Nordic construction company NCC has secured a contract from LKAB, a Swedish state-owned mining company, to build a new recycling centre in Kiruna in the country.

The project, valued at around Skr160m ($15.9m), will consolidate the management of waste from LKAB's operations into one facility.

LKAB's operations are currently spread across three separate facilities - an environmental store, a disposal site, and a decantation facility.

This project involves constructing a 2,000m² facility for the management of hazardous waste and waste oil, supported by 40,000m² of land for waste sorting and processing.

The recycling centre will also feature a garage and office space.

The initiative is set to commence immediately, with completion expected in late 2026.

The order value of the project will be booked in the NCC Infrastructure segment's orders for the second quarter of 2025.

LKAB division manager Stefan Lahti said: “Currently we manage around 16,000 tons of waste per year, half of which is metal and iron scrap. We are a large and complex operation, and this places considerable demands on us.

"But we also place considerable demands on ourselves - we want to work preventively, in a forward-looking manner and sustainable over the long term. That is why it is also natural to invest in a new recycling centre that will give us even better conditions for achieving our ambitious goals.”

NCC infrastructure Kiruna project manager Linda Bäckström said: “NCC has a broad range of know-how in environmental technology, and we are pleased to be entrusted with building a modern recycling centre that will give LKAB a solid basis for dealing with the waste from its operations.”

This contract follows a partnering agreement signed by NCC this February for a new sorting plant for LKAB in Gällivare, Sweden.