Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The entire Swedish city of Kiruna has begun a long-planned and quite challenging relocation to an area situated about 3km (2miles) east, after ground fissures created by iron ore mining activity weakened the ground beneath it.
The decision, however, didn’t take any local by surprise. In fact, mining company Luossavaara-Kiirunavaara AB (LKAB) has planned moving the nearly 18,000 residents of Kiruna and most of the city’s buildings since 2004.
Map based on Google maps.
Over the next two decades, about 3,000 apartments and houses, several hotels, and 2.2 million square feet of office, school and health-care space will relocate east.
While some residents of what is Sweden’s most northern town have moved already, the first of the town’s historic buildings was hoisted up on a truck Wednesday and transported to its new location, Radio Sweden reported.
Via @eyeonthearctic
State-owned LKAB, which is Kiruna’s largest employer, has been digging deeper for ore in the area, which has increased the risk of Kiruna suddenly sinking into a hole.
The company had alerted authorities that mining more iron ore would mean further excavation, which —in turn— would destabilize the city’s centre. But instead of closing the mine, the municipality decided to relocate the town.
Kiruna is not the only place LKAB is having to spend money in relocating people away from a mine. The town’s closest neighbour, Malmberget, is also undergoing a similar operation.
Unlike Kiruna, which is being moved to a place of its own, the town of Malmberget and its community will be assimilated into another city entirely — Gällivare — located around 5 km south.
LKAB is paying for a large proportion of both moves, though it has said it is impossible to accurately ascertain the total costs.
Here’s how the relocation is going so far:
2 Comments
David Jack
What about LKAB Malmberget? The move has already begun why does only Kiruna get a mention?
Altaf
Great article. Developing nations should learn a lesson or two from this.
I see three parties in this whole episode. The Government, the industry, the people. If every one becomes positive, bears some loss or discomfort every one will be happy in the end.
In developing nations, any major project always consist of some scandal. Either govt colludes with Corporates in kicking out people without proper compensation or jobs. In some cases local politicians form mafia in stalling the projects by instigating locals in demanding more money or more jobs or more CSR. Always there is some problem. It never was amicable.