Outokumpu has updated its estimates on the mineral reserves and mineral resources of the Kemi chrome mine in Finland. The 95% increase in the mineral reserves is based on new underground drillings, proving that the ground at the mine area is rich in chrome ore, which extends the life of the Kemi mine substantially. The proved mineral reserves have significantly increased compared to earlier estimates and are now approximately 62.5 million tonnes instead of the earlier estimate of 32.1 million tonnes. If these mineral reserves were fully sold today as ferrochrome, the corresponding turnover would be approximately EUR 15bn with January-September 2024 average prices. In addition, the current mineral resources stand at approximately 64.9 million tonnes.
Mineral Reserves refer to the quantity of natural resources that are established using geological and engineering data gathered through diamond core drilling. Mineral Resources refer to resources that have been identified but have a lower level of geological and economic confidence, requiring further exploration and assessment to be upgraded to reserves. Classification is done in accordance with the PERC Reporting Standard.
Outokumpu has recently completed a significant expansion project at the mine. In 2017–2023, the company invested more than EUR 280M into deepening the underground mine from 500 meters to 1,000 meters, and into switching to a new, highly automated ore handling and hoisting system to enable cost-efficient mining. These steps secure the availability of chromium until the 2050s, and no further major investments are needed to benefit from the increase in mineral reserves.
