Mines: the bedrock of the green transition
Not only is Swedish bedrock rich in metals such as iron and copper that have driven economic growth since the Middle Ages, it is also a treasure trove of rare earth metals, critical for the next step in industrial development that electrification and digitalisation entails. The Swedish mining sector’s contribution to the climate transition not only involves the phasing out of fossil energy in its own production, it must also become a supplier of metals that enable electrification globally.
Towards fossil-free mines and blast furnaces
The mining and mineral industry currently accounts for about eight per cent of Sweden’s carbon dioxide emissions. According to the mining industry’s roadmap for freedom from fossil fuels, mining and processing must be sustainable and climate-neutral for the long-term by 2045. It is relatively straightforward to electrify mining. However, extensive investment in research and development is needed to transform refining processes. The Hybrit technology for fossil-free iron production that LKAB will use requires large amounts of electricity.
Reduced emissions with Swedish production
Swedish mining production is today between 60-90 per cent less emission-intensive compared to corresponding international production. This is largely due to the near fossil-free electricity system in Sweden combined with investments in electrification, digitalisation, and the development of new inputs, processes, and equipment, which the Swedish mining cluster has invested in to transform operations to become less carbon-intensive. If the corresponding mining took place in other countries, carbon dioxide emissions would have been 6,4 Mt higher.
Major investments are now being made to further reduce the mining industry’s climate impact. New processes for mining and refining have the potential to reduce carbon dioxide emissions by 2-3 Mt a year. Electrification of mining machinery and transport, as well as new processes for producing metals will increase the sector’s need for fossil-free electricity.
Climate-friendly mining industry
The Swedish mining industry’s major climate benefit lies in the further processing of iron ore into fossil-free steel. By using hydrogen gas instead of fossil coke in the blast furnaces, iron production can be made fossil-free. New fossil-free processes could reduce carbon dioxide emissions by 31-36 Mt per year by 2045.
The reductions in emissions from Swedish mining means that the now proposed production can increase the climate benefit by 40 per cent. Production of rare earth metals in Sweden would have an 80 per cent reduction in climate impact than corresponding production in China; for graphite the corresponding figure is 90 per cent.