A new chapter in Pajala’s mining history
Mining and iron working took place in the Pajala region as early as the 17th century. This is a long and deeply-rooted history. For more than a century, Norrbotten has been dependent on a successful mining and steel industry. Industry has characterised our towns and communities, our culture and our landscape.
With a strong conviction and huge local commitment, we were able begin to write the next chapter in Pajala’s mining history in 2018. Our chapter. We were indebted to no-one, and we were convinced that we would be able to create a profitable and vibrant base industry. We shared that conviction with investors, stakeholders and partners who believed in us wholeheartedly and gave us a solid foundation. We knew we had a unique iron ore product with high iron content and considerable environmental advantages, and we knew how much would manage to produce and ship.
Free of debt and realistic production goals, we could start to build our Kaunis Iron. There were many who wondered whether it really was possible to restart the mine in Pajala. There were doubters. We showed it was possible. Every day since, we show that it is possible.
Important years
2012-2014
Northland Resources opens an open-pit mine in Kaunisvaara to extract iron ore and carries out the first ore shipment in 2012. When the price of iron ore falls sharply, the company initiates a restructuring process in 2013 and is declared bankrupt in December 2014 after production has been halted.
2016-2018
In 2016, Abecede AB took over parts of the operations—the processing plant, the truck workshop, and the rail wagons. In February 2018, Kaunis Holding AB acquired the company and the remaining assets from the bankruptcy estate, subsequently changing its name to Kaunis Iron AB. A group of Swedish investors injected nearly SEK 600 million, and mining operations resumed in Kaunisvaara. On June 25, the Swedish Environmental Protection Agency applied to have Kaunis Iron’s environmental permit revoked. On July 18, Kaunis Iron resumed ore extraction.
"We have created a completely new business model that we are working with, and we have three good customers. So, things are looking very promising," Anders Sundström, Chairman of the Board of Kaunis Iron, told Di TV and Expressen TV on May 29.
"It is a momentous day for both Kaunis Iron and Railcare. But it is also a big day for the Municipality of Pajala, which is coming back to life, and for all the jobs that are returning," train driver Anna Helmersson told NSD in August, during the inaugural departure of the first ore train.
2019
By May, operations are in full production at a rate of 2 million tonnes of iron ore concentrate per year. On July 17, Kaunis Iron applies for a new operating permit for its existing operations as well as for two new mines in Sahavaara and Palotieva. Mining operations now employ approximately 350 people.
"Things are going fantastically well," Per-Erik Lindvall, CEO of Kaunis Iron, tells NSD in June.
2020
In February, the company announced that net sales for the first year of production amounted to SEK 1,619 million, with a result after financial items of SEK 389 million.
2021
Despite a turbulent global market, Kaunis Iron has achieved a record year with revenue of SEK 2,901 million and a profit after financial items of SEK 1,237 million. Mine production runs around the clock and has increased by 21% compared to the previous year. The group, including permanently stationed subcontractors, employs 531 people, 338 of whom are employed by Kaunis Iron.
2022
The Land and Environment Court has rejected the Swedish Environmental Protection Agency’s application to revoke the environmental permit; Kaunis Iron may continue its current operations. However, the ruling limits any expansion of production within the scope of the existing permit to 7 million tonnes annually, corresponding to current production levels.
"This is an important ruling for Swedish industry as a whole—that granted permits remain valid," notes Klas Dagertun, CEO of Kaunis Iron.
2023
Construction of the flotation plant—a major investment for the future—began during the year. In addition, a new production record of 2,283,000 tonnes of iron ore was set.
2024
The flotation plant was commissioned, and significant investments were made in the tailings storage facility and wetland restoration. Main proceedings were held at the Land and Environment Court of Appeal, with a judgment expected in 2025.
2025
A year characterized by market uncertainty and an ongoing permitting process. The Land and Environment Court of Appeal upheld the environmental permit for operations at Tapuli, Palotieva, and Sahavaara. The Geological Survey of Sweden (SGU) expanded the area of national interest regarding the deposits, the expansion of the sand tailings facility was completed, and the County Administrative Board approved 395 hectares of wetland restoration within the company’s area of impact. After the close of the financial year—on February 2, 2026—the Supreme Court decided not to grant leave to appeal, meaning the environmental permit became final and legally binding.
The deposit was discovered in 1918. With the help of shovels and picks, the men in the village participate in the investigations of the deposit.
