Exploring Sweden's Rising Mining Potential: A New Era of Exploration and Development
Sweden's mineral exploration landscape has been steadily growing in recent years, attracting both domestic and international interest. The country boasts rich and easily accessible deposits of traditional minerals such as iron, gold, and base metals, alongside increasing attention towards critical minerals like rare earth elements (REE), nickel, cobalt, platinum group elements (PGE), lithium, vanadium, and graphite.
Increased Demand Driving Exploration
The growing demand for battery metals has been fueled by major industrial developments, including Northvolt’s large-scale battery factory in Skellefteå and Talga Group Ltd.'s planned graphite anode refinery in Luleå. The latter, an Australian company, aims to establish one of the world's largest graphite and battery anode material production facilities outside Asia.
Meanwhile, Sweden's established mining giants—LKAB and Boliden, and Zinkgruvan—along with smaller players such as Lovisagruvan, Björkdalsgruvan, Botnia Exploration and Kaunis Iron, have primarily focused on mine-adjacent exploration rather than venturing into less-explored greenfield areas. However, new investments suggest a shift towards broader exploration efforts across the country.
Increased Investments in Mineral Exploration
Sweden's exploration expenditures have been on an upward trajectory since the mid-2010s. While data for 2024 is still pending, previous years show a consistent increase, with investments growing from approximately SEK 400 million in 2016 to SEK 1.975 billion in 2023 (SGU, Bergverksstatistik 2023). Leading mining firms Boliden and LKAB accounted for SEK 1.6 billion of that expenditure.
This pattern aligns with global trends, where exploration spending (excluding iron ore) surged from 2004 to 2012, dipped to around USD 7 billion in 2016, and subsequently rose to nearly USD 12 billion by 2022–2023. Despite Sweden's rising investment levels, its share of global exploration budgets remains below 1%.
Surge in Mining Permits and Licenses
As of March 2024, Sweden had 167 active mining permits, with an additional eight applications under review. There were also 725 exploration permits in effect, while 53 applications were being processed, and 37 concession holders had applied for extensions. Most of these licenses are concentrated in Northern Norrbotten, the Skellefteå district, and Bergslagen.
Traditionally, Sweden’s exploration efforts have centered around gold, base metals, and iron ore. However, the past decade has seen a notable rise in interest in battery metals and other minerals critical to modern technology. Of the 68 active exploration companies operating in Sweden, the majority are focused on these high-demand resources.
Foreign Investment Dominates Sweden’s Mining Scene
Sweden’s mining exploration sector remains largely dominated by foreign companies, with 72% of active exploration firms being international—primarily from Canada and Australia. Only 19 exploration firms are Swedish-owned, 11 of which are publicly traded, while eight remain privately held.
Additionally, 34 independent companies and six private individuals hold exploration concessions but have yet to initiate full-scale operations, often due to a lack of financial or technical resources. A significant challenge in Sweden’s exploration landscape has been securing financing, as raising capital through Nasdaq Sweden has proven more difficult compared to stock exchanges in Canada and Australia.
Sweden’s Track Record of Successful Discoveries
Over the past 60 years, nine entirely new mineral deposits have been discovered and brought into production in Sweden. These include Norra Garpenberg (discovered in 1962), the Viscaria copper deposit (1972), Björkdalsgruvan (1983), and more recent finds like Lappberget, now one of the world's most productive underground zinc mines. Other notable developments include the reopening of Kaunisvaara and Dannemora iron mines and multiple gold, copper, and polymetallic discoveries that have reached production.
A Growing Roster of Exploration Companies
In 2023 alone, 18 new exploration companies entered the Swedish market. Notable entrants include Bastion Minerals (Australia), BHP Midgård AB (Australia), European Battery Metals, Rare Earth Energy Metals Ltd., Swedish Nickel Norrland AB, and Swedish Copper in Norrland AB. This surge in interest reflects Sweden’s growing attractiveness as a mining jurisdiction, particularly following the approval of the EU Critical Raw Materials Act (CRMA), which aims to strengthen Europe’s raw material security.
Sweden’s Mining Future: New Projects on the Horizon
Several projects are expected to transition from exploration to full production within the next few years:
- Copperstone Resources AB: Recently secured environmental permits for its Viscaria copper mine near Kiruna, with production slated for 2026.
- Grangex AB: Plans to restart the historic Dannemora iron mine in 2024, supported by an offtake agreement with Anglo American valued at SEK 15 billion.
- Botnia Exploration AB: Preparing to commence mining at the Fäbodtjärn gold deposit.
- Talga Battery Metals AB: Developing the Nunasvaara graphite deposit to support its battery anode refinery in Luleå.
- Leading Edge Materials Ltd.: Seeking approval to mine rare earth elements at Norra Kärr to reduce Europe’s reliance on Chinese REE imports.
Beyond these projects, several companies are intensifying exploration efforts with the goal of starting operations within the next decade. Notable efforts include:
- Alcanto Minerals Limited: Targeting zinc, lead, and silver near the historic Falun mine.
- Vanadis Battery Metals AB: Advancing vanadium resources in Jämtland.
- LKAB: Investigating the Per Geijer deposit near Kiruna, which could hold over a million tonnes of REE.
- Pallas Metals AB: Exploring palladium and copper in Dalsland.
- Ragnar Metals Ltd.: Conducting nickel and copper exploration in central Sweden.
A Bright Future for Swedish Mining
With rising global demand for critical minerals, Sweden's mining industry is at the cusp of a new era. The combination of increased exploration activity, legislative support through the CRMA, and robust investment in battery metals positions Sweden as a key player in the European mining sector. As new projects move towards production, the country is poised to play a vital role in securing the raw materials needed for the green transition and future technological advancements.
Increase in Exploration Permits
One of the most notable trends in Sweden’s mineral exploration sector in 2023 was the significant rise in the number of exploration permits issued. By the end of the year, there were 750 active exploration permits, up from 639 in 2022. A total of 175 new permits were granted, indicating renewed interest in Sweden’s mineral potential. This increase reverses a decade-long decline in exploration permit approvals. Additionally, permit renewals rose from 21 in 2022 to 47 in 2023, further underscoring the sector’s positive momentum.