In a remarkable stride towards sustainable resource production, LKAB has embarked upon a momentous journey to produce carbon-dioxide-free sponge iron, cadmium-free phosphorus, and rare earth metals. Simultaneously, the company has submitted an application for an environmental permit to expand mining and processing operations of iron ore in Gällivare. This permit, if granted, could pave the way for the extraction of strategic and critical raw materials, marking a historic milestone for the European Union by 2030. However, there remains a looming risk that protracted permitting processes may impede the planned production commencement.
Jan Moström, the esteemed President and CEO of LKAB, emphasizes, "The climate and energy transition commences within the confines of the mine, and we have meticulously prepared our application. We can now only await the verdict, hoping that our legal framework and decision-making processes expedite this transition."
This application marks a pivotal initial step towards expanding the existing mining operations, employing HYBRIT technology to produce sponge iron using hydrogen, and establishing a facility for the extraction of apatite concentrate from landfill residue. The apatite plant will serve LKAB's forthcoming industrial site in Luleå, separating phosphorus and rare earth metals from the concentrate. Within the European Union, phosphorus is classified as a critical raw material, while rare earth metals are considered strategic raw materials, both playing a vital role in realizing the transition to a sustainable society. However, their availability remains uncertain.
The permits for the planned operation in Malmberget are a fundamental prerequisite for LKAB's future transition plans. The arduous process of obtaining permits, coupled with the subsequent planning and construction of new facilities, demand considerable time. The current permit application is merely one of many crucial steps in establishing a value chain that allows LKAB to bring critical raw materials to market. The demand for these materials is already substantial, necessitating early planning and securing of value chains alongside raw material suppliers. Paradoxically, the greatest threat to mining and processing operations vital for society lies within administrative hurdles. LKAB recognizes the risk that lengthy permit processes may jeopardize continued and increased raw material production within the EU.
FACTS
Europe's reliance on imports of critical raw materials:
Phosphorus:
90 percent of phosphorus is imported.
Phosphorus is vital for mineral fertilizer, supporting 50 percent of global agricultural production.
Rare Earth Metals:
98 percent of rare earth metals are imported from China.
These metals play a pivotal role in green technologies, particularly in permanent magnets crucial for electric vehicles and wind turbines.
LKAB's circular and climate-effective processes can enhance Europe's self-sufficiency and security:
