Sydvaranger stocks down 100 million EUR
Over the last three months the price of Norwegian Sydvaranger Gruve stocks has dropped significantly reducing the company’s market price with 100 million EUR. Mining operator Northern Iron intends to start up production in the Sydvaranger iron mines, located close to the Russian border, in spring 2009.
The reduced company value is due to changing crude iron prices on the world market. However, the changing stock value has little impact on the preparations for new production in the Sydvaranger mines. Sydvarnger Gruve has invested in new mining equipment worth more than 10 million EUR. The company management says that the main indicator on their stock value is whether they keep the schedule which has been outlined for production or not. Sydvaranger is planning to start production in April next year, with their first shipment of iron in June.
