Home » World » LKAB cuts back on production – warns of big warning

LKAB cuts back on production – warns of big warning

Traffic is indeed running on the Malmbanan, but the large stocks of iron ore products built up after the winter’s derailments have not decreased. Now LKAB is reducing production and warning of “drastic measures”.

The derailments on the Malmbanan in December and February caused a total of 76 24-hour stoppages in traffic. Meanwhile, stocks of undelivered ore grew ever larger. Today, iron ore products equivalent to more than 600 full trains lie in piles in Kiruna and Svappavaara.

Now the traffic is indeed running, but the Malmbanan’s capacity is too low to graze the stocks. LKAB writes in a press release. Therefore, the company is now reducing production by around one million tonnes per year. And the situation is so serious that the mining giant is flagging for “even more drastic measures”.

Anders Lindberg, LKAB. Photo: Fredric Alm.

If accessibility on the Malmbanan does not improve, then notice awaits.

– There can be notice of up to 300 people, in that order of magnitude. And just as many external contractors and consultants. We twist and turn this to avoid it, says Anders Lindberg, press manager at LKAB.

– If we cannot, together with the Swedish Transport Administration and Norwegian BaneNor, seriously increase the capacity within the existing system, we will be forced to take even more drastic measures. Then a pellet plant with associated enrichment plant and mining production must be closed. In such cases, this means notification by staff, says LKAB’s CEO Jan Moström in a statement.

100 million back after derailed trains

The stop on the Malmbanan has meant lost revenue of SEK 100 million for every day the trains are stopped, according to LKAB. The company is now reviewing a possible shutdown in either Kiruna or Svappavaara, “based on what would mean the least damage to the company”. Talks have started with the unions.

Anders Elenius. Photo: LKAB.

Anders Elenius, chairman of IF Metallklubben Gruvtolvan, represents 1,400 co-workers at LKAB in Kiruna. He puts the blame on the politicians and the Swedish Transport Administration.

– We are in the hands of Malmbanan. We want nothing more than to produce fully, but we can’t. It’s a tricky situation. If only we had access and better flow on the track, this wouldn’t have been a problem. At the end of the day, it is our staff who suffer, he says, adding:

– The responsibility lies with the politicians and the Swedish Transport Administration. We have raised several times that we need double tracks on the Malmbanan.

“The tourists can take the bus instead”

As recently as two weeks ago, LKAB proposed that passenger traffic on the Malmbanan should be paused, to give priority to the ore trains. Anders Elenius believes that is the best way forward.

– The tracks must run ore now so we can remove our stocks. Tourists can take the bus instead.

Has LKAB been able to do anything differently?

– The question is what could the employer do differently? We have a railway that does not work. Our infrastructure up here has not directly been prioritized, says Anders Elenius.

How worried are you going forward?

– Now a notice has been issued. Then we’ll see if it’s actualized in the fall. It’s about how much ore we can deliver until then, says Anders Elenius.

Adam Daver

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.