Rana Gruber on track to start production at new open-pit mine: Signs contract with long-term partner and entrepreneur HJH for operations at Stensundtjern

29 Nov 2024 16:00 CET

Mo i Rana, 29 November 2024 - Rana Gruber ASA, Norway’s only producer of iron
ore, has signed a new contract with the local contractor and long-term partner
HJH for operational responsibilities at the upcoming Stensundtjern open-pit
mine, rich on magnetite resources. Production is anticipated to begin in the
second half of 2025.

HJH, which oversees the current operations at the Ørtfjell open-pit mine, will
seamlessly transition to Stensundtjern upon Ørtfjell’s conclusion. This
continuity maximizes equipment transfer efficiency and supports uninterrupted
production.

"We are very pleased to continue our strong relationship with HJH," said Gunnar
Moe, CEO of Rana Gruber. "Over the past years we’ve seen first-hand their
operational capabilities with a highly efficient setup, whilst they at the same
time set high standards for health, safety and environmental considerations.
This aligns very well with our priorities and values, and will be instrumental
as we prepare to bring Stensundtjern online, ensuring a stable and sustainable
supply of high-quality iron ore".

Rana Gruber currently controls four iron ore deposits located in Storforshei and
Ørtfjell in the Dunderland Valley, just north-east of Mo i Rana.

Increasing magnetite production
HJH’s responsibilities at Stensundtjern will encompass blasting, waste rock
removal, transport and daily mining activities, ensuring highly efficient
production from day one.

The new Stensundtjern open-pit is expected to boost Rana Gruber’s magnetite
production to new highs, due to the magnetite-rich ore body at the site.
Magnetite is a highly specialized product sold to the chemical industry for use
in water treatment systems, priced at a premium due to its ultra high-grade
properties with an iron content above 71%. Rana Gruber has a current run-rate of
Magnetite production at 160,000 mt annually, expecting to increase to 175,000 mt
in 2025 and 200,000 mt in 2026.

The new contract reaffirms that Rana Gruber is on track to meet its projected
timeline for Stensundtjern, as presented during the recent capital markets day.
With production anticipated to commence in 2025, this milestone further confirms
Rana Gruber's dedication to delivering a stable and high-quality supply of iron
ore to European markets. The contract aligns with the company's previously
communicated capital expenditure plans, requiring no additional investments
beyond what was disclosed. Furthermore, the target cash cost of 50-55 USD per
ton remains firm, highlighting Rana Gruber's commitment to operational
efficiency and cost discipline.

For further information, please contact:
Gunnar Moe, Chief Executive Officer: +47 941 47 650
Erlend Høyen, Chief Financial Officer: +47 902 02 741


About Rana Gruber
Rana Gruber is a Norwegian iron ore producer established in 1964, with
operations based on more than 200 years of mining experience. The company's
products are based on natural mineral resources, which are processed and
exported to customers worldwide. Key customers include steel producers and
participants in the chemical industry. The company has about 370 employees and a
production capacity of 1.8 million metric tons of iron ore concentrates.

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