Swedish mining company LKAB is set to pump $47 billion (€39.5 billion) into infrastructure to move towards carbon-free iron ore in what it describes as the country's largest-ever industrial investment.
Photo: Lars Lents
Processing iron ore is currently a large contributing factor in global carbon emissions.
According to a company statement, the investment will require an amount of electricity equivalent to about a third of the nation's current national supply.
It is set to invest a grand total of SEK400 billion (€393 billion) over the next 20 years into programs to cleaner iron ore, including using renewable hydrogen to produce it.
The state-owned company hope this will allow them to significantly reduce their carbon footprint going into the future.
Goran Persson, former prime minister for Sweden and current CEO or LKAB described the endeavour is a "risk" but also as an opportunity to "secure the future of mining in the Swedish Arctic."
The mining industry has long been associated with pollution and high emissions and many companies often fail to properly clean up after a mine haa been depleted.
The ramifications of this can be severe, such as with the recent case brought against Anglo-American after failing to clean up a mine following its disuse resulting in the poisoning of the local area.
Rio Tinto also similarly faced backlash in Bougainville after it was revealed toxic waste left behind at a gold and copper mine had polluted local water systems and caused severe air pollution.
The steel industry is likewise responsible for at least 9% of global emissions, according to an FT report into the subject, with huge amounts of carbon dioxide being produced when coke is burned into the furnaces where most of the world's iron ore is extracted from.
Jan Mostrom, chief executive of LKAB said the company would "go from being a part of a problem to being an important part of the solution."
The mining titan previously moved an entire Arctic town back in 2012 in order to continue its mining operations.
Like many companies in the wake of the pandemic, LKAB has set itself climate targets - their aim is to be completely carbon-neutral by 2045 as the company make the switch to green hydrogen.
This includes a switch to electric arc furnaces rather than coke-fuelled blast furnaces and LKAB believes these switches will more than double their revenue in the same period.
Mr Mostrom also claims this could equate to two-thirds of all of Sweden's emissions and will have an effect three-times greater than abandoning all the cars in the nation.
However, he warned that the transition can only go as fast as clients wanted with an added effect of the price of carbon skyrocketing.
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