July 1, 2014 - Assignment

LKAB advised by Mannheimer Swartling in connection with the urban transformation of Kiruna and Malmberget

LKAB is being advised by Mannheimer Swartling in connection with the urban transformation of Kiruna and Malmberget in northern Sweden. LKAB, which is wholly owned by the Swedish state, extracts and processes iron ore for the global steel market. The Group has annual sales of approximately SEK 30 billion.

The ore is mined in underground mines in Kiruna and Malmberget. Ore bodies slope down beneath communities and mining underground leads to ground deformations approaching the communities. For mining operations to continue, large parts of Kiruna and most of Malmberget must be moved or transformed by the decommissioning of existing buildings and construction of new ones in new locations. In Kiruna, the settlement and development process is expected to progress gradually over 20-30 years. The transformation affects approximately 3,000 apartments, the main part of the center of Kiruna including the town hall, church, other cultural buildings, the community centre, fire station, schools and major municipal infrastructure. In Malmberget, the transformation has already been in progress for a longer period. LKAB is funding a large part of the cost of the transformation that is being carried out in close collaboration between LKAB and the municipalities concerned. LKAB will also shortly commence open pit mining in the Svappavaara area. This mining area expansion will also lead to the relocation of a number of residents in the Svappavaara area.

LKAB is being advised by Mannheimer Swartling on issues related to the urban transformation. The firm’s team consists of Martin Pekkari and Magnus Josefsson, primarily assisted by Tom Hofset and Felicia Terenius.