Iron ore supplies to the EU are under threat due to the growing threat of subsidence in Kiruna

In Kiruna, Sweden, which provides about 80% of the European Union's iron ore needs, there is a serious risk of subsidence due to the expansion of an underground iron ore mine.

Thousands of residents have been evacuated in the city, home to the world's largest underground iron ore mine, while the relocation of tens of thousands of buildings continues. As the state-owned mining company LKAB expands its area of operation, the risk level in Kiruna has increased, leading to the gradual evacuation of the city. The authorities say that the completion of the new settlement, which is being built 3 kilometers from here, is expected no earlier than 2035. Kiruna's fate changed about 125 years ago when iron ore deposits were discovered in the region. Over time, the city grew and was heavily dependent on LKAB's mining operations. Despite having a limited global share, LKAB is a strategic producer that supplies about 80% of the iron ore mined throughout the European Union. In the town that developed next to the mine, the issue of resettlement was first put on the agenda in 2004. This process officially began in August 2025 with the relocation of the 113-year-old Kiruna Church. The wooden structure was moved to a new location within two days, becoming one of the first symbolic buildings to be relocated. According to current plans, about 6,000 more residents and 2,700 additional homes are still in need of relocation. The cost of the relocation process also attracts attention. LKAB is expected to pay a total of $2.4 billion in compensation over the next 10 years. Representatives of the company said that property owners are offered either compensation at market value plus an additional 25%, or the construction of a new house. It is reported that about 90% of eligible residents have chosen a new housing option. Meanwhile, the European Union has classified the newly discovered rare earth deposit identified by LKAB in the region as strategically important under the Critical Raw Materials Act. The decree aims to ensure that by 2030 the EU meets 40% of its annual raw material needs through domestic production. Source: Dünya.com

Author: SteelRadar Editorial Team

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