Swedish iron ore miner LKAB expects demand for iron ore in 2021 to remain strong but foresees an impact on its business through the year due to the pandemic.
The firm also announced that it is working to become the largest supplier of sponge iron as raw material for fossil free steel. Its urban transformation work is in a critical phase and the company expects an increased expenditure in 2021.
Production of iron ore remained unchanged in Q1 2021 at 7.4mn mt compared to Q1 2020 while its deliveries dropped to 6.9mn mt in the first quarter of the year compared to 7.3mn mt in the same quarter last year.
LKAB’s net sales increased to SEK 12.2bn ($1.4bn) in Q1 2021 compared to SEK 8bn from the same quarter in 2021. The company’s operating profit increased to SEK7.1bn in the first three months of the year compared to SEK3.1bn in the same months last year.
($1 = SEK8.43)