Agreement reached on premises in Malmberget

The Municipality of Gällivare and LKAB have 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 secures continued mining and future jobs, as well as laying the foundations for a smarter, more modern, efficient and sustainable Gällivare.

"The municipality will be compensated for premises affected by LKAB's operations in Malmberget. Now we can build a more modern, more interesting and attractive community that will benefit all Gällivare residents. Local residents are the big winners here," says municipal executive board chair, Jeanette Wäppling.

"We are very pleased that an agreement has been reached. This gives us the assurance that urban transformation can be realized and that we can continue to mine and upgrade the iron ore which is the foundation of the orefields communities," says Stefan Hämäläinen, director of urban transformation, LKAB.

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.

"This solution simplifies the process of constructing new buildings. The municipality, being closer to local residents who are the users of these premises, will have greater freedom in designing them according to the needs of residents," says municipal executive board deputy vice-chair, Henrik Ölvebo.

Total compensation for the premises in question amounts to 2.1 billion kronor. In addition, an independent mediator has been tasked with proposing an interpretation of the collaboration agreement concerning additional costs arising in connection with decommissioning and for replacement of the indoor rink.

"We have allowed independent property assessors to evaluate the premises, an assessment which has provided a basis for compensation. Since the municipality will assume responsibility for the buildings, LKAB's future costs for project management and compensation have been revised downwards, says Stefan Hämäläinen, director of urban transformation, LKAB.

Formulating a vision, studies, planning and discussions have taken many years. Now it's time to turn the first sod and get the project under way in earnest.

"Building cranes will be seen on the horizon for quite some time to come and several housing projects are already under way. Now we are taking the next step and moving forward with the new civic buildings," says municipal executive board vice-chairman Lars Alriksson.

The agreement has been approved by LKAB's board and the municipal executive board in Gällivare has brought forward a proposal for its approval by the municipal assembly. The agreement will take force provided it is approved by Gällivare's municipal assembly on 7 November.

The independent mediator is Sten Heckscher, former Chairman of the Supreme Administrative Court.