Rana Gruber ASA

Earnings Release • Nov 29, 2024

Rana Gruber on track to start production at new open-pit mine: Signs contract with long-term partner and entrepreneur HJH for operations at Stensundtjern

Rana Gruber on track to start production at new open-pit mine: Signs contract with long-term partner and entrepreneur HJH for operations at Stensundtjern

Mo i Rana, 29 November 2024 - Rana Gruber ASA, Norway’s only producer of iron ore, has signed a new contract with the local contractor and long-term partner HJH for operational responsibilities at the upcoming Stensundtjern open-pit mine, rich on magnetite resources. Production is anticipated to begin in the second half of 2025.

HJH, which oversees the current operations at the Ørtfjell open-pit mine, will seamlessly transition to Stensundtjern upon Ørtfjell’s conclusion. This continuity maximizes equipment transfer efficiency and supports uninterrupted production.

"We are very pleased to continue our strong relationship with HJH," said Gunnar Moe, CEO of Rana Gruber. "Over the past years we’ve seen first-hand their operational capabilities with a highly efficient setup, whilst they at the same time set high standards for health, safety and environmental considerations. This aligns very well with our priorities and values, and will be instrumental as we prepare to bring Stensundtjern online, ensuring a stable and sustainable supply of high-quality iron ore".

Rana Gruber currently controls four iron ore deposits located in Storforshei and Ørtfjell in the Dunderland Valley, just north-east of Mo i Rana.

Increasing magnetite production

HJH’s responsibilities at Stensundtjern will encompass blasting, waste rock removal, transport and daily mining activities, ensuring highly efficient production from day one.

The new Stensundtjern open-pit is expected to boost Rana Gruber’s magnetite production to new highs, due to the magnetite-rich ore body at the site. Magnetite is a highly specialized product sold to the chemical industry for use in water treatment systems, priced at a premium due to its ultra high-grade properties with an iron content above 71%. Rana Gruber has a current run-rate of Magnetite production at 160,000 mt annually, expecting to increase to 175,000 mt in 2025 and 200,000 mt in 2026.

The new contract reaffirms that Rana Gruber is on track to meet its projected timeline for Stensundtjern, as presented during the recent capital markets day. With production anticipated to commence in 2025, this milestone further confirms Rana Gruber's dedication to delivering a stable and high-quality supply of iron ore to European markets. The contract aligns with the company's previously communicated capital expenditure plans, requiring no additional investments beyond what was disclosed. Furthermore, the target cash cost of 50-55 USD per ton remains firm, highlighting Rana Gruber's commitment to operational efficiency and cost discipline.

For further information, please contact:

Gunnar Moe, Chief Executive Officer: +47 941 47 650

Erlend Høyen, Chief Financial Officer: +47 902 02 741

About Rana Gruber

Rana Gruber is a Norwegian iron ore producer established in 1964, with operations based on more than 200 years of mining experience. The company's products are based on natural mineral resources, which are processed and exported to customers worldwide. Key customers include steel producers and participants in the chemical industry. The company has about 370 employees and a production capacity of 1.8 million metric tons of iron ore concentrates.