Conflicts of interest regarding new mines need to be handled better.
Rare Earth Metals: A Necessary Evil?
In Norra Kärr, near Gränna, on the border between Östergötland and Småland, lies a potentially crucial element in addressing future challenges: a significant deposit of rare earth metals with an unusually high concentration.
Rare earth metals are essential in almost all high-tech sectors, including defense technology, medical technology, and battery production. Currently, there is no mining of rare earth metals within the EU. China accounts for 86% of global production and 98-99% of the EU’s imports.
As with many other locations in Sweden affected by prospecting or applications to establish mining operations, a potential mine in Norra Kärr faces strong local opposition. The owners of the 18 properties that would be affected are against the mine.
The situation is undoubtedly difficult for those impacted, particularly due to the uncertainty. Residents of Norra Kärr have lived with this uncertainty since first hearing about the mining plans in 2011. This creates a limbo: selling is difficult due to the threat of compulsory purchase, and investing in their homes is unwise when their future residency is uncertain.
No place is immune to negative consequences.
Fighting for one’s local community is understandable. No one wants to be forced to leave their home unless by choice. However, the location of a mine is dictated by where the resources are found, embedded in the bedrock.
No place is immune to negative consequences. If it’s not 18 properties affected, it might be reindeer grazing lands, as with LKAB’s Per Geijer deposit, or areas of natural significance. This creates a conflict of interest that needs better management.
Local opposition also exists regarding plans for a uranium mine near Storsjön in Jämtland. Sweden is estimated to hold 27% of the EU’s uranium resources, but uranium has not been extracted in Sweden since the 1960s.
Recently, the government circulated a memorandum proposing that uranium extraction be classified as a nuclear activity rather than a nuclear facility. This aligns with international regulations and would remove the local veto specifically against uranium extraction. While a uranium mine in Oviken, Jämtland, might not be suitable, it should be assessed on its merits as a mine, without additional veto powers not applicable to other mines.
To support high-tech defense equipment, life-saving medical technology, a fossil-free vehicle fleet, and nuclear power to support our industries, mines are necessary. To facilitate the establishment of more mines, permitting processes need to be shortened, as proposed by the Environmental Permitting Inquiry. These proposals, recently out for consultation, suggest a significantly more efficient process than the current one. The government should expedite the implementation, planned for 2028 in the inquiry.
However, property owners’ rights also need strengthening. Not through increased rights to resist and say no – that possibility is already strong through the right of appeal. Instead, expropriation legislation should be reviewed to enhance the possibility of early property redemption. This would give property owners an alternative and a way out of uncertainty and anxiety. This should also apply to large infrastructure projects like highways and railways.
As a developer, one can also sweeten the deal. In cases of compulsory purchase, the property owner should be compensated with 125% of the market value of their property. With an estimated annual revenue of $385 million over the 26-year lifespan of a potential mine in Norra Kärr, there will be ample resources to arrange generous, voluntary relocations for those affected.
Sweden has exceptionally favorable conditions for mining. We have vast deposits, the world’s strictest environmental legislation, a highly educated workforce, and a sparse population. If we cannot manage to extract natural resources sustainably and contribute to Europe’s self-sufficiency in future metals, it is unlikely anyone else will.
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