Published by Global Banking and Finance Review
Posted on January 28, 2025
STOCKHOLM (Reuters) - Sweden's LKAB could supply around 18% of Europe's rare earth metal demand in the long term if its north Arctic Per Geijer mine enters production, the company said on Tuesday as it began construction of a related processing facility.
Rare earths are a group of 17 metals critical to products from lasers to iPhones and green technology key to meeting Europe's climate goals.
State-owned LKAB broke ground on Tuesday on its 800 million crown ($73 million) Lulea plant in northern Sweden, which will process mining waste, including potentially from Per Geijer, into rare earth concentrate, phosphoric acid - used in many fertilizers - and gypsum.
"We see our first stage for phosphates at around 6% (of European demand) and rare earths about 2.5%," Darren Wilson, senior vice president of the LKAB special products business area, said.
"When we expand fully and exploit the potential of Per Geijer, we see that being up to around 18% (of rare earths)."
The Lulea facility will initially process waste from LKAB's Malmberget mine in Gallivare, northern Sweden, with commercial production starting in late 2029 or early 2030.
Lulea's development is not dependent on whether LKAB develops the Per Geijer find, which has resources of around 1.7 million tonnes of rare earth oxides. That could take a decade.
LKAB has submitted an application for a processing license which will give it exclusive rights to develop the deposit. But it still needs an environmental permit and other regulatory approvals before it can start commercial operations.
The strategic importance of rare earths has been highlighted by increasing trade tensions with China, Russia's war in Ukraine and U.S. President Donald Trump's desire to get control of mineral-rich Greenland.
In 2023, the European Union adopted the Critical Raw Materials Act which aims to reduce EU reliance on other countries for minerals like rare earths neodymium, dysprosium and praseodymium which are used permanent magnets for wind turbines and electric motors.
($1 = 11.0130 Swedish crowns)
(Reporting by Simon Johnson)
