SYDvaranger GRUVE / Kirkenes
SYDvaranger / Kirkenes
LKAB / Kiruna
SYDvaranger / Kirkenes
LKAB / Kiruna
From a 100 % crude iron ore you get...
... 32 % Iron at Sydvaranger/ Kirkenes in the form of iron concentrate
61% iron at LKAB /Kiruna, in the form of iron pellets
Source:: Mining-technology.com
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)
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.
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
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: OM Holdings Ltd: IOOF Holdings Ltd: Eley Griffiths Pty Ltd:
~26.5 % ~15.6 % ~8.4 % ~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
Kirkenes at the turn of the century. The church at the penninsula.
240
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
200
Bergen Group Kimek shipbuilding hall makes the steam central small.
341
398
Number of employees Showing the tendency
5 2010 2011 2012
15,3
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.
Kirkenes
FIELDS OF EXPLORATION
Geological composition Gabbro / plutonic mafic igneous rocks Quartzite / metamorphic rock from sandstone Mica-gneiss, mica-schist / metamorphic rock Granite / intrusive felsic igneous rock Mineral resources / mapping by NGU Of great importance Of importance May be of importance Of no importance Sørvaranger Gruve mining prospects Sørvaranger Gruve concession area / 35km2 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 Iron ore Open cast
LIMITS OF EXPLOITATION 2035? Estimated amount of available iron ore: appr. 130 Mt Aimed annual production rate: 5-6 Mt Lifespan of mine: 20 - 25 years
2012:
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.
BJĂ˜RNEVATN IRON ORE DEPOSITS
100m
0
-100m
-200m
-300m
-400m
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
PLAYGROUND FOR GIGANTS
Primary crushing at mine
Primary crushed ore railed to concentrator
Non magnetic rejects Secondary & tertiary crushing in Kirkenes
Primary & secondary milling & magnetic separation Concentrate thickening
Kirkenes
Tailling thickening
Concentrate drying, storage & shipping
Waste disposal in sea deposit
IRON CASTLE
Pump house Salt water
Quais Traveling ship lauder
Secondary Bentonite and tertiary crushing milling Bentonite silo
Docks
Concentrator
Crushed ore silo 8.000T Main office Pellet storage 460.000T
0
200m
Transformer yard
Railroad to Bjornevatn
Railway workshop
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.
MINING IMPACT ON THE ENVIRONMENT BJORNEVATN
ENVIRONMENTAL IMPACT
+ 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
+ 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
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.
DUST
?
Penetration of toxic water in the ground Plants, agriculture ? 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.
5 km
After the process, the water is dump in the fjord.
Limitation for water pumping to keep the lakes levels stable
The waste was bring to Langfjorden were it was trought into the sea.
+
+
KIRKENES
KIRKENES MINING FLOWS
KIRKENES KIRKENES
NIKEL
KIRKENES
GREAT BRITAIN
ZAPOLJARMYJ
MURMANSK ZAPOLJARMYJ NIKEL
ZAPOLJARMYJ BRITAIN
MURMANSK
RUSSIAN RAILWAY
CHINA RUSSIAN RAILWAY
MURMANSK
NIKEL
GERMANY BRITAIN GERMANY
RUSSIAN RAILWAY
GERMANY
KIRKENES crushing
BRITAIN
CHINA CHINA
GERMANY
RUSSIAN RAILWAY
WASTE CHINA
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
IS THERE A LIFE AFTER MINING? 153 Agriculture and fisheries
202
Hotel and restaurant
Other business services
302
158
Public administration and armed forces
Building and construction
4469 Total number of employed people in the Municipality of Sør-Varanger 2006
730
Transport and communication
316
528 Education
Merchandise
455
Vehicle services
108
214
Industry, mining,oil and gas
Medical and social services
1084
111
Other social and personal services
53 % public sector
398 Total number of employees at Sydvaranger Gruve in 2011
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.
URBAN FABRIC IN THE SQUEEZE
Public services and institutions Shops, businesses and hotels Offices and administration Industry, workshops and storage Housing
KIRKENES STRUCTURE
Coastal ferry terminal
Town Hall
Centrum area
Hospital
Mix industry and businesses
Ship wharf
Housing
Sydvaranger industrial area
School
Housing
Centrum and housing area meets in a wedge between the Sydvaranger industrial area on the hill to the west, and the sprawled industrial area along the coastline to the west.
KIRKENES AND TSCHUDI ... OR
Tschudi Shipping Company AS
Tschudi Rederi AS Rederiet Otto Danielsen A/S Estonian Shipping Company Ltd (Esco) Tschudi Shipping Estonia O체 Tschudi Shipping Company O체 (Kirkenes Transit AS) Loading and unloading Tschudi Arctic Transit AS Tschudi Logistics Oy Tschudi Logistics Holding AS Development and sale of property R책dhusplassen 1 AS Arbeidergata 3 AS Itc Management Bv Kirkenes Industrial Logistics Area AS (Sydvaranger Maritime Industrial Park AS) Operation of harbour Itc Ships Holding Bv Tschudi Bulk Terminals AS (Sydvaranger Bulk Terminals AS) Spedition Boreal Offshore AS Tschudi Mining Company AS Tschudi Kirkenes AS (Sydvaranger AS) Property management Kirkenesvannet Eiendom AS Tschudi Ship Management AS Tschudi Ship Management Iom Ltd Tschudi Kirkenes Eiendom AS Tschudi Aggregates AS
SYDVAR
ANGER AS
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.
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
OR CREATING A NEW NATIONAL ATTRACTION?