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Sustainability goals

LKAB is striving to become one of the most sustainable mining companies in the world. In order to support this objective, we have defined a number of sustainability goals at Group level. The goals and their outcomes are presented below.

Economic sustainability

LKAB needs to be financially strong in order to be an innovative and responsible company that contributes to prosperity.

Return on equity of at least 12 percent over a business cycle.
Result: 14,4% (neg).

Net debt/equity ratio 0–30 percent.
Result: -6,6% (20,7)

Ordinary dividend of 40–60 percent of profit for the year.
Result: 60% (0).

Comments: During 2017, LKAB's profitability, indebtedness and ability to pay a dividend were positively affected by the imrpoved profits and cash flow.

Social sustainability

LKAB shall be a secure and attractive workplace and exert a positive influence on our business partners and our immediate environment.

Reduce accidents resulting in absence to a rate of 3.5 per million hours worked by 2021.
Result: 6.7 (6.9).

Women to make up at least 25 percent of employees by 2021.
Women to make up at least 25 percent of management by 2021.
Result: 21.1% (20.6%) and 22.2% (19.5%)

Compliance with LKAB's Code of Conduct and well-functioning dialogue with stakeholders.
Result: 83% have completed the training. Dialogue according to plan. (n/a)

Comments: Contractors' injuries are also included in the statistics for 2017. The most common injuries are to a finger, foot or ankle. To reduce the accident rate there is a focus on operational excellence and safety first. The percentage of women and of female managers continued to increase over the year. Translation of the interactive training for the Code of Conduct was delayed until the end of 2017 and therefore the target of 95 percent of employees having completed the training has been deferred.

Environmental sustainability

LKAB aims to be one of the most resource-efficient and environmentally efficient mining companies in the world.

Reduce carbon emissions by at least 12 percent per tonne of finished product by 2021 compared with 2015 and at the same time reduce emissions of nitrogen to air (NOx).
Result: 27.4 kg/tonne (26.0) and 150 g/tonne (158 g/tonne).

Reduce energy intensity (kWh per tonne of finished product) by at least 17 percent by 2021 compared with 2015.
Result: 164 kWh/tonne (164)

Reduce discharges of nitrogen to water by at least 20 percent per tonne of finished product by 2021 compared with 2015.
Result:22 g/tonne (18.6)

Reduce emissions of particulates to air from scrubbing equipment by at least 40 percent by 2021 compared with 2015, calculated as an average for all equipment.
Result: 9,12 mg/m3 ntg (21).

Comments: During the year the focus was on development work within the environmental area. Updating of water balance has resulted in more accurate values for overflow water, among other things, and increased possibilities to model the effects of protective measures and predict future emissions of substances such as nitrogen. Improvement measures carried out by the operations on dust extraction facilities have brought results and monitoring of the objective for particulates shows that the objective for 2021 was reached in 2017. An increased volume of crushed ore from Leveäniemi and the fact that parts of the production facilities did not reach planned production levels resulted in an increase in energy intensity and in specific carbon dioxide emissions compared with 2016. This despite increased production levels.

Read more in the Annual and Sustainability Report