Swedish iron ore producer LKAB has announced an increase in mineral resources during 2020 by 45 percent from 1.21 billion mt to 1.75 billion mt, after having dramatically ramped up exploration activities at all three of its mining locations since 2018.
“This should enable us to maintain production until at least 2060. Furthermore, the deposits are open at depth, meaning that their extent at depth is not known,” Pierre Heeroma, senior vice president exploration, said. He stated that a large increase in mineral resources is a prerequisite both for continuing to operate as a mining company and for the company’s major transition to carbon-free products. In Kiruna, work will continue both at depth and towards the areas referred to as the Per Geijer ore. In Svappavaara, both Gruvberget and Leveäniemi will be tested at depth, and in Malmberget it will be a matter of following the existing deposits at depth.
Over the past two years, the company has invested SEK 700 million ($84.86 million) in the search for new deposits and in ascertaining the extent of existing ones.
Moreover, LKAB aims to deliver sponge iron that is produced with hydrogen and thereby reduce global carbon emissions by 35 million mt per year. The company is setting a new world standard for carbon-free, digitalized and autonomous underground mining. The company’s target will require investments amounting to SEK 10–20 billion per year over a period of 15–20 years. This will create thousands of new jobs in the mining districts and Norrbotten over more than 20 years. LKAB’s total mineral reserves amount to 1.09 billion mt, including 737 million mt in Kiruna, 265 million mt in Malmberget and 91 million mt in Svappavaara.