Rare Earth Ore Body Found in Sweden Touted as Europe's 'Largest Deposit of its Kind'

Europe's largest known deposit of rare earth metals has been discovered in Kiruna area, Sweden's far north, according to government-owned mining company Luossavaara-Kiirunavaara Aktiebolag (LKAB).

LKAB has identified Per Geijer deposit, located in close proximity to an existing iron mine, as containing mineral resources exceeding one million tonnes of rare earth oxides. These metals are essential for such applications as the manufacture of electric vehicles and wind turbines.

“This is good news, not only for LKAB, the 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 producing the critical raw materials that are absolutely crucial to enable the green transition. We face a supply problem. Without mines, there can be no electric vehicles,” Jan Moström, President and Group CEO of LKA, said in a statement.

Screenshot of Twitter account of LKAB, a government-owned Swedish mining company.

China is the world's largest producer of REEs, accounting for almost 60% of global annual production, while no rare earth elements are currently mined in Europe. However, according to the European Commission, demand for rare earth elements for electric cars and wind turbines, among others, is expected to increase over fivefold by 2030.

“We need to strengthen industrial value chains in Europe and create real opportunities for the electrification of our societies. Politics must give the industry the conditions to switch to green and fossil-free production. Here, the Swedish mining industry has a lot to offer. The need for minerals to carry out the transition is great," Minister for Energy, Business and Industry, Ebba Busch, added.

But enthusiastic as the company is, the road to possible mining of the deposit may be a long and winding one. The Per Geijer deposit needs to be investigated further regarding possible mining conditions, with a relevant plan submitted, along with an application for an exploitation concession in 2023. According to the company, around 10 to 15 years might pass before any actual mining and delivery of raw materials begins.

Rare-earth oxides

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Meanwhile, LKAB has started work on a "drift," several kilometers long, at a depth of around 700 meters, in the existing Kiruna mine. This will offer access to the new deposit for further investigation.

“We are already investing heavily to move forward, and we expect that it will take several years to investigate the deposit and the conditions for profitably and sustainably mining it. We are humbled by the challenges surrounding land use and impacts that exist to develop this into a mine and that will need to be analysed to see how to avoid, minimize and compensate for it. Only then can we proceed with an environmental review application and apply for a permit,” Moström added.

More lucrative opportunities are potentially linked with the deposit as the rare earth elements discovered in Per Geijer occur together with phosphorus in the mineral apatite, in what is mainly an iron ore deposit. Therefore, it might offer production of by-products.

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