In a strategic move that underscores the shifting dynamics of the mining industry towards sustainability, Swedish mineral developer GRANGEX AB(publ.) has announced a significant restructuring of its royalty agreements with global mining titan Anglo American . The updated arrangement, disclosed today, consolidates previous commitments into a single, robust $27.5 million royalty agreement centered on GRANGEX’s Sydvaranger project in Northern Norway.
This development follows the initial $10 million royalty agreement established in March 2023, which granted Anglo American life-of-mine royalty payments on sales from GRANGEX’s Dannemora Iron AB . Subsequently, in May 2024, a $17.5 million royalty agreement was executed for GRANGEX’s Sydvaranger project . Under the terms of the Sydvaranger agreement, Anglo American held the right to transfer the Dannemora royalty, effectively consolidating the two into a single $27.5 million commitment .
The consolidation not only streamlines GRANGEX’s financial obligations but also releases the Dannemora project from all prior royalty commitments. This strategic realignment allows GRANGEX to focus its resources and efforts on advancing the Sydvaranger project, which is poised to become a cornerstone in the production of ultra-high-grade magnetite concentrate for the burgeoning green steel industry.
GRANGEX’s CEO, Christer Lindqvist, remarked on the significance of this development, stating, “This is a truly transformational transaction for GRANGEX. The combination of Dannemora and Sydvaranger positions GRANGEX as the leading independent developer of Direct Reduction iron ore projects in Europe” .
The Sydvaranger project, located in Kirkenes, Northern Norway, is slated to produce up to 4 million tonnes per annum of ultra-high-grade magnetite concentrate over a 25-year period . This output is critical for the production of sponge iron, a key component in green steel manufacturing.
Anglo American’s involvement extends beyond financial investment; the company is also expected to participate in the project’s feasibility study and has an exclusive option to be the life-of-mine off-taker of all production from the Sydvaranger Mine, contingent upon a $50 million financing contribution .
This partnership between GRANGEX and Anglo American exemplifies the mining industry’s pivot towards sustainable practices and the growing emphasis on environmentally responsible resource extraction. As the demand for green steel escalates, such collaborations are set to play a pivotal role in shaping the future of the sector.
For more information on GRANGEX and its projects, visit www.grangex.se.
