Kaunis Iron plans for long-term mining despite a tougher market
The international iron ore market is currently marked by lower prices, higher freight costs and a weakened US dollar, which is putting pressure on profitability. At the same time, management is working to secure long-term sustainable mining in Tornedalen.
“We are proud of the value we create together with our employees and contractors, but it is important to be transparent about the challenges we face and how we are planning ahead,” says Klas Dagertun, CEO of Kaunis Iron.
Tapuli remains in focus
The ore in Tapuli is the basis of the current operations. Although a future production pause has long existed as a strategic option, the company is not currently planning any cutbacks – on the contrary, increased production in the coming years is expected.
Possible production pause ahead
A longer production pause between Tapuli and the opening of new deposits is, however, likely, owing to the protracted permitting process. How long the pause will be depends on which strategic path the company chooses.
Strategy work ahead of the turn of the year
During the autumn, extensive work is under way to present a future main direction at the turn of the year. This includes further development of Tapuli, new deposits, the company's position in the value chain and alternative logistics solutions such as a pipeline.
Focus on factors that can be influenced
With an uncertain market and a possible production pause, Kaunis Iron is putting its energy into what it can influence: managing Tapuli efficiently and creating the conditions for long-term operations in Tornedalen.
“We are taking responsibility for adapting to reality, with the goal of enabling sustainable mining in Tornedalen,” says Klas Dagertun.
Source: Kaunis Iron's website.
