Sweden wants to accelerate its mining permits to reduce its dependence on China

Stockholm declared the extraction of critical metals and rare earth elements a matter of national security on Thursday. The aim is to simplify permitting procedures and attract more investment to a sector where China dominates, accounting for 70% of global production.

Sweden aims to establish itself as a major mining power. The Stockholm government announced on Thursday a new strategy to expedite permits for the extraction of critical metals and rare earth elements, framing the move as a matter of national security. Energy Minister and Deputy Prime Minister Ebba Busch summarized the ambition bluntly: "Sweden must become a leading mining nation."

The country already possesses considerable advantages. It is home to Europe's largest iron ore mine, operated by the LKAB group in Kiruna, within the Arctic Circle. Sweden holds approximately 60% of the continent's known iron ore reserves and, in 2021, accounted for nearly 90% of its extraction. Near this site lies the Per Geijer deposit, identified as a strategic project of the European Union: some 1,2 billion tons of mineral resources have been identified there, including approximately 2,2 million tons of rare earth oxides.

Despite its vast underground resources, Sweden currently attracts only 1% of global mining investment, acknowledged Ebba Busch. To address this, the government intends to "streamline permitting procedures so that decisions are made more quickly" and facilitate the allocation of land to mining projects. A public investment company dedicated to the sector is also under consideration.

Europe's dependence on China, which controls approximately 70% of global rare earth extraction and refining, is described by the minister as a "systemic risk." "We believe this can significantly contribute to the defense capabilities of Sweden, the EU, and NATO," she stated. Four of the 47 European strategic projects aimed at reducing this dependence are located in Sweden.

The reform, however, is raising tensions with the Sami, an indigenous people whose traditional territory, Sápmi, covers Norrland, the region where more than 90% of Sweden's mines operate. Sami reindeer herders fear that mining expansion will threaten their way of life. LKAB also estimates that obtaining the necessary permits to exploit the Per Geijer deposit on this land could take up to ten years, a timeframe that the new strategy specifically aims to shorten.

Sweden's mining history dates back to the 10th century with the opening of the Falun copper mine, which at its peak produced up to two-thirds of Europe's copper. The characteristic red pigment that still colors houses and churches across the country today is a direct legacy of this mining tradition. The site, now a museum, is a UNESCO World Heritage Site.