LKAB releases Reports on the large increase of Mineral Resources

After exploration in 2022 LKAB now provides summary technical reports on the Mineral Resources and Mineral Reserves. ”The teams have again delivered very successful results for the year” says Ian Cope, Vice President Exploration at LKAB. Compared to 2021, the Mineral Resources have increased by 18 percent and Mineral Reserves have decreased by 6 percent. The Per Geijer deposit in Kiruna has for the first time reported a “rare earth element” Mineral Resource.

The iron ore Mineral Reserves in Kiruna and Malmberget have decreased in line with mine production, also with some downgrading in the Kiruna mine due to the seismic event in 2020. Mineral Reserves in the Leveäniemi mine in Svappavaara have increased by about 13% to almost 100 million tonnes. Mineral Resources in Kiruna have increased by 16% to 800 million tonnes, whereas Malmberget also reports a significant 22% increase to about 1.2 billion tonnes. In Svappavaara, the Mineral Resources at Gruvberget have increased by 10% to more than 400 million tonnes.
 

Exploration at Per Geijer, as previously reported, has increased the Mineral Resource to 585 million tonnes of iron ore and phosphorous. Significantly, this same increased tonnage has for the first time been reported as an Inferred Mineral Resource of rare earth oxides, at grades much richer than those found in LKAB’s other deposits.

At the end of 2022, LKAB had identified Mineral Reserves of more than 1.1 billion tonnes and Mineral Resources of some 3.2 billion tonnes in Svappavaara, Malmberget and Kiruna (including Per Geijer). Since the start in 1890, LKAB has mined a total of more than 2 billion tonnes. In addition to iron ore, all of LKAB’s ores contain minerals from which the critical materials of phosphorous and rare earth elements may be obtained.

“The outlook for continued increases to the life of LKAB’s mines has been greatly enhanced by these additions to the mineral assets of the company,” says Ian Cope.

For further information on LKAB’s Mineral Reserves and Mineral Resources, the reader is guided to the LKAB website by the following link: https://lkab.mediaflowportal.com/documents/folder/446946/

Here may be found the Summary Technical Reports for each of LKAB’s mineral deposits and how the Mineral Resource estimations have been made. The Mineral Reserves and Mineral Resources reported in the Summary Technical Reports are the same as those earlier reported in LKAB’s Annual and Sustainability Report for 2022.

• An estimation of the mineralisation in a deposit may be declared as a Mineral Resource if, under assumed and justifiable conditions, it may be considered to become economically mineable in the future. When the Measured and/or Indicated part of the Mineral Resource has been shown to be economically mineable, by a study to a Pre-Feasibility or Feasibility level, then the deposit may be reclassified as a Mineral Reserve.
• Mineral Resources and Mineral Reserves are the basis of a mining company’s operations and their determination requires successful and continuous exploration. LKAB reports its Mineral Resources and Mineral Reserves in accordance with the PERC (2021) reporting standard.

Facts about LKAB’s planned extraction of critical minerals

• LKAB’s ores contain the critical rare earth elements and phosphorus bound in apatite. The rare earth elements always occur collectively and all are found in LKAB’s ores.
• Phosphorus is one of three essential nutrients added to mineral fertilisers used in agriculture. Approximately half of all world agricultural production is dependent on this.
• Use of hydrogen and electrified processes means that the principal processes will be fossil-free.
• LKAB can become a significant producer of critical minerals for agriculture and green technology.
• Today Europe is dependent on imports of critical raw materials and minerals which are economically important, where there are risks for security of supply:
  • Phosphorus mineral fertiliser that is imported may have high content of cadmium, which can cause osteoporosis.
  • Europe is 90% dependent on imports of phosphorus and Russia has accounted for a significant share of phosphorus production. Since Russia’s invasion of Ukraine the supply and prices of mineral fertiliser have become a major problem, which may result in high food prices globally and food shortages in poor countries.
  • 98 percent of the supply of rare earth metals is now imported from China.

The Mineral Resource estimates were prepared under the supervision of Howard Baker FAusIMM(CP), Managing Director and Resource Geologist, Baker Geological Services Ltd (BGS) who is a “Competent Person” as defined in the PERC Reporting Standard 2021. Mr Baker has reviewed and approved the scientific and technical information in this report and has confirmed that:
“At the effective date of the Public Report, to the best of my knowledge, information and belief, the Public Report contains all scientific and technical information required to be disclosed in order to make the Public Report not misleading”.

The Mineral Reserves estimates were prepared under the supervision of Tim McGurk CEng FIMMM(QMR), Corporate Consultant (Mining Engineering) with SRK Consulting (UK) Ltd who is a “Competent Person” as defined in the PERC Reporting Standard 2021.

Pan-European Reserves & Resources Reporting Committee (PERC) Reporting Standard

LKAB compiles its Mineral Resources and Mineral Reserves annually. LKAB’s reporting method follows the PERC Reporting Standard 2021 aimed at a balanced assessment of the value of LKAB’s mines and deposits. The 2021 edition of the PERC Reporting Standard is aligned with the November 2019 version of the CRIRSCO International Reporting Template (Committee for Mineral Reserves International Reporting Standards).

This report covers the reporting period from 1 January 2022 to 31 December 2022. Mr McGurk has reviewed and approved the scientific and technical information in this news release and has confirmed that:
“At the effective date of the Public Report, to the best of my knowledge, information and belief, the Public Report contains all scientific and technical information required to be disclosed in order to make the Public Report not misleading”.

Contact: Tina Benson, General Manager Corporate Communications. Tel: 46 (0) 980 710 85. E-mail: tina.benson@lkab.com

LKAB is an international mining and minerals group that offers sustainable iron ore, minerals and special products. We are committed to developing carbon-free processes and products by 2045, leading the transformation of the iron and steel industry. Since 1890 we have developed through unique innovations and technological solutions and are driven forward by more than 4,500 employees in 12 countries. In 2021, the LKAB group had sales of about SEK 47 billion. www.lkab.com