Nordic Iron Ore said on Wednesday its Blötberget iron ore project in Sweden’s Bergslagen region has seen its net present value increase to $325 million at an 8% discount rate, up from prior estimates, following a drilling program that expanded in-situ mineralization by 27 million tons.
The company published its pre-feasibility study as part of its Q2 2025 update, alongside an internal rate of return of 15.6% and a projected life-of-mine revenue of $5.4 billion. The base case iron ore price assumption was set at $124 per ton, with low and high scenarios of $104 and $144 per ton, respectively. Apatite by-product pricing was modeled at $200 per ton, contributing roughly 5% of total revenue.
Mineral resources at Blötberget and Väsmanfältet now total 104.5 million tons, with ore reserves increasing to nearly 56 million tons, compared with 34 million tons in the 2019 Golder study. In-situ mineralization rose to 149 million tons at a 25% cut-off grade, while the combined deposits hold an exploration target of up to 80 million additional tons in Väsmanfältet lenses 2 and 3. The project’s concentrate is expected to reach over 67.5% iron content, placing it among the top-tier global seaborne products.
Nordic Iron plans to produce nearly 46 million tons of concentrate over a 23-year mine life, starting in 2031 and running through 2052. Annual feed mill capacity is estimated at 4.8 million to 5 million tons. The company appointed DNB Carnegie as certified advisor in May and held its annual general meeting in June, where the board was re-elected and the 2025 annual report was approved.
A definitive feasibility study is targeted for completion in the second half of 2028, with project financing expected around the same period. Construction is slated to begin by late 2028 or early 2029, with first ore production anticipated in 2031. Ramp-up is planned for 2032–2033, leading to full production from 2033 onward.
Nordic Iron has secured an offtake agreement with Cargill covering the initial 25 million tons of ultra-high-grade concentrate, providing price certainty and supporting financing efforts. The agreement targets European and Middle Eastern/North African steel mills. Further metallurgical testing is required before fully integrating apatite by-product revenue, which currently contributes minimal value due to market conditions.
CEO Ronne Hamerslag highlighted the project’s strong economics, stating the NPV and IRR reflect "really strong values in the market as of today." He added that the company expects to extend production beyond 2052 as additional ore is likely to be discovered.
