page_title: Sydvaranger
section_title: Good times
hierarchical_section_title: Sydvaranger / History / Good times
caption_attribution_description: P9200112
context_page_description: Sydvaranger AS, previously A/S Sydvaranger, is an iron ore mining company operating in Sør-Varanger, Norway. Owned by the Tschudi Group, Sydvaranger owns an open-pit mine at Bjørnevatn and then hauls 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 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. 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, the company had 1,500 employees.
context_section_description: In 1960 the company exported 904,000 tonnes worth NOK 60.8 million and generated 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, 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 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 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 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 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 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 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 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 i
caption: The crusher at Bjørnevatn
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