page_title: Sydvaranger
section_title: World War II and reconstruction
hierarchical_section_title: Sydvaranger / History / World War II and reconstruction
caption_attribution_description: English: Norwegian town of Kirkenes burning after withdrawal of German forces.
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: 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 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 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 Reconstruction started in September 1945 after the Red Army had withdrawn from Sør-Varanger.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 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 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 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 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 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 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 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 the mine was performed using trackless machinery. Production resumed in 1953.
  Malmfrakt signed a cooperation with Fe
caption: The burning of Kirkenes by the Wehrmacht in October 1944
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