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Demand for iron is rising- copper and gold bring additional benefits

Setting up a mining operation is expensive, but the investment is worthwhile in the long run. Mining companies produce raw materials to meet the needs of society. The need and demand for raw materials have increased in recent years due to factors such as China’s economic growth.

The investments in the Hannukainen mine will be EUR 300 million, used for example build the concentration plant, water treatment and infrastructure, for example. The goal is to outsource the associated services to local companies.

A financial forecast suggests that turnover would be approximately EUR 282 million a year (62% Fe concentrate ton price 12/2021 is 103 USD/ton and CU 4,31 USD/lb).

Iron ore is quoted at 62% Fe CFR concentrate worldwide. The Hannukainen concentrate is richer, with a 70% Fe content. The price of the high grade concentrates is 10-15% higher.

Demand for high-quality concentrates tends to remain high even during recessions, which means steady demand for demand for the high grade Fe CFR concentrate.

”Copper’s share of total productionvalue is nearly one third.”


The price of 62% Fe iron concentrate is counted for 80 USD/t. On December 2021, it was quoted at 103 USD/t. The price has varied over the last five years between 65 and 220 USD/t.


The ore at Hannukainen also contains copper, and will yield around 20 000-60 000 tons/year of copper and gold concentrate. The current (December 2021) copper price is USD 4,31/pound.


Gold is quoted at 1.781 USD/ounce (12/2021). A gold content of 8 g/t in the concentrate, equals a yield of around 320 kg gold per year.

Iron, copper and gold

Hannukainen has an ore reserve of 115 million tons.

According to the environmental license application, the highest amount of annual mining is 6.5 million tons. According to maximum mining, there is ore for 17 years. Operations would continue for more than 20 years.

The planned annual production is approximately 2 million tons of iron oncentrate and around 20 000-60 000 tons of copper-gold concentrate. During the concentration process, pyrite concentrate containing sulphur is separated into a product of its own.