Swedish iron ore miner LKAB has continued to perform strongly at the start of 2022. Along with good exploration results, including the possibility of extracting phosphorus and rare earth elements from waste streams, this puts the Group in an even stronger position for its industrial climate transformation. Net sales for the first quarter amounted to MSEK 11,976 (12,256) and operating profit amounted to MSEK 6,497 (7,153). Profits were affected mainly by lower prices for highly upgraded iron ore products and a lower delivery volume. A stronger dollar rate had a positive effect. The average global spot price for iron ore products for the quarter was USD 142 (167) per tonne. At the end of the quarter the price level was USD 158 per tonne. Quoted pellet premiums for the quarter were on average just over USD 20 per tonne higher than in the same period last year.Delivery volumes for the quarter amounted to 6.7 (6.9) Mt, affected by lower production. The production volume decreased to 6.4 (7.4) Mt as a result of recurring production disruption at one of the plants in Kiruna. Measures have been taken and evaluated, but further maintenance is required to ensure long-term stable operation.The extensive exploration work is delivering results and during the quarter LKAB reported a continued increase in mineral reserves and mineral resources. Compared with 2020 the reserves have increased by 10 percent and resources by a full 55 percent. One addition is the Per Geijer deposit in Kiruna, where the resources amount to just over 400 million tonnes and, in addition to a high iron content, have a very high content of phosphorus.For the first time LKAB has reported the mineral resources for rare earth elements, in addition to phosphorus which was already included last year. The green transformation is the main driver of demand for rare earth elements, with an increased need for powerful permanent magnets that are used in electric cars and wind turbines. Phosphorus is classed as a critical raw material in Europe and is an important nutrient in mineral fertiliser, which is essential for around half of the world’s food production.
Swedish iron ore miner LKAB has continued to perform strongly at the start of 2022. Along with good exploration results, including the possibility of extracting phosphorus and rare earth elements from waste streams, this puts the Group in an even stronger position for its industrial climate transformation. Net sales for the first quarter amounted to MSEK 11,976 (12,256) and operating profit amounted to MSEK 6,497 (7,153). Profits were affected mainly by lower prices for highly upgraded iron ore products and a lower delivery volume. A stronger dollar rate had a positive effect. The average global spot price for iron ore products for the quarter was USD 142 (167) per tonne. At the end of the quarter the price level was USD 158 per tonne. Quoted pellet premiums for the quarter were on average just over USD 20 per tonne higher than in the same period last year.Delivery volumes for the quarter amounted to 6.7 (6.9) Mt, affected by lower production. The production volume decreased to 6.4 (7.4) Mt as a result of recurring production disruption at one of the plants in Kiruna. Measures have been taken and evaluated, but further maintenance is required to ensure long-term stable operation.The extensive exploration work is delivering results and during the quarter LKAB reported a continued increase in mineral reserves and mineral resources. Compared with 2020 the reserves have increased by 10 percent and resources by a full 55 percent. One addition is the Per Geijer deposit in Kiruna, where the resources amount to just over 400 million tonnes and, in addition to a high iron content, have a very high content of phosphorus.For the first time LKAB has reported the mineral resources for rare earth elements, in addition to phosphorus which was already included last year. The green transformation is the main driver of demand for rare earth elements, with an increased need for powerful permanent magnets that are used in electric cars and wind turbines. Phosphorus is classed as a critical raw material in Europe and is an important nutrient in mineral fertiliser, which is essential for around half of the world’s food production.
