
space tourisum?
space centre
Kiruna tourism New industry branches Car testing
Source: http://www.kommun.kiruna.se/Om-kommunen/English/Kiruna---Filled-With-Contrast/Research-and-Industry/