Commodities

Norway to Close Its Last Arctic Coal Mine in 2023, Reports Reuters

OSLO (Reuters) – Norway’s state-owned coal company announced on Thursday that it will close its last mine in the Arctic Svalbard archipelago in 2023, resulting in the loss of 80 jobs and marking the end of 120 years of coal extraction.

Store Norske Spitsbergen Kullkompani (SNSK) has already shut down its major mines in the region over the past two decades, but it had continued operations at the smaller Mine 7 to provide coal for a local power plant and for some exports.

The Arctic islands are experiencing rapid warming, which poses significant risks to their delicate ecosystems due to climate change. While Norway has committed to reducing its overall emissions, it continues to be a significant producer of oil and gas.

In 2023, Svalbard’s main settlement will temporarily shift to diesel for its energy needs before establishing a permanent renewable energy supply, thereby eliminating the requirement for local coal, according to SNSK.

“As the contract to supply the power plant has been terminated, there will no longer be a basis for operating the mine,” stated Chief Executive Morten Dyrstad.

In the interim, Mine 7 plans to increase production to 125,000 tonnes per year from its current 90,000 tonnes, capitalizing on high global prices to enhance exports for the remaining two years.

However, this output is minimal compared to SNSK’s historical production of several million tonnes annually; the local economy has become increasingly focused on tourism and scientific research.

Svalbard, located around 700 kilometers (435 miles) north of the European mainland, is governed by a treaty from 1920, which grants Norway sovereignty while allowing all signatory nations to engage in business and exploit the archipelago’s natural resources. Meanwhile, Russia continues to operate a coal mine at its Barentsburg settlement, which supplies another local power plant.

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