LKAB has received a permit to build a sponge iron plant

The Swedish Land and Environment Court has granted the state-owned mining group LKAB a permit covering the continuation and expansion of mining and processing operations in Malmberget. This is stated in a company press release.

The decision also allows for the continuation of construction of a demonstration plant for the production of sponge iron without the use of fossil fuels and a new apatite processing plant.

“The permit is a prerequisite for securing our operations for decades to come. Our ambition is to gradually strengthen our competitiveness by further processing our pellets into sponge iron without fossil fuels, as well as expanding our business with the help of critical minerals,” said LKAB President and CEO Johan Mänkel.

According to the company, mineral resource development in Malmberget has grown significantly in recent years and now stands at over 2 billion tons—more than LKAB has mined since it began operations in 1890. In addition to high-quality iron ore suitable for direct reduction, the area also contains significant amounts of phosphorus and rare earth elements.

The demonstration plant for sponge iron production in Malmberget, which will produce up to 1.5 million tons of this product annually, Reuters notes, is part of the plans of the Hybrit joint venture for green steel production, owned by LKAB, Swedish steelmaker SSAB, and the state-owned utility company Vattenfall. An investment decision on the project is still pending. A smaller Hybrit pilot plant in Luleå opened in 2020.

As a reminder, LKAB has temporarily shut down one of its pellet plants in Kiruna due to a change in the production schedule. The plant’s shutdown from mid-April through November will reduce pellet supply in 2026 by approximately 2 million tons.