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Dannemora Mine

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Summary

Mine TypeUnderground
Study CompletedFeasibility
StageRestarting
Commodities
  • Iron Ore
Mining Method
  • Sub-level open stoping (SLOS)
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SnapshotDannemora is a high-grade iron ore restart project dedicated to supplying premium, ultra-high-grade direct reduction magnetite concentrate. With a mining tradition dating back to the 13th century, the mine last operated between 2012 and 2015.

An updated Definitive Feasibility Study for the restart of operations at the Dannemora mine was completed on June 10, 2024, and all necessary permits have been in place since 2023.

The restart involves a 28-month capital program, including mine dewatering and the utilization of existing infrastructure to minimize environmental impact.

Sustainability is central to the project, focusing on carbon footprint reduction through full electrification of operations. Where electricity is not viable, fossil-free fuels like hydrotreated vegetable oil (HVO100) will be used for transport and port logistics to ensure green production.

Owners

SourceSource
CompanyInterestOwnership
Dannemora Iron AB (operator) 100 % Direct
Grangesberg Exploration Holding AB (GRANGEX) 100 % Indirect
Dannemora Iron AB (“DIAB”) was acquired by Grängesberg Exploration AB in August 2020.

It is DIAB’s intention to run an owner operated mine, with all key staff employed by DIAB and all key parts of the operations run by its own staff.

Contractors

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Deposit type

  • Skarn

Summary:

The Dannemora deposit is contained within the regional host rocks of the Leptite Formation, an assemblage of Svecofennian (of Lower Proterozoic age ca. 1.8 to 1.9 Ga) marbles, metavolcanics and subsidiary metasediments. The Dannemora deposit is hosted by Svecofennian volcanic rocks (c. 1.9 Ga). The volcanic rocks are part of a sequence seen in most of the Bergslagen area, also called the leptite formation.

The principal units of the Leptite Formation are steeply dipping along the limbs of northeasttrending (ca. 030° NE) isoclinal fold structures, and occur between large granitoid intrusive bodies. These rocks were later deformed in the Svecokarelian orogen by granitoids, leading to the steeply dipping syncline-anticline structures seen today. The lithologies have undergone varying degrees of metamorphism related to both regional and local thermal alteration activity. The metamorphism is low to high grade in low pressure conditions, and the original structures are well-preserved.

The volcanic sequence is divided into a lower and an upper formation. The lower formation consists only of volcaniclastic rocks and lacks iron ore. The basal unit of the upper formation consists of volcaniclastic rocks with iron ore clasts. The primary rocks of the upper unit of the upper formation are volcaniclastic rocks and carbonate rocks. These primary rocks have been altered diagenetically and hydrothermally to form chlorite fels, skarn (Fe-MnCa-Mg-silicate rocks), sulphides, and iron ore.

In the Dannemora Mine area, the metavolcanic and metasedimentary rocks are shaped into two parallel synclines separated by an isoclinal anticline which together plunge gently to the northeast. The principal mineralisation is confined to the easternmost syncline, with exploration to date only identifying smaller bodies associated with the westernmost structure.

Mineralisation
The iron ore is strata-bound to dolomitic limestone and is thickest in the central part of the sedimentary basins, thinning outwards. The magnetite mineralisation is mostly restricted to the upper unit of the upper formation at Dannemora, and is normally strata bound within dolomitic units. Previous exploration work has identified about 25 individual mineralised bodies situated along a 3 km strike length of the syncline and surrounding structures at varying depths from surface. Due to these primary features and later tectonic movement the iron mineralisation is separated into approximately 25 different bodies at varying depths. The bodies occur within a ca. 400 - 800 m wide stratigraphic thickness and display a thinning and thickening, which is commensurate with their positions relative to the primary structures, i.e., thinning and fragmenting within the limbs of the syncline and thickening towards the keel of the Dannemora Syncline. The limbs dip at ca. 85° near surface and shallow to ca. 60° at the 350 m level of the mine.

The mineralisation has been commonly categorised as a manganese-rich skarn iron ore (with an iron content of 30 to 50%, and a manganese content of 1 to 6%), and a manganese-poor skarn iron ore (with an iron content of 30 to 50% and a manganese content of 0.2 to 1%).

The iron mineralisation is present as magnetite, which is found in aggregates with other minerals such as knebelite, dannemorite, diopside, actinolite, chlorite, and serpentine as well as carbonate minerals such as calcite, dolomite, siderite, and rhodochrosite. In terms of ore-related parageneses, magnetite is commonly associated with calcite and dolomite, and to a lesser extent with amphiboles (tremolite-actinolite), albite, andesine, arsenopyrite, biotite, chalcopyrite, chlorite, diopside, epidote, garnet, muscovite, oligoclase, orthoclase, phlogopite, pyrite, pyroxene, pyrrhotite, quartz, rhodochrosite, scapolite, serpentine, siderite and tremolite.

Rare, accessorial phases - often only observed in magnetite ore by electron microprobe - include apatite, arsenopyrite, bismuth, bismuthinite, cassiterite, chrysotile, cobaltite, dannemorite, galena, knebelite, löllingite, monazite, sphalerite, titanite and zircon.

Dimensions
The Mineral Resource extends for a length of approximately 2.5 km and is approximately 100 m wide corridor. Diamanten 2 and Myrmalmen are both located outside of this corridor.

The Mineral Resource extends approximately 400 m in depth starting between 0 and -400 m. The individual domains range in width from 3 m to 263 m, in length from 38 m to 325 m, and in depth from 26 m to 461 m. The general strike of the deposit is N30°E.

Reserves

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Mining Methods

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Required Heavy Mobile Equipment

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EV - Electric

Comminution

Crushers and Mills

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Processing

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Commodity Production

CommodityUnitsAvg. Annual
Iron (magnetite) kt 1,085 *
All production numbers are expressed as concentrate. * According to 2024 Restart study.

Operational metrics

Metrics
Annual ore mining rate  ....  Subscribe
Annual processing rate  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
* According to 2024 Restart study.

Production Costs

CommodityUnitsAverage
Cash costs Iron (magnetite) USD  ....  Subscribe
Assumed price Iron (magnetite) USD  ....  Subscribe
* According to 2024 Restart study / presentation.

Operating Costs

CurrencyAverage
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2024 Restart study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Equipment leasing costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
UG OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 150
Transportation (haulage) costs $M USD 145
G&A costs $M USD 39
Total OpEx $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Feb 10, 2026
....................... Subscription required ....................... Subscription required Subscription required Feb 10, 2026
....................... Subscription required ....................... Subscription required Subscription required Jun 10, 2024
....................... Subscription required ....................... Subscription required Subscription required Feb 2, 2026
....................... Subscription required ....................... Subscription required Subscription required Feb 2, 2026
....................... Subscription required ....................... Subscription required Subscription required Feb 2, 2026
....................... Subscription required ....................... Subscription required Subscription required Feb 2, 2026

Workforce

EmployeesContractorsTotal WorkforceYear
...... Subscription required ...... Subscription required ...... Subscription required 2024

Aerial view:

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