December 02, 2008

LKAB board approves investment in rolling stock

The Board of LKAB on August 21st 2007 voted on two investment decisions that will improve logistical operations. The two investments are

1. Four new regular traffic locomotives equipped for a 30 tonne axle load will be purchased. Two single cab locomotives are always used in each train set. LKAB already has nine IORE locomotives, three on the southern circuit and six on the northern circuit of the Ore Railway. The four new engines will operate on the northern circuit and will replace the old, remaining Dm3-type locomotives, which will be decommissioned during the period 2009-2011. Manufacturing is expected to take three years and the new locomotives are expected to be in operation during the third quarter of 2010.

2. Three new train sets, built for a 30 tonne axle load will be acquired for the northern circuit. Each train set consists of 68 cars plus six reserves, totaling 222 cars in all. The payload weight of each car is more than 100 tonnes. With this investment, decisions have thereby been taken on five of the seven train sets required for the northern circuit. Investments for an upgrade of the southern circuit to the new 30 tonnes structure have been completed.

LKAB’s performance during January to June 2007 is as under
1. Revenue increased by 12 % YoY to SEK 8 334
2. Operating income increased by 8 % YoY to SEK 3 282
3. Profit after financial items increased by 10.8% YoY to SEK 3 471
4. Income after tax amounted to SEK 2 436 up by 9.8% YoY

Luossavaara-Kiirunavaara Aktiebolag is a Swedish high tech mineral products company wholly owned by the Swedish Government. Its primary business is the mining of iron ore and its primary mines are in Kiruna and Malmberget. The ore is partially processed on site, and is transported by freight train on Malmbanan to either Narvik or Luleå depending on ultimate destination. The iron ore trains are operated by the subsidiary Malmtrafikk. LKAB's corporate headquarters are in Luleå.