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Force Majeur

Iron-Ore railway grinds to a halt

Published måndag 28 maj 2012 kl 18.14
The world needs more iron-ore, but nothing is moving right now. Photo: Alexander Linder/ Sveriges Radio.

A train strike in Norway has forced the Swedish state-owned mining company LKAB to declare force majeur. The strike has closed down the Iron-Ore railway that the company uses to deliver iron-ore to the Norwegian port city of Narvik.

By declaring force majeur LKAB frees both its customers and itself from any liability or obligation concerning any contracts.

LKAB says the situation is so serious that they have no choice. "We've determined that we can't deliver the product to our customers according to their orders, that's why we are going out today and declaring force majeur," Lotta Fogde, communications director at LKAB, tells Swedish Radio.

Fogde says LKAB cannot make two-thirds of its deliveries and describes the situation as "damaging".

Every day, ten trains carry roughly 60,000 tons of iron ore from the mines in Kiruna to Narvik. From there, the iron-ore is shipped to the rest of the world.

Passenger trains have also been cancelled and replaced with busses.

Three Norwegian labor unions are striking for higher salaries.

Our journalism is based on credibility and impartiality. Swedish Radio is independent and not affiliated to any political, religious, financial, public or private interests.
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