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The role of product differentiation in the iron ore industry: the case of LKAB
Luleå tekniska universitet.
1996 (English)In: Resources policy, ISSN 0301-4207, E-ISSN 1873-7641, Vol. 22, no 1-2, p. 49-60Article in journal (Refereed) Published
Abstract [en]

The analysis shows how the Swedish iron ore producer, LKAB, in spite of mining its ore underground in an arctic climate at relatively high costs, has remained internationally competitive thanks to its large-scale operation with high grade magnetite ore, pelletization and relatively short distance to both its shipping harbour and its international markets. LKAB starts at a relatively high level on the supply curve with respect to mining costs, but as the analysis continues to describe, LKAB moves gradually downwards on the supply curve on delivered pellet costs. The analysis clearly shows that LKAB has successfully managed to find its comparative advantage and that its competitive strength is sustainable, primarily thanks to its rich deposits of magnetite ore.

Place, publisher, year, edition, pages
1996. Vol. 22, no 1-2, p. 49-60
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-7691DOI: 10.1016/S0301-4207(96)00020-7Local ID: 6196e6a0-b395-11db-bf94-000ea68e967bOAI: oai:DiVA.org:ltu-7691DiVA: diva2:980581
Note
Godkänd; 1996; 20070203 (ysko)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2017-11-21Bibliographically approved

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