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Swedish mining group LKAB gets permit for fossil-free iron sponge plant

LKAB iron pellets

LKAB iron pellets

15th June 2026

By: Reuters

  

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STOCKHOLM - Swedish mining group LKAB has received approval from a Swedish environmental court for its plan to build a fossil-free sponge iron plant, or Direct Reduced Iron plant, at its Malmberget site in Gallivare, the court said on Monday.

The factory would be an integral part of the plans of Swedish "green steel" venture Hybrit, owned by miner LKAB, steelmaker SSAB and State-owned utility Vattenfall, which aims to replace coking coal, which is traditionally needed for ore-based steel making, with hydrogen and electricity.

The environmental permit also covers plans for continued mining operations at the site, expansion of the tailings dam, as well as a facility that will extract apatite - a mineral from which one can recover phosphorus and rare earths - from waste materials in the iron ore production, the Land and Environment Court in Umea said in a statement.

The decision is subject to appeal.

Edited by Reuters

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