Veidekke's Swedish subsidiary Veidekke Entreprenad has in partnership with Swedish EuroMining signed a contract with LKAB on mining development in Gällivare in Northern Sweden. Veidekke's share of the contract is valued at SEK 150 million excluding VAT, with an option for a further SEK 100 million.
Veidekke and EuroMining will establish a joint company to develop the Vitåfors mine near the community of Malmberget. The contract from LKAB concerns developing and building tunnels for ore mining. 35 kilometres of tunnels will be built over three years, and work will start in the new year of 2014.
"This is a strategic effort for Veidekke and indicates our long-term ambition in the mining industry," says Per Brinck with Veidekke Entreprenad's construction operations.
The contract value is equal for both companies, which means the total value is SEK 300 million with an option for a further SEK 200 million (all figures are exclusive of VAT).
