1. We need innovations
European Innovation Partnership on Raw Materials Annual Conference January 13, 2015, Brussels
Lars-Eric Aaro, President and CEO, LKAB
Thank you for the invitation to contribute to this High-Level Panel
I am Lars-Eric Aaro, President and CEO for LKAB. LKAB is an international minerals group, world leading producer of processed iron ore products for steelmaking, and a growing supplier of mineral products for other industrial sectors. We are producing 90% of the iron ore in EU from our operations in the Arctic Region.
We have been in business since 125 years due to our capacity to turn a mineral resource to value for our customers.
Key for survival is competitiveness and key for competitiveness is innovation.
We need innovations to stay competitive but also to work smarter, greener, leaner in harmony with the society.
For us it is natural to involve in the EIP and Horizon 2020 et c to make our company stronger, but also to make our region stronger and more attractive for young and talented people.
[….voice something from previous speakers from the High-Level Panel… where you agree]

2. RAW MATERIAL SUPPLY IS A GLOBAL SOCIETAL CHALLENGE
Billion people1
4,9
Growth of the global middle class
Rest of world
1,7
x 2.5
1,9
3,2
Asia
1,3
0,5
We need innovations to meet the need of the many. Demand for metals are constantly increasing and will do so with rising population and growing economies.
When the poor people move from poverty to middle-class, they buy their first washing machine and can apparently not return any washing machine for recycling. (see the slide)
If we in the rich world use metals, the rising middle class should also have the moral rights to use metals to build their prosperity. Recycling is good and necessary but not sufficient. New mines are needed. Also in the EU, being a huge consumer of metals , new and expanded mines are necessary to ascertain security of EU supply.
Concerning metals - let us remind ourselves that they are chemical elements and are not consumed - only used. With good systems for recycling, we cannot speak about “resource depletion”.
1 OECD's definition of middle class BNP/capita between USD 3000 and USD 15000
2009
2030
1 OECD's definition of middle class with BNP/capita between USD and

3. Long-term sustainability
07/01/2015
Need for innovation
Technology
Education
Training
Long-term sustainability
We need innovations in technology.
The left picture shows an iron pellets during manufacturing. We produces customised pellets per second. And we want to make smarter and smarter products to make our customers - the steel industry- more energy and resource efficient. We are happy that the steel sector uses our own unique experimental blast furnace to lower CO2-emissions. Ourselves will search for solutions to produce pellets using natural gas instead of coal and gas. In the long run, we aspire to build a pelletising plant, using only the chemical energy during the iron ore transformation from magnetite to hematite
We need innovations in deep mining. To design a safe and efficient underground mining environment even accounting for mining-induced seismicity
We need innovations for improved process control to optimise quality and minimize energy and resource use. We are happy to be a member of the SPIRE Public Private Partnership.
We need innovations in education and training
Attract young talents to science and technology
Efficient transfer of knowledge and experience
Boosting a mindset of innovation and entrepreneurship
We need innovation ins legislation and regulations
that inspires to competitiveness, growth, better resource efficiency – mostly on national level.
We want stringent and stiff environmental conditions in balance with society and economy to create the necessary and sufficient conditions for long-term sustainable mining. The process should be predictable to allow industry to create growth and jobs. Current process is discouraging for many potential investors.

4. Raw materials commitments
A few words on the Raw Material Commitments that are an essential element of the EIP on Raw Materials
We believe that the Raw Material Committments should be efficient ways to mobilize stakeholders for implementation of the Strategic Implementation Plan decided by the High-Level Steering Group.
LKAB has involved in several RMC, e.g. in exploration, deep mining and sustainable mining.
The slide shows five background reports that were published Dec 2014 within the pre-study on sustainable mining that LKAB financed during We are now consolidating the pre-study proposals based on peer-review comments received, trying to find consensus on how to progress with acceptance and financing of the proposed 12 work packages.
Sustainable mining is key to our future. Our strategy is to build
An attractive company
Attractive communities
Responsible Operation
Resource-efficient Production
We look forward to contributing to securing EU supply of minerals welcome the initiatives of the EIP Raw Materials to strengthen our competitiveness to continue to create jobs and prosperity.
Thank you!