2. A world without steel is unthinkable.
Steel is made from Iron ore and is recyclable.
2
3. Responsibility
Put safety first.
Keep your promises.
Care about the environment
and the places where we
operate.
LKAB’s values
Innovation
Welcome new ideas.
Be open to differences.
Find new solutions.
Commitment
Take the initiative.
Do that little extra.
Increase our efficiency.
6. Kiruna
Under ground
mining and
processing
Malmberget
Under ground
mining and
processing
Svappavaara
Open pit mining
and processing
Luleå
Harbour and
Head Office
Narvik
Harbour
Malmbanan
Railway Narvik -
Luleå
IRON ORE OPERATIONS
7. Harbours
Mines and processing plants
Sales and/or purchasing offices
LKAB Minerals and LKAB
Wassara
LKAB WORLDWIDE
8. LKAB accounts for 90 % of the
iron ore produced in the E.U.
Sweden has 60 % of Europe’s
iron ore assets.
PRODUCTION
KÄLLA: USGS; RGM
8
Production EU27
90 %
LKAB
10 %
Others
9. GROWTH OF THE IRON ORE MARKET
(SEABORNE) 2000 – 2021F
Source: CRU Iron Ore Market Outlook Dec 2011 & Jan 2013
11. PRODUCTION AND SALES
Pellets BF
63%
Products
Special 4%
Fines 12%
Pellets DR
21%
Blast furnace pellets (BF) for manufacturing with coal
Direct reduction pellets (DR) for manufacturing with natural gas
Market (Revenues)
Europe 67%
MENA & Asien
32%
Others 1%
13. GLOBAL EXPORTS OF IRON ORE (VOLUME)
Australia
39%
Brazil 31%
CIS 6.7%
India 4.5 %
Lat. Am. 2.7 %
Others 4.5% Sweden
Africa 1% 1.8%
South Africa
4.6%
Canada 3%
CIS: Commonwealth of Independent States (members of the former Soviet Republics)
Source UNCTAD Iron Ore Statistics 2012.
14. LKAB green pellets
Magnetite oxidises during the manufacturing
of pellets and thereby provides 60 procent
of the energy required.
LKAB has the world’s most energy-efficient
manufacturing process.
• Less fossil fuels
• Lower Co2 emissions
*Source: Swerea/MEFOS 2010 ”Benchmarking of carbon dioxide
emissions from iron ore pelletizing” av Lawrence Hooey
16. The quantity of iron LKAB takes up
from its underground mines per day
is equivalent to 6 Eiffel Towers
From 2015 the open pit mines
in Svappavaara is planned
to give iron equivalent to
2 Eiffel Towers.
Kiruna
Malmberget
Svappavaara
17. E10 highway
towards Kiruna
Mertainen
Start planned in 2015
Malmbanan
railroad
Gruvberget
In operation May 2010 -
June 2012. Plans to
restart operations
before 2015
Power network
Leveäniemi
Start planned in 2015
THE SVAPPAVAARA FIELD
- EUROPE’S BIGGEST IRON ORE PROJECT
18. New railway
Capaciity-raising measures KK4
KUJ 1365
New sluices Luossajärvi
Upgrading of control system and process plants
Mining machinery
New dam Luossajärvi
Underground workshops and
150 new residential properties
Luossavaara
New laboratory
areas for workers
Reconstruction of barracks 24 new apartments
Jägarskolan
4 new locomotives and 5 new
carraige sets
Mining town park, stage 1
50 new apartments Jägarskolan
Infrastructure below
ground
Storeage facilities for coal
Upgrading of locomotive
terminal
More efficient train
operations
Construction of dams
Railway connection of terminal
tracks
New approaches and roads
ONGOING AND PLANNED INVESTMENTS
IN KIRUNA
19. M1250
Mining machinery
Dam raising
Infrastructure
below ground
New evacuation road
Improved ventilation
Acquisition and new
construction Granbacka
Agglomeration laboratory
New entrance and
office
More secure
electricity supplies
Upgrading of
purification plant
Upgrading of the
infrastructure
4 new locomotives and 5 new
carraige sets
More efficient train
operations
More efficient
warehousing
Replacement accomodation
for student housing area
ONGOING AND PLANNED INVESTMENTS IN
MALMBERGET
New flue-gas cleaning
20. New freight outbound
New freight inbound
for additives
Gruvberget
Collages
Dam measures
Drainage Leveäniemi
Mertainen
ONGOING AND PLANNED INVESTMENTS
IN SVAPPAVAARA
Reconstruction of terminal
4 new locomotives and 5 new
carraige sets
More efficient train operations
21. Land acquisition Upgrading
Lundberg storage buildning
New additives-handling
facility
Environmental and risk-reducing
measures
4 new locomotives and 5 new
carraige sets
More efficient train operations
ONGOING AND PLANNED INVESTMENTS
IN NARVIK
22. • The capacity of Malmbanan
• Uncertainty about the time required for
granting of permits
• Competence requirements
• Attractive urban development
• Housing
• Energy
• Costs
GROWTH CHALLENGES
24. EXPANSIVE MALMFÄLTEN
LKAB has a workforce of about
4,200 and employs some
11,500 contractors and
consultants in the region.
Open unemployment in Kiruna,
in October 2012 was 328
people. (504 job vacancies).
LKAB has decided to build 500
homes in Kiruna and Gällivare
by 2015.
25. 1000 NEW EMPLOYEES BY 2015
Great need to recruit
The largest occupational groups
needed are miners, mechanics/repair
men and engineers. There are needs
in just over 180 occupations.
Furthermore
Suppliers are much needed, not
least within construction and in the
major ongoing projects in the
Swedish ore fields.
26. LKAB Trading Shanghai
LKAB Purchase Organisation
Support & Purchasing
Development
C Purch.
Material supply chain
Investments &
Urban transformation
Strategic
Purchasing
Operating
Purchases
Energy, Raw Materials
& Additives
27. TRANSFORMATION
• Price negotiations
• Monitoring deliveries
• Administration
• Waiting for assignments
• Working independently
• Involved late in the process
27
Now
• Long-term solutions, focusing on the total cost
• Developing ourselves and suppliers
• Global market knowledge
• Interaction between internal customers and
purchasers
• Early involvement in processes
• Sustainability is a natural part of the business
Before
28. INCREASE COOPERATION WITH THE SUPPLIER BASE
28
Supplier LKAB
Purchasing
Increased cooperation
LKAB’s customers
• Lower total cost
• Higher productivity
• Improved quality
• Shorter lead times
• Increased value
•Higher customer satisfaction
• Increased competitiveness
• Safety
• Sustainability
• Innovation
• Attractive LKAB
” Business development is one of the most important
activities to strengthen our competitiveness”
29. HOW DOES A COMPANY BECOME AN LKAB
SUPPLIER?
29
28/10/2014
31. On this page
you will find
information for
LKAB suppliers.
It also contains
information for
prospective LKAB
suppliers.
31
28/10/2014
32. Then click
on “supplier
portal”. Here
you can create
an account,
which you will
need to do
before you can
become an
LKAB supplier.
32
28/10/2014
33. 33
Log in here or create
an account for LKAB’s
supplier portal.
28/10/2014
34. 34
28/10/2014
You have now created an
account for your company on
LKAB’s supplier portal. In doing
so, you have also declared your
acceptance of LKAB’s Basic
Requirements for Suppliers.
35. 35
INFORMATION 28/10/2014
Only one acceptance per company is required. It is OK, however, for the Basic
Requirements to be accepted by several different users at the same company.
You will need to accept the Basic Requirements for the whole of your company.
You will also need to accept the Basic Requirements for any specific tenders that
you submit via the supplier portal.
If you would like your company to be an LKAB supplier, you must first accept the
Basic Requirements for the whole of your company. In doing so, you confirm that your
company complies with these Basic Requirements. LKAB’s Purchasing department
will then follow a process to potentially add you as an LKAB supplier.
All existing LKAB suppliers must accept the Basic Requirements for their company.
All companies wishing to be an LKAB supplier must accept LKAB’s Basic
Requirements for their company.
36. 36
Any questions?
For technical support
concerning the portal:
Click on “contact us”
at the bottom of the
supplier portal.
For questions about
tenders and requirements
specifications:
Contact responsible
purchaser.
28/10/2014