Lower profit and turnover for LKAB

Luleå The state-owned mining company LKAB's operating profit and turnover decreased in the third quarter, compared to the same quarter last year. Higher production was offset by the limited capacity of the railway Malmbanan, according to LKAB.

Operating profit in the third quarter was nearly EUR 423 million (EUR 499 million in the third quarter last year). Net sales were EUR 913 million (EUR 1,048 million last year).

Production during the quarter was the highest since the beginning of 2021, 7.0 million tons (6.6). But delivery volumes decreased to 6.3 million tons (6.6).

“As our production improves following the issues of recent years and we approach the desired levels, the Ore Railway’s inadequacies are becoming particularly apparent. We are ourselves investing to increase and secure transport capacity – for example, through more ore cars and most recently in the form of a new locomotive workshop in Kiruna – but further measures are needed in respect of the Ore Railway that are beyond our control. How the expansion of the Ore Railway is managed will be crucial going forward,” says Jan Moström, President and CEO LKAB in a comment on the quarterly report.

In addition to lower delivery volumes, the result was affected by lower prices for highly refined iron ore products.

Lennart Håkansson

editor@northswedenbusiness.com