Kiruna accelerates city relocation as LKAB invests €2.6 billion in mining expansion

In Kiruna, Northern Sweden, the city’s relocation is accelerating. Joel Ahlquist, senior project manager at mining company LKAB, estimates that around 2,000 people are currently working directly or indirectly on the city’s transfer. “We are at the peak of the city’s move,” Ahlquist states.

LKAB, based in Kiruna, is expanding its operations, necessitating the relocation of the city center due to ground stability concerns. The announcement of the city’s move was made in 2004, with the first buildings transferred in 2017. The complete relocation is expected to be finished by 2035, with some historical buildings preserved for their cultural significance.

So far, around twenty historical structures have been relocated, with another twenty still pending. The next wave of relocations will begin this fall with three buildings, followed by about ten in 2025, and the remainder in 2026. The transfer is a massive, unique, and costly undertaking that is justified by the strategic significance of the iron ore mined.

LKAB has invested approximately €2.6 billion in the relocation effort, using a quarter of its profits to finance the move, as per Ahlquist. The company must build new structures and either demolish or relocate existing ones to obtain mining permits.

Kiruna’s mine is the world’s largest underground iron ore mine, supplying over 80% of the European Union’s iron ore, which is crucial for steel production in construction and industry.

Currently, Kiruna is home to about 22,000 residents, with approximately 6,000 affected by the relocation. Nearly half of them have already moved, while the company engages in dialogue with residents and property owners to finalize relocation agreements. 93% of residents have reached agreements with the mining company, despite some resistance. Additionally, tourism and space technology remain vital industries in the region, housing Sweden’s Esrange Space Center and Abisko National Park.