The mining industry is one of Sweden's most important industrial sectors, where the country's mineral resources are mainly found in the northern regions of Sweden: Norrbotten, Småland, and Dalsland.
A Mining Nation
Sweden is one of the largest mining nations in the EU and a significant producer of zinc and lead globally. In 2020, Sweden accounted for 92 per cent of the EU's iron ore production, and the mining industry generated a total turnover of 49 billion kronor.
The mining industry has a positive impact on the economy, providing a significant source of employment for a range of professionals, from machine operators to geologists, economists, and lawyers. Mining companies also pay royalties to landowners and contribute to the local economy by increasing demand for services.
Negative effects of mining
However, the mining industry also has negative environmental impacts, including noise pollution, dust, and disruption to other land uses. Sweden has a long history of mining, which has left behind many abandoned mines and waste management issues. The state takes responsibility for the remediation of these, for example, at the Gladhammar mines.
Europe's Largest Discovery of Rare Earth Metals
On 12 January 2023, LKAB announced that they had identified significant quantities of rare earth metals in the Kiruna area, which are essential for the production of electric vehicles and wind turbines. Following successful prospecting, LKAB reported mineral reserves of over one million tonnes of oxides, making it the largest known deposit of its kind in Europe.
Currently, Europe lacks its own mining of rare earth metals, making the continent dependent on imports, mainly from China. This increases the vulnerability of European industry, particularly in light of the expected increase in demand due to electrification.
However, it may take at least 10-15 years before mining can begin. This discovery and the subsequent measures can make Kiruna a central player for critical raw materials in Europe and significantly contribute to the green transition.
Sweden's long history as a significant mining nation is likely to continue and be further secured with the discovery of rare earth metals in Kiruna.
Photo: Arild Vågen
