LKAB is planning to build an industrial park for critical minerals in Luleå. At this plant critical minerals will be extracted from what is currently mining waste from LKAB's iron ore production. This includes producing phosphorus and rare earth elements that are needed, for example, in agriculture, electric car production and wind turbines.

Peab will build LKAB's demonstration plant that will be the foundation of future decisions for the planned scale-up of production and establishing a full-scale industrial park in Luleå. The contract comprises the groundwork and construction of the processing plant.

"Some of the largest industrial investments in Swedish history are currently underway and we at Peab are proud to play an important role in this development. We have many local employees in Norrbotten with extensive experience in building large industrial projects in the north and we look forward to building this groundbreaking facility for critical minerals," says Anders Gard, Project Manager at Peab.

In addition to the plant's contribution to green transition, the actual production of the demonstration plant is very focused on sustainability in terms of climate neutrality, energy efficiency and minimizing waste.

"We're looking forward to working with Peab because we value the importance of collaboration in running the project efficiently and safely. For LKAB, where safety comes first, I'm confident that we have the same goal. The demonstration plant will provide us with valuable insights into our planned scale-up of production of critical minerals while it will also contribute to higher safety, improved operating methods and a good working environment," says Anders Lundgren, Project and Sustainability Manager at LKAB.

This construction contract was preceded by a so-called phase 1 contract where Peab was contracted to map out an optimized product with the right quality as well as handling risks and uncertainties together with the customer. The project is now entering phase 2 which means signing a construction contract.

The project is a traditional construction contract in collaboration. The contract covers the first phase of the project with an option for further stages. Work will begin immediately and the plant is expected to be completed in 2026. 

The project will be order registered in the fourth quarter 2024.

Illustration: LKAB

For further information, please contact:

Juha Hartomaa, Head of Investor Relations Peab, +46 72 533 31 45