Swedish iron ore producer LKAB has announced a temporary reduction in production at its Kiruna iron ore mine, with deliveries expected to decline by approximately two million mt in 2026. The decision is linked to changes in mining conditions, prompting adjustments to ensure long-term operational stability. The lower ore supply from the mine will directly impact pellet production volumes.
As part of the plan, one of the pellet plants will be temporarily shut down from mid-April until November, reducing processing capacity during this period.
Impact linked to Middle East delivery disruptions
The selection of the pellet plant for the shutdown was also influenced by disruptions to deliveries to the Middle East, as a significant share of output processed at this facility is destined for that region.
Production expected to recover by 2027
The company expects to return to production levels in line with previous years as early as 2027, once mining conditions stabilize and operations are adjusted. In the meantime, LKAB is evaluating the use of other parts of the mine to mitigate the impact of reduced output.
Despite the temporary production cuts, LKAB stated that no layoffs are planned, with employees to be reassigned within the company during the shutdown period. The downtime will also be used for maintenance and operational planning at the pellet plant.