Mining metals this is already, since the Paleolithic era, is one of the first human activities. But can it coexist with protecting the environment? Search the answer to this question is “K” traveled to Kirunaits northernmost city Sweden which is only 200 km from the Arctic Circle. In addition to its size – occupying 19,500 square kilometers, which is half the area of ​​the Netherlands – Kiruna stands out for its active mining, which contains the largest underground iron mine in the world, which is about 4 kilometers from the surface of the earth. It is owned by the state-owned Swedish mining company. LCAB which last year showed an operating profit of 2 billion euros, a turnover of more than 4 billion euros and produced 25 million tons of iron in the form of pellets. Kiruna owes its existence to metallurgy, which dates back to 1900. With the recent discovery of Europe’s largest deposit of rare earths in its depths, the city of 22,500 residents is securing a leading role in the global mining industry for decades to come.

But the locals’ deep relationship with the mines has been tested in recent years as they are gradually forced to leave their homes and move to safer ones. Mining is gradually destroying the soil of Kiruna, resulting in cracks not only in the houses, but also in the city’s school and hospital. Thus, since the summer of 2014, the largest and most original urban regeneration project in the world has been implemented. By 2035, the gradual completion of the construction of the new center of Kiruna is expected, which will be located about 3 kilometers east of the city, which is currently under demolition, and at an even greater distance from the iron mine. . Already in the new center of the city, the former industrial zone, buildings appeared that did not exist even a few years ago, for example, the town hall, as well as a significant number of shops.

The cost of the project, which will result in the resettlement of 6,000 people and 3,000 houses, is estimated at around 4 billion euros.

The project, which will relocate 6,000 people and 3,000 homes, is expected to spend about 4 billion euros, with about 1.5 billion euros already allocated. A Swedish mining company buys the property at its market value with a 25% markup, and then the interested parties buy some of the newly built houses in the new city centre. Tenants have the option to move out, with LKAB covering the potential rent difference for ten years. But the most difficult event of this colossal project is associated with the transfer of the church, which was opened in 1912. It is a 600-tonne purely wooden building that is to be moved with the horizon of 2026 to a new location in the new city. through a special operation.

Moving the city is the only way to continue the existence of the mine that supplies iron to 90% of Europe. But also to keep 2/3 of the jobs in the city, where the rest of the main activities are connected, except for winter tourism and skiing, with space research. There are European Space Agency (ESA) stations in Kiruna, where you can see the northern lights depending on weather conditions.

The cost of the project, which will result in the resettlement of 6,000 people and 3,000 houses, is estimated at around 4 billion euros.

Are there any reactions due to this mandatory relocation? The heads of the Swedish mining company answer in the affirmative. However, as they say, this is due not so much to mining, but, for the most part, to the forced relocation of residents, as well as the risk of losing regular customers if they are entrepreneurs. But a significant front that LKAB, like other mining companies in the region, has to face is the Saami, the indigenous people of Lapland, who have their own parliament. Although the new city of Kiruna is being built in an old industrial area, it is on the border with the territory of the Sami, who, like environmental organizations, argue that the mines interfere with animal husbandry and reindeer migration.

“A few decades ago there was very little human activity and reindeer were everywhere. After the mine was expanded, a city was built and the population gradually increased to 22,500 from the original 5,000. Therefore, reindeer husbandry could not remain unaffected. However, we coexist (s.s.: with the Saami) harmoniously and in good neighborly conditions, having agreed with the three main collectives of the region. And every two or three months we meet and see if there are any issues that need to be resolved,” Bo Krogwig points out in “K” Vice President and Special Advisor for Advertising at LKAB.

“We have had sulfur emissions issues in the past, which we have resolved. Dust, noise and explosive load in the mining area are some of the problems we have to deal with. We aim to keep the impact of our activities within the narrow confines of the mines, within the industrial fence,” adds Krogwig, who served as an advisor to business and government leaders in 38 countries from 1996 to 2014.

The Swedish state-owned company aims to go green and move completely away from fossil fuels. After all, “sustainable metallurgy” is one of the first phrases that a visitor sees in an advertisement for a mining company at Kiruna Airport. In this direction, it has developed, in joint ventures with other mining companies, a special method for processing iron, which removes carbon dioxide with the help of hydrogen. Also, in order to digitally transform its activities, the Kiruna mine is equipped with new technologies, while some of the heavy vehicles move without a driver.

These initiatives are intertwined with the municipality’s ambition to attract even more permanent residents to Sweden’s northernmost city. The goal is to increase the number of permanent residents from 22,500 to 25,000 by 2030, the municipality said at a presentation in Crystal, the new city’s town hall. “To achieve this, we must, with a time horizon of 2027, have the best schools in Sweden, but also be able to offer the best care for the elderly,” they said.

Seventeen metal elements in demand in high technology

Earlier this year, world attention once again turned to Kiruna and the Swedish mining giant KLAB in connection with the discovery in its depths of the largest deposit of rare earth elements in all of Europe. The deposit, located near the KLAB iron mine to the north, could support Europe’s bid for independence from China over rare earth supplies. That is, a group of 17 metallic elements with similar chemical properties and unusual names, such as lanthanum, praseodymium, and promethium.

What makes them sought after is their unique utility in high-tech applications and products, mobile phones, laptops, rechargeable electric and hybrid automotive batteries, medical devices, anti-missile systems, and magnets. For example, the price per kilogram of neodymium, which belongs to the rare earth family and is a necessary component for, among other things, wind turbines and mobile phones, is about 165 euros (about 2.3 euros in 2007). The US Congress called China’s rare earth monopoly “dangerous.” The Commission admits that the high-tech industry will collapse if the Chinese stop their exports.

However, it will be some time before the Per Geijer field becomes exploitable. “We still don’t have a complete picture. It will probably take us about two years to determine and analyze the chemical composition of the deposit and choose the best mining method. Then we have to prove that the extraction of rare earth elements is profitable.” Bo Krogwig explains “K”..

In total, it could take 10 to 15 years before mining of rare earths begins, Jan Möström, president and CEO of LKAB, has calculated. The reason is the lengthy licensing process. “It took us eight years to get a license for a new mine. In Sweden, an environmental study consultation usually lasts 90 days, but is usually extended until the interested parties submit their proposals in writing. In addition, a significant number of courts must give positive opinions on a range of issues, such as land use. The point of environmental legislation is that the investor is not treated as a potential criminal, but there is a process to find common ground after negotiations,” explains Bo Krogwig.

The mining industry is looking forward to the benefits of the new EU regulation to be adopted by the European Parliament. for critical raw materials. It explicitly calls for accelerating the extraction, processing and reuse of critical and strategic minerals such as rare earths as well as copper. Since European regulation is mandatory and applied directly by the member states, mining companies not only in Sweden but also in Greece believe that their activities, which are of particular importance for strengthening the competitiveness of the EU, will face fewer obstacles.