Kids Christmas adventure film started shooting in Norway in January.

Norwegian director Arne Lindtner Næss’ $4.4 million (NOK 25.1 million) kidpic, Magic Silver 2 (Julenatt i Blåfjell 2) – Scandinavia’s first live action feature in 3D – is currently shooting in Oslo for Storm Rosenberg, as a Jørgen Storm Rosenberg and Lasse Greve Alsos production.

Filming of the Christmas adventure started last month, and after three weeks in the cobalt mines at Modum it has now moved to Oslo’s Norsk Folkemuseum – Norway’s largest museum of cultural history – before the elves return underground, to the Franzefoss mines at neighbouring Bærum.

The follow-up on Magic Silver I, which will be launched in Norway on Nov 18 by Sandrew Metronome Norge, is in the hands of a veteran director of children’s films – among Næss’ credits is the Junior Olsen Gang (Olsenbanden jr) franchise. For the 3D work, the producers have hooked up with the UK’s Vision3.

Magic Silver 2 is a great example of how 3D can work on lower budget productions – it demonstrates the amazing impact creative stereography techniques can have, whatever the budget,” said Matt Smith, of Vision3, whose credits include Pirates of the Caribbean: On Strange Tides and TT3D, both due out later this year.

Magic Silver 1 almost turned into local box office gold: the film directed by Roar Uthaug and Katarina Launing took  344,000 admissions domestically for Sandrew Metronome Norge, and besides Scandinavia, Sweden’s NonStop Sales licensed it to – among others – Germany, France, Spain, China and Latin America.

Originally an award-winning Christmas television series, produced and transmitted by Norwegian public broadcaster, NRK, in 1999 – and aired again in 2001, 2004, and 2008 – Magic Silver 1 was also staged at an Oslo  theatre. Screenplay writer Gudny Ingebjørg Hagen collaborated with Thomas Moldestad on the film versions.

Set in the Blue Mountain, the sequel finds young Queen Bluerose in difficulties living in the Blue Gnome community. However, learning that a dangerous glacier is threatening the valley, she sets out to find the Blue Horn, a magical instrument that can change the weather and probably save them all.