Agreement with the municipality

Urban transformation stage by stage. For each stage, i.e. each Mine City Park, an agreement is concluded between LKAB and the municipality. Today, there are agreements for three Mine City Parks.

People on a stage.
Kiruna’s municipal commissioner Kristina Zakrisson with colleagues during the press conference where the agreement for Mine City Park 2 was presented.

The agreements regulate the financial compensation provided to the municipality by LKAB for municipal infrastructure as well as land and properties. The compensation is intended to cover the costs associated with the transformation so that the municipality has the opportunity to build with the equivalent function, quality and scale in new parts of Kiruna.

The Mine City Park agreements make it possible for LKAB to continue mining the iron ore which slopes in under the current city centre. This secures LKAB's growth and the jobs in the mine for many years to come, providing the mun¬icipality with the conditions to build a new city centre.

Mine City Park 1

In February 2011, two agreements were concluded between Kiruna municipality and LKAB. One is a civil law agreement, which regulates costs, and the other is an implementation agreement, which deals with the approach to transforming the area from its current usage to park area and finally to an industrial area. Kiruna municipality's urban district council assembly also decided on a development plan for Mine Park City number 1.

These agreements mean that LKAB will pay SEK 85 million for the land and the infrastructure that will disappear with the creation of the first Mine City Park. It was also established that LKAB will pay for a new town hall.

The agreement also specifies which heritage buildings will be moved to the new Kiruna. 19 heritage buildings are mentioned in the agreement, including Hjalmar Lundbohmsgården, Kiruna Church and old worker accommodation known as Bläckhorn. The number of buildings has later been increased to 21.

Shoppingstreet in Kiruna.

Public properties purchased by LKAB from the municipality in connection with the Mine City Park 2 agreement

• The community centre
• The swimming pool
• Hjalmar Lundbohm School
• Hjalmar Lundbohm School gymasium
• Bolagsskolan
• The rescue services
• The bus station and the old library
• The old fire station
• Biblioteksgatan 8
• Centralgården
• Kiruna municipality's owned and undeveloped land and public areas within the Mine City Park 2 area.

Mine City Park 2

The Mine City Park 2 agreement was presented in May 2014. On 2 June 2014, the municipal council in Kiruna approved the agreement.

The compensation covers municipal infrastructure and land, municipal operations premises, Kirunabostäder AB's commercial premises and a quick start to the construction of the square in the new Kiruna.

The total compensation in the City Park Mine 2 agreement is set at an amount of SEK 3.74 billion, which includes both compensation to Kiruna municipality and to the municipal housing company. Everything is compensated at a level that allows Kiruna municipality to build the equivalent function, quality and volume in the new Kiruna.

Mine City Park 3

The agreement for the third phase of the Mine City Park development was presented in June 2018. The agreement was approved by Kiruna's municipal council on June 27th 2018.

Direct payments under the agreement amount to about two billion kronor. In addition, LKAB is paying compensation for costs associated with newly built properties which, in terms of function, will replace older buildings. The total sum will depend on, among other factors, how construction costs develop.

The Mine City Park 3 agreement concerns land freed up as a result of the rezoning and will enable mining operations up until 2028. The agreement also covers public premises, in this case Parkskolan. Concurrently with the agreement for Mine City Park 3 a further two agreements have been reached with Kirunabostäder and Tekniska Verken concerning municipal housing and district heating. At the same time, dialogue with private-property owners concerning compensation for residential and commercial premises is ongoing.