Norway Boasts Largest Discovery of Rare Earth Minerals

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Mining company Rare Earths Norway (REN) (Molde, Norway) has announced the discovery of Europe's largest deposit of rare earth elements (REE) in southern Norway.

The news comes at a time when the European Union (EU) and Norway are desperately trying to reduce their reliance on China and Russia for the majority of their rare earth elements, which are crucial in the manufacture of wind turbines, electric vehicles (EVs), battery technology, smartphones and many other consumer and military technology items. Rare earth elements are a group of 17 specialty metals with a high supply risk and significant economic importance.

The find is located in the Fen Carbonatite Complex located in the southern tip of the country and has come after three years of exploration. Confirmed by a third party, global engineering consulting firm WSP Global Incorporated (Montreal, Quebec), the Maiden Mineral Resource Estimate shows that the Fen Carbonatite Complex hosts the largest REE deposit in continental Europe evaluated to date. The estimate is 559 million metric tons (MMmt) at 1.57% Total Rare Earth Oxides (TREO). This means that the Fen Carbonatite Complex contains 8.8 MMmt TREO with a "reasonable prospect for eventual economic extraction." Within the TREOs, there is estimated to be 1.5 MMmt of magnet-related rare earth used in EVs and wind turbines. The company pointed out that the "EU considers these metals to be the most critical raw materials when considering supply risk".

"It is important to state that there is absolutely no extraction of rare earth elements in Europe today," Alf Reistad, chief executive of Rare Earths Norway, told CNBC. "This is a very important moment for Rare Earths Norway, the resource estimate underscores the potential of the deposit to be a truly transformative asset that can underpin a secure rare earths value chain for Europe. We are working with leading partners, such as Montanuniversität Leoben in Austria to develop this deposit with the world's most sustainable mine and mineral processing technology minimizing the environmental footprint from mine to magnet."

The company plans to establish a pilot factory near the deposit in Nome municipality where it will "test new technologies and optimize the mineral processing." It expects to push forward with the first stage of commercial mining by 2030, which will cost in the region of $930 million. Rare Earths Norway believes by then it could cover 10% of the EU's demand for REE from local sources, as mandated by the Critical Raw Materials Act (CRMA).

The EU's raw materials industry body EIT RawMaterials welcomed the find. "We are very excited to see Rare Earths Norway, a company that EIT RawMaterials and ERMA have supported over several years, reach this major milestone," commented Chief Executive Officer Bernd Schäfer. "This project underscores the potential and the opportunity for Europe to invest in world class mining and processing projects that will help secure our industrial value chains and set new standards in environmental and social performance through technology, innovation and collaboration."

China accounts for 70% of the extraction of REE and roughly 90% of their processing, according to independent energy research institute the Oxford Institute for Energy Studies. In 2022, the EU witnessed a significant increase in the import of REE, a total of 18,000 tonnes, a 9% jump on 2021. According to Eurostat, China was the largest partner for imports of rare earth elements, accounting for 40% of the total weight of imports, followed by Malaysia, contributing 31% of imports and Russia, with 25%. Norway sparked controversy earlier this year when it became the first country in the world to vote in favor of allowing deep-sea mining for minerals. The measure will see an area of 280,000 square kilometers in the Arctic Ocean open for potential mining. Companies will be able to submit applications from later this year. For additional information, see January 15, 2024, article - Norway is First to Green Light Deep-Sea Mining.

In March, the EU gave the final approval to the Critical Raw Materials Act (CRMA), a plan to secure critical raw materials to support its industries and reduce its over-reliance on foreign suppliers. It identified 34 critical raw materials and within that, 17 specific strategic raw materials (SRMs)--like lithium--where demand is expected to grow exponentially. The SRMs tend to have complex production requirements and thus face a higher risk of supply issues. Most of these materials are deemed essential to the EU's climate, automotive, digital, aerospace and defense sectors. The CRMA sets out three benchmarks for the EU's consumption of raw materials: 10% should come from local extraction, 40% should be processed in the EU, and it should recycle 25% of its annual consumption of strategic raw materials by 2030. It also mandates that Europe does not rely on a single source of supply for more than 65% of its consumption. For additional information, see March 25, 2024, article - Europe Green Lights Critical Raw Materials Act.

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