LKAB, the Swedish mining giant, is pursuing the designation of strategic projects for its major developments in Gällivare, Luleå and Kiruna under the EU’s Critical Raw Material Act. This initiative aligns with the EU’s goal to enhance its supply chain for critical minerals amid rising geopolitical tensions and growing demand for electrification and digital technologies.
The EU consumes about 30% of the world’s minerals but only produces 3% domestically, creating a vulnerability in its supply chains. The EU’s Critical Raw Material Act aims to boost local production and diversify sources to mitigate risks.
LKAB’s President and CEO, Jan Moström, highlights the importance of these projects. “With increased demand for rare earth metals, essential for electric vehicle motors and other technologies, securing these resources is critical. Our projects in Gällivare, Luleå, and Kiruna could significantly enhance the EU’s self-sufficiency.”
The company’s strategy includes:
- Gällivare iron ore mine: Establishing a new processing plant to extract apatite and critical minerals from existing waste streams. This will support the production of rare earth metal oxides, phosphoric acid, and gypsum.
- Luleå industrial site: Upgrading apatite from Gällivare to produce rare earth metal oxides and other by-products.
- Kiruna rare earth deposit: Developing one of Europe’s largest rare earth deposits, with estimated resources of around 1.7 million tonnes. This deposit could play a crucial role in Europe’s supply chain for these essential materials.
LKAB aims to start producing rare earth oxides by 2030, targeting a market currently dominated by China. The company also plans to bolster its position in rare earth metals and phosphorus for agricultural fertilizers.
The expansion in Kiruna is projected to sustain mining operations for 20-30 years. “Our goal is to build a sustainable business based on rare earth metals, leveraging our iron ore mining expertise. This approach will make us more resilient to market fluctuations,” Moström added.
To support these developments, LKAB will need to invest in infrastructure, including expanding the power grid and increasing rail freight capacity. The company hopes that receiving strategic project status from the EU will expedite the approval process and facilitate these investments.
