In a groundbreaking discovery, Rare Earths Norway, a Norwegian mining company, has announced the unearthing of Europe's largest proven deposit of rare earth elements within the Fen Carbonatite Complex, an ancient volcano located in southeast Norway. This finding has significant implications not only for the continent's renewable energy industry but also for the European Union's goal of reducing its dependence on China for rare earth deposits.
After three years of extensive exploration, REN has estimated that the Fen Carbonatite Complex deposit contains 8.8 megatons of rare earth oxides, with a reasonable prospect for eventual economic extraction. Within this deposit, there is an estimated 1.5 million metric tons of magnet-related rare earths, which are crucial components in electric motors, generators, wind turbines, and various clean energy technologies, as well as consumer electronics, medical devices, and touch screens.
Alf Reistad, CEO of Rare Earths Norway, emphasized the transformative potential of this discovery, stating, "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." The Fen Carbonatite Complex, located southwest of Norway's capital city Oslo, near Lake Norsjø, was once the pipe of an active volcano approximately 580 million years ago. Over time, the upper part of the volcano eroded away, exposing the 1.2-mile-in-diameter magma-filled pipe, which has solidified into carbonatite containing rare earth elements such as neodymium and praseodymium.
REN's current work has provided a mineral resource depth of 468 meters (1,535 feet) below mean sea level, with deposits likely extending as far down as 1,000 meters (3,300 feet) below sea level. The company anticipates that the development of new mining methods will further increase the resource estimate. Over the next six years, REN plans to invest NOK10 billion ($942 million) in exploration, the development of new technologies, and test mining, with the goal of developing the first stage of mining by 2030.
This discovery holds immense significance for Europe, as most rare earth elements are currently sourced from China, which accounts for an estimated 70% of global rare earth ore extraction and 90% of rare earth element processing. The European Commission's Critical Raw Materials Act aims to extract at least 10% of the EU's annual demand for rare earths, a target that REN's discovery could potentially cover.
In 2022, European Commission President Ursula von der Leyen emphasized the growing importance of lithium and rare earths in the EU's economy, replacing gas and oil as key resources. She noted that the demand for these elements is expected to increase fivefold by 2030. While this shift towards clean energy is a positive development, Europe's heavy reliance on China for these materials has raised concerns.
The discovery of this substantial rare earth deposit in Norway presents a significant opportunity for Europe to reduce its dependence on China and strengthen its own renewable energy industry. As the world continues to transition towards cleaner energy sources, securing a reliable and sustainable supply of rare earth elements will be crucial for the success of this transition.
