Modern Mining August 2024

COMMODITIES OUTLOOK - IRON ORE

Steel is a significant component in the construction industry.

Power pylons and similar infrastructure are mostly constructed out of steel components.

To deliver the material that develops the world, you first must develop your industry H2 Green Steel, a start-up company, aims to “decarbonise the European steel industry” through its green steel plant in Boden, northern Sweden. The company states that its process will reduce CO₂ emissions by up to 95 per cent when compared to traditional steelmaking. Sweden seems like the natural place to pursue a domestic decarbonised steel solution; it is home to the Kiruna mine – the largest underground iron ore mine in the world – and, as a nation, is responsible for 93 per cent of iron production in the EU. This continental reliance on Swedish iron ore has incentivised mining companies operating in Sweden to expedite efforts to meet this demand, and some have stepped up their pursuit of high-grade iron ore to provide a vital supply to green steel manufacturers like H2. Beowulf Mining, through its subsidiary Jokkmokk Iron Mines AB, owns and operates the Kallak/Gállok mine in Jokkmokk, Sweden. Whilst at a development phase, the project has already shown the potential to produce the high-grade and low-impurity iron ore concentrate required for green steel production. At present, there are only a few known deposits of iron ore left in Sweden that can be classified as economically exploitable, placing extreme weight on the value of Kallak/Gállok as a resource. The Swedish government reaffirmed this importance by recently declaring that “the deposit in Kallak is of national interest.” Given the high quality and large-scale potential of the iron mineralisation at Kallak/Gállok, the Beowulf team, supported by seasoned consultants, has focused on better understanding the

metallurgy of the project. The company has conducted extensive metallurgical testing, which will inform a pre-feasibility study for the mine. Beowulf anticipates that this study will cement the validity of the previous positive drilling results, and will confirm that the Kallak/Gállok ore is a premium product capable of feeding into green steel production. Sweden’s status as a renewable energy powerhouse also affords Beowulf the possibility of adopting the same clean energy approaches as green steel manufacturers; the company has, indeed, noted the potential for Kallak to be powered by renewable electricity, with the goal of being a net zero mining operation. With H2’s plant at Boden, only 170 kilometres away, Kallak represents a potential source of high-quality iron ore for fossil free steel making in Sweden for decades to come, providing Europe with decarbonised steel for its continued advancement. If this can be scaled up internationally, a polluting industry could soon unlock a clean future, driving demand for high-grade iron ore at sites like Kallak/Gállok. All too often, growth is viewed as something that can only be actualised with an increase in volume and frequency. Indeed, iron ore and its final product, steel, have historically correlated strongly with economic growth and CO₂ emissions. This places the sector in a position whereby it will have a critical role in decarbonising the economy, and, as the world shifts towards favouring innovative and sustainable solutions to polluting processes, iron ore and steel have reoriented towards a new growth path; to deliver the material that develops the world, you first must develop your industry. 

12  MODERN MINING  www.modernminingmagazine.co.za | AUGUST 2024