Swedish-based iron ore producer LKAB has announced that it has decided to renegotiate all major supplier agreements to ensure the company's competitiveness amid falling iron ore prices. The company aims to reduce costs significantly.
According to LKAB, iron ore prices fell by more than 50 percent in 2014 and continue to fall, giving LKAB entirely new market conditions and affecting the company's profitability.
LKAB stated that the renegotiations start on February 10 and all supplier agreements will be reviewed and renegotiated.