Kiruna relocation widens after state-owned miner LKAB (Luossavaara‑Kiirunavaara AB) updated its deformation zone: another 6,000 residents and about 2,700 homes will be affected in the coming years, forcing more neighbourhoods of the Arctic city to move.
Why Kiruna must move: mining and ground deformation
Kiruna sits above one of the world’s largest underground iron ore deposits. Decades of extraction using sublevel caving have caused ground subsidence that is advancing toward the old city centre.
Authorities and the company concluded years ago that keeping the mine—and the jobs and tax base it sustains—requires moving parts of the city to stable ground. Even if mining stopped today, deformations would continue for years, so the Kiruna relocation remains the only long‑term safety option for homes, schools and infrastructure.
New forecasts: 2,700 more homes and a multi‑billion budget
LKAB’s latest forecast expands the impact area along previously drawn lines. An estimated 2,700 additional dwellings and 6,000 more people fall inside the zone, bringing the total directly affected to roughly 12,000 residents—about two‑thirds of Kiruna’s population.
The company anticipates compensation and replacement projects over the next decade costing about SEK 22.5 billion (€≈2.0 billion). The figure covers land acquisition, new housing and facilities, and related community works to keep mining and the city’s services viable.
What changes on the ground: neighbourhoods and facilities
The expanded zone primarily touches Norrmalm (north and east of Adolf Hedinsvägen) and large parts of Bolagsområdet, including early‑20th‑century company houses known locally as Bläckhorn.
High‑rise blocks at Högalid, the Lombia and Matojärvi sports grounds, Malmfältens folkhögskola, and Högalidsskolan also come into scope. In total, planners expect about 850 small properties and around 20 larger sites to be affected within ten years, triggering phased moves as safety thresholds are reached.
How relocation works: compensation, timelines and process
Under Sweden’s mining legislation, LKAB finances the urban transformation in coordination with Kiruna Municipality (Kiruna kommun). Property owners are compensated and offered replacement housing or buy‑outs; public buildings are rebuilt or moved; and streets and utilities are laid out in the new city centre, around three kilometres east of the old one.
The company has begun information meetings with affected households and will negotiate moves in stages. The Kiruna relocation programme runs through 2035, but timeframes may shift as deeper mining and new geology data refine forecasts.
Culture on the move: church and heritage buildings
Kiruna’s transformation includes moving culturally significant structures. In August 2025, the city completed the relocation of Kiruna Church, a 113‑year‑old wooden landmark, to a new site between the cemetery and the new centre.
Other historic buildings have been shifted or reconstructed to preserve the town’s architectural heritage even as districts are decommissioned near the mine.
Nordic and EU context: iron ore, rare earths and regional impact
Kiruna’s mine supplies a large share of Europe’s iron ore, making the Kiruna relocation a strategic choice for regional industry and the Nordic economy. Continued extraction underpins jobs in Norrbotten and supports EU plans for resilient, low‑carbon steel supply chains.
At the same time, local communities—including Sámi reindeer herders—face cumulative pressures from land use, planning uncertainty and repeated moves. Managing these trade‑offs transparently remains central to the project’s long‑term legitimacy.
What happens next
Authorities and LKAB will map parcels, notify residents and sequence projects in the updated deformation zone. As compensation negotiations advance, new housing and public facilities will be planned and built in and around the new Kiruna centre. The scope announced now sets the baseline for the next decade of works, but further geological findings may require additional adjustments.
