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Extremities

The Economy of the World's Northernmost town

Extremities

Wendover Productions

Society & Culture, Places & Travel

4.91.8K Ratings

🗓️ 24 October 2019

⏱️ 26 minutes

🧾️ Download transcript

Summary

The high arctic is not normally home to thriving economies but somehow, Longyearbyen's is.


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Transcript

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0:00.0

For over 100 years, Norwegian mined coal on Sfallbard. In fact, without coal mining, it's unlikely

0:10.0

that Sfallbard would exist in anything like its current form.

0:13.5

When you see Longyear Ben now, with its mall and restaurants and tourists, it's easy to

0:18.1

forget it spent most of its history as a company town built and run by the Norwegian mining company Stornorsk, which has long been

0:25.0

owned by the Norwegian government.

0:27.1

For over a century, Stor Norfolk operated two main mines, Sveagruva and Linchavel.

0:32.1

For over a century, men did back-breaking labor in those mines

0:36.0

twiling away to produce the coal that would in turn produce food to put on the table.

0:40.0

For over a century, those mines made little to no profit because, as I have said

0:45.3

probably a dozen times now on this podcast, mining on Svalbard has never been profitable.

0:51.7

In 2017, the government decided that they were done for never been needed mining in order to sustain itself and so they pulled funding.

1:04.2

It was a logical economic decision but also one that meant that dozens of Norwegian miners were

1:09.4

out of a job.

1:10.8

Nowadays there's only one place on the archipelago where you'll find Norwegian mining.

1:15.3

Mine number seven, and even though it's called Mine Number seven, in the 52 years since it opened,

1:20.0

mines one through six have closed, which means that Mine number 7 is the only one that's left.

1:25.5

Right now it has 40 miners and in a great year it'll produce 130,000 tons of coal.

1:31.3

Less than 10% of what a mine like Svea would regularly produce.

1:35.0

It sells most of its coal to the local power plant in Longerbin, as it makes more sense for the

1:39.1

Norwegians to produce coal themselves as opposed to getting it shipped to Swalbard, which is an expensive endeavor.

1:45.4

The excess, about 60,000 tons a year, goes to a German mining company called Claryant.

1:51.5

As a wrinkle to this whole story, as if to make the process of the mining layoffs even more painful, coal prices have been on a roller coaster in the past two or so years, giving Norwegian mining a real hope of recovery and then dashing those hopes as quickly as they'd arrived.

...

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