Annual and Sustainability Report 2022

We are leading the transformation of our industry toward a sustainable future. At LKAB, we have yet again delivered strong results, with net sales of over SEK 46 billion and operating profit of nearly SEK 21 billion. This is a short version of LKAB’s Annual and Sustainability Report 2022 where you can read about our successes, results and future challenges during the year.

LKAB in brief

In 1890 LKAB was founded in Kiruna and by 1900 we had already started mining ore. Luossavaara-Kiirunavaara Aktiebolag is wholly owned by the Swedish state and is driven forward by more than 4,500 employees in 12 countries. For over a hundred years we have developed through unique innovations and technical solutions, and today we are an international mining and minerals group and are leading the transformation of the iron and steel industry towards a sustainable future.

Comments by the President and CEO

2022 has been one of LKAB’s most successful years. We have made progress in various respects, but the hardest challenges still lie ahead of us – and in many cases are beyond our control.

Man in LKAB-clothing standing outdoors

“We can and we want to – but will we be allowed to?”

Jan Moström, President and CEO

Carbon emissions reduced by 84 percent per tonne of product from 1960 to today’s pellet production.
Steel produced with LKAB’s pellets contributes to 14 percent lower carbon emissions than the European average.
The first iron ore producer to measure and report its carbon footprint.
Kvinna i klätterutrustning vid hav/sjö som tittar ut över snötäckta fjäll.

Towards a new iron age

The world is facing a great challenge caused by emissions that are impacting the climate. The global iron and steel industry currently accounts for as much as a quarter of total carbon emissions from industry.

LKAB adopts a new strategy to achieve carbon-free processes and products.
Our processes and products are carbon-free.
Kvinna i klätterutrustning vid hav/sjö som tittar ut över snötäckta fjäll.

Clear strategy for transformation

The strategy sets out the path LKAB is taking to bring about the greatest transformation since the company was founded in 1890 – and is also the biggest industrial investment in Swedish history. To achieve this we want to set a new world standard for mining, produce carbon-free sponge iron and extract critical minerals from mining waste. Important milestones in the coming years include the establishment of an industrial park for minerals as well as the establishment of sponge iron plants for industrial-scale production. Through our transformation to production of carbon-free sponge iron as a raw input material for the steel industry we can contribute to lowering global carbon emissions by an amount that corresponds to Sweden’s entire current greenhouse gas emissions.

The year in brief

LKAB delivered an operating profit for the year amounting to nearly SEK 21 billion, which corresponds to an operating margin of 45 percent. This despite increased costs from factors such as higher energy prices and disruptions in production.

46 543 MSEK

Net sales.

20 799 MSEK

Operating profit.

10 156 MSEK

Operating cash flow.

4 944 MSEK

Investments for carbon-free processes and products.

120 USD/ton

Average global spot price for iron ore products.

4 500 around

Average number of employees.

Strategy for the LKAB of the future

By 2045 LKAB’s processes and products shall be carbon-free. We are increasing the value of our products, streamlining production and broadening our business – while at the same time making a real difference for the climate.

New world standard for mining operations
Mining iron ore profitably and safely at greater depths, and moreover by carbon-free processes, demands a high level of expertise in mining design, methods and planning. Ongoing work is therefore taking place at LKAB to develop a new world standard for mining through digitalisation, automation, electrification and new ways of working. In so doing we are laying the foundation for a new value chain including further processing into sponge iron.
Future supplier of carbon-free sponge iron
Production capacity for sponge iron is being built up in stages based on technology that uses hydrogen produced with fossil-free electricity. We are strengthening our position in the value chain, increasing the value of our products and enabling carbon emissions to be reduced significantly throughout the value chain.
Broadening the business with extraction of critical minerals
Strategically valuable earth elements and phosphorus are to be extracted from our raw materials flows. This means we are moving into new markets for minerals use. The earth elements are used within technologically advanced applications such as permanent magnets, while phosphorus is needed for mineral fertilisers within agriculture.

Our strategy enables reduced emissions and increased sales

A crucial part of our strategy is to increase the value added by processing through a gradual transition to the production of carbon-free sponge iron. Once fully implemented, our transformation will mean we have carbon-free processes and products while at the same time lowering total carbon emissions from our customers’ steelmaking by 40–50 Mt per year. This is approximately equal to Sweden’s entire annual emissions of greenhouse gases.


Our mission is to innovatively and competitively mine and process iron ore and minerals to produce climate-efficient quality products. LKAB has a strong tradition of taking responsibility and being a positive force for development – as a supplier to a global industry but also as an employer, a collaborative partner and a part of the community.

Iron Ore business area

LKAB’s future market is carbon-free sponge iron, but the existing market for iron ore pellets will continue to provide the framework for our profitability for a long time to come. The transformation of the steel industry is expected to take place successively, with a transition to processes that utilise climate-efficient iron ore pellets as a step along the way.

43 288 MSEK

Net sales.

21 322 MSEK

Operating profit.

>90 %

Iron ore products account for over 90 percent of sales.

Special Products business area

The Special Products business area supplements the iron ore business by developing and selling services and products for applications other than steelmaking. This is a growing area and includes various innovative development projects for extracting critical minerals from mining waste. These operations have an important part to play in our transformation.

7 087 MSEK

Net sales.

541 MSEK

Operating profit.


More than a third of the value of mineral sales derives from secondary materials that LKAB Minerals develops into valuable products.

Focus areas

Three cornerstones are key to succeeding in our strategy:

Download and read later

This website is a summary of LKAB’s Annual and Sustainability Report for 2022, which can be downloaded in full using the link below.

Past Annual and Sustainability Reports

Annual and Sustainability Report 2021
Annual and Sustainability Report 2020
Annual and Sustainability Report 2019