We are leading the transformation of our industry toward a sustainable future
Annual and Sustainability Report 2021
-
-84%
Carbon emissions reduced by a total of 84 percent from 1960 to today’s pellet production -
CO2
The first iron ore producer to measure and report its carbon footprint -
-14%
Steel produced with LKAB’s pellets contributes to 14 percent lower carbon emissions than the European average -
2020
LKAB adopts a new strategy to achieve carbon-free processes and products -
2026
HYBRIT plant for production of sponge iron -
2027
Industrial park for extracting critical minerals from mine waste -
2030
First industrialised sponge iron plant in production -
2035
New world standard for mining – carbon-free, digitalised and autonomous -
2045
LKAB’s processes and products are carbon-free
-
-84%
Carbon emissions reduced by a total of 84 percent from 1960 to today’s pellet production -
CO2
The first iron ore producer to measure and report its carbon footprint -
-14%
Steel produced with LKAB’s pellets contributes to 14 percent lower carbon emissions than the European average -
2020
LKAB adopts a new strategy to achieve carbon-free processes and products -
2026
HYBRIT plant for production of sponge iron -
2027
Industrial park for extracting critical minerals from mine waste -
2030
First industrialised sponge iron plant in production -
2035
New world standard for mining – carbon-free, digitalised and autonomous -
2045
LKAB’s processes and products are carbon-free
2021 in brief
Key events
- Very good market conditions have enabled LKAB to deliver historically strong earnings for 2021. The average global spot price for iron ore products during the year was USD 160 (109) per tonne.
- Production volumes – which were affected by more extensive maintenance shutdowns for adjustments to limit the spread of Covid-19 – amounted to 26.7 Mt compared with 27.1 Mt in the previous year.
- Lower production volumes affected delivery volumes, which amounted to 27.0 Mt compared with 28.5 Mt in 2020.
- In partnership with Vattenfall and SSAB, LKAB has produced the world’s first hydrogen-reduced sponge iron for fossil-free steelmaking within the HYBRIT initiative.
- LKAB has acquired 75 percent of the shares in Bergteamet AB. The acquisition strengthens our expertise and resources for future mining at great depths.
- In October the Land and Environment Court rejected LKAB’s permit application for the existing operations in Kiruna in its entirety. The decision has been appealed.
Comments by the President and CEO
2021 was a historically strong year in terms of profits. At the same time, we made important progress on the transformation that is crucial for the future.
The vital issue facing our generation – climate change – has been high on the global agenda for some time now. Yet I feel that something significant happened in 2021. Most companies have now realised that it is not about their own primary emissions. A lorry consists of 70 percent steel, for example, and each tonne of steel gives rise to two tonnes of carbon emissions. People have started to properly understand that the end product is only sustainable if its entire value chain is sustainable. The transformation to a climate-neutral global economy demands that the energy supply and the raw materials on which our society is built are carbon-free. And to an increasing extent it is industry, particularly primary industry, that is driving this green transformation.
Comments by the President and CEO
2021 was a historically strong year in terms of profits. At the same time, we made important progress on the transformation that is crucial for the future.
The vital issue facing our generation – climate change – has been high on the global agenda for some time now. Yet I feel that something significant happened in 2021. Most companies have now realised that it is not about their own primary emissions. A lorry consists of 70 percent steel, for example, and each tonne of steel gives rise to two tonnes of carbon emissions. People have started to properly understand that the end product is only sustainable if its entire value chain is sustainable. The transformation to a climate-neutral global economy demands that the energy supply and the raw materials on which our society is built are carbon-free. And to an increasing extent it is industry, particularly primary industry, that is driving this green transformation.
Strategy for the LKAB of the future
New world standard for mining operations
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 significantly lowered, which creates value both for the steel industry and its customers and for the end user of the products.
Critical minerals
Competitiveness today is crucial for the future
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 eliminate our own carbon emissions while lowering total carbon emissions from our customers’ steelmaking by at least 35 Mt per year. That is three times the effect of taking all the cars in Sweden off the road for good.
than doubled
Operations
Iron Ore business area
Special Products business area
Focus areas
Innovation
Changes in Malmberget are starting now
Already in 2022 LKAB expects to begin preparatory work for the first HYBRIT plant for the production of sponge iron, next to the operations in Malmberget.
New mining method is tested
Raise caving, developed by LKAB’s mining engineering team, is a new method that addresses some of the challenges of mining at great depths. It is now undergoing full-scale tests.
Turning today’s waste into tomorrow’s resources
Recycling and innovation secure critical raw materials from a European source, for use in clean technology and food production.
Changes in Malmberget are starting now
Already in 2022 LKAB expects to begin preparatory work for the first HYBRIT plant for the production of sponge iron, next to the operations in Malmberget.
Skills
One in three Swedes is open to moving north
For a better understanding of what drives people to move and what stops them from doing so, we commissioned analysis and survey company Novus to ask 1,000 Swedes their views of the region and their attitude towards moving here.
Working together to attract 25,000 new residents to northern Sweden
Several industrial initiatives are taking place in parallel in the region and various companies are working together to attract 25,000 people to Norrbotten and Västerbotten within five years.
Our offering to employees
More than 100 employees from Sweden, Norway, the UK and Germany have contributed their experience and views on what it’s like to work for us and what makes us stand out as an employer.
One in three Swedes is open to moving north
For a better understanding of what drives people to move and what stops them from doing so, we commissioned analysis and survey company Novus to ask 1,000 Swedes their views of the region and their attitude towards moving here.
Sustainability
In-depth sustainability information and GRI index
Sustainability guides us in all parts of the business and our sustainability reporting is therefore integrated with the Group’s annual report. In-depth sustainability information with additional details and key indicators as well as a GRI/COP index and TCFD index can be found in our sustainability notes.
A clear and sustainable plan for the future
To ensure that we act in a sustainable way throughout the business and at each stage in the value chain, in 2021 we produced a roadmap for our work. This shows the concrete steps we must take in the period up to 2030 to achieve a climate-efficient and sustainable transformation and to realise the Group’s strategy for the period up to 2045.
Our contribution to Agenda 2030
The way that LKAB can most make a difference for a more sustainable future is through our transition to carbon-free processes and products – but we also have initiatives and activities that contribute to several of the UN Sustainable Development Goals in various ways.
In-depth sustainability information and GRI index
Sustainability guides us in all parts of the business and our sustainability reporting is therefore integrated with the Group’s annual report. In-depth sustainability information with additional details and key indicators as well as a GRI/COP index and TCFD index can be found in our sustainability notes.