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.
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.
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.
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.
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.
Net sales.
Operating profit.
Operating cash flow.
Investments for carbon-free processes and products.
Average global spot price for iron ore products.
Average number of employees.
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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.
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.
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Operating profit.
Iron ore products account for over 90 percent of sales.
Percentage of sales (MSEK)
Percentage of sales of iron ore products (MSEK)
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Operating profit.
More than a third of the value of mineral sales derives from secondary materials that LKAB Minerals develops into valuable products.
Percentage of external sales (MSEK)
Percentage of external sales (MSEK)
Three cornerstones are key to succeeding in our strategy:
Our transformation requires efficiency and production stability in existing operations while at the same time investing in technological advances and new business.
Ensuring we have access to the skills needed to lead the transformation and develop innovative solutions for the mining of the future, is crucial to our success.
As a mining company LKAB impacts the world around us, and that means we have a great responsibility. As we now transform our business we must do so in an exemplary manner that minimises impacts on people, climate and the environment.
This website is a summary of LKAB’s Annual and Sustainability Report for 2022, which can be downloaded in full using the link below.
