MINEX Forum

Tag: European Union

  • EU Backs Sweden’s Largest Rare Earth Project but Faces Legal Barriers of Its Own Making

    EU Backs Sweden’s Largest Rare Earth Project but Faces Legal Barriers of Its Own Making

    The European Union is channelling significant financial support into LKAB’s Per Geijer rare earth project in northern Sweden as part of its strategy to reduce dependence on China for critical raw materials. However, the same EU legal framework designed to protect the environment and Indigenous rights is emerging as a major obstacle to the project’s progress.

    The Per Geijer deposit near Kiruna has been granted Strategic Project status under the EU’s Critical Raw Materials Act (CRMA), making it eligible for EU-backed loans, guarantees and other de-risking instruments. The designation reflects the project’s importance to Europe’s green transition, defence capabilities and electric vehicle supply chains. Under the CRMA, the EU aims to mine at least 10% of its strategic raw materials domestically and process 40% within the bloc by 2030.

    To support these targets, Brussels is deploying financing through tools such as InvestEU, the Innovation Fund and European Investment Bank lending, with nearly €3 billion earmarked for mining, processing and recycling projects. Northern Sweden has been identified as a priority region, and Per Geijer is seen as a flagship initiative.

    Despite this political and financial backing, the project remains subject to Sweden’s Environmental Code and EU environmental legislation, including the Environmental Impact Assessment Directive and the Habitats and Birds Directives. These rules require extensive assessments of impacts on biodiversity, water resources, emissions and climate, and allow for legal appeals that can delay projects for years. Strategic status does not provide exemptions from these requirements.

    Additional complexity arises from Indigenous rights considerations. The Per Geijer deposit overlaps with traditional reindeer-herding land used by the Sami people, triggering legal obligations under Swedish law, EU law and international human rights conventions. Requirements for meaningful consultation and protection of minority rights sit uneasily alongside the CRMA’s push for faster permitting.

    Per Geijer is part of a broader LKAB value chain that includes rare earth extraction at Malmberget and processing facilities in Luleå, all of which have also received Strategic Project status. However, the European Commission retains the right to withdraw this status if sustainability criteria are not met or if projects fail to deliver.

    The case highlights a structural tension within EU policy. While Brussels is accelerating funding and political support to secure raw material autonomy, its environmental and rights-based legal framework gives courts and civil society strong tools to slow or block projects. The outcome in Kiruna is increasingly seen as a test of whether the EU can reconcile its industrial ambitions with the legal principles at the core of the Green Deal.

  • Sibanye-Stillwater completes assessment of Keliber lithium project, confirms staged start-up plan

    Sibanye-Stillwater completes assessment of Keliber lithium project, confirms staged start-up plan

    Sibanye-Stillwater has completed a multidisciplinary assessment of its Keliber lithium project in Finland, confirming the project’s technical readiness and outlining a staged approach to commissioning amid current market conditions.

    The Keliber project is regarded as the European Union’s most advanced fully integrated lithium development, with planned production of around 15,000 tonnes per year of battery-grade lithium hydroxide monohydrate over a mine life exceeding 18 years. It is also one of the few lithium hydroxide refineries outside China and has been designated a strategic project under the EU’s Critical Raw Materials Act, reflecting its importance to the bloc’s battery supply chain.

    According to Sibanye-Stillwater, construction of the fully integrated mine, concentrator and refinery remains on track, with completion of the construction phase and cold commissioning expected in the first quarter of 2026. The total capital investment required to complete construction is estimated at approximately €783 million.

    Following the assessment, Sibanye-Stillwater and its strategic partner, Finnish Minerals Group, have agreed that a staged start-up represents the most prudent path forward. Under this approach, initial commissioning will focus on achieving operational readiness at the mining and concentrating stages before determining the timing for commissioning the refinery.

    The company said this phased strategy is intended to reduce ramp-up risks while preserving financial flexibility, allowing certain capital expenditures and refining ramp-up costs to be deferred depending on lithium market conditions. Finnish Minerals Group is preparing to contribute additional funding on a pro rata basis in line with its 20% equity stake to support the project through the ramp-up period.

    Sibanye-Stillwater CEO Richard Stewart said the agreed approach balances technical readiness with market realities, ensuring the project advances in a responsible and commercially disciplined manner while remaining positioned to supply locally produced lithium into the EU battery value chain.

  • European Commission seeks industry backing for ‘Made in Europe’ push ahead of Industrial Accelerator Act

    European Commission seeks industry backing for ‘Made in Europe’ push ahead of Industrial Accelerator Act

    The European Commission is urging business leaders to support and sign a French-led initiative aimed at increasing the share of industrial production based in Europe, as the EU prepares to unveil its Industrial Accelerator Act (IAA).

    According to a letter seen by Euronews, the Commission is calling on representatives from energy-intensive sectors such as steel and aluminium to back a stronger “Made in Europe” component in forthcoming legislation. The move is intended to revive Europe’s struggling industrial base amid mounting competition from China and the United States.

    The appeal comes days before the planned presentation of the Industrial Accelerator Act, which seeks to accelerate the decarbonisation of heavy industry while preserving the competitiveness of European production. The initiative builds on earlier EU legislation adopted in 2024 that prioritised domestic clean-technology manufacturing as part of the bloc’s goal to achieve climate neutrality by 2050.

    In the letter, European Commission Executive Vice-President Stéphane Séjourné warned that Europe faces a stark choice as global trade becomes increasingly shaped by tariffs, subsidies and export restrictions. Without an ambitious and pragmatic industrial policy, he argued, the EU risks a gradual erosion of its industrial capacity, technological know-how and economic sovereignty.

    Supporters say the IAA could significantly strengthen European competitiveness at a time when traditional sectors such as cement and steel, as well as emerging net-zero technologies, are grappling with weak demand and aggressive international competition. However, critics caution that the proposal could undermine competition within the EU’s single market, particularly disadvantaging member states with less developed industrial frameworks compared with countries like France and Germany.

    Several member states, including Czechia, Estonia, Finland, Ireland, Latvia, Malta, Portugal, Sweden and Slovakia, warned in December that the planned law could distort competition and affect prices, quality and business conditions across the bloc.

    Key elements of the proposal, including quotas for European-made products, financing mechanisms and state-aid rules, remain under discussion. EU officials have floated potential targets requiring 60% to 80% of certain products to be produced in Europe, with provisions to count output from non-European firms operating within the EU as “Made in Europe”.

    The Commission is also exploring ways to align supply and demand by creating so-called “lead markets” for low-carbon industrial products such as green steel and hydrogen, supported by demand-side measures. In parallel, state-aid rules may be loosened, potentially allowing member states to fund decarbonisation projects without prior notification to the Commission.

    European industry leaders have reacted positively, citing a record €350 billion trade deficit with China in 2025. In a separate letter, business representatives described the IAA as an act of economic independence, echoing warnings from former European Central Bank president Mario Draghi that Europe risks long-term decline if it fails to close the gap with global competitors.

    The Industrial Accelerator Act, initially delayed in December, is currently scheduled for presentation on 29 January, although further postponements remain possible.

  • EU steps up critical minerals policy but risks falling behind the US and China

    EU steps up critical minerals policy but risks falling behind the US and China

    The European Union has intensified efforts to strengthen critical mineral supply chains that underpin the energy transition, but analysts warn that Europe is moving more slowly and offering weaker support than the United States, leaving it exposed to China’s dominant position in global markets.

    China already controls much of the global supply of solar power components and dominates processing capacity for key battery and clean energy materials, including lithium, nickel, cobalt, manganese, graphite, rare earths and permanent magnets. According to Eurostat, 95% of EU rare earth imports in 2024 came from just three countries: China, Malaysia and Russia. Data from Wood Mackenzie shows China accounts for 32% of global lithium production and controls a further 18% through overseas projects, while holding 81% of global critical minerals processing capacity.

    This concentration creates significant risks for European clean energy developers, as over-reliance on a small group of suppliers increases exposure to licensing delays, export controls and sudden supply disruptions. Industry experts note that despite growing awareness among policymakers, Europe’s response remains fragmented and underpowered.

    To accelerate investment, the EU adopted the ResourceEU action plan in December 2025. Backed by €3 billion from the Critical Raw Materials Act, the plan aims to expand domestic extraction and refining, promote recycling, reduce dependence on dominant suppliers, speed up permitting and restrict scrap exports. The EU has set targets to extract 10% of its critical minerals needs domestically, host 40% of processing capacity within the bloc and reach a 15% recycling rate by 2030.

    However, analysts say the funding and policy tools fall short of a fully fledged industrial strategy. Investment momentum has weakened amid low commodity prices, and existing regulations have not yet made most European projects sufficiently bankable. Several high-profile projects, including the Chvaletice manganese project in the Czech Republic, have stalled due to permitting delays and grid access issues, despite being labelled strategic.

    By contrast, the United States has adopted a more aggressive, security-driven approach. Through measures such as the Inflation Reduction Act, the One Big Beautiful Bill and the use of the Defense Production Act, Washington offers tax credits, grants, loans, price guarantees and offtake support to accelerate mine-to-battery and mine-to-magnet supply chains. As a result, the US is advancing diversification faster than Europe.

    While projects such as LKAB’s rare earth and phosphorus processing plant in Sweden signal progress, experts caution that Europe’s public tools for de-risking investments remain limited compared with those of the US and China. Without stronger financial instruments, streamlined permitting and a greater focus on processing and recycling, Europe risks remaining vulnerable in the global race for critical minerals.

  • Greenland’s Kvanefjeld rare earth project highlights Europe’s late scramble for strategic minerals

    Greenland’s Kvanefjeld rare earth project highlights Europe’s late scramble for strategic minerals

    On Greenland’s southern tip, the Kvanefjeld mining project has become a symbol of both vast opportunity and prolonged paralysis. Beneath its icy terrain lies one of the world’s most significant deposits of neodymium and praseodymium, rare earth elements essential for wind turbines, electric vehicles and advanced military technologies. If developed, Greenland, a semi-autonomous territory within the Kingdom of Denmark, would become the first European source of these critical materials.

    The project is led by Energy Transition Minerals, which has long signaled readiness to move into production. However, progress stalled after the Greenlandic government imposed a ban on uranium mining in 2021, citing environmental and public health concerns. Because rare earths at Kvanefjeld are geologically associated with uranium, the ban effectively froze the project, triggering legal disputes that continue to delay development.

    Former Danish foreign minister Jeppe Kofod, now a strategic adviser to Energy Transition Minerals, said the case illustrates how regulatory uncertainty, geopolitics and high capital requirements can obstruct even strategically vital projects. Despite Greenland holding rare earth resources estimated to cover up to a quarter of global demand, alongside substantial oil, gas and other mineral potential, only two small mines are currently operating on the island.

    European interest has increased only recently. In 2023, the European Union signed a memorandum of understanding with Greenland to cooperate on mining projects, followed by the adoption of the EU Critical Raw Materials Act, which explicitly recognizes Greenland’s strategic importance. The European Commission has since committed funding to Greenland’s Malmbjerg molybdenum project to support defense-related supply chains.

    Analysts warn, however, that Europe may have moved too slowly. With the United States and China intensifying their focus on Greenland’s resources and U.S. President Donald Trump openly signaling aggressive ambitions toward the island, European policymakers risk being sidelined. Greenland’s harsh climate, limited infrastructure, small population and strict environmental rules further complicate development, even as climate change gradually improves access to previously icebound regions.

    While Brussels maintains that the future of Greenland’s resources rests solely with its people and elected authorities, growing geopolitical pressure suggests that external powers may play an increasingly decisive role in shaping the island’s mining future.

  • EU carbon border tax could give Canadian nickel a competitive edge in Europe

    EU carbon border tax could give Canadian nickel a competitive edge in Europe

    The European Union’s Carbon Border Adjustment Mechanism (CBAM), which entered its full phase this month, has begun imposing a carbon price on imports of carbon-intensive goods such as steel, iron, aluminum and cement from non-EU countries. Importers must now pay a levy equivalent to the cost of carbon allowances under the EU’s Emissions Trading Scheme, currently close to €90 per tonne.

    In December, the European Commission proposed expanding CBAM to cover around 180 downstream products with a high steel or aluminum content, including car parts, machinery and construction equipment. While nickel was not included in this round, the Commission has left the door open to adding it in future updates, potentially from 2028, when the next legislative proposal is due.

    Such a move could significantly benefit Canadian nickel exporters. Canada’s nickel production is relatively low-carbon, largely because of the country’s clean electricity mix, making it more competitive under CBAM compared with higher-emission producers such as Indonesia, where coal-fired power dominates.

    Mark Selby, chief executive of Canada Nickel, said the company already expects to benefit indirectly from CBAM through steel and alloy exports, and would gain further if nickel itself is covered. Canada Nickel is advancing the Crawford sulphide nickel project in Ontario, targeting construction by the end of 2026 and initial production of around 30,000 tonnes of nickel per year, rising to 50,000 tonnes. Europe is expected to be a key export market.

    Nickel is classified as a critical raw material for the EU, essential for electric vehicles, batteries and defence applications. Europe remains highly dependent on imports, with all of its mined nickel production in 2024 coming from just two sulphide mines in Finland. Canada, the world’s sixth-largest nickel producer, already supplies the EU and could expand its market share if CBAM favours low-carbon producers.

    Photinie Koustavlis of the Mining Association of Canada said a well-designed CBAM that accurately measures embedded emissions would tend to favour responsible producers. Independent analysis consistently shows Canadian nickel among the lowest in carbon intensity globally, in contrast to significantly higher emissions from some Indonesian operations.

    With CBAM’s full rollout next year set to test compliance systems and reporting, exporters and importers alike will be watching closely. For Canadian nickel producers, a future expansion of CBAM could strengthen their position in a market increasingly shaped by carbon costs.

  • 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.

  • Mozambique Smelter Shutdown Set to Tighten Global Aluminum Supply in 2026

    Mozambique Smelter Shutdown Set to Tighten Global Aluminum Supply in 2026

    The planned shutdown of Mozambique’s Mozal aluminum smelter is expected to weigh heavily on global aluminum supply next year, forcing European Union buyers to seek alternative sources, analysts say.

    Mining group South32 confirmed that the Mozal smelter, with an annual capacity of 560000 metric tons, will be placed on care and maintenance from mid-March after negotiations with power utilities and the Mozambican government failed to secure a new electricity supply agreement.

    Trade Data Monitor figures show that in the first 10 months of 2025, Mozal shipped nearly 430000 tons of aluminum to the EU, making Mozambique the bloc’s largest supplier of primary aluminum with close to one fifth of total imports.

    ING now expects a global aluminum deficit of around 600000 tons in 2026, according to analyst Ewa Manthey. The bank had previously forecast a deficit of 200000 tons, following a shortfall of about half that size in 2025. Manthey said Europe is likely to compensate for the loss of Mozal supply through increased imports from Canada and the Middle East.

    European demand for primary aluminum is estimated at about 9 million tons per year, according to industry group European Aluminium. The impact of Mozal’s shutdown is being compounded by reduced output at Century Aluminum’s Iceland smelter, where production has fallen by roughly two thirds following an electrical failure. Iceland has been the EU’s second-largest aluminum supplier this year.

    Supply pressures are also being intensified by regulatory and trade factors. From January, the EU’s Carbon Border Adjustment Mechanism will impose a carbon tax on aluminum imports, while permitted imports of Russian aluminum will be capped at 50000 tons between February 26 and December 31.

    Prices have responded accordingly. Three-month aluminum on the London Metal Exchange was trading about 0.5% higher at around $2880 per ton, close to the more than three-year high of $2920 recorded in early November and again in early December. The European duty-paid premium rose to a 10-month high of $340 per ton at the start of December and was last seen at $326.

    According to consultancy CRU, a full closure of Mozal would turn its forecast of a roughly 200000-ton aluminum surplus in 2026 into a deficit. CRU’s head of aluminum raw materials, Ross Strachan, said producers in the Gulf region are well positioned to increase shipments to Europe, attracted by elevated premiums.

  • Portugal Emerges as Potential Hub for Critical Minerals as Exploration Intensifies

    Portugal Emerges as Potential Hub for Critical Minerals as Exploration Intensifies

    Europe is closely monitoring developments in Portugal as private companies carry out preliminary studies to assess the presence of critical minerals beneath the country’s surface. The growing interest is driven by the need to secure supplies of rare earths and other strategic elements essential for modern technologies, amid efforts by the European Union to reduce its dependence on China.

    Brussels has already fast-tracked several extractive projects linked to critical raw materials, and new geological data suggest that Portugal’s resource potential may be broader than previously assumed. According to Luís Martins, a geologist at Portugal’s National Laboratory for Energy and Geology (LNEC), the country is on the verge of a new mining-driven transformation. He noted that Portugal has strong expertise in mining and environmental management compared with many other European states.

    Exploration activities, including test drilling, are currently underway in parts of the Alentejo and the Northwest Transmontano regions, such as Moncorvo, an area with a long mining history. Martins stressed, however, that commercial extraction remains a distant prospect, explaining that rare earth elements are often associated with iron deposits, as seen in Moncorvo.

    In the Alentejo, areas including Monforte-Tinoca, Assumar, Crato-Arronches, and Penedo Gordo have already revealed the presence of highly sought-after elements. These include zircon, hafnium, titanium, niobium, tantalum, yttrium, and scandium. While not all of these minerals fall strictly within the rare earth category, many are classified as strategic or critical, heightening EU interest.

    Martins explained that rare earth elements comprise 17 chemical elements, including the 15 lanthanides as well as scandium and yttrium, which share similar chemical properties and often occur in the same deposits. These materials are vital for a wide range of industrial and technological applications due to characteristics such as magnetism, luminescence, and electrical resistance.

    The prospect of expanded mining activity raises concerns about environmental impacts, landscapes, and traditional rural livelihoods. Resistance has already been seen in northern Portugal, where communities have opposed lithium mining projects. Despite this, Martins believes economic considerations are likely to prevail. He pointed to two major untapped gold deposits in Montemor and Jales/Gralheira, which together could yield up to one million ounces of gold, currently valued at approximately 3.6 billion euros.

  • Serbia Zijin Copper Cleans Up Bor’s Legacy Pollution Through Smelter Modernisation and Dust Control

    Serbia Zijin Copper Cleans Up Bor’s Legacy Pollution Through Smelter Modernisation and Dust Control

    A new phase in Kazakhstan–European Union cooperation on critical raw materials was formally launched with the inauguration of the Kazakhstan–EU Gateway’s cooperation platform and its first flagship event, Strategic Partnership on Critical Raw Materials.

    The event, attended by Eureflect, was hosted at the Brussels headquarters of TÜSİAD, one of Turkey’s leading business associations, underscoring the Eurasian dimension of the initiative and its relevance for both European and regional industrial stakeholders. The choice of venue reflected the high-level political and business focus of the platform.

    Held on December 9, 2025, at Av. des Gaulois 13 in Brussels, the conference brought together policymakers, industry leaders and subject-matter experts from across Europe and Central Asia. Discussions centred on strengthening cooperation along the full critical raw materials value chain, from geological exploration and mining to processing, refining and downstream industrial integration.

    The Kazakhstan–EU Gateway is intended to serve as a structured platform to align Kazakhstan’s vast mineral resource base with Europe’s growing demand for secure, diversified and responsibly sourced critical raw materials. The initiative comes as the EU accelerates efforts to reduce strategic dependencies and deepen partnerships with resource-rich, politically aligned countries.

    Participants highlighted the importance of long-term frameworks, transparent governance and investment-friendly conditions to translate political alignment into tangible projects. The launch event marked an initial step toward building sustained collaboration between Kazakh institutions, European policymakers and industrial players seeking resilient supply chains.