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Dannemora commissions Skanska to build sorting plant

April 13, 2011 - London

Dannemora commissions Skanska to build sorting plant

Dannemora Mineral has signed a partnership agreement with Skanska IME for the construction of the new sorting plant at the Dannemora Site.

Skanska IME was also responsible for coordinating the project planning and design of the plant during the first quarter of this year, and this has formed the basis for the present contracts. Skanska IME will carry out the land and construction work and coordinate the process installation.

        "Skanska is an experienced industrial building company, and the partnership agreement means we can rest assured that their expertise and commitment will provide us with a cost-effective construction within the project's tight time frame," says Staffan Bennerdt, CEO and President of Dannemora Mineral. "The financing of the Dannemora project progressed according to plan and we expect the sorting plant to be ready for operation in spring 2012."

The sorting plant has been designed for an annual capacity of 2.0 million tonnes of finished products in the proportion of 60 percent lump ore and 40 percent fines. The plant's annual capacity of 2.0 million tonnes will exceed the annual production capacity of 1.5 million tonnes stated in the Company's feasibility study.

Skanska IME is Skanska's organisation for industrial projects in Northern Sweden. The contract for the land and construction work is worth approx. SEK 80 million, while the entire investment in the sorting plant, including loading, waste product handling and the personnel areas is estimated at approx. SEK 235 million.

         "We are proud to be entrusted with providing a cost-effective plant under this agreement, which will allow Dannemora Mineral to resume operations on schedule in this historical iron ore mine," says Bengt Hedberg, Project Manager at Skanska IME.


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Pressrelease 13 april 2011

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Source: Dannemora Mineral AB via Thomson Reuters ONE



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