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Raw materials and infrastructure in Northern Sweden

Krister Palo International coordinator & Long term planner Northern Region

A mission from the Swedish Government Swedish Transport Administration has been given in the following Governmental mission. "Swedish Transport Administration shall, with the background of the raw materials growing importance on global competitiveness, nationally and regionally, to investigate the long-term sustainable transport system and transport needed to utilize and develop the raw material potential in the Barents Region. • To be carried out with relevant authorities, industry associations in Sweden and other countries concerned and with agencies that have a regional growth responsibility. • The mission will be reported to the Ministry of Enterprise, Energy and Communications, 31 December 2011. "



So far… • Background report on Minerals in Barents region (Complete) • Main report on Raw materials and transports in Barents region (finished in mid December) • 3 workshops with participants from relevant authorities, industry and agencies – Bodö 11 oct – Luleå 19 oct – Rovaniemi 20 oct

• Interviews, discussions and review of material with relevant relevant authorities, industry associations and companies



Increase in transportation – depends on type of mineral Iron ore – 65% Fe

Copper ore – 0.3% Cu

During mining 10% of waste rock is mixed in Mined ore 59% Fe 1 tonne of ore gives: 850 kg concentrate of magnetite 4


Mined ore 0.27% Cu

1 tonne of ore gives: 10 kg concentrate of chalcopyrite

Geological potential Known mineral resources – metal ore



What controls the development to 2020 – or further? Most important •External factors (metal prices, demand, economic situation, financing) •Infrastructure •Mineral Legislation & environmental conditions •Processing times for permits •Support by governments and the EU for development of the mining industry Some other important parameters (presumptions): • Access to prospective ground – exploration licences can be applied for • Access to geological information, previous work, national programmes • Know-how (knowledge, education & training, an established industry) • Technology to discover and mine the mineral deposits • Clear environmental legislation • Support from local levels (authorities and inhabitants) • Cheap energy • Processing times for permits • Cost structure for handling of waste material etc. • The country’s costs for mining (salaries, currency, taxes) • Technology development – changed global requirements (e.g. REE) •Administrative borders •Competing land use (saami, military, culture, tourism, society, etc.) 6


TODAY! Global use of metals - unbalance Iron ore: global use, production and trade (in millions of tonnes).

Source: SGU, 2011 7


FUTURE? Global use of metals will probably increase? Population – development? Befolkningsmängd



Prognosis of transported products 2010 - 2015 - 2020



Capacity constraints 2011 railway The capacity situation in the North is today almost stretched to the maximum

It is impossible to increase no of trains with today's infrastructure Different train length Short meeting stations < 750 m Single track Different train speeds



Capacity utilization according to plan 2015-2021 During 2015-2021, a number of measures are to be implemented, for example extension of meeting stations.

These measures are not enough to meet the transportation demand. The ore product transportation needs are expected to at least double by 2020 (minimum) The mineral industry's demand can not be met with existing plans. This means that the development and investments will not come true or be delayed. Challenge for regional development, for Northern Region, forSweden and for Europe!



Transportation solutions – developed in steps EFFICIENCY PROFITABILITY




Northland Resources AB and ROADEX



A Functioning Road is Essential not only for the Rural Survival but also for the Whole Society Almost 100 % of the product transportation of • farming • fishing • forest industry • aggregate industry

(+ some mining) are using low traffic volume road network!



Conclusions • High increased demand for ore transports during the next years to come – especially iron ore • A mineral discovery with potential will most likely be developed, possible somewhat delayed • Transport solutions in geological attractive regions will support new discoveries to become economically feasible. • The low traffic volume road network is important for forestry • Transportation of raw materials should be planned from a Barents perspective in order to achieve optimal solutions • Alternative solutions to railway should be evaluated on certain stretches (road, heavier trucks, pipeline, etc.) • Transportation could be developed in steps – until the ultimate solution is in place for each case • Think outside the box! Test new solutions! • Industry needs investments now to meet the demand!



Thank you! Krister Palo EU-coordinator / Strategic planner Direct: +46920- 24 37 22 Mobile: +4670- 34 34 206 Trafikverket/The Swedish Transport Administration P.O Box 809 Sundsbacken 2-4 971 25 Lule책 Sweden Phone: +46771- 921 921




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