Outokumpu reports a 95 percent increase in mineral reserves. The adjusted estimates are based on the latest underground drilling and serve as evidence that the mineral resources in the area of the Kemi mine contain far more chrome ore than previously assumed. This significantly extends the life of the mine.
The proven mineral reserves in the Kemi mine have increased significantly compared to previous estimates and now amount to around 62.5 million tons instead of the previously estimated 32.1 million tons. If these reserves were sold in full today in the form of ferrochrome, approximately EUR 15 billion in revenue could be generated, assuming average prices from January to September 2024. In addition, the current mineral resources amount to approximately 64.9 million tons.
The mine
Outokumpu has recently completed a significant expansion project at its Kemi mine. In 2017-2023, the company had invested more than 280 million euros to expand the underground mine from 500 meters to 1,000 meters deep and to convert the ore mining to a new, highly automated conveyor technology for more cost-efficient extraction. These measures will secure the availability of chrome until the 2050s and the larger raw material deposits can be exploited without the need for additional major investments.
“Outokumpu’s Kemi mine is the only chrome mine in the EU area – an excellent geopolitical location with good logistical connections, access to renewable energy and a solid production environment. I am also proud of our progress to make the Kemi site the world’s first CO2-neutral mine by 2025. Sustainability is one of our priorities at Outokumpu, and the carbon footprint of our ferrochrome is 67 percent lower than the industry average. This ensures a green premium for our product,” explains Kati ter Horst, President and CEO of Outokumpu.
Chrome ore is further processed into ferrochrome, a crucial raw material for stainless steel production. Outokumpu’s own chrome mine and ferrochrome production therefore represent a strategic advantage and an important cornerstone of the company’s integrated value chain.
