Swedish state-owned mining company LKAB announced that it can meet around 18% of Europe’s rare earth metal demand in the long term if its Per Geijer mine in the Arctic begins production.
The company made the announcement during the start of construction on a new processing facility in Lulea, northern Sweden, reported Reuters.
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The project involves an investment of Skr800m (approximately $73m) and is expected to be operational by 2026.
The strategic importance of rare earths is underscored by geopolitical tensions and the EU’s Critical Raw Materials Act (CRMA).
The EU’s focus on securing its supply of critical raw materials including rare earths essential for green technology is part of its broader strategy to meet climate goals.
LKAB’s efforts align with this strategy, providing a more secure supply chain for rare earth metals within Europe.
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By GlobalDataThe Lulea facility will process mining waste to produce rare earth concentrate, phosphoric acid and gypsum, with full operations expected to commence by the 2030s. The plant will initially focus on waste from the Malmberget mine in Gallivare.
The facility’s development is independent of the Per Geijer find in Kiruna, one of Europe’s largest rare earth element deposits.
The Per Geijer deposit, primarily an iron ore deposit with estimated resources of around 1.7 million tonnes of rare earth oxides, could take a decade to develop.
LKAB special products business area senior vice-president Darren Wilson said: “We see our first stage for phosphates at around 6% (of European demand) and rare earths about 2.5%.”
“When we expand fully and exploit the potential of Per Geijer, we see that being up to around 18% (of rare earths).”
LKAB needs to secure an environmental permit and other regulatory approvals before commencing commercial operations at the deposit.
The company has applied for a processing licence to develop the deposit exclusively and for strategic project designation under the EU’s CRMA.
Deputy Mayor Luleå municipality Fredrik Hansson said: “I am very pleased that LKAB has chosen to build a demonstration plant for critical minerals in Luleå. This strengthens our city as a hub for innovation and sustainable development while building on the historical ties with Gällivare and the Malmbanan railway.
“The investment brings new job opportunities and contributes to a sustainable future – not only for Luleå and the region but for all of Europe. We look forward to following this important project and the positive impact it will create.”
