OSLO - The Norwegian mining subsidiary of Australia's Northern Iron will file for bankruptcy on Wednesday as its $100-million debt has become unsustainable, Northern Iron told a new conference on Wednesday.
Attempts to find new investors for the Sydvaranger Gruve AS mining firm, which has close to 400 employees, had also failed, it added.
The two largest creditors were top Norwegian bank DNB and government investment agency Innovation Norway, Northern iron said.
The Sydvaranger facility, located deep in the Arctic in Norway's northernmost county, started production of iron ore concentrate in 2009 following the re-opening of an old mine.
The owner, Northern Iron, on November 12 requested a trading halt for its shares pending the outcome of talks with banks over the Sydvaranger mine.