Surplus for Svalbard mining company
The world’s northernmost mining company Store Norske on the Arctic archipelago of Svalbard last year had a 400 million NOK surplus.
The result is the second best in the Norwegian coal company’s history. After the top year in 2008 with coal prices rising 175 USD per ton, prices plunged to 50 USD per ton in the first quarter of 2009. CEO Bjørn Arnestad explains Store Norske’s good results in 2009 with profitable contracts made while prices were high:
- We have been able to negotiate new contracts with the steel industry with prices on 2008-level. The average coal price on the spot market in 2009 was 75 USD per ton, and we were able to sell for 30 USD more than this, Mr. Arnestad told newspaper Svalbardposten.
Read also: Successful 2008 for Store Norske Group
In spite of the surplus, Store Norske plans to reduce the work force. According to NRK.no the company plans to let 50 workers go within the end of the year. The company has 350 employees and is the largest employer on Svalbard.
Most of the Norwegian coal production on Svalbard takes place in the “Svea” mine, which reserves are about to run out. The company plans to open a new mine in the Lunckefjell area. Costs connected to opening of the new mine are estimated to be some one billion NOK, NRK writes.
