According to the plan, Norway’s last coal mine will be closed in 2025. By then, Mine 7 at Longyearbyen in Svalbard will be virtually empty of viable coal deposits. But now the Progress Party is advocating for the continuation of coal mining also after 2025, as a result of the geopolitical changes in the wake of the war in Ukraine. – Opening a new coal mine on Svalbard should in any case be considered. It will be important for Norway’s presence and assertion of sovereignty, says Marius Arion Nilsen, the Norwegian Party’s parliamentary representative. Nilsen, who recently visited Mine 7 in Svalbard, is now taking up the matter with Minister of Industry Jan Christian Vestre (Ap). Mine 7 in Svalbard currently has 54 employees. Photo: LINE YLVISÅKER Historically high prices It was in 2014 that a new coal mine was last opened on Svalbard. The Lunckefjell mine near Svea had a price tag of NOK 1.2 billion, and was supposed to produce coal for 8–10 years. But after only 10 months of operation it was all over due to low coal prices. In 2017, the Storting decided to close mining operations in Svea and Lunckefjell permanently. However, the war in Ukraine has led to coal prices skyrocketing in the past year. In 2020, one tonne of coal cost just under 50 dollars. Two years later, the coal is sold for around USD 360 a tonne on the spot market, which is historically high. Mine 7 was actually supposed to be shut down in 2023, but earlier this autumn the board of Store Norske decided to extend operations until 2025 due to the increased profitability. – The war in Ukraine has led to steel production having a deficit of coal. In addition, the price of coal has skyrocketed. Therefore, we should take another round on this, says Nilsen. – Important for the green shift Last year, the local council in Longyearbyen decided that the energy transition in the city will be carried out as planned in 2023. This means a closure of the coal-fired power plant, which currently provides electricity and heat for the residents. Frps Marius Arion Nilsen emphasizes that he does not primarily advocate using coal from Svalbard for energy purposes. – But in the green shift, coal will be needed for a long time to come. And Norway can supply high-quality coal from Svalbard. If long-term agreements can also be signed, the calculation will be historically good, says Nilsen. The workshop hall in Mine 7 on Svalbard. The state-owned mining company Store Norske has at most had up to 600 employees in Svalbard. Photo: Rune Nordgård Andreassen / news At the same time, he points out that more and more countries are looking towards Svalbard and the Arctic. Earlier this autumn, for example, Turkey announced that it too will sign the Svalbard Treaty. Another point is that the proportion of foreign nationals in Svalbard is constantly increasing. – Therefore, a comprehensive, wholehearted Svalbard policy should be pursued that safeguards Norwegian and Western interests. In that case, coal mining can be one of the means, believes the Frp politician. Store Norske: – New mine out of the question If a new coal mine were to be opened near Longyearbyen, it would probably take place in the mountain Bassen, on the opposite side of the valley from today’s Mine 7. Coal deposits have been identified there, but no prospecting plans have been made , says Store Norske director Jan Morten Ertsaas. At the same time, he states that the proposal from the Progress Party for a Mine 8 in Svalbard is completely out of the question anyway. – There is no economic value in coal mining on Svalbard. We have too high salary and shipping costs. In addition, the market is far too uncertain. The majority of the world believes that coal should be phased out, and we think so too, says Ertsaas. – Which strategy should Norway choose? Local board leader in Longyearbyen Arild Olsen (Ap) believes the issue raised by the Progress Party is relevant. This spring, he himself brought up the topic of a possible extended operation of Mine 7 with the Ministry of Trade and Industry. – Given the geopolitical situation in Europe, coal from Longyearbyen can help solve an acute situation, since the flow of coal from Russia has stopped, says Olsen. But at the same time, he points out that more and more people in the smelting industry are using hydrogen instead of coal in production, in order to reduce their own carbon footprint. – The question is which strategy Norway should choose: do you want to support further consumption of coal. Or do you want to support a phasing out of coal also within the industry, says Olsen. Local board leader Arild Olsen (Ap) during the formal closure of the Svea Nord mine in 2020. Photo: Rune Nordgård Andreassen / news Vestre: – New mine out of the question Minister of Industry Jan Christian Vestre (Ap) earlier this year supported the decision to extend the life of Gruve 7 until 2025. But after that, there is a guaranteed end to Norwegian coal production, Vestre states. – The world is going through a significant energy transition. It will require investments in renewable energy and electrification, while the need for coal will be reduced considerably. Norway has been and will continue to be a driving force behind this conversion from fossil energy systems to renewable solutions, writes Vestre in its response to the Storting. Or as he said in Dagsnytt 18 in September: – Coal is something we should stop using as soon as possible.
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Norway should consider opening a new coal mine on Svalbard – news Troms and Finnmark
