LKAB reduced iron ore production by 13.3% y/y in 2024

Raw material supplies fell by 13.4% year-on-year

LKAB International Mining Group reduced iron ore production by 13.3% year-on-year to 22.7 million tons in 2024. This is stated in the company’s annual sustainability report.

As noted, the indicator was affected by several long-term production stoppages.

Significant accidents on the iron ore railway line in early 2024 affected the supply volumes, which in 2024 amounted to 21.9 million tons (-13.4% y/y). The share of pellets in total sales amounted to 87% compared to 84% a year earlier.

LKAB also reported an operating profit of SEK 8.7 billion for 2024. Net sales in the period amounted to SEK 33.1 billion, compared to SEK 42.9 billion in 2023, mainly due to lower supply volumes and falling iron ore prices.

At the same time, the company continued to make decisions on a number of investments aimed at the future of the business through innovation, sustainability and increased competitiveness.

According to Jan Moström, President and CEO of LKAB, the company’s strategy is based on three key elements: a new global standard for the mining industry through automation, electrification and digitalization, carbon-free processes and increased production of the most important minerals to strengthen Europe’s self-sufficiency.

According to him, in 2024, the company saw a steady demand for its high-tech products. However, this period was also marked by production problems and disruptions in transportation chains.

LKAB’s CEO notes that problems with the capacity of the iron ore line have again become apparent, and the company sees an urgent need for investment to ensure long-term supply. According to Mostriom, the growing geopolitical uncertainty has also drawn attention to the importance of stable and secure raw material supplies to Europe. At the same time, LKAB continued to develop geological exploration and found a significant increase in its mineral resources.

In 2023, LKAB increased its iron ore production by 4.8% compared to 2022, to 26.2 million tons. Shipments of iron ore to consumers amounted to 25.3 million tons, down 1.9% y/y.

LKAB is a Swedish state-owned mining company specializing in the extraction and processing of iron ore. It is one of the world’s largest iron ore producers, especially known for its underground mines in Kiruna and Malmberg. The main consumers of its products are steel mills in the EU. As the company is actively investing in green steel production technologies, its products are also of interest to international markets seeking to reduce CO2 emissions.