LKAB plans to open an open-pit mine at Gruvberget, near Svappavaara, 60 km southeast of Kiruna, Sweden, during the first half of 2010. The company expects to mine a maximum of 2 million tonnes of iron ore per year. A ruling is scheduled to be made by the Environmental Court in March, soon after which LKAB hopes to start production.
This will be the first time in more than 50 years that LKAB has opened a new iron ore mine, according to LKAB's President and CEO, Lars-Eric Aaro. About 50 new jobs will result from the start-up.
LKAB also will submit an application this year for a project to drain the Leveäniemi open pit, which was closed in the mid-1980s due to a downturn in the economy. Production is expected to commence within three to five years.
Yet another “interesting deposit” in the Svappavaara area, according to LKAB, is Mertainen. The company plans to submit an application this year for test drilling.
“The three new mines will increase LKAB's capacity. We aim to be able to deliver 37 million tonnes of finished products per year,” said Aaro. “We see an increase in demand for iron ore products. Our customers want to grow, and we need to be able to grow with them. LKAB has expanded its capacity at surface level over the past five years. With two new pelletizing plants and an upgraded logistics structure, access to crude ore is the bottleneck in the chain of production. We need more iron ore.”
All three mine sites are within LKAB’s immediate vicinity, which facilitates the start-up of mining operations. The company notes that the infrastructure, including roads, processing plants, transportation systems, and harbors, is “virtually” in place already.
The three deposits combined contain about 300 million tonnes of iron ore, according to LKAB, with an iron content of between 40 and 55%. The deposits will be mined via open pits and the production structure will be flexible.
“Production follows the prevailing economic situation, which determines the extent of operations. In times of high demand, mining production is in full swing. If there is a downturn, the mines can be mothballed,” said Per-Erik Lindvall, Senior Vice President, Technology and Business Development, LKAB.