LKAB’s CEO Jan Moström shows the self-driving trains at a depth of 1,365 metres to EU commissioner Jessika Roswall
Two and a half years ago, LKAB’s CEO Jan Moström and Minister for Energy and Enterprise Ebba Busch unveiled a world-first to international journalists deep within the Kiruna mine. Europe's largest deposit of rare earth metals had been discovered within the previously known Per Geijer iron ore mine, just a stone's throw away.
The materials are described as crucial in the green transition and are used in everything from electric car batteries to wind turbines and technology.
Currently, Europe is heavily reliant on China for its rare earth metal imports.
The EU's new "critical raw materials act" aims to bolster Europe's self-sufficiency in these vital materials, targeting 10 percent by 2030.
– It is obvious that we must be more self-sufficient. We have tested not being so and have noticed how it doesn’t work during financial crises, pandemics and wars on our continent, says EU commissioner Jessika Roswall (M) during her visit to LKAB’s mine in Kiruna.
Deep within the mine, at 1,365 meters, a self-driving train efficiently dumps tons of iron ore for processing. While CEO Jan Moström effortlessly explains the iron ore separation, the primary focus is now on the proposed Per Geijer mine, just 600 meters to the north.
– We were completely dependent on a totalitarian state when it came to Russia and gas. The next big energy issue will be rare earth metals, where China has positioned itself over the past 30–40 years. Without them, we can’t manufacture electric cars, fighter jets or iPhones. Then the question is whether we want to let Xi Jinping decide that or not, says Moström.
Crucially, it is the iron ore — for which the entire town of Kiruna is being relocated — that remains the main target in the Per Geijer deposit. Extracting rare earth metals alone is reportedly not profitable.
Asked why it wouldn't be profitable, Moström explained:
– China totally dominates this market. They have 80 percent of mining production and almost 100 percent of processing. If we extract these materials at a certain cost, they will make sure to price theirs just below that. In the US, attempts to start rare earth metal mines have failed because of this, he says, continuing:
EU commissioner Jessika Roswall meets Erik, who operates up to six machines in the mine from his control room station
– But since we have iron ore in the same place, the extraction of it can bear the primary cost of mining, says Moström.
While rare earth metals are present in other LKAB iron ore mines, the concentrations in the Per Geijer ore body are said to be ten times higher, alongside a greater supply of phosphorus.
In March, the EU commission designated the Per Geijer deposit as a "strategic project," aiming to fast-track its permit processes to no more than 27 months.
– In March, the EU commission designated the Per Geijer deposit as one of several selected “strategic projects” that will give the mine a fast track, or priority, in several permit processes which they have said will take no more than 27 months.
However, precisely how a process that typically spans over a decade can be shortened to just over two years remains unclear.
LKAB’s CEO Jan Moström and EU commissioner Jessika Roswall (m) look out over Kiruna and the mine from the top of Luossavaara mountain.
When questioned about how much faster this would practically enable mining of the metals, Jessika Roswall replied:
– I can’t answer that exactly. The project includes some timelines but what’s important is that politically, together with companies, we show that this is extremely important for Europe’s self-sufficiency and the green transition, she says.
Ultimately, Swedish authorities will issue the necessary permits. The land is protected by various national interests, notably reindeer herding. The proposed Per Geijer mine would completely sever the Gabna Sami village's passage between summer and winter pastures.
– There are many conflicting interests right here, and it is, as always, complicated. But ultimately, all these interests need to be balanced, says Roswall.