STOCKHOLM, July 23 (Reuters) – Sweden’s government declared mining of critical metals and rare earth minerals a national security interest on Thursday, saying a new mining strategy was needed to counter the dependence on China.
China dominates both mining and refining of rare earth minerals essential for clean energy generation, defence and electric vehicle production, and export controls have served Beijing as a powerful lever in its trade war with Washington and other disputes.
Sweden also has large mineral resources and the Per Geijer find, located near LKAB’s existing Kiruna mine, is one of the European Union’s flagship projects in its efforts to reduce reliance on China. With 1.2 billion tons of total mineral resources, of which 2.2 million tons are rare earth oxides, Per Geijer is critical to Europe’s interests.
Ebba Busch, Enterprise Minister and Deputy Prime Minister, said making mining a national security interest would speed up planning and permissions, helping attract investment.
“We believe that this can contribute significantly to both Sweden’s, EU’s and NATO’s defence capabilities,” she told a news conference, calling European industry’s dependence on China a “systemic risk.”
Busch said the new strategy would make it easier for the state to assign land to mining projects, an area of tension with the Sami reindeer-herding indigenous people, who say expansion of mining would spell the end of their traditional way of life.
The government was looking at the possibility of creating a state-owned investment company for the Swedish mining sector, she said.
“Today, to put it plainly, the government lacks concrete tools to wisely contribute to accelerating and attracting investments in key projects in crucial strategic projects,” she said.
(Reporting by Johan AhlanderEditing by Tomasz Janowski)
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