Store Norske Spitsbergen Kullkompani AS has awarded a contract to Veidekke Entreprenør AS for developing the infrastructure of the Lunckefjell project on Svalbard. This will be a turnkey contract with a value of NOK 196 million, excluding VAT and options.

Store Norske Spitsbergen Grubekompani AS is planning to develop their coal mining operations in Svea on Svalbard island. The first phase of their development plans involves opening a new mine in Mt. Lunckefjell. This coal mine will be a natural continuation of present day mining operations in Svea Nord.

The contract work consists primarily of a 2.8 km road running across the Marthabreen glacier, filling materials for pithead installations, tunnel construction, water and sewerage systems, electricity supplies and pithead installations (buildings and other structures).

Lunckefjell is located to the north-east of Svea Nord and contains 8.2 millions of saleable coal.

Store Norske Spitsbergen Grubekompani are planning to commence preparatory development work on the Lunckefjell mine on 1 September 2013. This means that all the infrastructure installations included in the turnkey contract will primarily be built during 2012 and completed during summer of 2013.