On October 28, 2016, the Municipality of Gällivare and LKAB agreed on a proposal for compensation for the municipal premises that must be decommissioned in Malmberget due to mining. LKAB will provide financial compensation to the municipality amounting to 2.1 billion kronor.
The agreement applies to premises that are both owned and rented by the municipality. An agreement from 2012 stipulated that LKAB would build replacement buildings and turn them over to the municipality; however, we have now agreed upon financial compensation instead.
The overall cooperation agreement encompasses the financial compensation
The decision to phase out the town has been made jointly by Gällivare municipality and LKAB in a cooperation agreement signed on 10 April 2012. By 2032, the greater part of Malmberget will have been transformed into an industrial area. Each stage till encompass a period of ten years in order for the work to be carried out in a responsible manner and so that there will be enough time to erect new buildings.
LKAB will compensate for the impact that the mine will have on the community. It is LKAB which will pay for the urban transformation. The compensation in each area and for each stage of the phasing out process shall be detailed in different implementation agreements in the transformation.
The overall cooperation agreement encompasses the financial compensation for municipal infrastructure and land which LKAB is liable to pay. According to the implementation agreement, the costs to be covered include those associated with building up equivalent functions with the same quality and scale when Gällivare is densified and developed.
The cooperation agreement regulates solely arrangements between the municipality and LKAB; not individual property owners, where separate agreements will be made.