Swedish iron ore producer LKAB has announced that it has signed agreements on long-term cooperation with construction companies NCC and Peab to build a fossil-free direct reduced iron (DRI) plant in Malmfälten.
The strategic collaboration between LKAB and NCC includes a declaration of intent regarding a DRI plant and surrounding infrastructure in Gällivare. The companies have already started planning works to be able to share their experience and knowledge to come up with concrete solutions for various development projects in the Malmfälten that LKAB plans to build in the next few years.
Meanwhile, the collaboration with Peab refers to an execution contract for LKAB's planned hydrogen plant, including infrastructure and foundation work as well as harbour work in Luleå.
"We are planning a gradual expansion and transition of our operations to enhance our competitiveness and reduce emissions in the iron and steel industry during a long period of major investments in northern Sweden, starting in Gällivare. With our growing mineral resources of high-quality ore, Sweden's almost fossil-free electricity system, and the technology we have developed as part of the hybrid collaboration, we are a driving force in the creation of the fossil-free industrial supply chains that will build our competitiveness and the competitiveness of Swedish industry,” Jan Moström, President and CEO of LKAB, commented.