Leonhard Nilsen & Sønner AS – the mining- and tunnelcontractor ...

Leonhard Nilsen & Sønner AS
– the mining- and tunnelcontractor from the arctic

1. About the company
Covering of PE-linings for fire protection in road tunnel.
The head office of Leonhard Nilsen & Sønner As (LNS) is
located in Vesterålen in North Norway, approximately 300 km
north of the Polar Circle. LNS was established in 1961 and
the group consists of a total of 11 companies. The company
has projects over the whole of Norway, Spitsbergen, Russia,
the Antarctic, and last year completed a larger project in
Iceland. In other words, the projects stretch from the North
Pole to the South Pole. Our speciality is to find solutions to
difficult projects at places with difficult logistics. Our largest
customers are the Public Roads Administration, counties,
municipalities, Defence, power companies and mining companies.
In 2007 our turnover was approximately NOK 1.1 billion
(USD 210 million) and employees number approximately 600.
Approximately 70 % of the turnover is from underground work.
LNS also owns mines. Our main products are:
• Tunnels, caverns
• Mining contracts
• Rock securing, injection
• Earth moving
• Concrete production
• Production of modules and elements in wood
LNS has an extensive and modern machine park and is on the
leading edge regarding development and utilisation of new
technology. Our employees and managers possess broad competence
and experience. The company’s managers are given a
lot of freedom and we cultivate an organisation with short decision
lines. Key personnel are co-owners of the company. The
company practises a bonus arrangement where 10 % of the
company’s profits are distributed among the employees. This
means that great enthusiasm is a part of our company culture.
LNS has participated in several of the larger communications
projects in Norway and has constructed several of the
longest road tunnels. The company also has contracts for
water power development. The company is known to be a
problem-solver and an unconventional co-operation partner.
This has meant that the company is greatly sought after as
a co-operation partner by the largest mining companies in
Scandinavia. We have, and have had, several large mining
contracts with mining companies such as Store Norske Grubekompani,
LKAB, Elkem, Outokumpu, Fransefoss, North Cape
Minerals, Skaland Graphite, Nikkel og Olivin and Rana Gruber.
Since 1981 LNS has had a continuous co-operation with LKAB.
For the past 6 – 7 years LNS has had pre-tax profits
of approximately 10 – 12 % of the turnover. The financial
situation is very strong and equity-to-assets ratio is approximately
40 %. This gives the company great financial freedom
of action.

2. Core areas of the company
2.1 Tunnel
Leonhard Nilsen & Sønner As are among the foremost in
Norway concerning underground work and has also built
several of Scandinavia’s largest tunnels in Norway. Tunnels in
communications mainly include tunnels for roads.
Assignments within these areas are often interdisciplinary
and the company’s specialists within plan engineering, engineering
geology and hydrology are used. LNS is in possession of
unique competence which is sought after internationally.
Leonhard Nilsen & sønner AS is the largest single player in
Norway that has blasted out the most rock during 2007. More
than 800 000 cubic metres of material have been planned
excavated by LNS during 2007 in various tunnel projects and
other underground projects.
2.2 Roads
The projects within this area are often large, interdisciplinary
projects which require that our personnel work in teams to
reach good overall solutions. LNS has been engaged in road
projects both by the state and municipalities in many municipalities
in Norway, but also in connection with large industrial
development projects. Abroad we have had projects in Iceland
and in the Antarctic.
2.3 Transport of material
LNS has performed and performs large jobs of transporting
material, i.e. from industrial areas, development of harbours,
road and airport construction, mining transport, etc. LNS has
performed large transports of ore LKAB-Narvik since 1981.
2.4 Mining operations
LNS has been an operations contractor for several mining
companies in Norway. Of those can be mentioned Elkem
(since 2001), Nikkel & Olivin (16 years), AS Sydvaranger (5
years), Store Norske Spitsbergen Grubekompani, North Cape
Minerals, Skaland Graphite and Bidjovagge Gruber.
LNS has long-term contracts with mining companies
because the company is regarded as being a very solutionorientated
and flexible co-operation partner.
900 000
800 000
700 000
600 000
500 000
400 000
300 000
200 000
100 000
-
Skanska
Veidekke
NCC
Mesta AS
Tunnelstatistic for Norway 2006-2007. Source: Norwegian tunnelling society.
AF
MIKA
LNS
2.5 Logistics
LNS has carried out projects at Svalbard for almost 10 years.
Parts of the island group can be isolated for up to 8 months
of the year and LNS has worked up a unique and sought after
competence in solving difficult projects at places where the
logistics are very complicated. This competence has been used
by the company for projects in Iceland and the Antarctic.
Logistic on Spitzbergen is a challange.
Efficient and low cost tunnel excavation.
Kruse Smith
Bleikvassli
Birkeland
Fjellservice
Albert Hære
2007
2006

3. Projects
3.1 Present projects
3.1.1 OPS E18 Kristiansand - Grimstad
Employer: Construction Joint Venture (CJV)
E18 Grimstad -Kristiansand, which
is owned by German Bilfinger
Berger and Danish Phil & Sønner
Type of project: Road/tunnel
Location: Kristiansand, Norway
Realisation period: November 2006- Autumn 2008
Form of contract: Unit price contract
Description of project: 38 km of a new 4-lane motorway shall
be built between Kristiansand and Grimstad with 75 km of side
roads. The project includes 7 two-tube tunnels with a tunnel
cross-section of approximately 70 m 2 and a total length of
approximately 12 km. In total, approx. 840.000 m 3 is to be
blasted from the tunnels. LNS has tunnel construction contracts
for driving and securing of all seven tunnels on the OPS
stretch. Contract amount is NOK 300 million.
The realisation time for the seven two-tube tunnels is set
at two years, and the work shall be completed in September
2008. The shortest tunnel is 150 metres, the longest 2.2
kilometres. Total length is 2 x 6 kilometres. It is ordinary conventional
operation. LNS started with Steinsås tunnel at Urdalen
in November 2006 and all the tunnels shall be completed
in September 2008. There shall be at least two tunnel rigs
working on the alignment and in 2008 there will be 3 tunnel
rigs working on the project. LNS has 110 personnel working
during the construction period.
3.1.2 Transfer tunnel, Boullanjåkka, Kvænangen Municipality
Employer: Kvænangen Kraftverk AS
Type of project: Water tunnel
Location: Kvænangsbotn, Norway
Realisation period: August 2007- Autumn 2009
Form of contract: Partnering contract
Description of project: The work includes extending the existing
tunnel for approximately 1000 metres from 4m 2 to 21
m 2 from Lassojavri to Abbujåkka. Thereafter 6000 metres of
tunnel will be driven with a cross-section 21 m 2 to Boullanjåkka
as well as building of 4 shafts and brook inlet. Revegetation
and cleaning up will be undertaken in the Autumn of 2009.
The extension will mean an increase of the energy production
at the power plants in Kvænangen of 25-28 GWh or about
10 %. The project has a total cost limit of approximately NOK
100 million.
3.1.3 SILA, Narvik new ore harbour
Employer: LKAB
Location: Narvik, Norway
Realisation period: 01.01.2006-01.01.2009
Form of contract: Partnering contract
Description of project: 13 mountain silos, diameter 38m,
depth approx. 60m. Tunnel systems approx. 2.5 km. A total
of approx. 850 000 m 3 will be blasted from the underground
drives as well as approx. 200 000 m 3 of uncompacted material
will be transported. Concrete constructions, concrete
silos, deliveries and assembly of mechanical devices, electrical
and control systems as well as installations for vacuuming,
cooling, water and sewage, ventilation and hydraulics. Iron ore
from the mines in Kiruna is transported by train to Narvik and
the iron ore is emptied directly from the railway wagons in to
the mountain silos. In loading of ships the iron ore from the silos
goes on to a conveyor belt and directly on board the ships.
Loading of ships in Narvik new ore harbour will be very efficient
with an extremely low cost per tonne. Each year, 25 million
tonnes of iron ore are shipped out of Narvik. The project has a
cost limit of approximately NOK 1.3 billion.
3.1.4 Mining operations, Tana
Employer: Elkem Tana A/S
Type of project: Mining operations, quarrying
Location: Auster-Tana
Realisation period: 01.04.2001-present
Form of contract: Mining construction contract - unit
price contract
Description of project: Drilling, blasting and transport of 1.2
million tonnes quartzite per year from the quarry. The quarry is
located approx. 350 metres above sea level and the quartzite
is transported to the crusher at the quay installation. The
transport road has a gradient of between 1:10 and 1:6. This
makes large demands as regards personnel and equipment.
Two tube tunnels on the OPS E-18 in Kristiansand, Norway. From the Narvik New Harbour SILA, Norway.

Svalbard Global Seed Vault.
3.1.5 Ore handling, Narvik
Employer: LKAB
Type of project: Ore handling and cleaning of the
transport system
Location: Narvik Harbour
Realisation period: 1981 – 2009
Form of contract: Principal construction contract
Description of project: Handling of ore and construction work.
Loading of ships. Transporting approx. 15 – 20 million tonnes
of iron ore per year.
3.1.6 Mining operations, Svalbard
Employer: Store Norske Spitsbergen
Grubekompani A/S
Type of project: Logistics services and development
Location: Svea – Spitsbergen, Norway
Realisation period: 2000 - 2020
Description of project: Svea is located at approximately 78
degrees North (latitude) and is isolated due to ice conditions
for 7 – 8 months of the year. This requires extensive planning
work to get all the equipment and goods in place before it
freezes. The storage costs are considerable. Performs road
construction, construction of storage facilities, quay facilities,
overnighting, offices, infrastructure services in Svea, fire
and rescue services. Transport of approx. 4 million tonnes of
coal per year and equally as much loading of coal on to ships.
Transportation of approx. 2 million m 3 uncompacted material.
Complicated project located near the North Pole.
3.1.7 Svalbard Global Seed Vault
Employer: Statsbygg on behalf of the UN
Type of project: Tunnels and mountain halls
Location: Longyearbyen - Spitsbergen, Norway
Realisation period: April 2007 – February 2008
Description of project: Construction of the world’s largest
warehouse for storage of seed. The rock caverns are driven
into the permafrost so that the seed will have an even storage
temperature (-18 degrees Celsius.). This is the new strongroom
that will protect seed from useful plants from over the
whole world. It is because of the isolated location and the
permafrost that the seed store is located at Spitsbergen. The
location takes into consideration all the known scenarios for
elevation of the sea surface because of global climate changes,
plant diseases, nuclear war, infestation, and natural disasters
as, for example, meteorite collision. Complicated project with
difficult geology. Extensive international attention.
3.1.8 Antarctic
Employer: SvalSat/Kongsberg Satelite station
Type of project: Laying foundations – logistics
Location: Troll Station - Antarctic
Realisation period: 2004 - 2011
Description of project: LNS performs foundation and trenching
work, road building and construction of satellite antennas
in the vicinity of the Norwegian research station Troll. The
company also participates in maintenance of the airport as
well as transport of cargo from the ice edge and in to Troll.
The logistics for the project are very complicated and there
are strict environmental requirements for all parties.
3.1.9 Rana Gruber AS
Employer: Rana Gruber As
Project: Galleries
Location: Mo i Rana, Norway
Realisation period: November 2007 – November 2009
Description of project: Leonhard Nilsen & sønner AS have the
principal construction contract for construction of a new main
level for Rana Gruber AS iron ore mine in Ørtfjell in Rana. The
work includes opening of approximately 6000 metres of galleries
(approx. 177 000 m 3 rock) and rock caverns (approx. 18
000 m 3 ). Ore shall be tipped into crushers and waste rock shall
go to waste rock landfills. The galleries are under existing quarries
with extensive rock stresses requiring heavy rock support.
3.2 Reference lately projects
3.2.1 Svea tunnel, Svalbard
Employer: Store Norske Spitsbergen Kullkompani
Type of project: Tunnel
Location: Svea - Spitsbergen, Norway
Realisation period: October 2002 – February 2004
Form of contract: Total construction contract
Description of project: 6500 m of access tunnel to the mine
Svea Nord. In the tunnel shall be installed a conveyor belt
for transport of coal. Complicated project with a very short
construction period, complicated geology and difficult logistics.
Svea is isolated because of ice conditions for 7 – 8 months
of the year. Demands vast and extensive planning. A world
record was set with driving 150.1 m/week with extensive bolt
reinforcement and concrete spraying. Average driving was
105 m/week.
3.2.2 Underground mine - iron ore, Sydaranger
Employer: Sydvaranger
Type of project: Development of a new main level
Location: Kirkenes, Norway
Realisation period: 1992 - 1995
Form of contract: Mining construction contract – unit
price contract
Value NOK: 200 million
Description of project: Alteration of iron ore mine from
surface quarry to underground operations. Drifting of approx.
3500 m transport gallery with a cross-section of 105 m 2 .
Very extensive rock stresses with stability problems requiring
very heavy rock support. In addition approx. 3000 m drilling
and loading galleries were drifted with the tunnel cross-section
of 35 m 2 . Training of personnel from the mining company
Sydvaranger.
3.2.3 Mining operations, Ballangen
Employer: Nikkel og Olivin AS
Type of project: Underground operations, mine
Location: Ballangen, Norway
Reaslisation time: July 1989 – October 2002
Form of contract: Mining construction contract - unit
price contract
Value NOK: 70 million per year
From open pit mine to underground mine for Sydvaranger. LNS in the Antarctic.
Difficult rock condition on Iceland.
Description of project: 800 000 tonnes of nickel ore per year
400 000 tonnes of waste rock per year. The mine was among
the most efficient of its kind in the world calculated in tonnes
per employee.
3.2.4 Almannaskard tunnel, Iceland
Employer: Vegagerdin
Type of project: Road and tunnel
Location: Höfn, Iceland
Realisation period: March 2004 – June 2005
Form of contract: Joint Venture – unit price contract
Value ISK: 800 million
Description of project: Driving of approx. 1100 m tunnel with
a cross-section of 47 m 2 , construction of approx. 3.5 km road
and 165 m tunnel portals. Performance of the contract was as
a Joint Venture in co-operation with the Icelandic contractor
Heradsverk Ehf. The geological circumstances were complicated
with alternating basalt, scoria and tuff. This demanded
constant changes of rock support and extent. LNS set a new
Icelandic record under tunnel driving med 106 m/week.
3.2.5 Hem tunnel, E18, Tønsberg
Employer: Public Roads Administration
Type of project: Tunnel
Location: E18, Solerød
Construction year: 2004
Realisation period: Approx. Sept. 2006
Form of contract: Sub-contract
Value NOK: 95 million
Description of project: Two tunnels of 950 m. Tunnel crosssection
approx. 71 m 2 . Installation complete with water and
frost protection.
3.2.6 Korgentunnel
Employer: Public Roads Administration
Type of project: Tunnel and road construction
Location: Korgen, Norway
Form of contract: Principal construction contract
Value NOK: 193 million
Description of project: Construction of 5800 m of the 8600
m long Korgen tunnel. Tunnel cross-section approx. ca. 63 m 2 .
Road construction approx. 4 km. Installation complete with
water and frost protection.

Charging of next blasting in a silo, Narvik New Harbour – SILA, Norway.
3.2.7 Geitskar tunnel, Senja
Employer: Public Roads Administration
Type of project: Tunnel and road installation
Location: Berg, Norway
Realisation period: 2002 – 2003
Form of contract: Principal construction contract
Value NOK: 70 million
Description of project: Length of the whole installation: 4300
m (incl. road). Tunnel length 2150 m, tunnel cross-section 63
m 2 . Road width: 6.5 m – two-lane. Installation complete with
water and frost protection.
3.2.8 New Highway E6, Bardufoss, Norway
Employer: Public Roads Administration
Type of project: Construction of E6
Location: Andselv, Norway
Form of contract: Principal construction contract
Value NOK: 90 million
Description of project: Construction of 4100 m E6 and 200
m side roads. Construction of 7 bridges.
3.2.9 Steigen tunnel
Employer: Public Roads Administration
Type of project: Tunnel and road installation
Location: Steigen, Norway
Construction year: 1987 - 90
Realisation period: 3 years
Form of contract: Principal construction contract
Value NOK: 85 million
Description of project: 8060 m tunnel 50 m 2 as well as construction
of 10 000 m of road. At one time the tunnel was the
longest in Northern Europe.
3.2.10 Stangnes south, oil and industrial base
Employer: Harstad Municipality
Type of project: Oil and industrial base
Location: Harstad, Norway
Construction year: 1983
Construction time: 3 years
Form of contract: Principal construction contract
Value NOK: 90 million
Description of project: Mass haulage rock 1 500 000 m 3 .
Mass haulage earth 400 000 m 3 . Ocean dredging 150 000
m 3 . Rock crushing 110 000 m 3 . Construction of roads, water
and sewage pipes.
3.2.11 Mining operations, Bidjovagge, Finnmark
Employer: Outokompo, Finland
Type of project: Mining operations
Location: Bidjovagge, Norway
Description of project: Excavation of 860 000 tonnes of ore
and 400 000 m 3 waste rock per year.
4. Equipment
LNS has a very modern and efficient machinery equipment.
55 Wheel loaders. 5 – 60 ton. 2001 – 2008
9 Jumbos. 2002 – 2008.
45 Excavator. 5 – 100 ton. 2000 – 2008.
8 Bulldozer. 15 – 106 ton. 2000 - 2006.
6 Sprayed concrete rig. 2001 - 2007
From the coal mine on Spitzbergen.
2 Grouting rig. 2007
12 Surface drill rig. 2002 – 2007
51 Articulated haulers. 25 – 70 ton. 2002 – 2007.
7 Graders. 1999 – 2008.
64 Trucks. 1999 – 2008.
Computer operatet Jumbo.

Alaska
U.S.A.
Arctic Circle
Contact info
Company: Leonhard Nilsen & Sønner As
Address: N-8484 Risøyhamn
Norway
Telephone: (+47) 76115700
Facsimile: (+47) 76115701
Email: firmapost@lns.no
Web: http://www.lns.no
Registration number: NO 937 843 771
North Pole
Arctic Ocean
Canada
80° N
Arctic Circle
Svalbard
Greenland
70° N
Finland
Sweden
Iceland
60° N
Norway
50° N
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