Sweden’s LKAB eyes potential rare earth production

Swedish mining company LKAB is examining the potential to start producing rare earth elements after identifying a major deposit at Per Geijer in Kiruna - the largest of its kind discovered in Europe.

Per Geijer contains more than 1mn t of rare earth metals in the form of oxides. They occur together with phosphorus in the mineral apatite, in what is mainly an iron ore deposit, and could therefore be extracted as by-products.

LKAB has started to prepare a drift several kilometres long at a depth of around 700km in its existing Kiruna mine in the direction of the rare earth deposit in order to investigate in more detail, but anticipates that any production launch would be many years away. "If we look at how other permit processes have worked within our industry, it will be at least 10-15 years before we can actually begin mining and deliver raw materials to the market," said president and chief executive Jan Mostrom.

Several companies are pushing to develop a European supply chain for rare earths and permanent magnets, wresting some control away from China and ramping up volumes to support the continent's energy transition ambitions. But the road to rare earths production is notoriously difficult and requires huge investment, as well as political will.

"Politics must give the industry the conditions to switch to green and fossil-free production. Here, the Swedish mining industry have a lot to offer. The need for minerals to carry out the transition is great," said Sweden's minister for energy, business and industry Ebba Busch, commenting on LKAB's rare earths resource.

In November, LKAB became the largest owner of Norway's REEtec AS, which is developing technology to separate rare earth elements. REEtec plans to have its first factory - located in Heroya - ready by the second half of 2024 and has another factory scheduled for 2026.

In addition, LKAB is planning a circular industrial park in Lulea for the extraction and processing of phosphorus, rare earth elements and fluorine, based on today's existing mining production. A production launch is planned for 2027.

By Ellie Saklatvala