Norwegian Iron Ore Producer With Strong Results

The first quarter of 2023 was characterized by continued high production volumes, North Norwegian iron ore producer Rana Gruber states in a press release. 

The company's revenues came in at NOK 493.0 million, down from NOK 515.7 million in the first quarter of 2022.

The reduction is largely explained by lower iron ore prices in the end of the quarter compared to last year. Together with an increase in operating costs caused by global inflation, and an increased inventory, this resulted in a decrease in operating profit (EBITDA), which ended at NOK 226.3 million (NOK 273.6 million).

Rana Gruber produced 434 thousand metric tons in the first quarter of 2023. That is 7 percent more than in the first quarter of 2022. The production increase was a result of continuous improvement in the entire operations from the mine to the processing plant.

The company moreover expects the demand for higher quality iron ore to increase as European steel mills transition towards a more sustainable production method, which requires iron ore of at least 66.5 percent Fe.

In February, the company also signed a frame agreement with Sandvik for the delivery of 19 battery-electric vehicles. This is an important step to achieve the strategic goal to become the world’s first carbon-free iron ore producer before the end of 2025.