Kiruna: A Historic Project to Relocate a City and Expand Sweden's Mining Industry

Photo by Kevin A: https://www.pexels.com

Some time ago, I learned about this project through a good friend who lives in Kiruna. I’ve always been curious about northern Sweden – it seems less populated than the rest of the country. When I arrived here five years ago, I asked my friends about the area, and they mentioned mining. As someone from Chile, where mining plays a major role in the economy, I found it interesting. I’ve often thought that the mining industry should grow in Sweden, and now, when the topic of Kiruna came up again, I felt it was time to explore and reflect on this incredible project.

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The relocation of Kiruna is a unique and challenging project that involves economic, social, and geological factors. The reason for this move is the large iron ore deposits beneath the city, owned by the company LKAB (Luossavaara-Kiirunavaara AB), one of the world’s largest iron ore producers.

Why is the city of Kiruna being relocated?
Underground mining in Kiruna has caused damage to the city as the ground has shifted due to the excavation of the iron ore deposits. Buildings have cracked, and the ground has subsided, creating risks for the safety and stability of the city.
To protect the residents and continue mining activities, the Swedish government and LKAB decided to relocate the city to a nearby area. This involves moving the entire urban infrastructure, including housing, services, and rehoming the population.

Costs of Relocation and Mining Benefits
The cost of relocating the city is significant, but some argue that it could be a profitable investment in the long term. Here are the major costs and investments associated with the project:

• Relocation Cost: The total estimated cost of relocating Kiruna is 1,000 million Swedish crowns (approximately 100 million USD), which covers the construction of new housing, infrastructure, and the relocation of residents.
• Infrastructure Investment: LKAB has allocated 227 million Swedish crowns (approximately 22.7 million USD) to improve basic infrastructure in Kiruna.
• Timeline: The full relocation is expected to be completed by 2035, with the gradual relocation of over 6,000 people and around 3,000 homes.

Relocation of Historic Buildings
Some historical and cultural buildings, such as the Kiruna Church, one of the city's most iconic buildings, will also be relocated or reconstructed. This part of the project adds further costs and logistical challenges. Kiruna Church, originally built in the 20th century and a symbol of the city, is planned to be moved and rebuilt at a new location, with the project scheduled to be completed by 2026. This is one of the most visible and emotionally significant aspects of the relocation.

Arguments for and Against the Relocation

• In favor of the relocation:

The exploitation of the iron ore deposits is crucial for Sweden’s economy, as the Kiruna mine is one of the largest in the world. In the long term, mining remains profitable, and job creation, along with the strategic importance of the resources, can justify the costs of relocating the city.

• Against the relocation:

However, some critics argue that the cost of moving an entire city, with all its infrastructure, is too high. Additionally, the social and emotional impact on the residents is considerable, as they must leave their historic homes.

Key Players in the Project

1. The Swedish Government: Plays a key role in financing the relocation and ensuring that the process is carried out efficiently.
2. LKAB: As the mining company responsible, LKAB also finances part of the relocation and ensures the mine continues to operate profitably.
3. The Residents of Kiruna: They must adapt to a new life and leave their homes behind.
4. Construction Companies and Urban Planners: They assist in building and planning Kiruna’s new infrastructure.

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The Kiruna Mine and Its Economic Impact
The Kiruna mine is one of the largest in the world, with approximately 2,000 million tons of iron ore. The need to access these resources justifies the city’s relocation. The mine is expected to continue operations for at least 50 more years, ensuring its importance for Sweden’s economy.

Mining in Sweden and Comparison with Chile:

• Mining Growth in Sweden: Sweden is one of the leading producers of iron ore in Europe, with an annual production of over 25 million tons. Gold production is also growing in the country’s northern regions, and new deposits, including rare earth metals and precious metals, are being explored.
  • Key Minerals: Iron ore, gold, rare earth metals, and precious metals.
  • Medium-term Projections: Mining is expected to grow, particularly due to the expansion of Kiruna and the adoption of more sustainable technologies.
• ​​Comparison with Mining in Chile: Chile is the world’s leading producer of copper and lithium, while Sweden primarily focuses on iron ore. Here are some key differences:
  • Copper: Chile is the largest global producer, while Sweden produces smaller amounts.
  • Lithium: Chile is a major lithium producer, while Sweden has no significant lithium industry.
  • Gold: Chile produces more than 40 tons of gold annually, while Sweden produces around 5-6 tons.
  • Iron Ore: Sweden, through the Kiruna mine, is a key player in Europe, but on a global scale, Chile is more prominent in other metals.

Economic Impact of Mining in Both Countries

• Chile: Mining accounts for over 50% of exports and is crucial to the country's economy, especially copper and lithium.
• Sweden: While mining is not the largest contributor to Sweden’s GDP, iron ore, particularly from the Kiruna mine, remains an important part of the economy and creates jobs, especially in northern Sweden.

The Kiruna relocation project is part of a larger effort to expand underground iron ore mining in Sweden, a sector that remains vital to the country’s economy. In the long term, iron ore mining will continue to be an important source of income, although the comparison with Chile’s mining industry shows different focuses. While Chile is a global giant in copper and lithium production, Sweden specializes in iron ore and gold, with a growing focus on sustainable mining.

It’s truly impressive to see how Sweden tackles such big challenges. Kiruna is being relocated to enable a future for the mining industry, and this project highlights Sweden's remarkable engineering and long-term economic vision.

Mario Contreras

Big thanks to Andreas D., my friend who lives in Kiruna, for inspiring me to explore this topic.

Sources  references:

• LKAB - Samhällsomvandling Kiruna

Information about the transformation and relocation of the city of Kiruna and its historical significance.

• Dagens Samhälle - LKAB's Investment in Kiruna

Article discussing LKAB's investment in infrastructure and the relocation process.

• The World Bank - Chile Mining Industry

Information on Chile's mining industry, with a focus on copper and lithium production.

• Statista - Swedish Mining Production

Statistics on Sweden's mining production, including iron ore and precious metals.
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