Outokumpu Significantly Increases Chrome Ore Reserves at Kemi Mine

Outokumpu

Finnish ferrochrome producer Outokumpu has announced a substantial 95% increase in its estimated mineral reserves at the Kemi chrome ore mine. This significant expansion is attributed to recent successful underground drilling efforts.

Reserve Increase and Economic Impact

The proven mineral reserves at the Kemi mine have risen to approximately 62.5 million tonnes of chrome ore, a remarkable 30.4 million tonne increase from the previous estimate.  Outokumpu estimates that these reserves, if converted entirely into ferrochrome and sold at average prices from January to September 2024, could generate approximately $15.5 billion. This highlights the substantial economic value of the increased reserves.

Mine Expansion and Long-Term Outlook

Outokumpu's strategic expansion of the mine's depth from 500 meters to 1,000 meters between 2017 and 2023 has played a crucial role in boosting the reserve estimates.  This expansion has significantly extended the mine's operational lifespan, with current projections indicating the availability of chromium until the 2050s. 

This long-term outlook provides Outokumpu with a secure and stable supply of chrome ore, strengthening its position in the ferrochrome market.  The increased reserves not only benefit Outokumpu but also contribute to the stability of the global ferrochrome supply chain.