According to Sweden-based miner Grangex, the company has secured a new agreement with UK-based mining giant Anglo American to support the planned restart of operations at the Sydvaranger mine.
According to Grangex, the company’s stated strategy is to restart operations at the Sydvaranger Mine and produce approximately 3.5 million mt per year of direct reduction (DR), ultra-high-grade magnetite iron ore concentrate. The miner aims to position Sydvaranger as a key supplier to European and global steel producers as the industry transitions toward direct reduction steelmaking routes in support of green steel production.
The miner explained that the newly announced agreement confirms and strengthens the strategic relationship between Grangex and Anglo American, supporting the company’s efforts to complete the financing process. Grangex added that its previously communicated ambition to commence operations in late 2026 remains unchanged.
Key terms of the Grangex–Anglo American agreement
According to Grangex, the company and Anglo American have agreed on the following framework, to take effect at Final Investment Decision (FID) and upon closing of the project financing:
- Anglo American will terminate the existing $37 million royalty in full, with no principal repayment and no future royalty payments.
- Following the termination of the royalty, Anglo American will purchase 100 percent of the life-of-mine production of direct reduction, ultra-high-grade magnetite concentrate from the Sydvaranger Mine.
- The offtake will be priced based on a market-price-related formula agreed between Grangex and Anglo American.
Grangex underlined that this structure is designed to support the project’s financial viability while aligning Sydvaranger’s output with the evolving raw-material requirements of low-carbon steelmaking routes.
