The Swedish government allocate 3,6 billion SEK (€392 million) for upgrading of railway infrastructure in its autumn budget, a press-release from the Government reads. Part of this funding makes it possible to start the improvements of the iron-ore railway in the high north of Sweden.
Both LKAB and Northland Resources will benefit when the railway now will be upgraded. LKAB plans to increase its delivery capacity by 35 percent by 2015 by the opening of three new open-pit mines in the Svappavaara area between Gällivare and Kiruna. Northland Resources is in the process of opening iron-ore mines the border areas between Finnish Kolari and Swedish Pajala.
- Although the current capacity of Malmbanan will allow us to transport our high-grade, high-quality magnetite iron concentrate at the time we start production in 2013, the new investment will ensure capacity for the expected increase of iron ore volumes from Northland, as well as from additional players, says Karl-Axel Waplan, President of Northland Resources in a press-release.
- We’re planning Europe’s biggest railway project, and we have worked hard to make the government and the administration aware of our needs with respect to infrastructure investment, says Per-Erik Lindvall, Senior Vice President, Technology and Business Development, LKAB in a press-release. - We are very pleased with the decision. Now, we needn’t be concerned that the railway will become a bottleneck for LKAB’s future plans, Lindvall adds.
Sidings will be built at Ripats and Lakaträsk between Gällivare and Luleå, and at Rensjön and Kaisepakte between Kiruna and Riksgränsen. The new sidings will make it possible for trains up to 750 metre long to cross each other on the single track railway.
The railway continues from Riksgränsen to the Norwegian harbour town of Narvik where the Swedish iron-ore is shipped out to the world market.
