Swedish mining company LKAB is temporarily closing one of its pellet plants in Kiruna for approximately six months, resulting in a delivery shortfall of about two million tons. The closure of pelletsverk KK3 is scheduled from mid-April through November, according to company statements.
Peter Richardson, director of the iron ore business area at LKAB, cited multiple factors for the decision. "Changed local rock technical conditions mean we need to adjust the mining sequence," Richardson stated. This adjustment requires temporarily reducing production in the mine, which consequently decreases volumes to the pellet plants.
Changed local rock technical conditions mean we need to adjust the mining sequence
The company also noted that the war in Iran has closed the Strait of Hormuz, affecting deliveries to Middle Eastern customers. Most products processed at the affected plant are destined for customers in the Middle East region.
LKAB is exploring alternatives to compensate for reduced production volumes in Kiruna, including utilizing other parts of the mine. The company emphasized that existing customers outside the Strait of Hormuz should not be affected by the closure.
This adjustment requires temporarily reducing production in the mine, which consequently decreases volumes to the pellet plants
Richardson expressed confidence in managing the situation, stating the company has good conditions to handle the current circumstances and find ways to increase production going forward. LKAB expects to return to previous production volume levels by 2027.
the company has good conditions to handle the current circumstances and find ways to increase production going forward