The review must answer whether the government and LKAB have acted in a business-like manner in planning the restructuring of LKAB.
– With such large investments there are always risks that must be managed, says Auditor General Helena Lindberg.
The industrial boom in the north
The National Audit Office’s review is welcomed by LKAB
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Great investment
LKAB’s planned conversion has, among other things, been criticized for being expensive and with unclear expected returns.
At present, LKAB mainly manufactures iron ore pellets, which are a less refined product. The exact investment cost for fossil-free production is still uncertain, but LKAB is planning for investments of hundreds of billions of kroner over a twenty-year period.
Sees several potential risks
The National Audit Office has identified a number of possible risks with the conversion that could affect its profitability. For example, it can be about high electricity prices, risk of delays, underestimated investment costs and large-scale application of an immature technology.
The National Audit Office’s report must be ready in April 2025.
In the clip: Hear project manager Magnus Landergren about the review.