Johny Lantto looks forward to opening the mine in Pajala again. The concession area is on his field and when the mining starts again, he receives a mineral replacement.
- Northland's bankruptcy came as a cold shower, but I always understood that someone else would someday take over the operation.
He received a half million Swedish crowns before the mine was closed. Today, operations start again in Kaunis Iron AB.
When Johny Lantto bought the marshland in Kaunisvaara village outside Pajala in 1994, he had no idea that a mine would be opened there 15 years later.
- There was no further forest, but the soil consisted mostly of ants, but for me, it was still a special feeling to own my own forest for the first time in my life.
Johny Lantto offered a bid of 82,600 and bought 170 hectares of the area. The main purpose of the purchase was to get hunting and fishing rights. Judge of his surprise when he was contacted 12 years later by the mining company Northland Resources who informed of their plans to break iron ore on the ground.
- I was positive right away. If Pajala has the opportunity to survive and develop, we need this kind of basic industry.
Mineral replacement for the ore
It turned out that 82 percent of the concession area was on Johny Lantto's land. This meant that he would receive the mineral replacement for all iron ore that was broken on his part of the field. 1.5 percent of the price would be paid to him on an annual basis.
When the mine was built in 2010 and 2011, the price of iron ore was record high and the future looked brilliant.
But Northland was there only for two years. Autumn 2014 came the bankruptcy.
500 worked in the mine
It was a decline for everyone in Pajala who had lived up thanks to the mine. After 50 years, it became the first time a positive population increase. Home users came back. Even people without connection to the place moved in. 500 people worked with the mine and house prices rose.
When the mine closed, unemployment increased, relocation began again, subcontractors and many small savers who had bought shares in Northland lost money.
Pajala municipality lost tax revenues and was subjected to economic concerns, schools and bathhouses had to be put down, which led to a split among municipal Socialdemocrats.
- I did not lose any money I had invested, but it was sad that the mineral scheme disappeared after two years. For 2014 I received about half a million kronor so it was a welcomed addition.
But Johny Lantto has never lost the hope that the mine will open again. The rescue came in the capacity of five billionaires and financial enthusiasts, Carl-Henric Svanberg, Mats Paulsson, Bruce Grant, Erik Selin and Bernt Nordberg.
In 2017 it became clear that they take over the mine and run it in the company Kaunis Iron AB. On recently, the exploration of iron ore will begin again.
"Safe and stable"
"I think it feels safe and stable with Swedish owners who are well established in Swedish business. That along with the mine bought for only 100 million of the bankruptcy estate, I think there are good chances that it will be profitable this time.
Source: ATL
