Champion Iron acquires Norwegian iron ore company Rana Gruber

Canada’s Champion Iron Ltd has entered into an agreement to acquire all shares in Norwegian iron ore company Rana Gruber for NOK 2.93 billion (approximately $290 million). This was announced in a press release by Champion.

The deal provides the Canadian company with a number of strategic advantages, including a long mine life in a stable jurisdiction. Rana Gruber produces more than 1.8 million tons per year of high-quality iron ore, is promoting a project to modernize the production of iron ore concentrate with an iron content of 65%, and has stable cash flow profitability.

Thanks to access to renewable energy, the Norwegian company has one of the lowest carbon emissions per ton of iron ore concentrate in the world.

This move will also mean an expansion of Champion’s product portfolio. In addition, the merger will create a larger and more diversified producer of high-quality raw materials with opportunities for cooperation in sales logistics, including an established customer focus in Europe.

As noted, the companies share a common vision of serving the green steel supply chain.

“The proposed acquisition of Rana Gruber supports our vision of working together to decarbonize the steel industry by leveraging Rana Gruber’s high-quality resources and proven operations,” said Champion CEO David Catford.

Rana Gruber is a Norwegian iron ore producer whose current mining operations are based on underground mining and nearby open pits. The company also has a large resource base that could potentially support current production levels for decades.

It should be recalled that in November this year, the Simandou iron ore mining project was launched in Guinea. It will become Africa’s largest mining and transportation complex, exporting up to 120 million tons of ore annually.