New mineral strategy aims to accelerate permitting, attract investment, and strengthen recycling. However, major rare earth projects still face significant technical, environmental, and social challenges.
Sweden has officially designated the extraction of critical minerals and rare earth elements as a matter of national security. Through a new mineral strategy, the government aims to accelerate planning and permitting procedures, channel more investment into domestic mining, and reduce Europe’s dependence on Chinese mineral supplies.
Despite its vast mineral resources and well-established mining sector, Sweden currently attracts only around one percent of global mining investment, Energy and Industry Minister Ebba Busch said when presenting the strategy. The government is also considering the creation of a state-backed investment company to support the sector.
In addition, the strategy calls for stronger support for mineral exploration and research, while promoting recycling and more efficient use of raw materials.
Large Resources, Major Challenges
Sweden is one of Europe’s leading producers of copper, zinc, lead, gold, and silver. In Kiruna, northern Sweden, the state-owned mining company LKAB operates Europe’s largest iron ore mine. The company also plans to recover rare earth elements and phosphorus as by-products of its iron ore operations.
The European Union has designated the overall project—including the undeveloped Per Geijer deposit—as a Strategic Project under the Critical Raw Materials Act. Even so, it will likely take years before the project can make a meaningful contribution to reducing Europe’s import dependence.
Per Geijer also remains controversial because its development could threaten the traditional livelihoods of the Indigenous Sámi people, particularly through impacts on reindeer herding and land use.
Further south lies Norra Kärr, another deposit widely regarded as one of Europe’s most important rare earth resources. It is especially rich in heavy rare earth elements such as dysprosium, terbium, and yttrium. However, the project also faces significant obstacles before production can begin.
Extracting the deposit is expected to be technically complex and potentially expensive because its primary host mineral, eudialyte, contains relatively low concentrations of rare earth elements. At the same time, the project has faced years of local opposition, with residents warning of environmental damage and potential risks to the region’s drinking water supply.
Against this backdrop, Sweden’s new mineral strategy emphasizes not only faster permitting but also greater public acceptance of mining projects. Proposed measures include allowing local communities to share in the economic benefits of mining or receive financial compensation.
Industry representatives and policy think tanks have repeatedly stressed that securing a social licence to operate is a prerequisite for developing new mining projects across Europe.
More on the topic: Finland has also introduced measures in recent years to better utilize its domestic mineral resources and strengthen Europe’s supply security for critical raw materials.
Photo: SmaliarIryna via Canva
