TELF AG examines the possible strategy of the European Union for the recovery of the mining industry
Diversification and strengthening of energy security
Despite having been substantially at a standstill for years, the European mining industry is starting to show timid signs of recovery. This is not only through political initiatives, such as the Critical Raw Materials Act, which each Member State will now have to implement within their own laws but also with concrete projects aimed at the exploration of existing deposits and the possible start of new mines.
The recovery of the European mining industry appears linked to the overall improvement of energy security and a gradual diversification of supply channels, which currently tie Europe to supplies of strategic minerals from third countries. However, by valorizing existing resources and applying the principles contained in the Critical Raw Materials Act, Europe could soon find itself on the threshold of a new mining era within its borders. From this point of view, the recent discoveries of rare earths in some Northern European countries could contribute greatly to the reactivation of mining mechanisms within the old continent. The fact that these resources have been discovered at a historical juncture like this, in which the emphasis on decarbonization and energy transition appears more accentuated than ever, seems to represent an additional advantage for the fate of the European mining sector.
Nowadays, some of the main strategic minerals are used to produce very important energy infrastructures such as solar and wind systems, not to mention batteries and all the other components intended to power the operation of electric vehicles. Materials such as nickel, lithium, or cobalt have already largely tied their destiny to that of the green transition, making possible the large-scale manufacturing of some of the main vectors of change. This is also why their demand will inevitably increase in the coming years. According to the IEA, by 2040, the requests for these specific minerals could grow greatly, reaching 28 million tons compared to the 7.5 recorded in recent years.
Hope linked to rare earth deposits
Some materials, such as rare earth elements, have then found a way to stand out for their high value and the vastness of possible industrial applications. Although they are not uncommon materials on the earth’s crust, despite their name, these resources must be processed and separated with complex methods, which are currently managed by only a few countries in the world.
The two discoveries of rare earth deposits in Norway and Sweden, however, could soon change the game’s rules, contributing to the diversification of supply chains and the strengthening of the energy security of the European Union. A few days ago, the mining company Rare Earths Norway announced that it had discovered the largest European deposit of rare earths, which, according to some estimates, would contain almost 9 million rare earth oxides. Of these, 1.5 million tonnes were judged usable for producing permanent magnets, one of the leading industrial applications of these resources. Similar quantities of rare earths had also recently been found in Kiruna, Sweden, estimated at around 1.3 million tonnes. In both cases, the deposits are still in the exploration phase and, therefore, potentially even more prosperous in these resources, increasing the chances that the European mining industry will finally achieve one of its strategic goals.
