Finland’s government will invest €65 million in advancing the planned Sokli mining project in the Savukoski municipality in Lapland. The funding will be channelled to the state-owned mining company Finnish Mineral Group to move the project forward during its pre-feasibility phase.
The investment will finance a test mine and pilot processing plant between 2026 and 2028. During this period, phosphate and iron concentrates will be produced on a limited scale while the potential to extract rare earth elements will also be evaluated.
Sokli lies in a sparsely populated wilderness area in northeastern Finland and is regarded as one of Europe’s more significant known deposits of rare earth elements. The deposit also contains phosphate and niobium, raw materials used in fertiliser production and various high-technology applications.
Three-year test phase planned
According to project plans, the test mine would produce about 15,000 tonnes of phosphate concentrate and 2,500 tonnes of iron concentrate per year during the trial phase. The aim is to collect technical and economic data before any decision on a full-scale mining operation is taken.
No environmental permit for the test operations has yet been granted. A decision from the licensing authority is expected during the summer. At the same time, an environmental impact assessment for a potential full-scale mine will begin this year.
The Sokli deposit has been discussed for decades, but the project has repeatedly been delayed due to high costs, infrastructure requirements and environmental concerns. The current funding nevertheless marks another step toward determining whether mining at the site is technically and economically viable.
EU raw material supply in focus
The Finnish government says the project could play a role in securing access to strategic minerals within the European Union.
– If realised, the project will have major significance for the EU’s mineral self-sufficiency. The state wants to promote responsible mining and refining operations in Finland, said Minister for European Affairs and Ownership Steering Joakim Strand in a statement, according to the original source.
Minister for Economic Affairs Sakari Puisto also highlighted local impacts.
– The project would also promote the construction of new infrastructure, such as electricity and road networks in the area, and thereby improve operating conditions for other industries, he said, according to the same source.
Costs and risks remain
Significant uncertainties remain before any full-scale mine can be approved. Large investments would be required for transport links and energy supply in the remote area, and environmental permitting is expected to be extensive. Only after the test phase is completed could a final investment decision on a full-scale mine be made.
The Sokli project forms part of a broader European effort to secure access to critical minerals for fertilisers, advanced manufacturing and defence industries. At the same time, it highlights the challenges of developing mining projects in remote regions with limited infrastructure and strict environmental oversight.
Source: Yle.
