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LKAB receives environmental approval for mining operations and fossil free sponge iron investment

LKAB has been granted an environmental permit by the Land and Environment Court to continue and expand its operations in Malmberget. The decision is considered a critical turning point for the company’s 135 year mining history and its ongoing transformation strategy.

LKAB receives environmental approval for mining operations and fossil free sponge iron investment

The permit covers the continuation of existing mining and ore processing activities in Malmberget, along with capacity expansions and measures aimed at reducing environmental impacts on air and water.

It also approves the construction of a demonstration facility for fossil free sponge iron production, as well as a new apatite processing plant intended to supply raw materials to LKAB’s planned industrial park in Luleå.

The company aims to extract phosphorus used in mineral fertilizers from apatite concentrate, as well as rare earth elements that are critical for electric vehicles, wind turbines, and the defense industry.

Johan Menckel, President and CEO of LKAB, stated that the decision is of major importance for the company. He said: “we finally have a decision. now we need to review it and decide how to proceed. we are operating in a period with major challenges and uncertainties. creating better conditions to operate and develop our operations is extremely important. this decision is not only about growth and development opportunities, but also critical for maintaining our mining operations.”

Menckel emphasized that the permit is a prerequisite for securing operations over the coming decades. He noted that the company aims to gradually transform its pellet production into fossil free sponge iron and expand its activities in the field of critical minerals.

He also highlighted that mines and high quality ore resources are strategically important for a sustainable transition, stating that LKAB’s ore quality provides a key advantage in strengthening self sufficiency in critical raw materials for Sweden and Europe.

According to LKAB, mineral resources in Malmberget have increased significantly in recent years, with total reserves now exceeding 2 billion tons. This is higher than the total ore extracted since mining operations began in 1890. The site contains high quality iron ore suitable for direct reduction processes, along with significant amounts of phosphorus and rare earth elements.

Monika Sammelin, Regional Manager for Malmberget, stated that the decision will have both environmental and economic impacts. She said: “this decision contributes to reducing carbon emissions from iron and steel production while enabling concrete environmental improvements at the local level. an important step has been taken to secure continued mining operations and ensure a competitive business in Gällivare today and in the future. it was a comprehensive review process and we will evaluate the decision in detail, but we are very pleased to have reached this stage.”

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