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125-465: The line was built by the mining company Sydvaranger , who started construction in 1907 and inaugurated the railway in 1910. From 1912, the port network received electrification , as did the mainline in 1920. Originally, free passenger trains services were also offered. During the Second World War , the line was largely destroyed, but rebuilt afterwards and re-opened in 1952. Electric traction

250-549: A hydroelectric power station in Pasvikelva , but instead had to build a 9-megawatt (12,000 hp) thermal power station in Kirkenes. It was expanded to 16 megawatts (21,000 hp) in 1917. Construction of the port with the separation and briquetting plants, known as the export facilities, started in 1907. Several quays were built, including one for export of ore and one for import of coal. The first revenue train load

375-464: A 450-meter (1,480 ft) long cutting towards the lowest point of the line, at 50.4 meters (165 ft) AMSL. The railway then runs under European Road E6 and starts climbing at a 1.0-percent gradient until reaching 56.2 meters (184 ft) AMSL. From this point to Kirkenes it runs next to the E6, and passes by the lakes Tredjevatn , Stuorrajávn and Førstevatn . While the first part of this section

500-528: A DM 45 million loan from the European Coal and Steel Community . Natural gas was delivered from Norway via Norpipe . Construction started on 17 July 1978 and was taken into use in the second half of 1980. Rising natural gas prices and interest rates combined with sinking ore prices made the plant a financial disaster. The Norwegian government agreed in April 1981 to subsidize operations, which kept

625-570: A back-up, the company will retain the MaK G 1203. The old hopper cars were renovated and put into service, while the track received new concrete ties . The train runs up to 20 trips per day. On 18 November 2015 the mining company went into bankruptcy. In the Railway Plan of 1923 , Parliament decided to extend the Nordland Line from Fauske to Vadsø with a branch to Kirkenes. During

750-400: A combined 25 tonnes (25 long tons; 28 short tons) of ore. The original system was designed for an export capacity of 650,000 tonnes (640,000 long tons; 720,000 short tons), and in 1913, the company exported 427,000 tonnes (420,000 long tons; 471,000 short tons) and had 1,150 employees. The company initiated plans to start electrification of the mainline, but the plans were placed on hold during

875-428: A concession. In the case of a public service concession, a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out investment in a public utility (such as a water privatisation ) for a given number of years. Other forms of contracts between public and private entities, namely lease contract and management contract (in the water sector often called by

1000-649: A consequence of a legal change and stating it was a public company . The Council of State decided on 10 May 1996 that operations in Sydvaranger were to be terminated within the end of the year. To redevelop the facilities, Kirkenes Utviking was established, which was owned by the municipality, Finnmark County Municipality , the Industrial Development Corporation of Norway and the Industrial and Regional Development Fund . Most of

1125-500: A consortium consisting of Norddeutsche Bank , Disconto-Gesellschaft , Centralbanken for Norge and Stockholms Enskilda Bank . In addition the share capital was increased to NOK 10 million at the shareholders meeting in October 1907. A. Herden was hired by Metallurgiska to construct the separation plant and briquetting, which was dimensioned to for an annual export of 600,000 tonnes (590,000 long tons; 660,000 short tons). This

1250-954: A cross-border interest has been subject to the principles of the Treaty on the Functioning of the European Union . The European Commission had originally included public concession contracts in the Services Directive of 1992, but these were removed from its scope by the European Council. However, the European Parliament and the Council issued a further Directive 2014/23/EU on the award of concession contracts on 26 February 2014, which required EU member states to introduce national legislation covering

1375-424: A depot for the fireless locomotive. Tracks were laid through the open-pit mine, with the length varying. For instance, in 1910 there were 5 kilometers (3 mi) of tracks in the mine. Mining started on 7 July 1910, with the first ore train being run on 13 July. The first shipload left Kirkenes on 11 October, but SS Bengal sank with the first shipment. In 1911, the system exported 330,000 tonnes of ore. The railway

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1500-400: A holding company to own the mining company. Operations in the mine and on the line resumed in 2009, after the price of iron had risen dramatically since the closure of the mine. With the opening of the mine, production is estimated at 3 million tonnes of export per year. The Kirkenes–Bjørnevatn Line was the northernmost railway in the world until 2010, when Russia's Obskaya–Bovanenkovo Line

1625-466: A joint venture to establish a facility in Emden , Germany. They established Norddeutsche Ferrowerke (NFW) in 1976, which was owned 74.9 percent by Sydvaranger and 25.1 percent of Korf Stahl. Construction cost 400 million Deutsche Mark (NOK 1100 million) and had an annual production of 1.2 million tonnes. Financing was in part secured through state guarantees, loans from German banks and

1750-491: A new dock was opened for exporting the pellets. This allowed 75,000-tonne ships to dock. This caused Malmfart's ships to become too small and the shipping company sold the three vessels between 1970 and 1972. The company did not purchase any new ships, but remained a registered company until 1980. A new workshop at Bjørnevatn was completed in 1973 and the following year a new silo opened at Bjørnevatn, which also allowed for separating out ore with low iron content. Construction of

1875-400: A number of welfare investments in Kirkenes, such as a library and sports facilities. Lundh retired as chairman in 1927. To reduce the conflicts between the company and employees, Sydvaranger started using single-person contracts. These offered higher wages and more welfare advantages, such as paid sick leave , than the collective bargaining agreements, and were used by the company to reduce

2000-547: A power station in Kobbholmvassdraget. Completed in 1930, it gave an annual production of 7.2 gigawatt-hours . The power company changed its name to Sydvaranger Kraftaksjeselskap in 1934. The company was hit by the Great Depression as ore prices fell in 1930. Production was reduced by reducing the work to a four-day week, which continued for seven months. Although ore prices varied, the company had made

2125-423: A profit of NOK 24.7 million. By 1962 Malmfart had three vessels, of which two were ore-bulk-oil carrier , which allowed them to transport petroleum on the return voyage to Norway. Up to 1963 the mining had taken place at the Østmalmen field, but from then production shifted to Vestmalmen. The first IT system, a punch card machine delivered by IBM , was introduced in 1963. A new icebreaker, Varangis II ,

2250-576: A profit throughout the 1930s. Knudtzen retired as chief of operations in 1935 and was replaced by Hans Torgersrud. The following year Sydvaranger bought forty percent of the shipping company Malmfart, which signed a ten-year contract to ship ore. The company's first ship was the 1919 SS Varangmalm . Malmfart later bought SS Varangberg , and both ships were sunk in 1939. Work with establishing mining at Grunntjern and Søstervann started in 1937. From 1938 mining started at Kjellmannsåsen, where there sufficient concentration to allow it to be direct shipping ore. This

2375-441: A property by the government may be in return for services or for a particular use, a right to undertake and profit by a specified activity, a lease for a particular purpose. A concession may include the right to use some existing infrastructure required to carry out a business (such as a water supply system in a city); in some cases, such as mining , it may involve merely the transfer of exclusive or non-exclusive easements . In

2500-407: A purchaser of services within the company, and the other divisions were designated as selling divisions, such as maintenance and service. The production division was free to purchase internally or externally, and the selling divisions were free to sell their services outside the company. At the same time a forum was established with between 15 and 20 employees to create new companies which could utilize

2625-418: A railway would have to be built between the mine and the port. By 1905 then Anker had negotiated an investment agreement with Nils Persson of Sweden, who took over Anker's rights immediately after Anker had signed the contract. The company was established on 12 January 1906 with A. P. Pehrson appointed the company's first managing director. The share capital was set to 5 million Norwegian krone (NOK) and

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2750-400: A sale of their share of Pasvik Kraft, and originally planned to sell to Vattenfall and Østfold Energi , but this was stopped by Varanger Kraft. Instead, Varanger Kraft bought the state's ownership in Sydvaranger and other shares, and used their pre-emption right to secure a 100-percent ownership of the company. Sydvaranger was delisted from Oslo Stock Exchange on 12 September 2000. That year

2875-564: A second icebreaker, the 450-kilowatt (600 hp) SS Pasvik in 1908. Most of Sydvaranger's original workforce came from Troms and Nordland , most of which were construction workers. Finnmark was experiencing a decline in fishing and some of the workforce came from nearby. The first trade union , Nordens Klippe, was established on 8 September 1906. Gradually separate trade unions for each profession were established. The first strike took place in 1908, but did not last long. Nils Albin Hedman

3000-430: A second pellets facility started in 1972 and was opened on 4 September 1974. This allowed the company's entire production to switch to pellets. Because the two pellets plants used a combined 20,000 tonnes of bentonite each year, a new import dock was built. The pellets production required increased freshwater access. This was fetched from Førstevatn, and to fill that lake, water was pumped from Svartakslavannet. In 1975

3125-486: A silo for 430,000 tonnes of pellets. Trial production started in September 1969 and full-scale production started on 20 April 1970. By 1969 the company had 900 employees and the following year forty percent of the production was pellets. Managing director Kraft Joahnsen retired in 1970 and was replaced by operating director Hans Lund Andersen, who was replaced by Vidar Lindbo. Because the mining kept moving further into

3250-581: Is 206 kilometers (128 mi) long, is not electrified and is operated by the Russian Railways . As it is Russian gauge , the Kirkenes–Bjørnevatn Line would be presumably undergo gauge conversion or get dual gauge . A new railway would be able to transport 5 million tonnes of cargo per year. In 2003, the cost of the necessary 40 kilometers (25 mi) of new railway was estimated at 1.4 billion Norwegian krone (NOK), while

3375-481: Is flat, towards Kirkenes the landscape is more rolling. The line passes Kirkenes Station, which is 59.5 meters (195 ft) AMSL. The swing towards the station is as a curve radius of 275 meters (902 ft), while the remaining part of the line has a minimum radius of 300 meters (980 ft). The line terminates at the silo in Kirkenes after running over an elevated section , nicknamed the Air Bridge. Iron ore

3500-525: Is one of the biggest dedicated mining funds in the world. In 2019, the final mining permit was obtained from the Norwegian government, allowing for a planned restart of full-scale operations in 2020. Concession (contract) A concession or concession agreement is a grant of rights, land, property, or facility by a government, local authority, corporation, individual or other legal entity. Public services such as water supply may be operated as

3625-481: The First World War . Sales plummeted during the war. At first, the mining company stored the overproduction, but later production was reduced significantly. In 1918, the tracks at the mine were electrified at 750 volts direct current. Two 50-tonne (49-long-ton; 55-short-ton) Bo'Bo' locomotives were delivered by Siemens-Schuckert and Skabo Jernbanevognfabrikk in 1917. The following year, another Bo-locomotive

3750-471: The Ministry of Trade and Industry . Guttorm Brukeland was contracted as the main architect for the industrial facilities. From 1945, passenger trains ran between the two settlements, at first with steam locomotives. Reconstruction started with private dwellings and a workshop at Kirkenes, with 73 apartments completed by 1947. Sydvaranger considered changing its mining methods, but new technology resulted in

3875-519: The Murmansk–Nikel Line . About 40 kilometers (25 mi) of railway is missing to connect the two lines. The proposal calls to develop Kirkenes as a port for export of Russian products, as the Murmansk port is less suited and under-dimensioned. Major transshipment products include metals from MMC Norilsk Nickel , steel from Arkhangelsk and crude oil. The Murmansk–Nikel Line was built in 1936,

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4000-715: The Norway–Soviet Union border . Norway was permitted to build stations at Skoltefoss and Hestefoss, while the Soviet Union was allowed to build at Skoltefoss and Hestefoss, collectively known as the Paatsjoki River Hydroelectric Plants . The agreement insured that each country was permitted to use land in the other country to build the dams. Sydvaranger created the joint venture Sameied Skogfoss Kraftverk along with Varanger Kraftlag til build Skogfoss Power Station . Sydvaranger's half of

4125-539: The Valdres Line , was hired as divisional leader for the construction of the railway, the port and the residential areas. Construction of the railway was given high priority to as early as possible aid in transport of workers to the mining sites. Both stations were completed in 1908, the same year as the laying of tracks started. The line originally had a rail profile of 30 kilograms per meter (60 lb/yd). The first steam locomotive , built at Hamar Jernstøperi ,

4250-426: The gravel ballast was replaced with crushed stone . The distance of the line was after the upgrades 8,484 meters (5.272 mi). The upgrades allowed the maximum axle load to be increased to 22 tonnes (22 long tons; 24 short tons) and the train weight to increased to 1,800 tonnes (1,800 long tons; 2,000 short tons). A nominal train consisted of 20 hopper cars with air brakes . In 1960, work started on demolishing

4375-482: The occupation of Norway by Nazi Germany , mining continued under German administration until January 1942. Kirkenes and the areas along the railway and at the mine were being used to store material for Wehrmacht . To allow better capacity to ship out the materials, in 1942, a 2.5-kilometer (1.6 mi) branch line was built to Haganes . Known as the Port Line (Norwegian: Havnebanen , German : Hafenbahn ),

4500-512: The 1939, compared to the 18 percent estimated by the committee, which would mean that the plant would run with a profit. Parliament passed the financing on 8 October 1948. The mining company held an option to purchase a majority stake in Malmfrakt, which they executed to increase their ownership to 96 percent. The shipping company's head office was moved to Kirkenes in 1952. The icebreaker, owned by Dampskipselskapet Pasvik, had been sunk during

4625-476: The French term affermage ), are closely related but differ from a concession in the rights of the operator and its remuneration. A lease gives a company the right to operate and maintain a public utility, but investment remains the responsibility of the public. Under a management contract the operator will collect the revenue only on behalf of the government and will in turn be paid an agreed fee. A grant of land or

4750-669: The Second World War, the Wehrmacht revitalized the plans to build a railway to Kirkenes. No more than the unfinished Polar Line was built and there were never any railways built north of Narvik and the Ofoten Line . However, detailed plans were made for the line, including surveying geological conditions and choice of the route. Since 1992, there have been proposals to extend the Kirkenes–Bjørnevatn Line to either Nikel or Zapolyarny , Russia, where it would connect to

4875-544: The Tschudi Group. In 2016, a successful test production took place, proving the plant's operational readiness. As the main mining license was connected to the bankrupt company, an application for a new mining license was submitted in 2017. Significant geological and engineering work was completed in 2017. In 2018, Sydvaranger obtained financing for a restart from the American private equity fund Orion Mine Finance, which

5000-409: The authorities could at a later date require the company to operate public passenger services under specified conditions. In 1910, construction started of an electric power supply for tracks at the port. Originally it had 500 volts direct current , but this was later reduced to 400 volts. Because an overhead wire could interfere with the cranes, third-rail conduction was chosen. However, because of

5125-521: The briquette and separation plant. The expansion was completed in 1911. From 1911, the government required the company to establish a fund which would aid the workers should the company go bankrupt. This was introduced after several large industrial companies had collapsed in the past decade and large costs had befallen the state. Just as the first expansion was completed, Sydvaranger decided that it needed to further expand its export capacity to 650,000 tonnes (640,000 long tons; 720,000 short tons). Financing

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5250-410: The committees analysis of operations, but disagreed regarding the financing. Thus the state and the company started negotiations, including a proposal that the state buy all the private shares of the company. Thus the loans were increased with NOK 11.7 million, while the new share capital was halved. This gave the state a 62.4 percent ownership. By 1948 prices had increased with 100 percent over

5375-465: The company be liquidated , but reversed their opinion after discovering that the war insurance would only be paid if the facilities were reconstructed. This was later set to NOK 27.5 million. Reconstruction started in September 1945 after the Red Army had withdrawn from Sør-Varanger. The Directorate for Enemy Property took over ownership which was previously owned by German interests, giving

5500-409: The company continuing with open-pit excavation. Detailed plans for the facilities was issued to the ministry on 16 May 1947. The main change of operations was introduction of pelletizing . A public inquiry of the possibilities was carried out through 1947 and concluded that the company would need NOK 124 million in capital, including NOK 22 million to cover running costs. The company

5625-563: The company could not recover afterwards, resulting in it falling under bankruptcy protection between 1924 and 1927. During the 1930s the company also owned Rana Mine at Storforshei in Rana Municipality . During the German withdrawal in October 1944 Kirkenes was scorched , including most of the mining infrastructure. Reconstruction started in 1945, operation commenced in 1953 and the facilities were completed in 1960. At its peak,

5750-413: The company decided to build a pelleting plant in Kirkenes, with the first step being demolishing the old storehouses. The change came after a 45-percent drop in the price of slimes. Financing of the investment was made through issuing fifty percent more shares for a value of NOK 11.25 million. The equipment from the pelleting plant was delivered by Krupp and Allis-Chalmers and facility included

5875-449: The company filed for bankruptcy, but the company was allowed to continue with production using 200 staff. The company was refinanced and left bankruptcy protection on 17 August 1927. At the same time a new agreement with the state was signed, which insured that only Norwegian citizens were permitted to work for the company, and that the mining rights would escheat to the state after 99 years. The new shareholders issued NOK 700,000 for

6000-424: The company had 1,500 employees. Production was profitable from the reopening until 1976, but from then the company needed NOK 5 billion in state grants to keep running, before being shut down in 1996. After returning to operations between 2009 and 2015, it was expected that mining activities would resume in 2022, two years after the company and property were purchased by Tacora resources. On May 6, 2024, it

6125-582: The company had five employees and started work on transforming into an investment company with focus on eastern Finnmark. At the time of the closure of the mine, the Government of Norway owned 87% of the company. In December 1999 it sold its ownership to Varanger Kraft (who owned 63%) and the Sør-Varanger Municipality (37%). In 1999 Arctic Bulk Minerals bought the production equipment and wanted to attempt new mining activities in

6250-452: The company shifted its IT systems to a terminal which communicated with a data center in Oslo. The company had 1547 employees in 1975. Lindbo quit in 1976 and was replaced by Ingvald Ohm. He quit the following year and was replaced by Robert Hermansen . Construction of Melkefoss Power Station was started by Sameiet Skogfoss Kraftverk 1976 and completed two years later. Along with Statskog ,

6375-465: The cost of upgrading the existing Russian line was NOK 400 million. In 2007, Murmansk Oblast 's governor, Yury Yevdokimov , rejected the plans for a connection to Russia, stating that his opinion was supported by President Vladimir Putin . Because Kirkenes is a better suited port than Murmansk, local authorities in Murmansk do not want to lose transshipment business to Norway. However, with

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6500-605: The costs of the line were estimated at €1.1 to 1.6 billion. A significantly deviating alternative is to build westwards from Kolari to Skibotn (300 km). 69°42′54″N 30°01′55″E  /  69.715°N 30.032°E  / 69.715; 30.032 Sydvaranger Sydvaranger AS (previously A/S Sydvaranger ) is an iron ore mining company in Sør-Varanger Municipality , Norway . The mining operations have not restarted (as of Q2 2024). With an open-pit mine in Bjørnevatn , it has traditionally hauled

6625-468: The facilities and assets to the concessionaire. Those that were built, acquired and designated by the concessionaire may initially be owned and controlled by the concessionaire and these will be transferred to the authority once its concession duration is ended. Muhammad Ali of Egypt used contracts called concessions to build cheap infrastructure - dams and railroads - whereby foreign European companies would raise capital, build projects, and collect most of

6750-475: The facilities were quickly reopened. Two new Bo-locomotives, which could operate both on the mainline and at the port, were delivered in 1930. Built by Siemens-Schuckert, they were christened Lisa and Sonja . Two mainline Bo'Bo' locomotives were delivered by Siemens-Schuckert in 1935, which were named Oscar and Ivar . They were followed by the Bo Laila and Gerd two years later—which could operate both on

6875-402: The facilities. The assets and facilities that were built, designated, and acquired prior to the turnover of operations and maintenance from the authority to the concessionaire and are included on a plan of a project that was planned by an authority are predetermined as owned by the authority and to be operated and maintained by the concessionaire upon the turnover of operations and maintenance of

7000-403: The first part of the Kirkenes plant was closed, and the mining company drastically reduced production because its owner, the Ministry of Trade and Industry , would no longer subsidize operations. All mining ceased in the spring of 1996, and the last load of ore was hauled in April 1997. After operations closed, the oldest G12 was transferred to Sør-Varanger Museum . Arctic Bulk Minerals bought

7125-412: The following year the surplus of export products was down to the pre-war levels and the company had 896 employees. The company also started a policy to lend money to employees to allow them to build their own houses. Sydvaranger entered negotiations with their creditors on 5 August 1925. It was found that the company was well-run, but that the poor results were due to the market conditions. On 13 November

7250-409: The government and started negotiating an agreement to start operations. After several rounds of proposals he received permission and the contract was signed on 9 March 1905. Anker's principal assistant, Engineer Henrik Lund, arrived at Kirkenes in 1903 and started designing the plant. He was assisted by Hans Johan Bernhard Hansen from 1905. They decided that the port should be located at Kirkenes and that

7375-671: The increased realism of a line to Rovaniemi , which would serve as an alternative route to Kirkenes from Russia, Russian authorities have since 2010 again supported a railway line between Kirkenes and Russia. A prestudy also exists about the possibility to connect Kirkenes to the Finnish railway network , named the Arctic Railway . Possible routes include from either Rovaniemi, Kolari , Kemijärvi or multiple of these, via Sodankylä , Saariselkä and Ivalo , then either east or west of Lake Inari or via Nikel to Kirkenes. The length of

7500-541: The investment costs were NOK 44 million. Construction started in 1962 and was completed two years later. The power station had a power output of 240 gigawatt-hours per year, half of which was at the disposal of Sydvaranger. Sydvaranger was free to sell surplus power to the grid. At the same time the mining company sold its power grid in Kirkenes to Varanger Kraftlag. Since 1956 the company had been working on plans to switch to sub-surface shaft mining . By 1964 new technology meant that it would be possible to continue

7625-435: The line had passenger transport, it had two stations, Kirkenes Station and Bjørnevatn Station , which were located 7.5 kilometers (4.7 mi) from each other. A third station, Armeverplegungslager, was only used during the Second World War and immediately afterwards and was located 5.01 kilometers (3.11 mi) from Kirkenes Station. The railway is standard gauge , non-electrified and single track. Starting at Bjørnevatn,

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7750-511: The line was completed in 1943 and demolished after the war. Wehrmacht also established the "Armeeverpflegungslager" (army rations storage) Station, which was used during and for a short period after the war. From the spring of 1944, German authorities ordered that mining was to resume, and allocated two steam locomotives and thirty hopper cars to the line. A new depot was built for the German rolling stock. As part of Operation Nordlicht , Kirkenes

7875-581: The line would be between 480 and 550 kilometers (300 and 340 mi). The background is the boom of mining in Finnish Lapland and the need for access to a deep, ice-free port . Railway lines exist to the Baltic Sea , but the bay is both shallow and ice-covered during winter. The line would also allow for export of lumber and other products from Finland, while it would provide a route to export fish from Norway to Finland and Eastern Europe. In 2011,

8000-464: The mainline and at the port. During the late 1930s, the railway company started replacing the rails with heavier 35 kilograms per meter (70 lb/yd) rails, although this work was not completed. The final electric locomotive was a Siemens-Schukert-built Bo unit delivered for the port in 1940. In 1938, the last year before production was reduced because of the Second World War, the mine exported 900,000 tonnes (890,000 long tons; 990,000 short tons). After

8125-415: The majority shareholder was Metallurgiska. The first task was to mine a trial 100 tonnes (98 long tons; 110 short tons), which were shipped to Luleå for analysis. Inge Thoresen Wiull was hired as chief engineer in September 1906. He initially started working on housing in Kirkenes, which by 1908 had reached 31 houses for workers, each with four apartments, and six white-collar houses. From November 1906 Wiull

8250-578: The mine was performed using trackless machinery. Production resumed in 1953. Malmfrakt signed a cooperation with Fearnley og Eger's Befragtningsforretning regarding a joint venture , named IS Varangskip . This resulted in the 7,880 tonne MS Varangmalm being delivered in 1939 and followed up with the 5,500 tonne SS Varangberg . Two G12 diesel-electric locomotives were delivered by General Motors Electro-Motive Division in 1954 and 1956. In addition, new hopper wagons were built by Skabo. In 1956 Sydvaranger exported 1.1 million tonnes of ore which

8375-409: The mine was performed using trackless machinery. A new port facility was built in Kirkenes, with the line terminating at the Air Bridge, an elevated railway which led to the plant. Mining operations and revenue service on the railway did not start until 1952. The Directorate for Enemy Property took over the German portion of the ownership of Sydvaranger after the war. In 1948, ownership of the company

8500-438: The mine's production peaked with an export of 2.4 million tonnes and 1,000 employees. In 1984, to improve the workplace environment, a used Allmänna Svenska Elektriska Aktiebolaget (ASEA)-built T45 locomotive was bought from Sweden. However, it suffered several breakdowns and was retired in 1989. As a replacement, a new G 1203 BB was bought from Maschinenbau Kiel and was delivered to Kirkenes on 8 February 1991. In 1988,

8625-432: The mine, but the attempt failed and the assets were returned to Sydvaranger to pay for the debt. In 2006 the company was sold to Northern Iron Ltd, that reopened the mine in 2009. External investors invested 2,400 million Norwegian krone (NOK) for the costs of this. In 2015 the mining company went bankrupt as a result of low iron ore prices. In April 2016 the mine and its equipment was sold for 78 million krone to

8750-555: The mine, the crusher moved in 1971. There were many years of little precipitation in the Lake Inari area, causing reduced power production in the Pasvik River. The company therefore decided to reopen the thermal power plant and start importing electricity from the Soviet Union. The same year a 7,000 square meters (75,000 sq ft) roof was built over the pellets facilities, as snow had been hindering optimal operation, and

8875-413: The mine. Construction of a railway electrification system started in 1910; because an overhead wire could interfere with the cranes, third-rail conduction was chosen. The electric components were delivered by Siemens-Schukert and were taken into use in 1912. The company took delivery of two electric locomotives . Vulkan and four German construction companies issued tenders for construction of

9000-499: The mining rights, and operated a train once to twice a year to keep the track and rolling stock maintained. This company filed for bankruptcy in 2002. The mining company was then bought by the local power company Varanger Kraft and Sør-Varanger Municipality . In 2006, they sold the mining company to Tschudi Group for 102 million Norwegian krone (NOK). The Tschudi Group established Northern Iron, registered in Perth , Australia, as

9125-440: The mining sites. Both stations were completed in 1908, the same year as the laying of tracks started. The first steam locomotive , built at Hamar Jernstøperi , was delivered during the fall of 1908. For the tracks in the mine, a shunter was needed and the company bought a fireless locomotive . Tracks were laid through the open-pit mine, with the length varying. For instance, in 1910 there were 5 kilometers (3 mi) of tracks in

9250-529: The movable mining equipment was sold at an auction in August 1997. Between 1976 and 1996, the Government of Norway subsidized Sydvaranger with about NOK 5 billion, and owned 88 percent of the company at the time of the mines shutting down. From the closing to 1999, the company paid out more than NOK 100 million in dividend to the shareholders and was the company during that period to have

9375-451: The municipality and the power company, Sydvaranger established a workshop company at Pasvik . However, this increased transport costs and Sydvaranger would later walk away from the partnership. From the mid-1970s until 1970, Sydvaranger did not produce sufficient slimes themselves and had to import this. Falling ore prices caused the company's first post-war deficit in 1976, of NOK 214.7 million. In wait for better times, production

9500-490: The necessary quality for concrete in the immediate area, so an aerial tramway was constructed from Bjørnevatn to Sandneselva . Vulkan also built workshops and installed transformers. The company took delivery of a gyratory crusher in December 1909, which was also installed by Vulkan. The main axle broke during the trials, but it was repaired in time for the opening on 1 October 1910. Sydvaranger initially applied to build

9625-668: The operating revenue but would provide Ali's government with a portion of that revenue. Within the European Union , the granting of concessions by public bodies is subject to regulation. Works concessions have been subject to award rules for some time as Directive 2004/18/EC of the European Parliament and of the Council of the EU on public procurement applied to works concessions. The award of services concessions with

9750-504: The ore with the Kirkenes–Bjørnevatn Line to Kirkenes for processing and shipping. The ore was discovered in 1866, but it was not until the 1900s that new technology made it commercially viable. Sydvaranger was established in 1906 by Christian Anker and Nils Persson and had Sweden's Metallurgiska as the majority owner. Production started in 1910 and capacity was increased in 1913. Production halted during World War I and

9875-417: The plant going until July 1982, when it filed for bankruptcy. Sydvaranger had guaranteed for NOK 45 million of the loans; this and the bill for the natural gas was covered by the state. The head office was moved from Oslo to Kirkenes in 1982 and Ottar Brekke was hired as managing director from 18 February. He was replaced by Knut H. Hübert two years later. Faults with the exporting facilities caused

10000-510: The possibility of iron slimes spilling onto the tracks, the railway chose to use two conductor rails, one on each side of the track, and avoid the return current running through the tracks. The electric components were delivered by Siemens-Schuckert and were taken into use in 1912. The company took delivery of two electric locomotives , both with a Bo wheel arrangement , in 1910 and 1911. Sydvaranger operated one port train every 45 minutes, consisting of one locomotive and four hopper cars , with

10125-509: The private sector, the owner of a concession — the concessionaire — typically pays either a fixed sum or a percentage of revenue to the owner of the entity from which it operates. Examples of concessions within another business are concession stands within sporting venues and movie theaters and concessions in department stores operated by other retailers . Short term concessions may be granted as promotional space for periods as short as one day. Concession agreement may also state

10250-407: The railway line starts underground at a silo, 77.0 meters (252.6 ft) above mean sea level (AMSL). From Bjørnevatn, the line starts to fall with a 0.3-percent gradient. After passing the residential area, the gradient drops to 1.5 percent. On this section, the line passes through its only tunnel, which is 68 meters (223 ft) long. The line then runs along a flatter terrain, and crosses through

10375-416: The role of an authority and concessionaire and conditions regarding control and ownership of the assets and facilities such as concession can either allow the authority to retain or keep actual ownership of the assets, turning over to the concessionaire and reverting the control and ownership back to an authority once the duration of their concession ended or both the authority and concessionaire control and own

10500-510: The second-highest increase in share value increase on the Oslo Stock Exchange . Negotiations were started with Australian Bulk Minerals (ABM) for a leasing of the mine, the railway and other facilities. An agreement was signed in 1997, with the takeover date set to 31 December 1998. ABM had not secured financing by then, and new negotiations started in 1999, but the deal was laid dead in 2000. Sydvaranger also started negotiating

10625-459: The separation and briquette plants; as Vulkan offered the second-cheapest bid it was selected. Installations started in July 1909, but work progressed slowly, in part because of the slow progress of the foundation work. This was partially accelerated with workforce from Christiania (Oslo), but they were again hindered because local lumber could not be used for the scaffolding . There was not sand of

10750-465: The silos to fill in late 1982; by January 1983, 800 employees had been laid off. Work on removing gangue started at Bjørnefjell the following year, and mining of the ore there was completed within two years. In 1985 the majority of the board supported gangue removal at Østmalmen, but was met with a dissent of the minority. While the operations were necessary for long-term operations at the mine, it would require state subsidies. State Secretary Kjell Hansen

10875-429: The sole owner of Malmfart and issued new share capital of NOK 4.75 million to purchase a new, 7,200-tonne ship, co-owned with Fearnley og Eger's. Both Varangmalm and Varangberg were sold in 1960, after the former had run aground. Torgersrud retired as chief of operations in 1960 and was replaced by Hans Lund Andersen. In 1960 the company exported 904,000 tonnes worth NOK 60.8 million and generated

11000-417: The state a 43.6 percent ownership of Sydvaranger. By the end of 1945, 390 people were employed in the company. Payments from the war insurance were terminated in October 1946, after payments of NOK 4.3 million, as only companies entirely owned and managed by Norwegian citizens could receive compensation. As an interim solution, the financing was secured through a loan of NOK 10 million from

11125-493: The subsidiary Tårnelven Kraftselskap was given concession to build a power station in Tårnelven on 15 July 1919. This was based on moving the flow of Kobbholmvassdraget and Karpelven to Tårnelven to power a common station, but this proved impossible to accomplish. Instead the lakes of Viksjøen, Djupvann and Storvand were regulated and a common power station built at sea level. A 19.3-kilometer (12.0 mi) long transmission line

11250-608: The surface mining to lower levels, although trials with shaft mining received the go-ahead. A trial shaft was completed to −65 meters (−213 ft) by 1965 and to −242 meters (−794 ft) two years later. No sub-surface revenue mining has ever taken place. Eight new 65-tonne ore trucks from Haulpack were delivered in April 1965, along with two dragline excavators and five bores, costing a total of NOK 38 million. The company continued to purchase more and larger trucks, including eighteen 100-tonne trucks from Lectra Haul between 1968 and 1973, and nine 150-tonne trucks. In 1966

11375-499: The tracks at the port, followed by all tracks at the workshop at Kirkenes the following year. From then, all non-ore transport in the company was taken over using road transport. The three remaining electric shunters and the steam locomotive were scrapped. Two diesel shunters were sold to Norsk Jernverk in Mo i Rana . Up until this point, the railway had operated 33 steam locomotives, 14 electric locomotives and 4 diesel locomotives. In 1980,

11500-429: The trade unions' influence in an attempt to reduce strikes. However, the move resulted in trade unions striking between 12 May 1928 and 13 April 1929, without them succeeding in reducing the output. The conflict resulting in intra-worker conflicts between the strikers and non-unionized. In 1928 Sydvaranger exported 500,000 tonnes (490,000 long tons; 550,000 short tons) and Tårnelven Kraftaksjeselskap started construction of

11625-582: The war, so a new icebreaker was delivered in 1947, MS Varangis . All heavy transport during the reconstruction was done using railway, and tracks were laid throughout the mining facility. The contracts to build new facilities was awarded to Trondhjem Cementstøberi og Entreprenørforretning. Mining equipment was delivered in 1949 and procured through the Marshall Plan . By 1950 there were 700 employees, in addition to 150 construction workers working for subcontractors. From operations started, transport within

11750-432: The workforce. Only a single project materialized from this. The real estate division was sold to A/S Anlegg in 1994, and the following year the workshops were sold to Steinsvik Maskinindustri. The latter went bankrupt in 2004. By 1994 Sydvaranger had 140 employees, and by 1995 it had 25. Ragnar Østby was hired as new managing director from 1995. The company also changed its legal name from A/S Sydvaranger to Sydvaranger ASA,

11875-640: Was scorched , causing extensive damage to the mining company's infrastructure. During the reconstruction, Sydvaranger needed to transport large machinery to Bjørnevatn, so the loading gauge was increased to 6 meters (20 ft). All heavy transport during the reconstruction was done using railway, and tracks were laid throughout the mining facility. From 1945, passenger trains ran between the two settlements, at first with steam locomotives, and from 1950 with electric locomotives. New storage silos were built in Bjørnevatn, but from operations started, transport within

12000-494: Was scorched , causing extensive damage to the mining company's infrastructure. Most of the facilities were bombed, and what was not bombed was burnt or blasted. A notable exception was the two power stations, which the Germans did not have time to scorch. Sydvaranger was hindered from starting its reconstruction until the damages had been priced, which was completed in September 1945. Sydvaranger's board initially recommended that

12125-461: Was a recruitment stop. From 1981 the company received a NOK 50-million subsidy over the state budget, which increased to the double from the next year. In the mid-1970s, Sydvaranger started planning using natural gas to produce pellets through direct reduction . Originally Karmøy was envisioned as a proper site, but it was eventually decided that there would not be built a pipeline there. Korf Stahl took contact with Sydvaranger and proposed

12250-402: Was abandoned in 1955 when two EMD G12 diesel locomotives were bought. The line closed in 1997, but was reopened in 2009, following a change in ownership of the mine. There are proposals to connect the line to either one or both of the Finnish and Russian railway networks. The Kirkenes–Bjørnevatn Line is 8,484 meters (27,835 ft) long and runs from Bjørnevatn Mine to Kirkenes Port. While

12375-475: Was able to return to Kirkenes. Wiull was hired as director of operations in 1910, and the following year Fr. H. Behrens was appointed managing director. Good market conditions resulted in the company deciding in 1911 to increase the facilities capacity to 500,000 tonnes (490,000 long tons; 550,000 short tons) per year, costing NOK 3 million. This involved installing a new crusher, ordering two new locomotives and three new steam shovels and an expansion of

12500-415: Was also responsible for constructing the railway and the port, based on his experience from managing the construction of the Valdres Line . Investments were in 1907 estimated to NOK 12 million, of which NOK 4.3 was for transport investments, NOK 4.5 million for the separation and briquetting plants, and NOK 1.5 million for investments in the mine. Capital was borrowed from

12625-419: Was also used for transporting workers, with trains running from the towns to the plants in the morning and returning after the working day was over. Prior to private cars becoming common, the railway operated a passenger carriage on the trains between Kirkenes and Bjørnevatn—allowing free travel. The railway has never had any scheduled or public transport of passengers, but the company's concession specifies that

12750-491: Was announced that Grangex had completed the acquisition of Sydvaranger Mining AS. The iron ore at Bjørnevatn was originally discovered by assistant director of the Geological Survey of Norway , Tellef Dahll , in 1868. It was at the time not commercially viable to mine. With the development of magnetic separation , merchant Christian Anker from Halden started acquiring deeds for the area. In 1903 he contacted

12875-474: Was built for the port. Power was secured with the construction of Jarfjord Power Station . However, lack of materials after the war delayed the electrification of the mainline railway until 1920. Also the port received overhead wires, as the third rail caused problems for snow removal. The new electric system was taken into use on 23 December 1920. In the 1920s, the economy fell into a low conjuncture , forcing Sydvaranger to file for bankruptcy in 1925. However,

13000-429: Was built to Bjørnevatn. This allowed the mainline railway between Kirkenes and Bjørnevatn to be electrified in 1920. By 1919 the company was still not back in production. SS Sydvaranger and several locomotives were sold to raise capital, and the share capital was depreciated by fifty percent to NOK 11.5 million, new shares were sold for this amount and bonds were issued for NOK 10 million. This

13125-437: Was closed in 1986. There were proposals to start a coke plant, but these were abandoned and the plant demolished in 1988. Between 1986 and 1990, Sydvaranger halved its output of ore and reduced its workforce from 900 to 600. To help create new jobs, Sydvaranger joined with Valmet to create Kirkenes Mekaniske Verksted. The new company was largely established with state grants and the entirety of Sydvaranger's electrical division

13250-504: Was continued and the pellets stored for later export. The company invested in a HP 3000 minicomputer in 1977 and the following year transferred its public utility services to the municipality. The company transferred its residential real estate to a housing cooperative . A mining strike in Canada caused increased demand and part of the surplus was sold in 1978. Lay-offs were avoided, but some employees took out early retirement and there

13375-414: Was delayed several times, including changing the technology and replacing the new oven which cracked. It was completed by 1994 and cost NOK 43.6 million. The company also started pigment production from October 1995. Sydvaranger was restructured in 1992, with the company focusing on four production divisions: ore production, Sydvaranger Service, trade with Russia, and shipping. They were act as

13500-415: Was delivered during the fall of 1908. For the tracks in the mine, a shunter was needed and the company bought a fireless locomotive . At the time of the opening, the line was 7.5 kilometers (4.7 mi) long, in addition to tracks at both Kirkenes and Bjørnevatn. Both stations received a turntable , while Kirkenes also received water tower , motive power depot and a workshop. Bjørnevatn Station received

13625-486: Was delivered the following year, replacing the old icebreaker. The separate company for operating the icebreakers as liquidated in 1964. The docks were expanded several times, allowing 17,000-tonne ships from 1959, 27,000-tonne ships from 1963 and 37,000-tonne ships from 1966. Norway and the Soviet Union came to an agreement in 1957 regarding building hydroelectric power stations along Pasvikelva , which ran along

13750-572: Was difficult to sell ore, the workforce was instead put to preparatory work, such as preparing new areas for mining, emptying one pit of water and lowering the water level in Bjørnevatnet by three meters (10 ft). In addition the company built up a surplus of ore. Henrik Lund took a study trip to the United States in 1916, where he visited more than twenty cities and brought a series of innovations with him back. Wiull quit in 1917 and

13875-421: Was discovered at Bjørnevatn in 1866. The ore was of poor quality, but lay close to the surface—allowing for open-pit mining , had large deposits and was located close to a port. The mining company Sydvaranger was established by German and Swedish investors in 1906. A separation plant was built in Kirkenes and the company decided to transport all ore from the mine to the port by rail. Inge T. Wiull, former manager of

14000-402: Was exported to eight countries, including two Norwegian companies. This gave a revenue of NOK 90.3 million. A new loading facility opened at Bjørnevatn in 1957. To access new areas of the mine, a 2,685 meters (8,809 ft) tunnel was built from the deepest point of Bjørnevatnet, allowing it to be drained. Construction took four years and was completed in 1957. By 1960 Sydvaranger was

14125-400: Was later reduced to an export capacity of 330,000 tonnes (320,000 long tons; 360,000 short tons). Pehrson resigned from 1 July 1908 and was replaced by Carl Lundh. To ensure all-year access to the port, the company ordered the 250-kilowatt (350 hp) icebreaker SS Sydvaranger , which was delivered in 1907 and operated by the subsidiary Dampskib Aktieselskabet Pasvik. The subsidiary ordered

14250-406: Was not sufficient to save the company's finances, and after negotiations with the creditors, Sydvaranger amortized its shares to NOK 3.45 million and sold new shares worth NOK 21.55 million. The company introduced a new production method using sintering , but returned to briquettes from 1926. The company was struck by a major strike in 1921, which stopped part of the production. By

14375-466: Was only able to raise NOK 34.5 million, including the war insurance. The committee proposed that the investments be financed through the state buying new shares for NOK 10 million and issuing NOK 80 million in loans. Their calculations showed an annual deficit of NOK 3.6 million, but the committee regarded it of vital importance for the local community that production be taken up. Sydvaranger's management agreed with

14500-438: Was opened. To haul the trains, the mining company took delivery of a Vossloh G1000 BB . Built new in 2009, it was delivered to Kirkenes on 12 February 2010. The unit deviates from standard production by having its maximum speed reduced by software from 100 to 45 kilometers per hour (62 to 28 mph); it is further equipped with snowploughs , air supply to open the hopper car doors, radio remote control and janney couplers . As

14625-596: Was opposed to the proposal and on 30 April 1985 Parliament cut the subsidies, hindering additional gangue breaking. This caused Hübert to resign and he was replaced by Oddmund Husum. Parliament's decision caused a strike and all production was halted on 2 May. It was found illegal by the Industrial Disputes Court on 14 May, but continued until 5 June. A used T45 locomotive was delivered in 1984. Mining took place at Jerntoppen from 1986 to 1993 and at Østmalmen from 1989 to 1996. The older pellets plant

14750-457: Was replaced by Johan Knudtzen. In the aftermath of World War I , Norway was not permitted to export more than 133,624 tonnes (131,514 long tons; 147,295 short tons) of iron ore to Germany per year, of which Sydvaranger was issued a quota of 65,000. None of the Allies were interested in importing from Sydvaranger. The rise of coal prices caused the company to again look into hydroelectricity, and

14875-502: Was secured through issuing new shares worth NOK 3 million. Investments included a new steam shovel, three steam cranes, three locomotives, a new briquetting plant; the work was completed in 1913. In 1913 the company had 1,150 employees. With the break-out of World War I all of Sydvarangers sales and shipping contracts were annulled for the duration of the conflict. In July 1914 the company started securing sufficient spare parts and increasing its purchases of coal and food. As it

15000-480: Was taken out of use in 1955, but the overhead wires remained until 1963. Two G12 diesel-electric locomotives were delivered from General Motors Electro-Motive Division in 1954 and 1956. The Bo'Bo' units had a power output of 977 kilowatts (1,310 hp). In addition, new hopper cars were built by Skabo. To allow for larger trains, the permanent way was upgraded. The rail profiles were upgraded to 49 kilograms per meter (78 lb/yd), were continuously welded and

15125-538: Was the first person to be killed in a working accident. The closest hospital was in Vadsø , but this raised the need for a hospital in Kirkenes. As there already were three public hospitals in Finnmark, the company was required to build a private hospital for its workers—non-employees had to travel to Vadsø or Vardø . Construction of the railway was given high priority to as early as possible aid in transport of workers to

15250-595: Was the first time trucks were used for transport. The company exported 900,000 tonnes (890,000 long tons; 990,000 short tons) in 1938. From 1939 production was more difficult and was periodically stopped. However, an agreement was signed on 11 July 1939 to establish Harefossen Kraftselskap which would build a power station at Harefossen in Passvikelva. After the occupation of Norway by Nazi Germany , mining continued under German administration until January 1942. As part of Operation Nordlicht in October 1944, Kirkenes

15375-413: Was transferred to the state. The initial post-war plans were to use the existing rolling stock. The only remaining locomotive which could haul an ore train from the mine to the port was Oskar , which could haul up to 14 hopper cars and a train weight of 800 tonnes (790 long tons; 880 short tons). However, the locomotive proved unreliable, so Sydvaranger decided to order new locomotives. The electric traction

15500-564: Was transferred. Sydvaranger shifted part of its production to "Superslimes" with magnetite concentration of between 95 and 98 percent. Production reached 68,000 tonnes in 1990. Husaas retired in 1989 and was replaced by Øystein Berntsen. A new MaK G 1203 BB locomotive was delivered in 1990, as the T45 had proved no more reliable than the G12s. Construction of a ferrite plant started in 1991, but

15625-439: Was transported on 13 July 1910. The first shipload of ore was 2,000 tonnes (2,000 long tons; 2,200 short tons) sent in October 1910 with SS Bengal . The ship sank with no survivors. The cause was probably that the forty-year-old ship had insufficient bulkheads . The second ship, SS Svend , sank off Valdersund . The third vessel, SS Aguilla , was loaded with 3,100 tonnes (3,100 long tons; 3,400 short tons), suffered heeling , but

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