Sydvaranger has a long mining history. Mine inspector Tellef Dahll first discovered iron ore deposits in 1866, and in 1905 Christian A. Anker was granted a permit to mine in Sør-Varanger. German, Swedish and Norwegian private capital was invested in 1906, and the first load of iron ore was railed from the Bjørnevatn ore deposit to the town of Kirkenes in 1910. The towns of Kirkenes and Bjørnevatn both developed as a result of the mining operations.