The role of product differentiation in the iron ore industry

the case of LKAB

Document identifier: oai:DiVA.org:ltu-7691
Access full text here:10.1016/S0301-4207(96)00020-7
Keyword: Social Sciences, Economics and Business, Economics, Samhällsvetenskap, Ekonomi och näringsliv, Nationalekonomi
Publication year: 1996
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Abstract:

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.

Authors

Stefan Hellmer

Luleå tekniska universitet
Other publications >>

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        identifier: oai:DiVA.org:ltu-7691
        datestamp: 2021-04-19T13:02:04Z
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                recordCreationDate: 2016-09-29
            identifier: 
                http://urn.kb.se/resolve?urn=urn:nbn:se:ltu:diva-7691
                10.1016/S0301-4207(96)00020-7
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                    lang: eng
                title: The role of product differentiation in the iron ore industry
                subTitle: the case of LKAB
            abstract: 
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.

            subject: 
                    @attributes: 
                        lang: eng
                        authority: uka.se
                    topic: 
                        Social Sciences
                        Economics and Business
                        Economics
                    @attributes: 
                        lang: swe
                        authority: uka.se
                    topic: 
                        Samhällsvetenskap
                        Ekonomi och näringsliv
                        Nationalekonomi
                    @attributes: 
                        lang: eng
                        authority: ltu
                    topic: Economics
                    genre: Research subject
                    @attributes: 
                        lang: swe
                        authority: ltu
                    topic: Nationalekonomi
                    genre: Research subject
            language: 
                languageTerm: eng
            genre: 
                publication/journal-article
                ref
            note: 
                Published
                1
                Godkänd; 1996; 20070203 (ysko)
            name: 
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                    type: personal
                namePart: 
                    Hellmer
                    Stefan
                role: 
                    roleTerm: aut
                affiliation: Luleå tekniska universitet
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                dateIssued: 1996
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                    title: Resources policy
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                    0301-4207
                    1873-7641
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                    detail: 
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                                type: volume
                            number: 22
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                                type: issue
                            number: 1-2
                    extent: 
                        start: 49
                        end: 60
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