Kiruna mines investing billions
The mining company LKAB in Kiruna in northern Sweden invests 1,3 billion EUR in mine development. It is the biggest single investment in the company’s history.
The Kiruna iron ore runs deeper into the ground and the mining company LKAB has now decided to do the necessary investments to expolit the ore. This will cost 12,5 billion SEK (1,3 billion EUR). It is the largest single investment in the company’s history.
The mining company is also investing several billion EUR in the moving of the Kiruna city centre in order to exploit the iron ore located underneath the city streets. Over the last years, the iron price on the international market has been very high, thus boosting the profits of LKAB.
Without the favourable raw material prices the massive reconstruction of the Kiruna city would have been impossible. It now remains to see the possible local consquences of the world financial crisis and subsequent dramatic drop in iron prices.
