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Norwegian industrial minerals group Sibelco Nordic (formerly North Cape Minerals) has restarted olivine production at its Raubergvik olivine mine, following a two-year closure imposed during the peak of the financial downturn.
The group's management cited increased sales for coarse olivine fractions as the deciding factor behind Raubergvik's restart, which will target an initial production of 400,000 tpa, after Sibelco Nordic secured "several" new customers.
The group has planned an eight-month campaign to bring back production at Raubergvik, and also intends to restart the Grubse olivine mine at its main site in Aheim - which has an overall capacity of about 1.9m. tonnes.
It is understood that Sibelco Nordic, the world's largest olivine producer, is sending the Raubergvik material to US customers, where there is a growing shortage of olivine. Much of the demand has come from foundries where olivine is used as moulding sand.
In a statement Birger Solberg, managing director of Sibelco Nordic, revealed that the group was targeting 5% of budgeted sales in 2012 to come from "new customers and markets".
One US trader told IM that the global supply situation had become increasingly tight, with Turkish olivine producers now sold out of olivine foundry grades.
"The economy in Turkey is booming. Our Turkish supplier...