LKAB (Luossavaara-Kiirunavaara AB) has identified significant rare earth metal deposits in the Kiruna area, which are essential for manufacturing products such as electric vehicles and wind turbines. Following successful exploration, the company reports mineral resources of rare earth metals exceeding one million tonnes of rare earth oxides, representing the largest known deposit of its kind in Europe.
“This is good news not only for LKAB, the Kiruna region and the Swedish people, but also for Europe and the climate. This is the largest known deposit of rare earth elements in our part of the world, and it could become a significant building block for the production of critical raw materials that are absolutely essential to ensure the green transition. We face a supply problem. There can be no electric vehicles without mines,” explains Jan Moström (Jan Moström), President and CEO of the LKAB group.
Currently, there is no mining of rare earth elements in Europe, yet demand is expected to rise sharply as a result of electrification, which will to some extent exacerbate a global supply shortage, at a time of increasing geopolitical tension. According to European Commission estimates, demand for rare earth elements, including for electric vehicles and wind turbines, will increase more than fivefold by 2030. Europe is currently dependent on imports of these minerals, with the market dominated entirely by China, a factor that increases the vulnerability of European industry.
“Electrification, EU self-sufficiency and independence from Russia and China will start in the mines. We need to strengthen industrial supply chains in Europe and create real opportunities for electrification. Politics must ensure that European industry has the conditions to transition to environmentally friendly, fossil-free production. The Swedish mining industry has a lot to offer in this area. The need for minerals to carry out the transition is great,” says Ebba Busch (Ebba Busch), Minister for Energy, Business and Industry.
At the same time, the road to potential extraction from the site is long, and the first step is an exploitation concession application for the Per Geijer deposit so that it can be further explored and the conditions for extraction investigated. It is planned that an application for an exploitation concession will be submitted in 2023.
LKAB has already begun preparing a multi-kilometre long drift at a depth of approximately 700 metres in the Kiruna mine towards the new deposit in order to study it in greater depth and detail.
We have not yet seen the full extent of the deposit
“We are already investing heavily in moving forward, and we expect that exploring the deposit and determining the conditions for its profitable and sustainable extraction will take several years. We are humble regarding the land use challenges and impacts involved in developing this deposit into a mine, which will need to be analysed to determine how they can be avoided, minimised and compensated for. Only then can we proceed with the preparation of an environmental impact assessment and apply for a permit,” says Jan Moström.
Article in English