Kaunis Iron cuts back

Pajala The market for iron ore has deteriorated. The mining company Kaunis Iron in Pajala is therefore planning to cut costs, partly by reducing the workforce. Negotiations with trade union organisations will begin shortly.

The background is a fall in iron ore prices, increasing uncertainty in the world and weak economic development in China, the dominant market for iron ore. Kaunis Iron has already implemented changes to adapt to the new market situation.

"The market situation has changed drastically over the year, and despite previous actions, they are not enough to meet the new conditions. We must now make even more significant changes to remain a strong and sustainable player in the iron ore market," says Klas Dagertun, CEO of Kaunis Iron.

All parts of the organisation will now be reviewed, except for truck transport, where the number of drivers has already been reduced in preparation for the reduced transport needs in the future.

The company will soon start negotiations with the trade unions on staff reductions. At the same time, the organisation is continuing to streamline its operations and reduce external costs.

"This is a difficult decision, but absolutely necessary to ensure a long-term competitive mining operation in Tornedalen. Our mine and employees are of great importance to the region, and we are doing everything we can to protect the future of both the business and the community," says Klas Dagertun.

Lennart Håkansson

editor@northswedenbusiness.com