Pajala mine owner to file for bankruptcy

Northland Resources, which owns an iron ore mine outside of Pajala in northern Sweden, announced Monday that it will file for bankruptcy.

The company had been struggling for some time, and according to today's announcement, financing solutions have been unsuccessful.

"It is ... sad that the dramatic fall in iron ore prices this year made it impossible to raise the required financing," Olav Fjell, chairman of the Board, wrote.

News agency TT reports that since the company had been under reconstruction for some time, in principle, all the staff has already been sent home.

Other companies, including investors Peab, Folksam, LKAB and Finnish Metso will be affected by Northland's bankruptcy, reports TT.