Based on an evaluation of our business activities, we have decided to shutdown the Olivine mine located in the mining site of Seqi in Greenland," announces Markus Petäjäniemi, CEO of Minelco.
“We see that we can strengthen the competitiveness of both LKAB and Minelco by purchasing Olivine from an external supplier. The market price of Olivine has developed unfavourably. Moreover, conditions that prevailed on the market when the mine was started five years ago have changed,” explains Markus Petäjäniemi. “Then it was profitable business to produce Olivine. Because of the reversed situation we are changing strategy. Minelco will continue to supply Olivine. We signed an agreement with an external supplier to be more competitive in comparison to mine the Olivine ourselves.”
“We will phase out our Olivine mine during the year. And we have good cooperation with the Greenlandic authorities in planning for reclamation of the mine. Minelco will complete this work by 1 November, 2010.”