LKAB`s urBAn trAnsformAtion in KirunA And mALmBerget

Future
LKAB’s urban transformation in Kiruna and Malmberget
2
Contents
Urban transformation in the Swedish orefields
The history of LKAB and the Swedish orefields spans more than
125 years. Iron ore and mining operations have laid the foundation
for vibrant communities where people have realized dreams of a
good life. This must continue in the future.
Therefore, LKAB must continuously evolve: new main haulage
levels must be built, the company’s upgrading processes must be
world leading and its infrastructure reliable. If LKAB is to continue
creating prosperity by generating jobs, paying taxes and playing
an active role in these communities, we must – in the future –
mine the ore that rests under the land currently occupied by local
residents. Successful urban transformations will pave the way
for successful mining operations and a shared future for two of
LKAB’s operating locations: Kiruna and Malmberget.
Kiruna
Malmberget
Contents
Contents
This is LKAB
05It all begins with iron
Why urban transformation?
06A national treasure
07Working together to develop communities
Urban transformation in Kiruna
08 Relocating parts of a community
10 Development before phase-out
11 The Persson family feels at home
12 Life between the buildings
Urban transformation in Malmberget
14 Phasing out a community
16 A changing community
17 This is how I want to live
18 A wealth of opportunities
Urban transformation perspectives
20 Extensive planning
21 Ground movements determine the pace
22 An international perspective
23 Glossary
3
4
This is LKAB
FROM THE SWEDISH OREFIELDS TO THE WORLD
LKAB’s objective is to be one of the most innovative, resource-efficient
and responsible mining companies in the world.
.
This is LKAB
5
One of the earliest ore trains from Malmberget to Luleå in 1888.
It all begins with iron
Ever since man learned to extract ferrrous minerals from
the earth, steel has been in high demand. No other material
has meant as much to the development of modern society.
Steel production requires iron. Although iron
is the fourth most common element in the
earth’s crust, the quality, amount and price
of the mineral determine whether it is worth
mining or not. These factors are also used to
determine if it can be called iron ore.
LKAB’s 125-year history begins with
iron and the completion of the ore railway
(Malmbanan) for rail transport to the ports
of Narvik and Luleå. Logistics made the iron
ore profitable to mine, and available to steel
mill customers all over the world. Iron has
also made LKAB a growing supplier of industrial minerals and other LKAB-developed
innovations, products and services.
Fantastic magnetite
A long time ago, oxygen combined with iron
formed the minerals hematite and magnetite,
which are mined by the companies that
supply raw materials to steel mills worldwide. Hematite is more common and is the
type of ore mined in open pits in most of the
major mines around the world.
LKAB’s iron ore mainly consists of
magnetite in both underground and openpit mines. Magnetite accounts for only
one-tenth of the earth’s known iron ore
resources. The ore mined in LKAB’s mines
is high-grade with an iron content of 60 to
Since LKAB was
founded in 1890, more
than one and a half
billion tonnes of iron ore
has been extracted from
mines in the Swedish
orefields.
70 percent, and the grade increases with
the depth of the orebody.
Geology and innovation
Since LKAB was founded in 1890, more than
one and a half billion tonnes of iron ore has
been extracted from mines in the Swedish
orefields. The company has experienced both
good and bad times. Two things have led
LKAB through various difficulties: geology and
the ability to innovate.
The company’s transformation from a rawmaterial producer to a supplier of upgraded
iron ore products is the result of extensive
research and development aimed at improving the efficiency of production processes
and product development. Iron ore pellets
currently account for more than 80 percent of
LKAB’s sales. Processing magnetite into pellets
increases the ore’s market value. Not only
does the pelletization of magnetite require
less energy than hematite, it also offers other
benefits such as fewer waste products and
less wear in steel production. By applying a
long-term approach to everything we do and
promoting sustainable development, LKAB’s
vision is to be the supplier that provides the
best added value for its customers.
6
Why urban transformation?
A national treasure
The wealth of the Swedish orefields benefits Narvik and Luleå and the entire
region. Moreover, approximately 60 percent of LKAB’s annual earnings are
returned to the citizens of Sweden in the form of dividends and tax revenue to
the company’s owner – the Swedish State.
To ensure that mining operations continue in the Swedish
orefields, central parts of the operating locations Kiruna
and Malmberget must be relocated. This urban transformation is due to expansion of the mining operations and
the location of the orebodies. This is not a new development. Historically speaking, the landscape of Kiruna
and Malmberget has changed as urban areas have been
converted into industrial areas.
Communities change all the time, but the transformation is not always so obvious. There are many
examples of communities that are dependent on a
particular industry. However, it is less common for this
relationship to actually impact urban planning, architecture and infrastructure. This is the reality in the Swedish
orefields, and development is moving fast. The history
of Kiruna and Malmberget is more dynamic than most
other communities in Sweden. Mining at new levels
deeper underground will secure LKAB’s operations for
many years to come. At the same time, the company’s
ore mining is impacting the nearby communities, which
will undergo major changes over the coming decades.
Although urban transformation in the Swedish
orefields is extensive in many respects, it is not a unique
situation. Similar projects have been realized and are under way in other places around the world. However, what
makes current urban transformation in LKAB’s operating
locations unique are the magnitude and timescale. A total
of about 5,000 housing units and 700,000 square metres
of residential and commercial premises will be replaced
due to the impact of the mining operations.
Why urban transformation?
7
TOGETHER, WE
DEVELOP
COMMUNITIES
Urban transformation is a challenge for
everyone involved. In consultation with municipalities, residents, landowners, authorities,
reindeer herders and other stakeholders,
LKAB is working to ensure a sense of security and confidence in the future during the
urban transformation process.
Rational arguments are being weighed
against feelings, customs and traditions
against innovative thinking and visions.
Moving is a major adjustment in a person’s
life, especially when his or her old building
or neighbourhood will no longer exist.
Only by working together can we build
communities where we give as much
thought to life between the buildings as we
do to the buildings themselves. LKAB is part
of the community and it is therefore only natural that we are taking our environmental,
Garage rows measuring 15 metres long and six metres wide,
which belonged to a phased-out residential area, are being
relocated and rented out again.
social and financial responsibility seriously.
Today, this is known as sustainability –
something that we have been devoted to for
more than 125 years.
“Today, this is known as
sustainability
– something that we
have been devoted to for
more than 125 years.”
Iron ore – the heart of
the matter
Road 870, a seven-kilometre route to Nikkaluokta, was opened
in September 2015.
Development prior
to phase-out
One important starting point is that new
housing, services and infrastructure should
be completed and under construction before
LKAB phases out earlier development. We
want to help create attractive communities
with beautiful environments, a strong housing and labour market, and a rich variety of
entertainment, culture, sports and recreation.
To ensure a successful urban transformation, LKAB and the municipalities must reach
a mutual agreement when it comes to how
the transformation will be carried out and
who will be responsible for what throughout
the process. These decisions are regulated
through coordination, collaboration and
implementation agreements.
The urban transformation under way in
the area all began as a result of the mining
operations being carried out more than one
kilometre underground. LKAB does not mine
ore under areas where people live or visit.
Mining causes ground deformation – also referred to as ground movements. During iron
ore mining, the ground gradually collapses
as the ore is removed from the mine.
According to the Swedish Minerals Act,
LKAB is responsible for providing compensation for any impact and costs arising when
urban transformation is required as a result
of the company’s mining operations. This,
in turn, implies that the company is able
to reach an agreement with all property
owners. Accordingly, one of the main tasks of
LKAB’s urban transformation organisation is
to acquire buildings in the areas that will be
A rich life between the buildings creates a flourishing community
for everyone. Good communication is crucial, and LKAB will
maintain a constant dialogue with those concerned.
affected. To date, LKAB has financed several
major infrastructure projects and compensated the municipalities for premises used for
municipal operations.
10,000 5,000 700,000
people
housing units
square metres
The urban transformation in Kiruna and Malmberget is an extensive project whose effects will be far reaching.
Some 10,000 people will be impacted by 2035 as 5,000 homes and a total or 700,000 square metres of residential and
commercial premises are phased out and redeveloped.
8
Urban transformation in Kiruna
Relocating parts
of a community
The urban transformation in Kiruna has attracted considerable
attention from around the world. Never before has such a developed,
modern community undergone this type of transformation because an
industrial operation needed its land.
The first area of Kiruna scheduled for phase-out
– the area known as Mine city park 1 – is home
to Kiruna City Hall and its unique clock tower.
9
Urban transformation in Kiruna
Luossavaara
Luossajärvi
Buildable areas
Built areas
LKAB
P E T SAM O
LU OS SAVAAR A
Planned
rou
te
E1
0
N OR R M AL M
Kiruna
Built areas/
under construction
Other
Sandstensberget
Malmberget
Luleå
Impact areas
until about 2035
Jägarskolan 2
Community centre
Orebody at
level 1365
Terrassen
62 apartm.
Jägarskolan 1
46 apartm.
Town Hall
Passive house
Ahos Park
Hospital
pa r
NEW CITY CENTRE
Jägaren
k2
Kasen
Borgen Tvättstugan
Industrial park
Termiten
Fire station
LO M B O LO
Orebody at a depth
of about 1,000 m
Rymdvägen
Glaciären
30 apartm.
Videplan
0
Deformation
prediction
for main haulage
level at a depth
of 1,365 m
AlaLombolo
Raketen
Roa
d 87
500 m
Shooting range
KIRUNA
1
KIIRUN
AVAARA
KIIRUN
AVAARA
Church
city
Hjalmar
Lundbohmsgården
e
Min
k
par
city
Mine
LKAB
Vistas/Tjärnen
TT Nyhetsbyrån
The map shows the areas of Kiruna that will be phased out, and the areas that are suitable for developing new residential and commercial buildings. The map also shows the new town centre.
Phased-out areas become mine city parks
Historic buildings preserved
In 2004, the Municipality of Kiruna issued
a press release with the heading “We are
going to relocate a town.” The iron ore slab
in Kiruna slopes in under the community – and since the mining industry is so
important to Kiruna, the municipality is prepared to move parts of the town and hand
over the land to LKAB’s mining operations.
Most of the town centre, the Bolagsområdet area, the railway area and parts of
the Norrmalm and Östermalm districts will
be affected. This will be a gradual process
and when the areas have been phased out,
new park areas – known as mine city parks
– will be built, creating smooth transitions
between the mine and the town. LKAB’s
goal is to ensure that no one is forced to
live next to an industrial fence. As the urban
transformation continues, more and more
parks will be added until the affected areas
form one large park area.
A large proportion of the urban area
affected has cultural heritage value, so
LKAB and the municipality have agreed that
the company is responsible for preserving
certain buildings. The church and Hjalmar
Lundbohmsgården, for example, will be
relocated.
As part of its compensation to the community, LKAB is financing and carrying out an
extensive documentation project in collaboration with the Municipality of Kiruna.
This project is based on requirements
issued by the County Administrative Board
and National Heritage Board stipulating that
historic buildings and cultural sites must
be preserved before buildings are relocated
or phased out. Consideration must also be
given to other national heritage areas.
Bolagshotellet, the Ullspiran block and
Hjalmar Lundbohmsgården are examples of
buildings and areas that have been captured
in books, films and photos in order to preserve their memories for future generations.
In preparation for the move, Hjalmar Lundbohmsgården has
been meticulously documented in order to ensure that it is
properly rebuilt in its new location.
Agreements with the Municipality of Kiruna
The first buildings to be impacted by the
urban transformation are located in an area
known as Mine city park 1. The next area to be
impacted is known as Mine city park 2.
For each mine city park, an agreement is
signed with the Municipality of Kiruna regulating the financial compensation that LKAB
will pay to the municipality for municipal
infrastructure, land and properties. This compensation is to cover the costs for building
equivalent functionality, quality and size in the
new Kiruna.
The specifics of these agreements are
then finalised through implementation
agreements, which essentially determine who
will do what during the physical phase-out
process.
Kiruna Church, perhaps the town’s most characteristic building,
was completed in 1912 as a gift from LKAB to the parish.
10 Urban transformation in Kiruna
In 2015, LKAB Fastigheter built 62 new apartments in the Terassen area in Kiruna. At the same time, buildings 2 and 4 on the Ullspiran block were demolished.
Development before phase-out
When new districts are being developed and others phased out, LKAB and the municipality
have agreed that development is to precede the phasing-out process. The construction and
demolition processes cannot stop halfway; there must be more time to prepare new areas
before the existing ones are decommissioned.
The Municipality of Kiruna has adopted a
development plan for the new town centre,
which includes approximately 3,000 housing
units, a commercial centre, a hotel and
public buildings.
Under this agreement, LKAB has paid
a large sum of money to the municipality
to accelerate the construction of new buildings to enable the development of the new
Kiruna. At the same time, the existing urban
area will become an industrial area.
Compensation to those who need to relocate
In Kiruna, approximately 6,000 people will
have to move to new homes or premises.
These people are individuals with their own
unique feelings and connections – some
stronger than others – to their homes,
properties or neighbourhoods. The personal
value and love attached to individual places
is difficult to measure in monetary terms.
For LKAB, it is important to do the
right thing and provide stakeholders with
financial compensation, a new home or new
business premises.
LKAB constructing new buildings in Kiruna
Although LKAB is mainly responsible for the
financing, compensation and phasing-out of
the existing community, the company also
conducts new construction projects. For
example, LKAB is building a new City Hall to
replace the existing one. LKAB’s subsidiary,
LKAB Fastigheter, is building new homes
Urban transformation in Kiruna
11
Relocation to the new areas has already started
The Persson family feels
at home
Moving to a new apartment in the
Glaciären area was a major boost for
Linda Persson and her sons.
200
LKAB Fastigheter has built 200 new apartments, 46 of which
are located in the Jägarskolan area.
in attractive residential areas, but to increase
cost efficiency and reduce the risk of delays, it
is crucial that more players become involved in
rebuilding in the orefield communities.
The location was the most attractive
feature. With proximity to outdoor recreation areas, the children’s school and
their father, Linda didn’t hesitate for a
moment when offered the roughly
80-square-metre,
two-bedroom
apartment in
Glaciären.
“My ten-yearold twin boys live
with me every
other week and
the rest of the
time with their father, so this place was
perfect. We used to live in an area that
will eventually be demolished, so we
were in the priority queue for LKAB’s
apartments. When we got this opportunity, it was like a weight was lifted from
our shoulders. We had thought a lot
about where we would end up,” Linda
explains.
Glaciären is located in Kiruna’s Lombolo residential area – a child-friendly
area with a number of schools, daycare
facilities, sports centres and bus
connections nearby.
Glaciären houses 30 apartments
with varying floor plans: 20 twobedroom apartments and ten threebedroom apartments. After looking
at all of the options available, Linda
decided on a floor plan with a separate livingroom and
kitchen. This floor
plan allowed Linda
to create a separate
sleeping area for herself in the livingroom
and give the boys their
own rooms.
“It has worked out
great. The apartment
is bright and fresh,
with large windows. It has a very high
standard. I was pleasantly surprised
when I realised that the walls aren’t
thin. We don’t hear anything. It’s fantastic.”
The family has two large balconies
where they can spend time together
and their own spiral staircase leading
directly to the apartment.
“It’s great. Everyone has their own
little entrance, so we never disturb each
other.”
“When we got this
opportunity, it
was like a weight
was lifted from our
shoulders.”
12 Urban transformation in Kiruna
When the Ullspiran residential area was being phased out, LKAB and the Municipality of Kiruna introduced a painted plank project for children, where they could paint their vision of tomorrow’s
Kiruna – a colourful history.
LIFE BETWEEN the BUILDINGS
LKAB and the mining towns live in symbiosis with one
another. We rely on the local community to provide us with
talented employees and allow us to remain competitive.
At the same time, the communities benefit from the job
opportunities and investments created thanks to our mines.
Our main challenge doesn’t lie in relocating the towns themselves, but rather in
responding respectfully to each individual’s
questions and, in some cases, concerns.
But due to the complexity of the process,
it is often difficult to provide straightforward,
simple answers to the people being affected.
Providing factual information about ongoing
work is particularly challenging, since a
complete picture of the conditions involved is
not always available.
Transparency, availability and ongoing
dialogue are therefore crucial for building
mutual understanding and trust.
Kiruna” is a collaborative project aimed at
gathering suggestions and initiatives to
make the town a more pleasant place to
be during the transformation. Façades are
being painted, lawns mown, flowers planted
and activities arranged in the areas that will
ultimately disappear. The goal is to preserve
and develop life between the buildings to
make Kiruna a pleasant place to be – now
and in the future.
6,000 3,000 450,000
people
Confidence in the future
We are working together to build the
community of tomorrow. “A better-looking
Various interests need to be considered during the urban
transformation process. It is important that LKAB’s growth
occurs in cooperation and agreement with the reindeer
herders and other businesses in the area.
housing units
square metres
Approximately 6,000 people living in the area will be impacted over the next 20 years as some 3,000 housing units and
450,000 square metres of residential and commercial premises are phased out and redeveloped.
Urban transformation in Kiruna
13
The transformation has already started
Several major projects are already finished, and the urban transformation will continue in earnest in the coming years.
Urban transformation is not a new concept in Kiruna. The extent of the orebody has been known for a long time.
2004
The beginning
LKAB officially informed the
Municipality of Kiruna that its
mining operations would impact
the urban area within the
foreseeable future.
2008
Planning of new railway
Enormous electrical works
The Swedish Rail Administration,
now known as the Swedish
Transport Administration, began
planning for a new railway.
Vattenfall finished pulling miles of high-voltage lines and
building new switchyards och transformers.
2009
2011
Infrastructure prepared
New railway built
Room for new construction
A new main sewer line was put into
operation. The new sewer line was paid
for by LKAB and built by the municipal
company Tekniska Verken i Kiruna.
The railway was rerouted to run
behind the Kiirunavaara mountain
mine.
LKAB restored a former industrial
area in the Luossavaara area to make
room for new construction. LKAB
applied for planning permission for
the area with the goal of building 150
new housing units.
2014
48 apartments
Agreement signed for Mine city park 2
LKAB Fastigheter’s 48 newly built
apartments in the Jägarskolan
residential area were completed
and ready for occupancy.
LKAB and the Municipality of Kiruna signed an agreement for the
second phase of the urban transformation: Mine city park 2. The
agreement was for SEK 3.74 billion to cover the costs of building
equivalent functionality, quality and size in the new Kiruna.
2015
Historic groundbreaking
30 apartments
Ullspiran block demolished
Schedule finalised
Ground was broken for
Kiruna’s new city hall.
LKAB Fastigheter built 30 new
apartments in the Glaciären
residential area.
Buildings 2 and 4 in the Ullspiran
residential area were decommissioned.
80 apartments were demolished and
five garage rows were relocated.
The Municipality of Kiruna and LKAB
jointly presented their schedule for
buying properties and moving homes
and businesses.
2035
62 apartments
New road section
Main haulage level at Kiruna mine
62 newly built apartments in the
Terassen residential area were
completed and ready for occupancy.
Road 870, a seven-kilometre route
to Nikkaluokta, was opened in
September 2015.
The urban transformation is expected
to continue until 2035, at which point
today’s main haulage level at a depth of
1,365 metres will be developed. If the
decision is made to build a new main
haulage level, the process will continue
for many years to come.
14 Urban transformation in Malmberget
PHASING OUT
a community
Unlike Kiruna, with its single orebody, the community of
Malmberget sits atop several orebodies. As a result, the
relocation and phasing-out process impacts at different
rates, and in different areas.
The urban transformation in Malmberget has
been under way for more than 50 years.
Urban transformation in Malmberget
15
M ALM BERGET
Välkomma School
Buildable areas
Church
4
Impacted area
2012–2022
2014–2024
3
2016–2026
4
2022–2032
2
Malmberget
1
Luleå
MID-AREA
Phase-out stages
2
Community centre
3
Buildable areas
Other
1
Kiruna
1
Buildable areas
LKAB
Granbacka
30 apartm.
Tallbacka/
Myråsen
50 single-family homes
Bäckåsen
28 apartm.
(8 buildings relocated
from Norrbottensvägen)
Kvannevägen
15 single-family homes
GÄLLIVARE
Laestadiusparken
Vassara marshes
Enen Block
26 apartm.
Gråtruten
16 apartm.
Nuolajärvi
Forsheden
43 apartm.
Söderbergskullar
50 single-family homes
Va
500 m
ssara
River
The map shows the areas of Malmberget that will be phased out, and the areas that are suitable for developing new housing and commercial premises.
TT Nyhetsbyrån
Concentration of Gällivare
Historic model of Malmberget
Over the past 50 years, Malmberget has
been impacted and changed due to the
mine’s expansion. LKAB’s industrial area has
gradually been expanded and built-up areas
have been phased out.
The Municipality of Gällivare has decided
to concentrate Gällivare and add public facilities when most of Malmberget is decommisioned. Over the next 20 years, a large
portion of the urban area of Malmberget
will be demolished and its public functions
relocated. In parallel with this transformation, the area will gradually be converted into
parkland. In Malmberget, these park areas
are referred to as green zones.
One feature of the community that will be
impacted is its cultural environments, which
the municipality has preserved for many
years. The transformation will also impact
the Bolagsområdet area, which is included
in the Municipality of Gällivare’s preservation plan. In 2012, LKAB and the municipality
agreed that the company would be responsible for relocating the Kåkstan buildings, as
well as some 30 buildings from Bolagsområdet, including Disponentvillan, Tuoddarvillan and the buildings along Långa Raden.
Some of these buildings have already been
dismantled and are ready for redevelopment
in a new location.
From east to west. From south to north.
Malmberget’s history is to be preserved in
all directions. A gigantic model of Malmberget is being created to display the
community’s past and present for those
who wish to keep the memories alive.
This model, “Malmberget – then
and now”, is part of the Municipality of
Gällivare’s “Document Malmberget” project,
which is being partly funded by LKAB. The
model, which measures approximately 170
square metres and is built on a scale of
1:200, displays the history of the community
dating back to the 1950s. The documentation project also includes photographs,
interviews and documentation from various
associations and companies.
Model building in the “Document Malmberget” project. The
buildings are reversible to illustrate how they have changed
from the 1950s to the 2000s.
Agreement with the Municipality of Gällivare
Malmberget is being phased out in stages,
which has been established in a collaboration agreement between LKAB and the
Municipality of Gällivare. Each phase of the
transformation included in the agreement is
then specified in greater detail in an implementation agreement.
This collaboration agreement regulates
the financial compensation to be paid by
LKAB for municipal infrastructure and land.
As in Kiruna, this compensation is to cover
the costs of building equivalent functionality, quality and size when Gällivare is
concentrated.
LKAB’s company hotel in Malmberget was demolished in 2012.
16 Urban transformation in Malmberget
30 apartments in the Granbacka area were ready for occupancy in 2014.
A changing community
By 2032, most of the existing community in Malmberget will be gone. The agreement with
the Municipality of Gällivare has now taken effect and work has begun. But the urban
transformation in Malmberget has been under way for some time.
Large parts of the community’s centre
disappeared in the 1970s. The local church,
schools, cinema, community centre, stores
and homes have already been relocated in
various stages. Major changes have therefore already occurred. Yet the ongoing mining operations in Malmberget – and thus
the transformation of the town – will also
impact the local upper-secondary school,
senior housing, the ice rink, sports centre,
swimming baths, homes and commercial
properties. The timeframe for the transformation, nearly 20 years, may seem long,
but it needs to be in order to finish all of the
work involved in changing and rebuilding
new functions in new locations.
At the right time, at the right price
In Malmberget, approximately 3,200 people
will need to be relocated. Compensation
to the people impacted will be the same in
both operating locations: LKAB will provide
compensation in the form of financial
compensation, a new home or new business premises. The goal is for the urban
transformation to be sustainable in the long
term and acceptable to everyone impacted
during the period in which LKAB expects
the changes to continue.
New housing generates positive mobility
Increased housing construction results in a
wider variety of homes of varying standard
Urban transformation in Malmberget
17
Relocation to the new areas has already started
THIS IS HOW I WANT TO LIVE
Björn Hansson lives at the top of the
Johannesområdet area. Over the
coming years, the area will be affected
by LKAB’s mining operations and Björn
will have to move.
and cost. This, in turn, creates more choice and
greater mobility in the housing market. How to
stimulate housing construction – and thereby
increase the range of options – has been a key
issue for many years. As agreements are signed
with the municipalities, construction investments in our operating locations are beginning
to gain momentum.
Overall, the housing situation in LKAB’s operating locations is starting to improve, although
there is still a significant need for new construction. More housing means that people living in
the orefield communities will have more choice
when both new and older houses and apartments become available.
LKAB also aims to provide alternatives and
personalised solutions when it comes to commercial properties.
“I want to live somewhere where I can
just open the door and let my dog, Cookie, out in the morning,” he says.
The view is breathtaking, with
Malmberget, Gällivare and the entire
neighbourhood spread out below, and
the Aitik mine in
the distance. Björn
moved into his
apartment about
ten years ago.
“I really like
living here. I never
thought I would,
when I moved from
Nilivaara. My neighbours are great. I’m
a quiet person and so are they.”
He pours us a cup of coffee at the
kitchen table. Every so often, we hear
a tapping sound from the windows as
small birds peck at the pieces of suet
hanging outside.
“I often get deer coming by and I feed
them too.”
The building, built in the early 1900s,
contains five apartments. Two tenants
have already moved to other apartments. Björn wants to stay as long as
possible.
“Where are we supposed to go? What
responsibility does LKAB have for us?
This is the only worry in my life right
now.” he says.
Björn is open to new challenges.
But he always comes back to the most
important thing in his life: being able to
live near the forest.
Björn moved from Västergötland to
Lappland in the late 1960s. After many
hectic years working as a teacher and
farmer in Nilivaara, 60 kilometres from
Gällivare, he moved
to Spain and started
selling houses.
“I had never sold
houses before. But
it worked out really
well,” he says.
The sun shining on
the kitchen table casts
a shadow from a large,
green potted plant.
On the kitchen bench hangs a pair of
earmuffs that he uses for hunting. Björn
praises LKAB Fastigheter, which is responsible for managing the apartments.
“They’re fantastic. I only need to suggest that something needs to be fixed
and it’s taken care of. The building is always neat and well taken care of. It’s so
beautiful here, especially in the summer.
This is how I want to live, but I’m worried
about the future. Where are Cookie and
I going to live?” he asks, patting her
gently on the neck.
“I really like living
here. I never
thought I would,
when I moved from
Nilivaara.”
18 Urban transformation in Malmberget
A group of artists from the “Empty Spaces” art project have painted murals on several buildings in Malmberget.
A wealth of opportunities
Norrbotten has enjoyed strong economic growth over the
past ten years. The catalyst for this growth is LKAB.
Over the past decade, the company has
made significant investments in facilities,
infrastructure and new mines. Apart from
that, urban transformation is the most
important investment.
Thanks to these investments, LKAB has
been a strong driving force for the economy, not only in its operating locations
but throughout the northernmost areas of
Sweden. Rebuilding the mining communities will create a wealth of opportunities for
the people in the area.
Although the main focus lies on the
new areas, the existing areas cannot be
forgotten. It is important that Malmberget
remain a vibrant community throughout the
transformation; so, as part of its dedication
to sustainable change, LKAB is working to
create a pleasant environment for local
residents and visitors throughout the
ongoing change process. One way to achieve this will be to preserve and develop life
between the buildings to make Malmberget
a pleasant place to be – for everyone.
3,200 2,000 250,000
people
housing units
square metres
Approximately 3,200 people who live in the affected areas will be impacted over the next 20 years, when 2,000 housing
units and 250,000 square metres of residential and commercial premises are phased out and redeveloped.
Urban transformation in Malmberget
19
The transformation has already started
The urban transformation in Malmberget is not a new phenomenon. A large number of homes and services
have been phased out over the past 50 years to make room for mining.
1899
The first building is moved
The first building to be impacted by the mining operations in
Malmberget was moved – a small
cabin situated above Koskullskullemalmen in Koskullskulle.
1971
1974
New community centre
Church moved
A new community centre was
opened to replace the old community centre.
Allhelgonakyrkan, the church presented to the Malmberget parish by LKAB
in 1944, was moved.
2005
2007
2009
More relocations
Eight buildings moved to
Bäckåsen
Houses built
Two buildings were moved from
Elevhemsområdet to Mellanområdet in
Gällivare.
Eight buildings were moved from
Norrbottensvägen in Malmberget’s
Bolagsområdet to Bäckåsen in
Gällivare.
55 houses were built in Tallbacka
and Myråsen, between Gällivare and
Malmberget, for families who had
relocated from the phased-out areas.
2010
2011
Time for new apartments
Building plans
For the first time in 50 years, LKAB
built 28 new apartments in seven
buildings in Bäckåsen in Gällivare.
LKAB submitted a land allocation request to the Municipality of Gällivare
for 200 new apartments.
Dismantling in preparation to
move
Twelve buildings in the Bolagsområdet area in Malmberget were affected by the mining operations. Six
buildings were dismantled and would
later be redeveloped.
The Elevhem area was evacuated
LKAB expands its property portfolio
The phase-out of 155 houses in the Elevhem area of Malmberget
commenced.
LKAB bought 11 apartment blocks from
the municipal housing company TOP
bostäder AB in Gällivare. The purchase
included 93 apartments and five building
rights.
2014
2032
Agreement signed
30 newly built apartments
Changes to continue until 2032
The collaboration agreement between LKAB
and the Municipality of Gällivare took effect
and LKAB thus entered into an agreement
with the municipality concerning the urban
transformation. The agreement was valued at
SEK 430 million and included compensation
for municipal infrastructure and land.
Tenants move into 30 newly
built apartments in the
Granbacka residential area in
Gällivare.
Under the agreement, Malmberget will
be phased out in several stages by 2032.
20 Urban transformation perspectives
Urban transformation
– from mining to relocation
1
LKAB’s underground mining
Mining causes ground deformation – also
referred to as ground movements. During
iron ore mining, the ground gradually collapses
as the ore is removed from the mine.
2
Ground deformation
The urban transformation is governed by
ground deformation. LKAB measures
the movement of the ground using GPS
technology. These measurements help LKAB’s
rock engineers estimate the rate at which the
ground is moving in what are known as ground
deformation forecasts.
3
Agreement between LKAB and the
municipalities
To ensure a successful urban transformation, LKAB and the municipalities must
reach a mutual agreement when it comes to
how the transformation will be carried out
and who will be responsible for what. These
decisions are regulated through coordination,
collaboration and implementation agreements.
extensive planning
Urban transformation is complex. With broad support from
local residents, the municipalities and LKAB must succeed
in combining future-oriented urban transformation with
responsibility for the financial future of LKAB and its
operating locations.
The municipalities are responsible for urban
planning and for ensuring compliance with
legislation such as the Planning and Building
Act and the Swedish Environmental Code.
Before any physical changes to the communities may take place – such as demolition
or relocation of buildings, new construction
or building new roads – general and more
detailed planning is required.
The municipalities are also responsible for
building infrastructure, such as electricity, water and waste, and implementing the planning
process so that construction-ready sites are
available when needed. Government agencies,
such as the County Administrative Board, the
Swedish Transport Administration, the Mining
Inspectorate and the National Property Board
of Sweden, are involved. There are also many
other operators that want to be involved in
building the new communities, particularly
construction and civil engineering companies.
In the communities, property owners and
their tenants, businesses and associations
are affected by the changes, and strategic
consultation is ongoing with the Sami villages. Those who are affected have a responsibility to participate in the dialogues and
processes that are required before decisions
are made. Many interests are continuously
weighed against each other.
LKAB has a central role in urban transformation and, together with the municipalities,
is a key player in the process of change.
We continuously measure mining-induced
ground movements and are responsible for
finding satisfactory solutions for everyone
concerned. LKAB is financing the entire
transformation in both locations.
LKAB owns some residential properties
in the operating locations and, as a property
owner, manages the residential areas until
they are phased out.
4
Compensation from LKAB
Before ground deformation occurs, LKAB
provides financial compensation, a new
home or business premises to the people
affected by mining operations.
5
The municipalities change zoning to
industrial area
Before LKAB receives a permit to mine
ore in a large area, the municipalities must
change the zoning from residential and retail
area to industrial area.
6
New construction
All decommissioned buildings and
infrastructure, such as water, waste,
electricity and roads, must be replaced. As
agreements are signed with the municipalities,
construction investments in the operating
locations begin to gain momentum. LKAB
Fastigheter is doing some of the rebuilding
itself, but it is crucial that more players become
involved in rebuilding in these communities.
7
8
LKAB phases out buildings and creates
parks
When the areas are phased out, they
become ’mine city parks’ and green zones.
Relocate to new areas
New housing, retail premises and
commercial properties are built in the
municipalities. More housing means that
people living in the orefield communities will
have more choice when both new and older
houses and apartments become available.
Many people find switching to newly built
housing an attractive option.
Urban transformation perspectives
21
“We make
continuous
measurements”
LKAB has installed hundreds of metal rods around the communities to measure ground movements. Based on rock mechanics, the measurements are used to determine the rate at which the ground
is moving.
Ground movements determine the pace
The shape and location of the orebodies determine where
the ground movements will occur and how the communities
will be affected.
The size and quality of the ore determine
whether it is actually mineable, meaning
whether the construction of drifts and shafts,
and moving the machinery and equipment
even deeper into the rock, is worthwhile.
LKAB makes continuous measurements
in order to compensate property owners,
demolish buildings and create park areas
between the mines and the community,
before the ground movements are visible.
The Environmental Court determines
how much ground movement is tolerable.
In Kiruna, sites where the ground moves
more than the permissible limit are zoned
as industrial area. The changes are made
in the municipality’s zoning, which specifies
how land and water areas should be used.
In Malmberget, the Environmental Court has
ruled that all housing built on ground that
moves more than the permissible limit must
be demolished. LKAB’s rock engineers measure the movements and forecast ground
deformation. The forecasts indicate the year
that LKAB expects the ground movements
to have reached an area. Measurements are
made continuously to determine the extent
to which the forecast is in line with reality,
and to plan when properties in an area must
be phased out.
boundaries and lines that guide the planning
Environmental conditions for
ground deformation
The Environmental Court determines
the environmental conditions for how
much ground movement is tolerable. If
the conditions are exceeded, meaning
that the ground moves more than is
permissible, the zoning for the area is
changed. Visiting the areas affected by
ground movements is risk-free.
Deformation forecasts
Green areas
Industrial fencing
A deformation forecast indicates
when the environmental conditions
for ground movements are expected
to reach a certain area. The forecast
is compiled by LKAB’s rock engineers,
based on the mining rate, bedrock,
shape of the orebody and natural
ground movement patterns.
As buildings are demolished, parks
are built for the general public. The
parks are created in areas within and
near boundaries stipulated by the
Environmental Court, where the ground
is zoned as industrial area.
Industrial fencing separates the park
areas from LKAB’s industrial area.
Unauthorised access to the fenced-in
area is prohibited.
22 urban transformation perspectives
Urban transformation is not as rare as it would seem. A great deal of experience and knowledge has been gained from similar projects internationally. The illustration above is from the Master Plan of the
Pan American Games Athletes’ Village in Toronto, Canada.
An international perspective
LKAB is assisted by international experts at rePlan, a company with long
experience of urban transformation and the mining industry. Graeme Burt,
of rePlan, has visited LKAB’s operations several times.
Graeme sees the urban transformation as a
prerequisite for LKAB's continued success,
as for most mining companies around
the world. RePlan is currently working on
urban transformation projects linked to
mining operations in 15 countries, including
Canada, the US, Greece, Albania, Turkey and
a number of Latin American and African
countries.
Through this partnership, LKAB will
acquire access to international practice
based on extensive experience. LKAB’s
urban transformation is often described
as globally unique and something that has
never been implemented before.
The partnership with rePlan has brought
new perspectives and insight that this type
of project is not as
unusual as you might
first think. There is a
great deal of international experience and
knowledge that LKAB
can, and should, learn
from.
While no two cases
are alike, many of the
Graeme Burt
challenges and lessons are similar. The uniqueness of LKAB’s case is that Kiruna’s urban
transformation entails relocating an entire
city centre. And that is unusual, especially
in developed countries. Moreover, Kiruna, in
this case, is a beautiful, century-old city. It is
costly, demands a high level of collaboration
and an ability to satisfy the needs of many
stakeholders, according to Graeme.
In rePlan's experience, successful
urban transformation is heavily reliant on
commitment at both community and individual level. The mining company must have a
good relationship, and communicate clearly,
at both levels.
Trust is built by being engaged, keeping
the community and its individuals constantly
informed and creating forums for dialogue.
LKAB has been successful with this to date,
according to rePlan.
LKAB’s vision for urban transformation is
development before phase-out, which means
more time to prepare new areas before
having to evacuate existing ones.
glossary
glossary
A better-looking Kiruna: An
initiative to create an attractive
and vibrant city during the urban
transformation process.
Ground deformation: Mining
causes ground deformation, also
referred to as ground movements.
A better-looking Malmberget:
An initiative to create an attractive and vibrant community
during the urban transformation
process.
Hematite: Non-magnetic iron
oxide. It is more difficult to separate from the surrounding waste
rock than magnetite because it
is not magnetic.
Compensation regulations: Regulate how the relevant property
owners, residents and business
owners are to be compensated.
Hjalmar Lundbohm: LKAB’s first
managing director.
Cultural heritage: Cultural
heritage is a designation for the
protection of land or buildings
with historical significance.
Deformation forecast: A deformation forecast indicates when
the environmental condition for
ground movements is expected
to reach a certain area. The forecast is based on the mining rate,
bedrock, shape of the orebody
and actual ground movement
patterns.
Environmental conditions for
ground movements: The environmental condition for ground
movements has been determined by the Environmental Court.
When the permissible ground
movement conditions are exceeded, the area must be zoned
as an industrial area.
Green zone: Areas in Malmberget that are phased out in favour
of mining, and converted to park
areas. More parks will be added
as the urban transformation
process continues.
Industrial fencing: When an area
has been rezoned as industrial
park and is no longer safe, the
area is fenced in.
Iron ore: Ore containing the
metal iron. An iron ore
mineralisation is called an ore
deposit if it is sufficiently rich to
be worked at a profit. Magnetite
and hematite are iron-bearing
minerals, and used to extract
iron.
LKAB: Luossavaara-Kiirunavaara Aktiebolag (LKAB) is an
international high-tech minerals
group, owned by the Swedish
State. Founded in 1890, the
company’s core operations comprise iron ore mining in Kiruna,
Malmberget and Svappavaar.
The head office is located in
Luleå in Norrbotten, Sweden.
LKAB Fastigheter: One of
LKAB’s eight subsidiaries. LKAB
Fastigheter owns, builds and
manages residential and commercial premises in the Swedish
ore fields.
Luossavaara: Luossavaara is a
well-known mountain mine in
Kiruna, directly adjacent to the
town of Kiruna. It contains large
amounts of iron ore, which used
to be mined by LKAB, but the
mine is now closed.
Magnetite: Magnetic iron oxide.
Magnetite is naturally magnetic,
which makes it easy to separate
from the surrounding waste
rock.
Main haulage level: The mined
ore is transported on the main
haulage level, which is in the
mine. When all of the ore above
the main haulage level has been
excavated, a new main level has
to be built to continue mining.
Mine city park: Areas in Kiruna
that are phased out in favour of
mining, and converted to park
areas. More parks will be added
as the urban transformation
process continues.
Orebody: Underground ore
mining largely involves
identifying orebodies and building drifts in order to excavate
the ore along these orebodies.
Rock engineer: A rock engineer
works with rock mechanical
properties, deformation,
stresses and stability.
Sub-level caving: The mining
method applied in LKAB’s underground mines.
The Swedish orefields: The
name of the geographic area
in Norrbotten, Sweden, encompassing Kiruna, Gällivare and
Svappavaara.
Zoning: Zoning indicates how
land in a municipality is to be
developed, and how soil and
water areas should be used.
23
24 xxxxxx
LKAB, BOX 952, SE-971 28 LULEÅ, SWEDEN
www.lkab.com
Produced by LKAB in collaboration with Rippler Communications and Raring Design. Photos: Fredric Alm, Rúnar Guðmundsson, Alm & ME, regionalArchitects/rePlan Inc. and LKAB. Printing: Lule Grafiska Translation: The Bugli Company
LKAB is an international high-tech minerals group that mines
and upgrades the unique iron ore of Norrbotten, Sweden, for the
global steel market. Sustainability is the core of our mission,
and we aim to be one of the most innovative, resource-efficient
and responsible companies in the industry. The Group generated
sales of more than SEK 20 billion in 2014 and has about 4,500
employees in 15 countries. The operations also include industrial
minerals, drilling systems, rail transport, rockwork services and
property management.
NORDIC ECOLABEL 341 228