Dannemora Mineral AB : Dannemora iron ore mine - production and deliveries in 2012

Dannemora Mineral AB : Dannemora iron ore mine - production and deliveries in
                                     2012

         Dannemora iron ore mine - production and deliveries in 2012

Production results and deliveries in 2012

                                          Q1  Q2  Q3  Q4 2012
Produced crude ore, mine (kt)              60 113 274 492  939
ROM crude ore, sorting plant (kt)            130 307 451  887
ROM iron content, sorting plant (wt%)        30% 32% 34%  32%
Outcome of finished product (kt)              32  81 159  271
Finished product yield, plant (wt%)          25% 26% 35%  31%
Finished product shipped to customers (kt)    18  60 155  233

Products and customers in 2012

  oLump ore with 50 per cent iron content and sinter fines with 55 per cent
    iron content were produced and delivered during the year.
  oThe shipments were made to Salzgitter, ArcelorMittal, SSI via Stemcor,
    Thyssen and Rogesa. .

Outlook for 2013

  oMine production of crude ore will reach full capacity, and the iron
    content of the crude ore will be higher than in 2012. As the crude ore
    capacity is expected to exceed the sorting plant's capacity, the mine is
    not expected to have a restrictive effect on the production of finished
    products.
  oThe sorting plant's production capacity will increase as a result of
    continuing fine-tuning, an expansion to five shifts and measures to
    eliminate operational disruptions that have restricted capacity
    utilisation.
  oThe finished product yield in the sorting plant will increase due to the
    crude ore's higher iron content, continuing fine-tuning and improvements
    to equipment in the existing plant.

Significant potential for improvement at the sorting plant

  oOperational readiness at the sorting plant in Q4 was approx. 75 per cent.
    Operational disruptions caused by scrap metal in run of mine ore and a
    lack of spare parts had an adverse effect on operational readiness. An
    action programme aimed at gradual but significant improvements is in
    progress.
  oThe finished product yield in the sorting plant is still low. An action
    programme aimed at significantly increasing the yield is in progress. The
    action programme encompasses a small number of equipment investments that
    will provide improved separation of saleable products and waste materials
    and a more even flow of material through the crushers.
  oThe action programmes to increase operational readiness and finished
    product yield are largely planned to be implemented during the first half
    of 2013 and to gradually take effect during 2013. The investment cost for
    the action programmes is expected to amount to a maximum of SEK 30
    million.
  oTo reach full yield potential, an investigation is being made of the
    possibility of adding an extra processing step for the recovery of
    saleable product from the waste product that is now deposited. The waste
    product contains a substantial amount of iron. The investment cost of an
    extra processing step cannot be estimated in the current situation, as the
    investigation is still ongoing.
  oWith the planned adjustments to the existing process and an extra
    processing step, it should be possible to increase the yield of the
    finished product by between 55 per cent and 60 per cent. The sorting
    plant which was in operation until the mine's closure in 1992 was built in
    the 1960s and achieved a yield of about 58 per cent.


"After having been in my position for just a few weeks, I am positively
surprised by the fact that, despite the steel industry's situation in Europe,
there is good demand for our products," says Ralf Nordén, the newly appointed
President and CEO of Dannemora Mineral. "Internally, the focus is on the
sorting plant's productivity and the overall yield in order to meet demand for
ore. The action programmes that are in progress will gradually produce good
effects."

Read Press release below

Press release January 11 2013

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information contained therein.

Source: Dannemora Mineral AB via Thomson Reuters ONE
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