The Relocation of Kiruna: "The State Need to Contribute With More Land and Economic Support"
Deeper mining, changed production direction and a seismic event in 2020 have resulted in ground deformations that are creating new conditions in Kiruna. Mining affects the ground over time, and new areas must be converted into industrial areas for the continued mining of the current main level, 1365 meters underground. At the press conference on September 12th, Kiruna's municipal councilor Mats Taaveniku (right) and Stefan Hämäläinen, Senior Vice President of Community Development at LKAB, informed about the new requirements. (Photo: Screenshot from the press conference)
The ongoing relocation of the city of Kiruna in Northern Sweden has reached a critical point at which LKAB and the municipality ask the state for significant financial support and release of a larger area in order for the mining operations to continue.
In August, the Swedish state-owned mining company LKAB announced that the mining operations are having a greater impact on the ground than expected, and that a significantly larger area will be located within the fracture zone.
An additional 650 houses and 20 businesses must be relocated. Almost 7000 people will be impacted by the changes.
Kiruna municipality is now working to identify potential areas for development to support the continued relocation of the city, allowing mining operations to continue.
The majority of the additional area that must be utilized is owned by the state and affects various national interests, including reindeer herding.
The state must prioritize here, said Kiruna municipal council representative Mats Taaveniku at a press conference on Friday.
LKAB and the municipality are mutually dependent on each other
In dialogue
The municipality and LKAB are now in dialogue with the Swedish state on access to land and financial support, and LKAB has developed a plan for the extended area affected by the mining operation.
The exact amount requested has not been made public, but it is said to cover a significant portion of the relocation costs, including infrastructure development, housing and compensation for residents in the area.
All property owners and tenants who choose financial compensation instead of a new home will now be offered a rental home in LKAB real estate.
Mutual dependence
"LKAB and the municipality are mutually dependent on each other, and it is good that we can stand side by side even though we still lack the state's participation in this. At the moment, it is too early to say exactly how the city will develop," says Taaveniku in a press release.
He says that neither LKAB nor the municipality can solve the challenges of needing a larger area for mining. In order for the residents of the expanded area to be able to move, the municipality needs access to building land.
Since the transformation of Kiruna began to be planned in 2004, LKAB has made forecasts of the land impact caused by the mine. The extent of the impact area has been updated over the years based on the shape and location of the ore body, the nature of the bedrock, measurement results and mining plans. This latest update means that more land now needs to be reclaimed. (Map: LKAB)
"Therefore, the state must assist us in five crucial areas: land, housing, expertise, a holistic cityscape, and depreciation costs. Without this, we will have significantly greater concerns to deal with, says Taaveniku.
Wants people to stay
LKAB will offer those who need to move from permanent housing the opportunity of a new home. Those who choose to sell to LKAB for market value plus 25 percent extra will also be offered a rental through LKAB's own property company.
In addition, homeowners who choose a new house but prefer a smaller one will be given the option, with LKAB paying the difference. For tenants, LKAB will enter into a dialogue with the Tenants' Association to find a good solution.
"We will do what we can to ensure that people stay in the municipality, and this will hopefully give Kiruna residents better conditions to plan for the future. Our starting point is to be able to offer those who need to move the opportunity to choose different types of compensation solutions," says Stefan Hämäläinen, Senior Vice President of Community Development at LKAB.
LKAB has invited everyone affected by the extended relocation to meetings to share information and listen to their views.
