Stable production and favorable market conditions enabled LKAB to increase its operating profit despite lower delivery volumes. The market , however, continues to be characterized by uncertainty. Sales for the full year 2019 increased to MSEK 31,260 (25,892) and operating profit was strengthened to MSEK 11,788 (6,869), which amounts to an increase of 72 percent. The improvement in earnings is mainly attributable to higher iron ore prices and a stronger US dollar.
Comprises mines and processing plants in Kiruna. The products are transported along the Malmbanan and Ofotbanen ore railway to the port in Narvik for shipment to steelworks customers around the world. Net sales for the year amounted to MSEK 16,630 (14,416) and earnings to MSEK 8,069 (4,264).
Comprises mines and processing plants in Malmberget and Svappavaara. The products are transported along the Malmbanan ore railway, mainly to the port in Luleå for shipment to European steelworks customers. Net sales for the year amounted to MSEK 13,500 (10,534) and earnings to MSEK 4,459 (2,799).
Develops and supplies products and services including industrial minerals, drilling technology and full service solutions for the mining and construction industries. Net sales for the year amounted to MSEK 4,732 (3,806) and earnings to MSEK 343 (330).
1 Share of Group sales.
Operating profit increased by 72 percent compared with 2018.
The Board of Directors proposes an ordinary dividend of SEK 6.1 billion to the annual general meeting.
of iron ore products were produced in 2019, compared with 26.9 Mt in 2018.
of iron ore products were delivered in 2019, compared with 26.8 Mt in 2018.
Jan Moström, President and CEO
The development work that LKAB is conducting together with customers and suppliers is important not only for us. When we and our partners develop processes and technology for carbon-free autonomous mining as well as processes for carbon-free production of direct-reduced iron, this is of huge significance for Sweden’s climate targets. On a global level, the effect is even more crucial.
LKAB’s President and CEO comments on the results for the year and the investments for a broader and stronger LKAB.
LKAB is Europe’s largest iron ore producer. In a global perspective we are a
small supplier with a strong niche position. Our highly upgraded pellet products
provide added value and create profitability for our customers.
LKAB works closely with its customers and incorporates their requirements into its own product development work. We also have a long history of innovation as regards large-scale production and mining at great depths.
Committed, innovative, responsible: our values are key to our corporate culture that has created the conditions for the high-tech global mining and minerals group that LKAB is today.
LKAB aims to set an example not just as regards quality and technological development, but also in how we run our business. Sustainability topics are key. It is important to us to be an ethical and credible business partner and to cooperate with stakeholders and partners locally, regionally and globally.
LKAB has a strong balance sheet that currently covers both obligations and commitments as well as investments, innovation initiatives and acquisitions.
Changed conditions in the external environment are a driving force that create new opportunities to strengthen competitiveness and develop the offering. For LKAB’s business, four themes are central.
National and international development goals and guidelines for environmental considerations, human rights, working conditions and business ethics are important drivers of LKAB’s strategy. We are a signatory of the UN Global Compact and work towards the UN’s 17 global goals for sustainable development, focusing our efforts where we have the greatest opportunity to make a difference.
Demand for steel is expected to double by 2050 compared with 2010. It is estimated that half of the raw materials used come from scrap and half from iron ore, which is why demand for iron ore is expected to increase.
1,400 Mt steel
2,800 Mt steel
Our strategy aims to ensure LKAB’s long-term competitiveness. By efficient utilization of our existing production structure combined with development of profitable and sustainable growth opportunities we create a broader and stronger LKAB.
By identifying and acting on risks and opportunities and taking responsibility for our impact throughout the value chain, we strengthen LKAB’s long-term competitiveness and increase our contribution to the development of society. The sustainability work is thus integrated into our operations.
LKAB needs to be financially strong in order to be an innovative and responsible company. Our ambition is to double the ore reserve in the longer term, while at the same time broadening our business. We will also continue improving our competitiveness with the aim of increasing our productivity by 40–50 percent in the next generation of mining and processing.
LKAB aims to be one of the most resource-efficient and environmentally efficient mining companies in the world. Our long-term ambition is to achieve carbon neutral operations. Our ambition also includes environmentally neutral use of water and energy, and no impact from emissions on our surroundings. We safeguard biodiversity and are working to turn by-products into resources.
LKAB shall provide secure and attractive workplaces, where diversity, non-discrimination and equality are a given. LKAB works to secure leading competence, maintain exemplary stakeholder dialogues and an ethical approach throughout the value chain. We actively contribute to ensure our operating locations are lively and attractive communities.