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Business News[ ] Ecology at Work in Mining and Banking

Swedish Steel Production Goes Green

By Peter Berlin

Atrain line above the Scandinavian Arctic Circle is used to convey iron ore from one of the world’s largest iron mines to the ocean for onward shipment to steel works in faraway countries. The mine is in Kiruna in Sweden, and the seaport is in Narvik on the scenic Norwegian coast.

A highway runs parallel with the train track. If you stop your car and walk up to the track, you will find the rail bed covered with little iron ore pellets that have fallen off freight trains over many decades. Pelletizing

Swedish banks and government at odds

As COVID-19 is overwhelming countries in North America and Europe, consumers are discovering that their cash is often shunned by merchants in favour of credit or debit cards. Well, now we are all getting a foretaste of what shopping in Sweden has been like for some time.

Swedish banks have been successful in their effort to wean their customers away from the habit of using “dirty” cash for everyday purchases. Instead, people have been encouraged to use credit or debit cards for payments, as well as smartphone apps to both send and receive funds. Few banks offer cash withdrawals over the counter, and cash machines are becoming scarce.

Banks incur a significant overhead cost when handling cash, and even more so when processing cheques. To save money and increase profits, they have turned Sweden into the

Aerial view of Narvik. Photo: Fredric Alm/LKAB

iron ore facilitates transport, and the pellets are used as raw material for blast furnaces. They typically contain around 70 percent of pure iron, to which various materials have been added in order to adjust their chemical composition and metallurgic properties.

The pellets are fabricated at various plants of the Swedish state-owned world’s ultimate cashless society. However, the government has been unhappy about this development. They consider that deciding monetary policy should be the prerogative of Riksbanken (the Central Bank of Sweden) rather than commercial banks. Now it looks as if Riksbanken will take revenge on high street banks by introducing the so-called e-krona – a virtual, electronic version of the real thing – thereby depriving the banks of their source of funds in the form of customer deposits. This is so because the holder of an e-krona will have mining company LKAB which, for 130 years, has been extracting iron ore from mines in Kiruna and its surroundings. It is a “dirty” business, with LKAB currently contributing four percent of all industrial greenhouse emissions in Sweden. However, this is about to change. A massive investment in sustainable mining processes amounting to 400 billion Swedish kronor ($47 billion) will achieve net-zero carbon emissions by 2045. The initiative involves using green energy, such as hydrogen, to produce processed iron ore known as “sponge iron”. Like iron ore pellets, sponge iron is not useful by itself, but can be processed to create wrought iron or steel. Sponge iron will replace pellets, greatly reducing emissions during the

steel-making process. a direct claim on the Central Bank, effectively bypassing commercial banks.

Central banks don’t go bankrupt even during the worst of financial crises. Compared to commercial banks, Riksbanken would be a safer haven for savings, and the interest rates would be more favourable for both savings and loans. A decision is expected by November 2022 on whether to pursue the e-krona project.

Composite picture of Swedish banknotes and coins. Photo: Sveriges Riksbank

Åre, The Alpine Heart of Scandinavia

By Peter Berlin

As one might expect, Sweden has many world-class ski resorts, most of them located along the slopes of the Fennoscandia mountain range bordering on Norway – Sälen, Vemdalen, Branäs, Riksgränsen, Kläppen, Funäsfjällen, Idre Fjäll, and Åre, to name a few.

So what will skiing be like during the current 2020/2021 winter season, considering the social constraints imposed in Sweden and elsewhere by COVID-19? Will ski resorts even welcome visitors? Both the resorts and public health officials believe skiers can safely hit the Swedish slopes this winter even as the number of new daily Covid-19 cases remains high. Resorts have spent the past months adjusting their operations to be in line with health guidelines. The general consensus is that the risk of infection would lie in how skiers like to gather in bars, restaurants and shops, not in the sport itself.

The best known ski resort is probably Åre, considered to be Northern Europe’s largest and most diverse alpine sports venue for all skill levels, especially advanced skiers. There are 103 runs, 40 lifts, a gondola lift, children’s slopes, night skiing, snowmobile safaris, dog sleigh tours, ice climbing, and the opportunity to stay in igloos. The resort also offers top class cuisine, including take-away introduced because of the coronavirus. There are several local beer breweries, many activities related to ski touring and very nice areas for cross-country skiing.

Despite COVID-19, the Åre resort is definitely open for business. The village of Åre and the local companies that make up the resort are closely following the developments and guidelines from authorities concerning the coronavirus. Ski lifts, restaurants, shops and places to visit are taking the necessary precautions to ensure that guests, residents and employees stay safe. This extends to how helmets are cleaned at ski rentals, and how an injured skier would be taken care of by emergency personnel.

The resort’s website www. aresweden.com/en lists specific examples of measures being taken throughout Åre to mitigate the risk of someone falling ill with the virus. However, all these measures do not obviate the need for visitors to take personal responsibility, as recommended by the Swedish Public Health Agency. There will be no nightclub or après-ski activities this winter, but bars and restaurants will be open, and food and beverages will be served to seated guests according to the restrictions that apply – so there can still be a relaxing end to one’s day on the slopes.

It is worth noting that Åre is not just a ski resort but offers yearround attractions, including impressive waterfalls and local handicrafts. Interestingly, the permanent population of Åre has experienced significant growth in recent years – mostly because of people seeking an escape from urban life without necessarily being involved in the tourism sector. Business activity is intense by national standards; success is based on a high degree of mutual dependence and has led to the formation of a close-knit and welcoming community.

Photo: Anette Andersson/Åre Destination