Kiruna: The Swedish city on the move

Last week, as part of the Arctic Frontiers Workshop on Critical Minerals, I visited Kiruna, a city in northern Sweden defined by the iron ore mine that sustains it. For over a century, the mine has been the founding pillar of the community, but now it is the reason Kiruna is amid a monumental relocation.

City Displaced by its Foundation

The extensive underground mining operation, which produces 80% of the iron ore within the European Union, has created a large deformation zone expanding by approximately 30 meters each year. It creeps ever closer to the city and causes the ground to subside, requiring the city to move.

To prevent the creation of a ghost town and ensure the safety of its residents, a gradual relocation project is underway until 2035. So far, approximately 6,000 people have already had to move from the old, unsafe parts of the city to a newly constructed center.

Residents affected by relocation are given two choices: they can either accept a new home built to match their original one in the new city center or, if technically feasible, they can have their entire house physically moved to the new location.

Just before our visit, Kiruna’s 16,000-tonne wooden church had been moved five kilometers to the new city center.

This historic event, which required a specially built road, drew tourists from across the world.

Economic Life

The life of Kiruna is deeply influenced by the operational rhythm of the mine. Many workers operate on a three-weeks-on, one-week-off schedule. To ensure maximum safety, crucial operations such as underground blasting are conducted at night when the fewest workers are present. After extraction, the ore is processed into pellets, which are then transported from Kiruna for use in steel manufacturing across the globe.

Kiruna stands out among Nordic Arctic cities, boasting an exceptionally low unemployment rate of 2.1%. This economic strength creates a significant labor shortage. Based on data from the Swedish Public Employment Service’s job portal, Platsbanken, there are currently 439 open jobs available in Kiruna.

However, while the search for new workers is urgent, the development of local infrastructure, such as housing and services, is struggling to keep pace with the city’s rapid growth and relocation efforts.

Diversifying the Economy Beyond Mining

One of the key concerns for Kiruna’s economy is the “fly-in, fly-out” workforce. This phenomenon, in which workers commute from other regions rather than living locally, means that their earnings and social contributions often do not benefit the immediate community.

To build a more resilient and integrated local economy, the city is actively developing its industries beyond its mining core. Tourism is a growing sector alongside a developing space industry that includes versatile rocket-launching facilities at the nearby Esrange Space Center. These new ventures, combined with all the support activities related to the mine, are creating a more diverse economic landscape.

The residents of Kiruna are looking firmly toward the future: they are building a vibrant, modern community with new cultural facilities and public services. A prominent symbol of this new era is the city’s state-of-the-art swimming facility, which boasts multiple pools, water slides, and an advanced spa. This project, delayed by three years, is anticipated to be the most expensive swimming pool in Sweden and is expected to open soon.

Future on the Move

The presence of the state-owned mining company LKAB is evident everywhere in Kiruna, and its logo is displayed prominently on billboards throughout the city.

While our group was visiting the LKAB mine, major news broke that would affect the community’s future.

On September 25th, LKAB announced in a press conference that the mine’s continued expansion required another 6,000 people and around 2,700 houses to be relocated. The new area to be relocated is shown in blue. This news presents a challenge, particularly for residents who might have just settled in their new homes after the first move.

As the next phase of relocation affects one-third of Kiruna’s 18,000 residents, it is not an immediate process and is anticipated to unfold over the next decade. This adds another layer of uncertainty for the people of Kiruna, many of whom enjoy prosperity directly funded by the mine.

It also leaves a critical question unanswered: Where is the limit? The recent discovery of the massive Per Geijer rare earth deposit next to the original mine, which will be connected by an underground tunnel, ensures the cycle of relocation is far from over. Is the city destined for a continuous cycle of relocation in the quest for more minerals from Earth?