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Growth, side by side with the customer Per-Erik Lindvall Senior Vice President Technology and Business Development

LKAB is a world-leading manufacturer of iron ore pellets. Our high quality, value adding products deliver unsurpassed customer benefit, thanks to "Performance in Ironmaking�.


The LKAB Group in brief

• • • • • •

120 years 2010 4000 employees 13% women 30 companies Operations in 15 countries 650 employees outside Sweden

• Sales 2010 YTD Q3: • SEK 20,5 billion (MAUSD 3 100) • EBIT YTD Q3: • SEK 11,1 billion (MAUSD 1 700) • Forecasted production 2010: 26 Mt


Iron ore operations

Narvik Kiruna ARCTIC CIRCLE

Svappavaara

Malmberget

Lule책

RUSSIA

NORWAY

SWEDEN

FINLAND


World Wide LKAB stands for: • 90 % of the iron ore production within EU • 3 % of the global iron ore export • 40 % of the pellets market within EU Technological leadership within pelletizing LKAB

Others


World Class R&D • Pelletizing for more than 50 years • EBF (Experimental Blast Furnace) – Product development and process optimization together with the customer

• EPP (Experimental Pelletizing Plant)


Climate-smart, thanks to magnetite • Magnetite oxidizes to hematite in the pelletizing process - 60 percent of the energy needed for pellet production comes from oxidation • The input of fossil fuels is one third of that required in the production of hematite pellets

Our competitive edge!


LKAB Green Pellets When LKAB Green Pellets are used in the customer’s blast furnace, carbon dioxide emissions are one-seventh of what they are in the alternative process route, sintering at the steel mills.


How do you survive as an underground iron ore producer? •

Substantial cost reductions. – The idea is to, as much as possible, scale up our operation. • Mining method; large scale sublevel caving • Drill holes; diameter and length (Wassara Drilling Technology) • Maximize size and capacity of all under ground production equipment – Try to reduce the manpower needed as much as possible. • Go for remote controlled operations


Development of sub level caving 10.000 tonnes of ore per blast

1.200 tonnes of ore per blast


Remote Controlled Technology


Remote Controlled Technology Loading Laser scanner ATM Operator Server (production, traffic control, control) Base station

Control station Navigation Mobile terminal Communication Video system

72/02


Wealth is built of steel • The world needs iron ore • Growth together with our customers World production of iron ore 1904-2008 (estimate 2009 – 2015)


Investments Malmberget

2001

Kiruna

Logistics

2006

19.5 Mt 23.3 Mt Iron ore products produced

SILA - Narvik

New main levels

2010 28 Mt

New mines

>2012 ? Mt


The next step •

Organic growth close to our existing operations

Gruvberget

Mertainen

25 Mt magnetite 50 Mt hematite

150 Mt partially magnetite

Leveäniemi

Narvik Kiruna

100 Mt magnetite

Svappavaara

Malmberget

ARCTIC CIRCLE

NORWAY

Luleå


Urban transformation LKAB’s expansion in the ore fields entails a successive expansion of deformation zones, which is a result of mining. LKAB’s dialogue with stakeholders is based on the Minerals Act and LKAB’s responsibility for replacing existing functions.


Thank you!


Growth, side by side with the customer