Raw materials and

infrastructure in

Northern Sweden

Krister Palo

International

coordinator &

Long term planner

Northern Region

2 2011-11-30

Swedish Transport Administration has been given in the following

Governmental mission.

"Swedish Transport Administration shall, with the background of the

raw materials growing importance on global competitiveness,

nationally and regionally, to investigate the long-term sustainable

transport system and transport needed to utilize and develop the

raw material potential in the Barents Region.

• To be carried out with relevant authorities, industry associations in

Sweden and other countries concerned and with agencies that have a

regional growth responsibility.

• The mission will be reported to the Ministry of Enterprise, Energy and

Communications, 31 December 2011. "

A mission from the Swedish Government

3 2011-11-30

• Background report on Minerals in Barents

region (Complete)

• Main report on Raw materials and transports in

Barents region (finished in mid December)

• 3 workshops with participants from relevant

authorities, industry and agencies

– Bodö 11 oct

– Luleå 19 oct

– Rovaniemi 20 oct

• Interviews, discussions and review of material

with relevant relevant authorities, industry

associations and companies

So far…

4 2011-11-30

Increase in transportation – depends on type of mineral

Iron ore – 65% Fe Copper ore – 0.3% Cu

Mined ore

59% Fe Mined ore

0.27% Cu

1 tonne of ore gives: 1 tonne of ore gives:

850 kg

concentrate

of magnetite

10 kg

concentrate of

chalcopyrite

During mining 10% of

waste rock is mixed in

5 2011-11-30

Geological potential Known mineral resources – metal ore

6 2011-11-30

What controls the development to 2020 – or further? Most important

•External factors (metal prices, demand, economic situation, financing)

•Infrastructure

•Mineral Legislation & environmental conditions

•Processing times for permits

•Support by governments and the EU for development of the mining industry

Some other important parameters (presumptions):

• Access to prospective ground – exploration licences can be applied for

• Access to geological information, previous work, national programmes

• Know-how (knowledge, education & training, an established industry)

• Technology to discover and mine the mineral deposits

• Clear environmental legislation

• Support from local levels (authorities and inhabitants)

• Cheap energy

• Processing times for permits

• Cost structure for handling of waste material etc.

• The country’s costs for mining (salaries, currency, taxes)

• Technology development – changed global requirements (e.g. REE)

•Administrative borders

•Competing land use (saami, military, culture, tourism, society, etc.)

7 2011-11-30

TODAY! Global use of metals - unbalance

Source: SGU, 2011

Iron ore: global use, production and trade (in millions of tonnes).

8 2011-11-30

Population – development?

Befolkningsmängd

FUTURE? Global use of metals will probably increase?

9 2011-11-30

Prognosis of transported products 2010 - 2015 - 2020

10 2011-11-30

Capacity constraints 2011 railway

The capacity situation in the North is

today almost stretched to the maximum

It is impossible to increase no of trains

with today's infrastructure

Different train length

Short meeting stations < 750 m

Single track

Different train speeds

11 2011-11-30

Capacity utilization according to plan 2015-2021

During 2015-2021, a number of measures are to be implemented, for example

extension of meeting stations.

These measures are not enough to meet the transportation demand.

The ore product transportation needs are expected to at least double by 2020

(minimum)

The mineral industry's demand can not be met with existing plans.

This means that the development and investments will not come true or be

delayed.

Challenge for regional development, for Northern Region, forSweden and

for Europe!

12 2011-11-30

Transportation solutions – developed in steps

TIME

TRANSPORT VOLUME

EFFICIENCY

PROFITABILITY

13 2011-11-30

Northland Resources AB and ROADEX

14 2011-11-30

A Functioning Road is Essential not only for the Rural Survival but also for the Whole Society

Almost 100 % of the product

transportation of

• farming

• fishing

• forest industry

• aggregate industry

(+ some mining)

are using low traffic volume road

network!

15 2011-11-30

Conclusions

• High increased demand for ore transports during the next years

to come – especially iron ore

• A mineral discovery with potential will most likely be developed,

possible somewhat delayed

• Transport solutions in geological attractive regions will support

new discoveries to become economically feasible.

• The low traffic volume road network is important for forestry

• Transportation of raw materials should be planned from a Barents

perspective in order to achieve optimal solutions

• Alternative solutions to railway should be evaluated on certain

stretches (road, heavier trucks, pipeline, etc.)

• Transportation could be developed in steps – until the ultimate

solution is in place for each case

• Think outside the box! Test new solutions!

• Industry needs investments now to meet the demand!

16 2011-11-30

Thank you!

Krister Palo

EU-coordinator / Strategic planner

krister.palo@trafikverket.se

Direct: +46920- 24 37 22

Mobile: +4670- 34 34 206

Trafikverket/The Swedish Transport Administration

P.O Box 809

Sundsbacken 2-4

971 25 Luleå

Sweden

Phone: +46771- 921 921

www.trafikverket.se