Store Norske Spitsbergen Grubekompani will open a new coal mine at Mt. Lunckefjell, as part of the first phase of the development plan.
Lunckefjell located northeast of the Svea Nord contains 8.2 million tonnes of coal, the company said.
Under the terms of the contract, the company will build a 2.8km access road and will also construct, tunnels, water and sewerage systems, electricity supplies and pithead installations for buildings and other structures by 2012.
Store Norske Spitsbergen Grubekompani will begin preparatory work on the Lunckefjell mine on 1 September 2013.
