State to capitalise Finnish Minerals Group with EUR 65 million to advance Sokli mining project
The Sokli deposit in Savukoski is one of Europe’s most significant sources of rare earth elements. Its phosphate reserves are estimated to cover up to one fifth of the European Union’s phosphate needs.
The Government has decided to invest EUR 65 million in Finnish Minerals Group, a state‑owned company with a special assignment, to develop mining in Sokli. The financing will cover a feasibility study in 2026–2028. The study includes building a pilot mine and pilot concentrator in Sokli. The project aims to produce phosphate and iron concentrates between 2027 and 2029 and examine the potential for producing vermiculite, niobium and rare earth elements. The planned annual production volumes are 15,000 tonnes of phosphate concentrate and 2,500 tonnes of iron concentrate.
“Sokli is an exceptionally valuable deposit. If this project moves forward, it will make a real difference to Europe’s mineral security. We are committed to advancing responsible mining and processing in Finland,” says Minister for European Affairs and Ownership Steering Joakim Strand.
The Sokli phosphate and mineral deposit is located in Savukoski. Since 2020, Finnish Minerals Group has been mapping its mineral reserves, potential processing technologies, environmental considerations and economic viability. The newly allocated financing will make it possible to verify the technical performance of the processes, produce more precise information on profitability, and collect the data needed for the permitting phase of a full‑scale mining project.
Sokli is currently one of Europe’s most important critical raw material development projects. Its main product will be phosphate, which is used both in agricultural fertilisers and in the batteries of electric vehicles. According to current estimates, the Sokli reserves could meet up to 20 per cent of the EU’s current phosphate demand. The project also supports the EU’s goal of increasing mining and processing capacity, particularly for rare earth elements that Europe urgently needs for the clean transition, the digital transformation and defence technology.
The environmental permitting process for Sokli will begin with an environmental impact assessment, which will be launched in 2026. A separate permit has been sought for the pilot operations, and a decision on the permit is expected in summer 2026.
“The Sokli project is vital for Europe’s security of supply in critical raw materials. If realised, it will deliver major economic and employment benefits for Finland, especially in Savukoski and across Lapland. It would also drive new infrastructure development from power grids to roads, opening up further opportunities for other industries in the region,” says Minister of Economic Affairs Sakari Puisto.
Inquiries: Benina Uotinen, Special Adviser, tel. +358 295 160 040, Maija Strandberg, Director General, tel. +358 50 407 8423, Minna Pajumaa, Senior Ministerial Adviser, tel. +358 295 160 147
The email addresses of the Finnish Government are in the format [email protected].