MINEX Forum

Region: Europe

  • Deep beneath Kiruna, Sweden pushes forward in Europe’s race to mine rare earths

    Deep beneath Kiruna, Sweden pushes forward in Europe’s race to mine rare earths

    In the depths of Arctic winter, with temperatures plunging to minus 20 degrees Celsius and daylight reduced to a few hours of twilight, a team of miners is advancing one of Europe’s most strategically important resource projects beneath the Swedish town of Kiruna. Around 900 metres underground, workers at the state-owned LKAB are tunnelling toward the Per Geijer deposit, regarded as one of the continent’s largest known concentrations of rare earth elements.

    Europe currently has no operating rare earth mines, despite rising demand for materials critical to electric vehicles, renewable energy systems, consumer electronics and defence technologies. The push to develop domestic supply has intensified as geopolitical tensions grow and China maintains near-total dominance over rare earth processing and magnet production.

    At Kiruna, the rare earths occur alongside iron ore in a magnetite-hematite-phosphate formation identified more than a century ago. Teams work at depths of up to 1.3 kilometres, drilling, blasting and reinforcing tunnels that will eventually link the existing iron ore mine with the Per Geijer resource roughly two kilometres away. Progress is incremental, averaging about five metres per day, reflecting both the technical complexity and environmental sensitivity of the operation.

    LKAB’s strategy differs from earlier mining approaches. Rather than exposing the entire deposit at once, the company plans phased development, gradually integrating rare earth extraction into the established iron ore system. Chief executive Jan Moström has said this approach is essential to manage risk, control costs and accelerate learning as Europe rebuilds lost mining and processing capabilities.

    To shorten timelines, LKAB has invested €80 million in a demonstration plant in Luleå to test separation technologies ahead of full-scale mining. The company has also taken a stake in Norway-based REEtec to develop cleaner refining methods, aiming to meet strict European environmental standards.

    Industry experts note that even with favourable geology, moving from resource discovery to refined rare earth products can take a decade or more. Still, Kiruna is widely viewed as Europe’s strongest near-term opportunity to reduce dependence on Chinese supply chains, which currently account for around 85% of global rare earth processing and virtually all heavy rare earth refining.

    European officials, including EU industry commissioner Stéphane Séjourné, have visited the site, underlining its strategic importance as the bloc seeks greater resource autonomy. While China is expected to retain dominance for years, projects like Kiruna are seen as critical first steps toward a more resilient European supply chain.

  • Germany calls for stronger cooperation on critical raw materials ahead of Washington talks

    Germany calls for stronger cooperation on critical raw materials ahead of Washington talks

    German Finance Minister Lars Klingbeil on Sunday urged closer international cooperation on critical raw materials as he prepared to travel to Washington for high-level talks with counterparts from major industrialized nations.

    Speaking before his departure from Berlin, Klingbeil, who also serves as vice chancellor and leader of the Social Democratic Party (SPD), said Germany and the European Union remain committed to fair, rule-based and reliable trade. He emphasized that access to critical raw materials such as lithium, cobalt and rare earths is essential for economic growth, technological development and job security.

    The United States has invited finance ministers from several leading economies to discuss securing access to these materials, whose global supply chains are highly concentrated and largely dependent on a small number of countries, including China.

    “Access to critical raw materials and reliable supply chains is of utmost importance for the economy and jobs,” Klingbeil said, adding that Germany has a strong interest in expanding international cooperation to strengthen supply security, reduce strategic dependencies and ensure stable economic conditions. He stressed that joint action should be taken wherever possible.

  • Savannah Resources secures up to €110 million state grant for Barroso lithium project in Portugal

    Savannah Resources secures up to €110 million state grant for Barroso lithium project in Portugal

    Savannah Resources has been awarded a non-reimbursable grant of up to approximately €110 million from the Portuguese State to support construction of its flagship Barroso lithium project in northern Portugal. The project has been designated as strategic under the European Union’s Critical Raw Materials framework.

    The funding represents one of the largest public financial contributions to a mining project in Portugal and reflects support from both national and European authorities for the development of a domestic lithium supply chain linked to the energy transition. Barroso is Europe’s largest known spodumene lithium deposit and is viewed as a cornerstone asset for strengthening regional battery raw material security.

    According to Savannah, the grant will be provided under Portugal’s Investments in Strategic Sectors Incentive Scheme and falls within the contractual investment regime for large-scale projects considered critical to carbon neutrality and economic transformation. The funding is backed by national resources and the European Commission’s Temporary Crisis and Transition Framework.

    The €110 million grant is split into two parts. Around 75%, or €82.25 million, will support initial capital expenditure, while the remaining €27.42 million is tied to operational performance milestones once the mine enters production. The funding is non-repayable but subject to specific conditions and project timelines.

    The award will be formalized through an investment agreement with AICEP, following approvals from the Compete 2030 programme and the Ministry of Economy and Territorial Cohesion. Savannah said it expects the first tranche of funding to be drawn alongside the initial capital development phase.

    Chief executive Emanuel Proença said the grant marks a major milestone for both Savannah and the Barroso project, significantly strengthening its capital structure as the company targets first production from 2028. He added that the project is expected to deliver broad economic and social benefits, including job creation in the Barroso region, the development of a new industry in Portugal, and improved European energy independence through locally sourced lithium.

    Chief financial officer Henrique Freire noted that the grant enhances the project’s financial position ahead of a final investment decision expected later this year, as Savannah continues to advance discussions on debt financing and strategic partnerships.

  • Critical Metals approves Arctic pilot facility to advance Tanbreez rare earth project in Greenland

    Critical Metals approves Arctic pilot facility to advance Tanbreez rare earth project in Greenland

    Rare earth developer Critical Metals has approved the construction of a multi-use storage and pilot facility in Qaqortoq, Greenland, a move that sent its shares sharply higher on Wednesday. The new infrastructure is intended to support the company’s flagship Tanbreez project as it moves toward development.

    The company said the facility will be delivered under a full turnkey contract covering engineering, permitting, logistics, construction and commissioning. Designed specifically for Arctic conditions, the site is expected to be completed and operational by May 2026. In parallel, Critical Metals has acquired a residential property in Qaqortoq, which will be converted into a permanent local office and operational base.

    Chief executive Tony Sage said the project provides a clear and structured pathway to deploy pilot-scale infrastructure in a challenging Arctic environment, while also demonstrating the company’s commitment to responsible local operations.

    Investors reacted positively to the announcement, with Critical Metals’ stock rising as much as 16% to its highest level in more than two months, lifting the company’s market capitalization to around $1.5 billion.

    The Tanbreez project is regarded as one of the world’s largest rare earth deposits, hosting at least 45 million tonnes of resources within a largely underexplored kakortokite unit. Earlier this year, Critical Metals published a preliminary economic assessment outlining a phased development plan, with initial annual production of about 85,000 tonnes of rare earth oxides, potentially scaling up to 425,000 tonnes following modular expansion. The company has already secured offtake agreements covering roughly three-quarters of expected output and aims to finalize the remainder in the near term.

  • Germany’s Altmark basin emerges as potential lithium powerhouse through direct extraction technology

    Germany’s Altmark basin emerges as potential lithium powerhouse through direct extraction technology

    Northern Saxony-Anhalt, a region historically associated with natural gas production, is drawing renewed attention as a potential cornerstone of Europe’s lithium supply. New assessments indicate that deep underground brines in the Altmark basin contain far larger volumes of lithium than previously believed, offering a possible breakthrough for the continent’s battery materials strategy.

    Neptune Energy, which operates in the area, announced in late 2025 that an independent resource estimate by Sproule ERCE placed the Altmark deposit at around 43 million tonnes of lithium carbonate equivalent. Verified under the CIM/NI 43-101 standard, the estimate would rank Altmark among the world’s largest known single-site lithium resources if confirmed through further development.

    The lithium is hosted in deep geothermal brines within Rotliegend sandstone and volcanic formations at depths of 3,200 to 4,000 meters. Average lithium concentrations of about 375 milligrams per litre have been recorded, largely attributed to long-term mineral leaching from mica-rich volcanic rocks under high-temperature conditions.

    Rather than conventional open-pit mining or evaporation ponds, Neptune is advancing direct lithium extraction technologies. Pilot projects completed in 2025 successfully produced battery-grade lithium carbonate using ion exchange and adsorption methods. These enclosed systems return processed brine underground, significantly reducing land use and water consumption compared with traditional approaches.

    The project aligns with the European Union’s Critical Raw Materials Act, which targets greater domestic sourcing of strategic minerals such as lithium by 2030. By reusing legacy gas infrastructure and combining lithium recovery with geothermal heat potential, Altmark could offer a lower-impact model for mineral production within Europe.

    Commercial output has yet to begin, and further permitting and demonstration-scale validation are required. German regulators are expected to closely review groundwater protection, waste handling and long-term environmental performance. If successful, Altmark may play a pivotal role in reshaping Europe’s position in the global lithium supply chain.

  • Poland’s Silesia seeks a “just transition” as coal industry enters irreversible decline

    Poland’s Silesia seeks a “just transition” as coal industry enters irreversible decline

    Poland’s coal heartland of Silesia is confronting the end of an industry that has shaped its economy and identity for centuries, as regional authorities, economists and labor unions work to manage a gradual transition away from coal. The region remains the European Union’s largest coal-mining area, but mine closures are accelerating as climate targets tighten and alternative energy sources expand.

    At the center of the transition effort is a long-term plan designed to phase out coal while cushioning the social and economic impact on workers and communities. Developed over the past five years by economists, trade unions and government officials, the strategy sets 2049 as the final deadline for coal operations in Poland, significantly later than in many other EU states. The plan includes retraining programs, severance payments and early retirement options aimed at preventing mass unemployment and social collapse in mining towns.

    The stakes are particularly high in cities such as Bytom, where coal remains deeply embedded in the local economy and poverty and depopulation have intensified as mines close. By contrast, Katowice, the regional capital, has attracted new industries in manufacturing, technology and services, highlighting a widening economic divide within Silesia. Since 2005, the region has lost about 55,000 mining jobs, but gained roughly 160,000 positions in other sectors, underscoring the uneven nature of the transformation.

    Poland’s cautious approach reflects both historical experience and energy security concerns. Reliance on coal has long been seen as a buffer against dependence on foreign fuel supplies, particularly from Russia. However, rising electricity demand, EU emissions rules and the rapid growth of renewables, nuclear and alternative heating technologies are making the coal phaseout unavoidable.

    Regional planners argue that slowing the transition allows the broader economy to absorb displaced workers and generate new employment. Proposals under discussion include deeper integration of Silesia’s cities into a single metropolitan area to reduce inequality and attract investment, rather than allowing struggling towns to hollow out.

    While resistance remains among miners and local communities, many acknowledge that the debate has shifted from whether coal will end to how the region can exit the industry with the least social damage. Silesia’s transition is now being closely watched as a potential model for other coal-dependent regions in Central and Eastern Europe.

  • Ukrainian mining and steel sectors face weaker outlook than broader industry

    Ukrainian mining and steel sectors face weaker outlook than broader industry

    Ukraine’s mining and metallurgical industries are experiencing a more difficult economic situation than the country’s industrial sector on average, according to conjunctural assessments for November 2025. The balance of responses assessing current order volumes stood at minus 53% in metal ore mining and minus 46% in metallurgy, compared with minus 36% for industry as a whole, indicating a stronger prevalence of negative sentiment in these sectors.

    Despite the downturn, companies in mining and steel did not expect major changes in production volumes over the following three months. However, guaranteed capacity utilization continues to decline. Since the beginning of 2025, the order backlog at steel enterprises has fallen from 2.5 months to 1.9 months, while in metal ore mining it dropped from 3.2 months to 1.8 months. By contrast, the average backlog across Ukrainian industry in November exceeded four months.

    Labor market expectations also point to mounting pressure. In November, the balance of responses on expected employment changes over the next three months was minus 53% in metal ore mining, compared with minus 11% in metallurgy and minus 7% across industry, signaling a high risk of workforce reductions in the mining segment.

    Investment expectations mirror this trend. The balance of responses regarding future investment was minus 20% in metal ore mining and minus 5% in metallurgy, both well below the industry-wide average of 4%, suggesting weaker investment prospects for 2026.

    Industry representatives cite several factors behind the deterioration, including declining global raw material prices, high electricity tariffs that have already forced some operations to suspend activity, and reduced output at Ferrexpo linked to delayed VAT reimbursements.

    Under wartime conditions, mining and steel companies are prioritizing the maintenance of existing production capacities rather than expansion. With steel prices remaining low on global markets, companies report limited financial capacity for long-term investment, while surveys show that even medium-term business planning has become increasingly difficult.

  • Đilas claims Rio Tinto preparing €1–1.5 billion compensation claim against Serbia over Jadar lithium project

    Đilas claims Rio Tinto preparing €1–1.5 billion compensation claim against Serbia over Jadar lithium project

    Rio Tinto is preparing to file a compensation claim against the Republic of Serbia worth between €1 billion and €1.5 billion over the halted lithium mining project in the Jadar Valley, according to Dragan Đilas, president of the opposition Freedom and Justice Party.

    Speaking on the podcast Dežurni krivac, Đilas said the mining company intends to sue Serbia for costs incurred and lost profits after the government abandoned plans for lithium extraction. He argued that commitments made by senior state officials, including President Aleksandar Vučić and former Prime Minister Ana Brnabić, form the basis of the claim.

    Đilas stated that Rio Tinto allegedly received both written and verbal assurances regarding the project’s implementation, stressing that verbal agreements are legally binding in the same way as written ones. According to him, the public is still unaware of the exact guarantees provided by state leadership, which allowed the company to begin exploration, planning, and investment activities.

    He further claimed that once the lawsuit is formally announced, the authorities will shift responsibility onto citizens who protested against lithium mining. Đilas rejected this narrative, saying public opposition was clear, with more than 80% of citizens reportedly against the project.

    The opposition leader accused the country’s leadership of exceeding their authority and violating laws by promising lithium production to international partners, only to later withdraw those commitments. He warned that Serbia could ultimately bear the financial consequences, potentially amounting to hundreds of millions or even more than a billion euros.

    Đilas concluded that the situation reflects broader political risks, arguing that unfulfilled promises to foreign partners could result in additional financial claims against the state in the future.

  • Serbia adopts draft minerals strategy for 2025–2040, sets focus on sustainability and critical raw materials

    Serbia adopts draft minerals strategy for 2025–2040, sets focus on sustainability and critical raw materials

    The Serbian government has adopted a draft Strategy for the Management of Mineral and Other Geological Resources for the period from 2025 to 2040, with projections extending to 2050, sending the document to the National Assembly for a final vote. The strategy aims to balance economic development with environmental protection while strengthening state oversight and ensuring a stable supply of critical and strategic raw materials.

    Minister of Mining and Energy Dubravka Đedović Handanović said the strategy was shaped through a lengthy and at times contentious public consultation process, during which dozens of objections and proposals were fully or partially incorporated. Although the final text has yet to be published, the government confirmed that sustainability, climate neutrality, and the use of energy-efficient and low-carbon technologies are among its central pillars.

    According to the Ministry of Mining and Energy, the strategy establishes a long-term framework for responsible resource management, enhanced planning and supervision, and improved governance of the mining and geology sector in the interests of citizens and local communities. Particular attention is given to critical and strategic raw materials, geothermal energy, and the rational use of natural resources.

    An accompanying environmental impact assessment notes that Serbia has significant deposits of metallic, non-metallic, and energy raw materials, as well as groundwater and geothermal resources. At the same time, it acknowledges that decades of mining have led to air, water, and soil pollution, especially in areas such as Bor and Majdanpek, as well as the Kolubara and Kostolac lignite basins. The report also highlights abandoned mines, tailings dumps, and obsolete facilities as a major challenge requiring remediation and rehabilitation.

    Đedović Handanović said the strategy defines concrete programmes to secure raw material supplies for domestic companies and the energy system, create jobs, increase the participation of Serbian industry in value chains, reduce import dependence, and strengthen economic stability. She added that strict environmental and safety standards, along with transparent planning and decision-making processes, are intended to protect protected areas, improve workplace safety, and reduce risks to public health and quality of life.

  • BHP Faces £189 Million Legal Cost Claim After UK Court Ruling on Mariana Dam Disaster

    BHP Faces £189 Million Legal Cost Claim After UK Court Ruling on Mariana Dam Disaster

    BHP is facing a demand for at least £189 million in legal costs after a UK court ruled last month that the mining giant was liable for Brazil’s 2015 Mariana dam collapse, the country’s worst environmental disaster, which killed 19 people.

    Lawyers representing victims told the High Court in London on Wednesday that they were the clear overall winners in the November liability ruling and that BHP should be required to make an immediate interim payment toward costs. According to the Financial Times, the claim ranks among the largest legal cost demands in British history.

    The requested amount includes legal fees as well as about £44 million spent on walk-in centres and call centre operations used to communicate with roughly 620000 affected people. The court has already determined that BHP must pay at least part of the costs immediately following the liability decision.

    A second trial is scheduled for October 2026 to assess damages related to a £36 billion claim, which is believed to be the largest ever brought before an English court. BHP is seeking permission to appeal the liability ruling and has described the scale of the cost demand as excessive.

    In written submissions, BHP’s lawyers argued that the claimants failed to properly justify the breakdown of their costs and asked the court to exclude substantial portions of the claim. They also rejected as unreasonable a request for an interim payment of 60%, or about £113 million, before a final ruling on costs.

    The case has attracted close attention within the legal sector, particularly after tensions emerged between the claimants’ law firm, Pogust Goodhead, and its litigation funder late in the proceedings. BHP has argued that the firm’s funders spent large sums without sufficient regard for proportionality, a factor it says is reflected in the scale of the cost claim.

    BHP is also urging the court to delay any decision on costs until after the damages phase, maintaining that overall success cannot yet be determined because liability has only been established in principle. The dispute echoes a recent Australian ruling linked to the same dam collapse, where a court allowed law firms in a shareholder class action to significantly increase their share of settlement fees, raising broader concerns over transparency and oversight in large-scale litigation.