Under a volcano in Norway are the minerals that Europe longs for, but they could remain forever buried

The mining company Rare Earth Norway (REN) revealed last month that the presence of rare earth metals in the Fensfeltet deposit (located in southern Norway) was 80% larger than calculated two years ago, exceeding 15.9 million tons. From the mining town of Ulefoss, REN director Alf Reistad, who holds the exploitation rights, explained that he had many reasons to be happy: “This makes the deposit one of the largest rare earth deposits in the world. It could be of great strategic importance for Europe,” he said.Rare earth elements consist of 17 metallic elements that are not actually particularly rare, but are used for the manufacturing of electric cars, wind turbines, microchips, and in the manufacturing of armaments, among many other things. Their demand is expected to increase exponentially in the coming decades, which is why the European Union has set the goal of covering at least 10% of internal demand by the year 2030. But in practice, this horizon seems unlikely, as today the extraction and processing of rare earths by European countries is zero.In this regard, the challenge for Europe is to stop depending on China, which until now supplies 98% of these precious minerals, a relationship that is considered strategically dangerous for the interests of the Old Continent's industry. This situation has led to the Norwegian deposit being classified as “of strategic importance” by the European Commission. However, despite the discovery, which has been nicknamed “the new oil”, the Fensfeltet mine could end up never being exploited.Reduce dependence on China

In a phone call with ARA, Reistad now admits he is impatient: “It is time to stop talking so much and act so that the extraction of rare earths becomes operational”, he says. According to the mining company REN, the deposit in Norway could significantly help reduce dependence on China, as it “could supply 30% of the EU's need for rare earths”, explained Reistad. The company's hope was that the mine could start operating from the year 2030, but fear of the financial risk of carrying out the exploitation and environmental objections are getting in the way: “Unless the Norwegian authorities, the European Commission and the EU member states mobilize, these resources, which are considered critical raw materials by Brussels, may never be extracted”, warned Reistad.In the Fensfeltet deposit, minerals are found buried 500 meters under a volcano that has been dormant for 580 million years. REN's plan is to build an underground mine and transport the extracted ore through a tunnel to a nearby area, where it will be separated and processed, while the remaining earth will be returned to the mine to prevent the ground from collapsing.However, until now it has been difficult for the company to find a site to establish a waste repository. The old volcano area is rich in wildlife and is home to 78 protected species of beetles, butterflies, and lichens. In early April, the Norwegian government announced that it was taking responsibility for planning the construction of the mine and assessing its impact, but environmental reports have indicated that the operation will severely damage vegetation and animals.The mining company REN admits that there is a dilemma, since, according to Alf Reistad, “it must be considered whether it is a priority to allow the destruction of the natural space in order to extract the rare earth metals that Europe so desperately needs”. Reistad justified the development of the deposit, by the fact that “after all, rare earth metals will be used to manufacture electric cars and wind turbines that reduce the impact of gas emissions on the climate”, he said.Beyond the environmental issue, there is also a significant economic challenge. To maintain its monopoly position on rare earths, China provides financial support to its industry and can reduce mineral prices when it suits it to expel competition, a practice known as dumping, according to Reistad.On the other hand, the President of the United States, Donald Trump, has recently authorized an investment of 1.74 billion euros intended for two North American companies dedicated to the extraction and processing of rare earth elements, a very significant public money investment in order to decrease their dependence on Chinese control.For the Norwegian deposit to be profitable, Alf Reistad warns that the European Union should grant financial support that ensures fixed minimum prices for the company responsible for its exploitation, with the aim of eluding competition from China and the USA. Reistad also advocated for the creation of a Norwegian public company that would participate as a co-owner of the project, a proposal that the government of Oslo has viewed favorably, although it has not yet made any decision in this regard: "For us, it is about the state participating by assuming part of the financial risk involved in a project that is not governed by normal market rules because the competitor is China," Reistad expressed.In conclusion, Reistad emphasizes that time is also a decisive factor in facing competition and, therefore, the project must be initiated without further delay. Despite everything, he admits with resignation: "In Europe, the average time to launch a project of this type is about 20 years from the discovery of the minerals".