Europe’s leading mining
and minerals group

31.3bn

Net sales for 2019 amounted to SEK 31.3 (25.9) billion.

4,300

LKAB has circa 4,300 employees.

2:nd

LKAB is the world’s second-largest producer of iron ore pellets in the seaborne market.

80%

LKAB is Europes largest iron ore producer, and mines around 80 percent of all iron ore in the region.

>30

More than 30 industrial minerals in the product portfolio complement the iron ore business.

1890

LKAB, established in 1890, is one of Sweden’s oldest industrial companies and is wholly owned by the Swedish state.

LKAB IN FIGURES 2019

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.

NET SALES AND OPERATING PROFIT / LOSS

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 operating profit to MSEK 343 (330).

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1 Share of Group sales.

MSEK11,788

Operating profit increased by 72 percent compared with 2018.

SEK 6,1bn

The Board of Directors proposes an ordinary dividend of SEK 6.1 billion to the annual general meeting.

27.2Mt

of iron ore products were produced in 2019, compared with 26.9 Mt in 2018.

24.8Mt

of iron ore products were delivered in 2019, compared with 26.8 Mt in 2018.

LKAB is investing significantly in the future, which requires us to be competitive here and now. I am very proud of the work that LKAB’s employees are doing. We are driving change and innovation on all fronts.  We are working in parallel on improvements in day-to-day operations and on creating the conditions for major technological advances.

Jan Moström, President and CEO

EQUIPPED FOR THE FUTURE

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´S STRENGTH AND COMPETITIVE ADVANTAGES

LKAB is Europe’s largest iron ore producer. From a global perspective, we are a smaller supplier with a strong niche position. Our highly upgraded pellet products provide added value and create profitability for customers.

LKAB’s niche position is based on magnetite ore with high iron content, which is processed into iron ore products for steel customers for whom quality and durability are essential.

LKAB collaborates closely with customers, incorporating their requirements into our own product development work. We also have a long history of innovations in terms of large-scale production and mining at great depths.

Committed, innovative, responsible; our values are central to the corporate culture that has enabled LKAB to develop into the high-tech global mining and mineral group that it is.

LKAB’s ambition is to set an example not only in terms of quality and technology development, but also in how we conduct our business. Sustainability issues are central. Being an ethical and credible business partner and collaborating with stakeholders and partners locally, regionally and globally is important to us.

LKAB has a strong balance sheet, which currently covers both commitments and obligations as well as investments, innovation initiatives and acquisitions.

MEGATRENDS AND EXTERNAL CONDITIONS

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.

  • Urbanization and increased prosperity
  • Climate change
  • Technological development and digitalization
  • Uncertainty and increased protectionism

TOWARDS AGENDA 2030

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.

2050

It is estimated that in 2050 demand for steel will have doubled compared to 2010. Half of the input raw material is expected to come from scrap and half from iron ore, meaning we can expect an increase in demand for iron ore.

2010

1,400 Mt steel

2050

2,800 Mt steel

STRATEGIC PRIORITIES
FOR A BROADER AND
STRONGER LKAB

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.

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OPERATIONS AND IMPACT

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.

In Focus