LKAB's projects designated as strategic within the EU's Critical Raw Materials Act
The European Commission has granted LKAB’s industrial park for critical minerals in Luleå, the mine in Gällivare and the new Per Geijer deposit in Kiruna, status as strategic projects under the recently introduced Critical Raw Materials Act (CRMA). This is a recognition of LKAB’s potential to contribute to Europe’s supply of strategic raw materials – such as rare earth elements – and reduce dependence on imports from other countries.
What is the Critical Raw Materials Act?
The EU’s Critical Raw Materials Act (CRMA) is a regulation that aims to reduce the Union’s dependence on imports of critical raw materials by strengthening extraction, processing and recycling within Europe.
Strategic status is awarded to initiatives that are considered crucial to achieving these goals. For the projects, this may include:
• More efficient permit processes
• A clear point of contact that guides through the entire process. In addition, deadlines are set for granting permits.
• Advice and support for financing opportunities
Permit reviews are already underway for LKAB’s designated projects, and the designation does not entail lower requirements for the environmental and surrounding considerations that must be taken.
What are we doing in Sweden?
The government is working to review what is required for Sweden to comply with this legislation. At the same time, long-term work is underway to review the permitting processes for all mineral projects and all operations. The proposals may also have significance for the implementation of the CRMA.
Why is the CRMA needed?
Europe consumes about a quarter of the world’s raw materials but produces only three percent. Recycling is part of the solution but cannot cover the need. A benchmark in the critical raw materials act is that the extraction of strategic raw materials should be at least 10% within the EU by 2030. During the lifetime of the products and applications for which the raw materials are used, they are bound and therefore not available for recycling, and it will likely take until 2100 before recycling can account for even half of the amount of the rare earth elements expected to be needed by Europe and the world by then. The option that the Commission considers to be the safest and most realistic, from a supply point of view, is increased primary production and mining in Europe.
To secure access to the necessary materials for Europe’s transformation, competitiveness, digitalisation and defence, the EU has identified 34 critical raw materials, of which 17 are also classified as strategic and all of these are covered by the CRMA, including rare earth elements.
The EU has identified four important areas:
- Creating robust value chains for industry
- Reducing dependence on primary raw materials through circular economy
- Increasing extraction and processing of raw materials within the EU
- Diversifying supplies through sustainable international trade
At least 10% of the EU’s annual consumption should be extracted in the EU.
At least 40% of the EU’s annual consumption should be processed in the EU.
At least 25% of the EU’s annual consumption should be recycled in the EU.
No more than 65% of the EU’s annual consumption of each strategic raw material, at each relevant stage of processing, should come from a single country outside the EU.
LKAB's strategic projects within CRMA
The following three LKAB projects have been awarded strategic status:
The mine in Malmberget, Gällivare
• An established iron ore mine where new processes enable simultaneous extraction of rare earth elements and phosphorus from materials that are already being mined.
• Increases resource efficiency and reduces Europe’s import dependency.
• Application for a permit under the Environmental Code is ongoing.
Critical Minerals Industrial Park, Luleå
• Developing into a hub for the processing of phosphorus and rare earth elements.
• A first demonstration plant is being built to develop the technology for full-scale production.
• Important for the EU’s transition to fossil-free energy and electrification.
• Application for a permit under the Environmental Code is ongoing.
The Per Geijer deposit, Kiruna
• An iron ore deposit with high levels of phosphorus and one of Europe’s largest known deposits of rare earth elements.
• The investigation is at an early stage, but the deposit has the potential to strengthen the EU’s raw material supply in the long term.
LKAB's role in the European value chain
Our iron ore mines contain valuable by-products that we plan to extract. Through innovative processes, we can extract rare earth elements, which are used in electric cars, wind turbines and electronics, and phosphorus, a key component in mineral fertilisers for sustainable agriculture.
We strive to use as much of the extracted material as possible – for both economic and environmental reasons. This is part of our contribution to reducing Europe’s import dependency and creating a more stable, sustainable supply of raw materials.
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