Grangex AB has entered into a strategic commercial agreement with Anglo American, supporting Grangex’s plans to restart operations at the Sydvaranger iron ore mine in Kirkenes, northern Norway.
Under its strategy, Grangex aims to restart the mine and produce around 3.5 mln tons per year of 70pct direct reduction, ultra-high-grade magnetite concentrate, targeting steelmakers in Europe and globally as the industry shifts toward direct reduction-based green steelmaking.
At final investment decision and financial close, Anglo American will terminate its existing USD 37 mln royalty in full, with no repayment or future royalty obligations. In return, Anglo American will purchase 100pct of the mine’s life-of-mine production under a market-linked pricing formula agreed between the parties.
The agreement also includes USD 5 mln in non-dilutive bridge financing from Anglo American, to be provided in two equal tranches. The unsecured financing carries a 10pct annual interest rate and matures on January 1, 2029. In addition, Anglo American has an option to participate in the project’s debt financing on the same terms as other lenders, using a set-off mechanism linked to the former royalty arrangement.
Grangex is a Sweden-based mineral development company focused on iron ore and other critical minerals, with the goal of supporting Europe’s green transition through responsible resource development.
