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Minelco closes its olivine mine in Greenland

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 and 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. Now the situation is reversed and we are changing strategy. Minelco will continue to supply Olivine, but we have signed an agreement with an external supplier that allows us to be more competitive in comparison to mine the Olivine ourselves."

"Our Olivine mine will be phased out during the year and we have good cooperation with the Greenlandic authorities in planning for reclamation of the mine. This work will be completed by 1 November, 2010."