In late August, LKAB announced that an additional 850 single-family homes and 20 businesses will need to relocate due to the mining. Nearly 7,000 people are affected.
Previously, the mining had already led to almost as many having to move. In total, two-thirds of Kiruna's population will be affected.
The state needs to support
The news landed as a shock in Kiruna. The biggest challenge is the land issue, since the municipality only owns 1.45 per thousand of the land, while the rest is owned by the state. Additionally, several national interests, including the reindeer industry, will have to coexist on the available land.
Here, the state needs to prioritize, according to Mats Taaveniku.
We will need at least as much land now as in the previous urban transformation, he says.
The state also needs to facilitate the construction of new housing. The construction cost per square meter is between 50 and 70 percent higher in Kiruna compared to the rest of the country, according to Taaveniku.
He also highlights a proposal that municipalities should be able to share in the profits from natural resources extracted within their areas.
The municipality takes all the risk while the state takes all the revenue, from the mining industry in this case, he says.
"Personal dialogue"
LKAB's community development director Stefan Hämäläinen says that the state is crucial in the process.
He addressed the people of Kiruna directly during the press conference and emphasized the importance of cooperation.
Everyone will have a personal dialogue with LKAB, he says.
The move must take place within ten years. He notes, however, that no one needs to move in the near future, and that the process depends on the availability of land for housing construction.
Corrected: In an earlier version, an incorrect figure was given for how many single-family homes are affected.
