Vattenfall and Kaunis Iron in a new partnership

Pajala The swedish state owned Vattenfall AB, one of Europe´s largest producers and retailers of electricity and heat, has signed a letter of intent with Kaunis Iron AB to develop fossilfree and electrified mining operations at the iron ore mine in Pajala in northern Norrbotten.

The collaboration means finding business solutions to reduce the need för fossil fuels in the mining operations. The plans includes using electricity from future wind power projects in Kaämävaara and Selkävaara in the region.

- We have high ambitions when it comes to not merely meeting the requirements already in place for sustainability. We have expressed our vision that we will supply the world's most sustainable iron ore. This is an important step in achieving that goal, says Klas Dagertun, CEO, Kaunis Iron AB.

Vattenfall and Kaunis Iron also want to develop solutions för the electrification of rock and passenger transports in the mine and other parts of the plant in the mining area. There is already an investigation underway into fossil-free transport solutions between the mine in Kaunisvaara and the transshipment terminal in Pitkäjärvi.

- It is very positive that we are now joining forces with Kaunis Iron to take a step towards increased electrification in order to phase out fossil fuels, which is a necessary step in our joint work on the greatest challenge of our time. Fossil-free solutions have a natural place in future society and basic industry, says Anna Borg, President and CEO of Vattenfall.

- The Swedish mining industry is facing major changes to reduce dependence on fossil fuels and develop climate-efficient and responsible mining operations. This is a prerequisite for the transition to a sustainable society, and contributing to a local development with a minimal climate impact. Kaunis Iron wants to take active responsibility for this development, and that is why this collaboration with Vattenfall is very important, says Klas Dagertun, CEO, Kaunis Iron.

Kaunis Iron is a rather new company that has re-started the iron ore mine in Pajala who went bankruptcy in 2014. Compared with the state owned giant LKAB in the same region, Kaunis Iron is a small private owned enterprise, aiming at a yearly production at 2.1 million tonnes of finished product, iron ore concentrate.