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.
Traffic was at a standstill for 76 days
As a result, the operating cash flow was negative during the quarter and amounted to minus SEK 1.5 billion, states LKAB.
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. Traffic was at a standstill for 76 days.
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.
Tags: Billion loss LKAB derailment Malmbanan