Historic losses for LKAB
The Swedish state-owned mining company LKAB in the second quarter of 2009 had a loss of 558 million SEK (54.7 mill EUR). That is one of the worst results ever for the mining major in northern Sweden.
-The second quarter of the year has been one of the most dramatic in the history of the plant, the company admits in its quarterly report.
LKAB in the second quarter had a 72 percent drop in turnover to 1.72 billion SEK and deliveries shrunk 38 percent. At the same time, iron prices dropped significantly in the period.
The reason is first of all the lower domestic and international demand on iron. The company does however expect an improvement of the situation in the second half of the year. Thanks to Chinese and Middle East customers, the number of deliveries will increase in the months ahead, the company report reads.
The LKAB is mining iron ore in mines at Kiruna and at Malmberget in northern Sweden. The company which was established in 1890, is 100 percent state-owned since the 1950s. The iron ore is processed to pellets and fines, and transported by train to the harbours at Narvik and Luleå and to the steelmill at Luleå (SSAB).
