LKAB could face record fine over two-million-litre oil spill

Swedish mining company LKAB could face an environmental fine of nearly €9 million, or more than 100 million kronor, over a major oil spill in Kiruna in 2021, Yle reports, citing the northern Swedish newspaper NSD.

Up to two million litres of fuel oil leaked from pipes connected to an oil tank and seeped into the ground at LKAB’s industrial site. The company found that the spill was extensive.

The preliminary investigation is nearing completion. Prosecutor Christer Jarlås, from the national unit for environmental and work environment crimes, told NSD that investigators are waiting for the company to respond and say whether it admits guilt.

The proposed fine of 100 million kronor exceeds Sweden’s maximum summary penalty of three million kronor, so the case will go to a district court. No individual is suspected of a crime; the consideration of charges concerns the company.

LKAB notified the Norrbotten County Administrative Board as soon as it discovered the leak. However, the board did not report suspected environmental crime until 2025, nearly four years after the spill.

The investigation has also raised suspicions that officials at the county administrative board failed to report hundreds of suspected environmental crimes to police. Most of the cases reportedly involved large industrial companies, including LKAB, SSAB and Boliden Mineral. A police anti-corruption unit and a special prosecutor are investigating whether the board committed misconduct.