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Report Reveals Greater Ore Potential in Kemi Mine
Jan. 22, 2010 Outokumpu reports that the mineral resources in Kemi mine may turn out to be significantly greater than earlier estimated. According to a seismic research report by Geological Survey of Finland in late 2009, the intrusion including Kemi chrome ore extends to the depth of 2 to 3 km, and possibly to 4 km. The report also indicates the possibility that the chromitite layer extends to 2 to 2.5 km, maybe deeper.
The proven ore reserves of Kemi mine are 37 million tonnes, and the amount of mineral resources is 87 million tonnes, estimated to 1 km deep. Earlier it was estimated that with present mining volumes, the ore reserves and mineral resources together would last for 70 to 80 years. Based on the new information, Outokumpu says that it is possible that there are enough resources for mining for hundreds of years even with doubled annual production volumes.
"The news about the opportunity to continue mining operations for the years to come was received with great pleasure,” said CEO Juha Rantanen. “We have ready plans and preparedness to extend the mining operations and to double the ferrochrome production if so decided. The reassessment of our investment decision depends on the economic outlook and market situation as well as on the energy question, as the production of ferrochrome consumes high amounts of electricity. To secure inexpensive and stable-priced electricity supply, Outokumpu has joined Fennovoima nuclear power plant project."
The seismic measurements were carried out in the area of Kemi mine from April to May in 2008. Outokumpu will not update its mineral resources based on these findings; the update will take place in the future as diamond drilling information increases.
Outokumpu notes that Kemi mine is the only chromium mine in the European Union area. The mine produces chromite concentrates to be used as raw material in Outokumpu's ferrochrome smelter in Tornio. The current annual production of Kemi mine is about 1.3 million tonnes of ore.
Outokumpu, a global leader in stainless steel, has customers in a wide range of industries. The company employs some 7500 people in more than 30 countries. The Group's head office is located in Espoo, Finland.