Operating profit for the first quarter decreased by SEK 3.8 billion and amounted to SEK 1.4 billion, the company writes in the interim report.
As a result, the operating cash flow was negative during the quarter and amounted to minus SEK 1.5 billion, states LKAB.
Derailment on the Malmbanan at Vassijaure
Norrtåg rejects LKAB’s proposal for stopped passenger traffic on the Malmbanan: “Desperate”
Gruvtolvan’s chairman on the crisis on the Malmbanan: “Pause passenger traffic”
LKAB warned on April 12 that up to 300 people could be laid off due to delivery problems following the winter’s derailments on the Malmbanan.
The expansion plans
Due to the limited capacity on the Malmbanan, LKAB has announced that production will be reduced by approximately one million tonnes on an annual basis.
– Optimizing the use of the Ore Road as well as structural changes are necessary for us to be able to realize our expansion plan and the investments we are facing, which means that we take advantage of the enormous mineral resources we have, says Jan Moström, president and CEO.
“The need for adjustment”
He further says that LKAB is working intensively together with the Swedish Transport Administration and Norwegian BaneNor to “be able to generate the necessary cash flows again”.
– SSAB’s decision to change operations in Luleå confirms the need for our change in Gällivare and our contribution to a sustainable value chain for the climate, says Jan Moström.
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It has been a tough winter for the ore transports along the Malmbanan – see pictures from the drama and hear about the tours. Photo: SVT