LKAB gives 227 million extra to Kiruna

Kiruna The board of the state-owned mining company LKAB has decided on an extra payment of SEK 227 million to the municipality of Kiruna for unforeseen costs in connection with the community reorganisation.

This follows an agreement between LKAB and the municipality on compensation for increased costs when the centre of Kiruna has to move due to underground mining.

"It goes without saying that we will compensate for costs that have been incurred and that are our responsibility, we already took this into account when we signed the agreement with the municipality. There are things that are difficult to oversee over time and therefore that point was included," says Linus Niva, LKAB's head of community transformation in Kiruna.

The compensation is part of the agreement previously reached between the parties. According to that agreement, LKAB has compensated Kiruna municipality with approximately SEK 5 billion in financial compensation and properties for approximately SEK 2.5 billion. The agreement includes a pot for unforeseen expenses totalling SEK 350 million.

"The agreement we have now reached with LKAB for SEK 227 million means that the municipality's cash flow will be slightly better and that we will be compensated for the unforeseen costs the municipality has had in the past. This includes new infrastructure that is a prerequisite for the continued transformation of society, but also previous infrastructure that has been damaged, such as leaks in district heating pipes," says Mats Taaveniku, municipal councillor.

Lennart Håkansson

editor@northswedenbusiness.com