Swedish-based iron ore producer LKAB has stated that it has been forced to declare force majeure due to circumstances beyond its control arising from a major strike in Norway.
Approximately 25,000-30,000 public sector employees went on strike in Norway on May 24 because they are not satisfied with the response to their salary claims in the on going negotiations with the Norwegian government.
The strike affects personnel at the Norwegian National Rail Administration and, in consequence, it also affects railway traffic between Narvik in Norway and Kiruna in Sweden. There has not been any progress on an agreement in recent days and LKAB's iron ore stocks in Narvik are now running low. In addition, the company has no information on how long the strike may continue.
At the world's largest underground iron ore mine in Kiruna, LKAB produces iron ore pellets for blast furnaces and direct reduction plants to European steelworks as well as for markets in North Africa, the Middle East and South East Asia. LKAB ships the majority of its production to the export markets via Narvik.
In its press release, LKAB said it regrets the situation, adding that its marketing division will contact customers to discuss the management of deliveries.