Prime Minister Petteri Orpo's (NCP) government has announced plans to invest 65 million euros in the state-owned Finnish Minerals Group to develop mining at the Sokli deposit in Savukoski, Lapland.
It characterised the deposit as "one of Europe's most significant sources of rare earth elements".
At first, the financing will be used towards a feasibility study from this year until 2028. That effort will involve construction of a pilot mine and pilot concentrator at Sokli.
"The project aims to produce phosphate and iron concentrates between 2027 and 2029 and examine the potential for producing vermiculite, niobium and rare earth elements. The planned annual production volumes are 15,000 tonnes of phosphate concentrate and 2,500 tonnes of iron concentrate," a government press release explained.
Minister for European Affairs and Ownership Steering Joakim Strand (SPP) characterised Sokli as an "exceptionally valuable deposit".
"If this project moves forward, it will make a real difference to Europe’s mineral security. We are committed to advancing responsible mining and processing in Finland," Strand said in the release.
According to the government, Sokli's main output will be phosphate, which is used in both fertilisers and e-vehicle batteries. It cited current estimates that the deposit's reserves could meet up to 20 percent of the EU's current demand for the crucial chemical compound.
The environmental permit process will start with an impact assessment, to be launched this year. The company has applied for another permit for the pilot operations. A decision on that application is expected this summer.
