Strategic direction
Since its inception over 130 years ago, LKAB has through innovation streamlined the production of iron ore products and, step by step, increased the value added by processing in order to remain competitive in the market.
A focus on carbon-free processes and products is contributing to higher product value and reduced climate impact. The extraction of phosphorus and rare earth elements is enhancing Europe’s self-sufficiency in critical minerals and developing the business.
Our strategy is made up of three parts, which together provide the foundation for our future development:
Mining at greater depths through increased automation, electrification and digitalisation for increased volumes.
Increased product value and reduced climate impact.
Extraction of phosphorus and rare earth elements for greater self-sufficiency.
LKAB’s strategy focuses on ensuring competitiveness, profitability and sustainability through stable and efficient production using innovative and fossil-free solutions.
We adapt our strategic direction based on what is technically possible, financially sustainable and feasible within reasonable time frames, all while managing risks in order to balance long-term and short-term goals.
Future mining will take place at greater depths, with new main haulage levels designed to safely and efficiently exploit the mineral reserves and increase productivity. Digitalisation, automation and electrification are being combined with modern technology to optimise the process.
In processing, the focus is on continuing to develop carbon-free iron ore pellets and evaluating the capacity for sponge iron production in Gällivare. A demonstration plant will be built in Luleå to evaluate a future business within phosphorus and rare earth elements. LKAB aims to become a leading player in Europe in industrial minerals and mining services, focusing on environmental technology, construction and the agricultural sector. We will develop services and products within engineering, drilling, explosives and maintenance, with the flexibility to meet both internal and external needs.
LKAB’s competitiveness is based on the high and consistent quality of our iron ore products, our geographical location and the skills of our employees, enabling the production of high-quality pellets – which are particularly important for the future transformation of the steel industry.
The limited life of the mines requires the conversion of mineral resources into reserves for continued operation. Fossil-free energy in northern Scandinavia strengthens our position, and products such as phosphorus and rare earth elements have great potential when supported by new facilities. LKAB will remain a system-critical player for the EU’s steel industry and will enhance Europe’s self-sufficiency in iron ore and critical minerals.
LKAB will be regarded as a long-term sustainable, reliable and stable supplier with a high level of technical expertise that utilises advantages such as ore quality and fossil-free energy.
The company will adapt to the market of the future, run sustainable operations and maintain a cost position that enables production even in weak market conditions. A key player in the value chain for iron and steel and seen as a reliable supplier, LKAB will contribute to the EU’s self-sufficiency in critical minerals. Collaborations and partnerships will strengthen the business and contribute to the company’s strategic goals.
LKAB has long been a world leader in iron ore production. As the depth at which the orebodies are located goes ever deeper, however, we are faced with new challenges. Higher rock stresses, increased seismic activity and more complex logistics require innovative solutions.
To remain competitive and to secure future production, ever since the underground mining started we therefore began working to develop sustainable and efficient methods for mining at great depths.
Converting mineral resources into mineral reserves means ensuring that a deposit can be mined profitably – turning a resource into a practically viable and economically sustainable mineable reserve, even if the ore is very deep underground. This is possible if technical, economic and environmental factors interact to allow mining that is economically sustainable with the available technology and under the prevailing market conditions.
A decisive factor in our success is that our iron ore has a high iron content and low levels of other substances that make steel production more difficult and more expensive. This favourable mix makes it profitable to mine ore even at great depths, as the products are in demand globally for the production of high-quality, climate-efficient steel. With our iron ore, we can produce a pellet that commands a high premium compared to the world’s iron ore products in general. The combination of product quality and innovative solutions puts LKAB in a unique position in the market.
Through automation, digitalisation and electrification, together with investments to increase the value added by processing, we have continuously managed to maintain our position in the market and increase productivity. LKAB’s long-term goal of carbon-free processes and products also has a direct connection to mining at great depths. Electrified machines and other battery-powered equipment are already being used in the operations to reduce climate impact and improve productivity.
Sustainable Underground Mining (SUM) was a groundbreaking collaboration initiated in 2018 between LKAB, industrial partners such as ABB, Epiroc, Combitech and Volvo, and the research community via institutions such as Luleå University of Technology, which ended in 2024. Results from the SUM project are crucial to the ability to meet the unique challenges of mining at great depths while ensuring profitability. Through autonomous mining systems and real-time monitoring, high rock stresses and seismic activity can be effectively managed, thereby minimising downtime and safety risks. Electrified machinery and energy-efficient transport systems reduce both operating costs and climate impact, while smart ventilation optimises energy consumption. Digitalised control systems increase the precision of the mining process and enable remote control, which improves productivity
At the same time, these innovations contribute to a safer work environment by reducing the need for human presence in high-risk areas. Together, these solutions create the conditions for sustainableand economically efficient mining.
Continued development is focusing on the further development and implementation of important results from the SUM project, but also on continuing the work to develop suitable mining methods, design and production systems to ensure competitive mining even at greater depths. Our ability to handle rock stresses and our main design are critical to achieving the full effect of an optimised production system, and are based on our ability to continue to develop methods and solutions adapted for mining at greater depths.
Realising our ambitions of mining at great depths to extend the life of the mines – by enabling the extraction of orebodies that are below the current main haulage levels – requires a favourable framework and cooperation between authorities, industry and academia. With the right conditions, LKAB can continue to be a global leader in the mining industry and pave the way for sustainable and profitable mining at even greater depths in the future, down to 2,000 metres.
