He has been CEO of LKAB in just over six months. Within a few months he will present a new austerity package, shortly after the last completed. It will not go without notice, he estimates.
– I have a very hard time believing it.
In addition to the heavy fall in prices of iron ore was the company last year also with major disruptions of production, which fell by five percent. There were problems with torrential shafts in the Kiruna mine and a pellet plants needed to be renovated. The aim now is to reach the same level as before 2015.
– As the entire raw material industry, we are dependent on volume. Our marginalton have a huge impact on profitability. We have a tremendous focus on getting up the volume, says Moström.
So far, LKAB no problems with selling their goods, as was the case during the financial crisis. But the company has gone from an operating margin of somewhat improbable 47 percent in 2011, when the iron ore cost around $ 180 per tonne, to negative results last year, when the price towards the end fell below 40 dollars.
As a result of over production of steel in the world, do not look Moström no real excuse for the prices either this year or 2017.
Although the is bad times right now be president : n soon begin to make decisions about the future. In 2035, today’s main level in the Kiruna mine pre-broken, even earlier in Malmberget. The ore goes deeper, but to prepare for the new production takes many years. Moström want the next step clear in Kiruna in the late 2020s. But to think only in terms of the new main level is not the way, he says.
While LKAB today mine ore 1365 meters underground, can be competitors in Australia and Brazil basically just run forward with their dozer and loosen a lump from the loose rock in open pits.
– should we compete with them we must be immensely at the forefront of technological development. Then you can not use proven solutions.
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