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Strategy and goals

Pellets plant at night

LKAB's overall Group strategy for the period 2017–2021, "From good to best", focuses on mining that is sustainable in the long term. LKAB must also produce a market return for the owner and enjoy long-term financial stability.

Strategic focus 2017–2021

We will contribute to long-term, sustainable mining through operational excellence encompassing three main activities.

  • Leadership and employeeship
  • Effective and sustainable purchasing
  • More efficient utilisation of facilities and machinery

In order to support our main strategic focus, LKAB is investing in three supporting activities.

  • Growth
  • Urban transformation
  • Stable conditions in the outside world

Four target areas

LKAB's task is to make use of Sweden's iron ore resources in a responsible manner and to ensure long-term competitiveness and value creation. The sustainability work is consequently central to our business strategy.

In order to succeed in pursuing our strategic focus over the next four years, LKAB has identified four target areas.

  • Attractive LKAB
    We aim to contribute positively to the development of our operating locations in close co-operation with local residents, authorities and other businesses.
  • Attractive communities
    We aim to contribute to increased diversity and equality, as well as to offer secure workplaces and stimulating career opportunities.
  • Safe and resource-efficient production
    We will strive to reduce our energy consumption, minimise emissions and contribute to increased resource efficiency in our customers' processes.
  • Responsible operations
    We will work actively to minimise the impact our operations have on the environment.

Goals for sustainable growth

Social goals

  • Reduce accidents leading to absence from work to a frequency of 3.5 per million work hours by 2021 (2015: 6.9)
  • The proportion of women/female managers in the company shall reach at least 25 percent by 2021 (2015: 20 percent/18 percent)
  • Compliance with LKAB's Code of Conduct and having a well-functioning dialogue with stakeholders

Financial goals

  • Return on equity shall exceed 12 percent over an economic cycle
  • Net debt/equity ratio 0–30 percent
  • Ordinary dividend shall amount to 40–60 percent of the year's profit

Environmental goals

  • Reduce emissions of dust into the air from treatment facilities by 40 percent by 2021 compared to 2015, calculated as an average for all the facilities
  • Reduce emissions of nitrogen into water by 20 percent per tonne of finished product by 2021, compared to 2015
  • Reduce carbon dioxide emissions by 12 percent per tonne of finished product by 2021 compared to 2015, and at the same time reduce emissions of nitrogen into the air
  • Reduce the energy intensity (kilowatt hours per tonne of finished product) by 17 percent by 2021, compared to 2015