LKAB is providing measures worth 1.8 billion kronor to rescue Kiruna municipality's finances. The sum exactly covers the shortfall the municipality faces for the ongoing stage of the city relocation.
LKAB and Kiruna municipality have signed a new collaboration agreement for the continued societal transformation. The agreement means LKAB takes over infrastructure projects and constructions for which the municipality has already received compensation, valued at 1.1 billion kronor. In addition, LKAB pays compensation for land and properties that may amount to approximately 700 million kronor.
Municipal councillor Mats Taaveniku and LKAB CEO Johan Menckel state in a joint announcement that society and the mine must develop together. Stefan Hämäläinen, director of societal development at LKAB, says the company now assumes direct responsibility to secure land and infrastructure.
In May the municipality announced it lacked 1.8 billion kronor for necessary investments. The agreements require decisions in an extra municipal council meeting on 29 June and approval by LKAB's board.