Lars-Eric Aaro, vd och koncernchef - Nordic · PDF filea high tech underground mine. the core...
Transcript of Lars-Eric Aaro, vd och koncernchef - Nordic · PDF filea high tech underground mine. the core...
Lars-Eric Aaro, vd och koncernchef
Framtidens Gruv- och Mineralindustri LKAB – Sveriges största industriinvesterare växer vidare
since more than hundred years
a high tech underground mine
the core of LKAB
LKAB’s mission is, based on the Swedish orefields, to manufacture and deliver to the world market upgraded iron ore products and services that create added value for customers.
What makes us unique:• Long-term relationships with customers • Unique knowledge and skills• Access to magnetite
the advantages of magnetite and innovative development, a green pellet
• Magnetite oxidizes to hematite during pellet manufacture - 60% of the thermal energy for pellet production comes from oxidation.
• The input of fossil fuels is one third of that required in the production of hematite pellets.
• Carbondioxide-emission from mine to sinter and pellets are one-seventh per tonne crude steel of what they are in the alternative process route
”LKAB Green Pellets”
• Swedish company• 4,000 employees • In about 15 countries • 15 % of the employees abroad
worldwide
HEAD OFFICE SALES & MARKETING DIVISION MINING DIVISION MINERALS DIVISION SPECIAL BUSINESSES DIVISION
worldwide
PELLETS 88 %FINES 7 %
production capacity
SPECIAL PRODUCTS 4 %
GermanySwedenFinlandNetherlandsSaudi Arabia
EUROPE 74%MIDDLE EAST ANDNORTH AFRICA 21%
SOUTH EAST ASIA AND FAR EAST 5 %
sales per market
the global iron ore market
LKAB’s exports are about 3 percent of the total seaborne trade in iron ore.
• Produktion av järnmalm i världen 2009-2015 (est)
Järn- och stålmarknaden
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Mt
3 miljarder 2050 enligt Arcelor
the LKAB iron ore market
Europe
•
Stable market for steel and iron ore – low growth.
•
More cyclical sensitive than eg U.S. and Asia.
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Dependent on imports of iron ore.
•
Europe is a pellet market.
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LKAB has a proximity, which means short lead times and less security stock.
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Trading of CO2
in EU will likely encourage the use of LKAB pellets.
North Africa and Middle East
•
Strong economy provides stability, high growth with growing steel demand.
•
Cheap energy in the form of natural gas makes it a major DR Pellet market.
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Dependent on imports of iron ore.
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LKAB has an advantage of Value in Use.
European steel production has been cyclical, but fairly constant over time (left graph) ‐
but with fewer
blast furnaces that produce more (right graph)
•Steel Demand in Europe 1975‐2008 (in boxes Avg growth over the
period)
•Steel Production in Europe, number of blast furnaces, and the
annual output per furnace
ARTIC CIRCLE
the region of LKABthe region of LKAB
NORWAY SWEDEN FINLAND
RUSSIA
Luleå
Malmberget
SvappavaaraKiruna
Narvik
Luleå
production structure of LKAB
Mines Sorting Concentrating Pelletizing Products Harbours
Kiruna
Malmberget
PELLETS
FINES
PELLETS
NARVIK
LULEÅ
SOUTH
ERN SYSTEM
NO
RTH
ERN
SYS
TEM
Svappavaara Svappavaara
40 km
the orebody in Kiruna
A continuous orebody, 4 km long, 80 m wide and a known depth of 1500 m (below zero point).
The present main level is at 1,045 m (from zero point) and a new one is being built at 1,365.
The decision for a new main level was taken in October 2008. Estimated cost is 12.4 billion kronor.
Mining began around 1900.
LKAB’s underground mining method
sublevel caving
Development
Production drilling and blasting
Loading
Dumping in shaft
Loading to trains (trucks in Malmberget) and haulage to crusher
communities in transition
• Investeringar
2001
2006
2010 >2010
19,5 Mt
23,3 Mt
28 Mt
30 Mt
investments for the futureMalmberget Kiruna Logistics Narvik Harbour
Main haulage level
in Kiruna &
Malmberget
New mines in
Svappavaara
(Open pit)
SILA – storage facilities
the growth in LKAB
Year: 2001 2006 2010 >2015
Mt: 19,5 23,3 28,0 37
LKAB 37
Mine Pellet production Logistic Harbour
LKAB Value chain
20
30
40
Mt
28 Mt
Pellet plant, KK4
Pellet plant, MK3
20 Mt
33 MtNew locomotivesNew ore carsUpgrading terminals26 Mt
33 Mt
Sila, Narvik
26 Mtx
x
x x
x
x x37 Mt3 New minesKUJ 1365M 125026 Mt
x
production structure of LKAB
Mines Sorting Concentrating Pelletizing Products Harbours
Kiruna
Malmberget
PELLETS
FINES
PELLETS
NARVIK
LULEÅ
SOUTH
ERN SYSTEM
NO
RTH
ERN
SYS
TEM
Svappavaara Svappavaara
New miningProjects
Svappavaara
40 km
Europe’s biggest iron ore project
MertainenProved ore reserves:150 Mt, some magnetite
GruvbergetProved ore reserves:25 Mt magnetite50 Mt hematite
LeveäniemiProved ore reserves:100 Mt magnetite
Using pellets base on well defined raw material
together optimized additives for high performance,
gives steelmaker advantages.
value‐in‐use
• LKAB Green Pellets• Long-term• World-leading R&D• Total quality from mine to customer• Sustainability
added value for the steel industry
performance in ironmaking
LKAB Ironmaking Research Centre (IRC)• Experimental Blast Furnace (EBF), Luleå• Experimental Combustion Furnace (ECF), Luleå• Air Liquide (VPS1), Luleå• Pelletizing Research Centre, Malmberget (Aug´11)• Experimental DR shaft (EDRP)- future, Luleå
Hjalmar Lundbohm Research Centre (HLRC) at LTU• 20 PhD-researchstudents
LKAB Excellence Center in Mining and Metallurgy at LTU• 5 new professors
Tillväxtstrategi i 3 dimensioner
• Säker och resurssnål produktionProduktion i världsklass
• Attraktiva LKABSveriges bästa arbetsgivare
• LKAB 37
• Prospektering• Tillväxtmöjligheter
- Nyttja våra styrkor för att växa
Tillväxt
Framtida möjligheter
Förädla och trimma dagens verksamhet
< 3 år 2 - 4 år > 2 - 7årFÖRVÄNTAT RESULTAT
(Ur LKAB 2012, Mål och strategiska aktiviteter)
Strategiska områden
thank you for your attention!
Climate smart by nature. LKAB Green Pellets