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Home* News and Stories → Nor­we­gi­an coal mining in Spits­ber­gen cur­r­ent­ly not pro­fi­ta­ble

Nor­we­gi­an coal mining in Spits­ber­gen cur­r­ent­ly not pro­fi­ta­ble

The Nor­we­gi­an mining com­pa­ny Store Nor­ske is cur­r­ent­ly not doing well. The com­pa­ny, which is by more than 99 % sta­te-owned, will again pre­sent a loss as this year’s result.

Mining in (or near) Lon­gye­ar­by­en is only on an almost sym­bo­lic level in mine 7 in Advent­da­len. Sveagru­va, or Svea Nord to be pre­cise, has given the com­pa­ny good years in the past, but it alrea­dy feels like a distant past loo­king at today’s figu­res. Svea Nord has its best days defi­ni­te­ly alrea­dy behind it. Pre­pa­red for mining is a new mine at Lunck­ef­jel­let, north of Sveagru­va, but the seams the­re are esti­ma­ted to last only for 4-5 years of mining and pro­fits are doubt­ful given cur­rent world mar­ket pri­ces. Fur­ther coal occur­ren­ces are explo­red, for examp­le at Bas­sen moun­tain nor­the­ast of Lon­gye­ar­by­en, but it is uncer­tain if a new mine is poli­ti­cal­ly via­ble.

In 2012, Store Nor­ske finis­hed with a minus of 234 Nor­we­gi­an Kro­ner (near 29 mil­li­on Euro), and 2013 will not be much bet­ter. It employs still about 300 peop­le. Ear­lier in 2013, 70 lost their jobs, not inclu­ding tho­se in sub­con­trac­ting com­pa­nies who depend on Store Nor­ske. This shows how important the com­pa­ny still is for Lon­gye­ar­by­en, whe­re a good 2000 peop­le are living.

Store Nor­ske is using both credits and capi­tal built up during bet­ter years to finan­ce invest­ments such as the Lunck­ef­jel­let mine. The par­lia­ment has made it clear that the com­pa­ny can not expect fur­ther public fun­ding. A while ago, Store Nor­ske has bought the majo­ri­ty of shares of the logistics sup­plier Pole Posi­ti­on. Pos­si­b­ly a hint towards a future bey­ond coal mining?

The mining in Svea Nord is on the decre­a­se. Lunck­ef­jel­let is rea­dy for mining a few miles fur­ther north.

Svea Nord

Source: NRK

By the way, my new book is in print and it can now be orde­red 🙂 it is a pho­to book with the tit­le “Nor­we­gens ark­ti­scher Nor­den (3): Die Bären­in­sel und Jan May­en”, with Ger­man text Click here for fur­ther details!



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last modification: 2014-07-01 · copyright: Rolf Stange