- Output recovery to prior levels expected by 2027
- Middle East-linked plant chosen amid delivery disruptions
State-owned Swedish mining company LKAB has announced a temporary reduction in production at its Kiruna mine, with one of its pellet plants (KK3) scheduled to remain offline from mid-April through November. The move is expected to cut deliveries by approximately 2 million tonnes in 2026. The company attributed the decision to changing mechanical conditions in the rock mass, requiring a revision of the mining sequence. As a result, output will be scaled back in the near term to maintain safe and stable operations.
Lower upstream ore production will reduce feed availability for pelletising, leading LKAB to idle the KK3 plant. The choice of this unit was also influenced by ongoing disruptions to Middle East-bound shipments, as a significant share of volumes to the region is processed through KK3. To mitigate the impact, LKAB is assessing alternative mining areas within Kiruna. Production is expected to recover to near-normal levels by 2027.
Meanwhile, LKAB’s pellet output stood at 6.5 mnt in Q4CY’25, up by 14% from 5.7 mnt in Q4CY’24. This was due to smoother operations on the Iron Ore Line, supported by sustained efforts to maintain stable production. Also, y-o-y production totalled 25.9 mnt, higher by 14% against 22.7 mnt in CY’24.
Market impact
The temporary cut could slightly tighten pellet availability in the global market, although the impact may remain limited given weak flows to disrupted regions and LKAB’s mitigation measures.
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