Setback for LKAB – new facility in Luleå

Lower deliveries, weak production, and falling market prices are hitting the state-owned mining company LKAB hard, according to an interim report. But they are still investing heavily in a new center and a processing plant in Luleå.

» Published:

Setback for LKAB – new facility in Luleå
Photo: Pontus Lundahl/TT

Share this article

LKAB is investing 800 million in a research and development center and a facility for refining phosphorus and rare earth metals in Luleå.

"A significant milestone," says CEO Jan Moström according to a press release.

The demonstration facility is expected to be operational by the end of 2026 and will develop the process of utilizing material flows from LKAB's iron ore production in Gällivare, resources that have so far been discarded as mining waste, according to LKAB.

At the same time, LKAB is reporting an operating profit of 2.1 billion kronor for the third quarter, down from 5.0 billion during the corresponding quarter last year.

Net sales fell from 10.8 billion to 8.4 billion.

LKAB's third quarter was marked by extensive production disruptions and several longer production shutdowns. Net sales and operating profit for the quarter were also affected by lower iron ore prices and deliveries," the company writes in a press release.

Production disruptions and longer production shutdowns reduced volumes to 4.9 million tons, down from 7.0 million tons.

"The measures will continue in the coming months and will therefore limit production also during the fourth quarter," LKAB writes.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Klarna Stock Surges Over 30 Percent in Initial NYSE Trading

Klarna Stock Surges Over 30 Percent in Initial NYSE Trading

Klarna CEO Outlines Strategy to Dominate Global Payment Market

Klarna CEO Outlines Strategy to Dominate Global Payment Market

SEC Challenges Global Sustainability Reporting Standards

SEC Challenges Global Sustainability Reporting Standards

Spotify Introduces High-Resolution Sound for Premium Users

Spotify Introduces High-Resolution Sound for Premium Users

LKAB to Invest 6 Billion Kronor in New Gällivare Sorting Plant

LKAB to Invest 6 Billion Kronor in New Gällivare Sorting Plant

Larry Ellison Becomes World's Richest, Surpassing Elon Musk

Larry Ellison Becomes World's Richest, Surpassing Elon Musk

High Electricity Prices in Sweden as Several Nuclear Reactors Halted

High Electricity Prices in Sweden as Several Nuclear Reactors Halted

Oracle Stock Soars 30% on Boosted Cloud Investment Forecast

Oracle Stock Soars 30% on Boosted Cloud Investment Forecast

Government Plans to Lower Hiring Costs for Young People

Government Plans to Lower Hiring Costs for Young People

Norwegian Interest Rate Cut Possible Amid Stable Inflation

Norwegian Interest Rate Cut Possible Amid Stable Inflation

Swedish Economy Sees 0.2% GDP Decline in July

Swedish Economy Sees 0.2% GDP Decline in July

Klarna's Valuation Criticized as Unfair by Chief Analyst

Klarna's Valuation Criticized as Unfair by Chief Analyst

Zara Owner Inditex Sees Profit Rise in First Half of Fiscal Year

Zara Owner Inditex Sees Profit Rise in First Half of Fiscal Year

Clas Ohlson Stock Jumps 13% Amid Slight Stockholm Market Dip

Clas Ohlson Stock Jumps 13% Amid Slight Stockholm Market Dip

Novo Nordisk to Cut 9,000 Jobs Amid Organizational Changes

Novo Nordisk to Cut 9,000 Jobs Amid Organizational Changes

Clas Ohlson Sees Profit Rise in First Quarter with Strong Sales

Clas Ohlson Sees Profit Rise in First Quarter with Strong Sales

Used Electric Car Sales Surge in First Half of the Year

Used Electric Car Sales Surge in First Half of the Year

Handelsbanken Predicts Final Interest Rate Cut in September

Handelsbanken Predicts Final Interest Rate Cut in September

District Heating Prices Surge Again with Aggressive Increases

District Heating Prices Surge Again with Aggressive Increases

Asian Markets Mostly Rise in Wednesday Trading

Asian Markets Mostly Rise in Wednesday Trading