Coal mining economy

The mining company Store Norske could, in 2009, for the second time conclude with a profit of about 400 million Norwegian crowns (ca 48.7 million Euro), mainly due to good coal prices before the break-out of the crisis and advantageous financial business (»kull-hedging«). The lookout seems less bright: Store Norske has to deal with falling world market prices, cancellation of orders, and deteriorating coal quality in the largest mine, »Svea Nord«, near Sveagruva, where 2 million tons were mined last year. The mine is expected to be closed in 2014; Store Norske has plans to open another mine in the area.

The future of mine 7, the only mine near Longyearbyen still in operation, is uncertain as it has been producing deficits for a number of years.

Source: Svalbardposten