Finland’s government is investing €65 million in the planned Sokli mining project located in Savukoski municipality, Lapland.
The funds will be allocated to Finnish Minerals Group, the state-owned mining operator, to advance the project into the pre-feasibility study phase. This investment underscores Finland’s commitment to bolstering its role in the European supply chain for critical minerals.
The investment will finance a pilot mine and concentrator between 2026 and 2028, with plans to produce phosphate and iron concentrates on a smaller scale. Simultaneously, the project will assess the feasibility of extracting rare earth elements.
Three-Year Pilot Operations Planned
The planned pilot mine is projected to produce approximately 15,000 tonnes of phosphate concentrate and 2,500 tonnes of iron concentrate annually during the test period. The aim is to gather technical and economic data to inform a potential decision regarding a full-scale mine.
Currently, environmental permits for the pilot operations are pending, with a decision anticipated in the summer. Concurrently, an Environmental Impact Assessment (EIA) for a potential permanent mine will be launched this year.
The Sokli deposit has been under discussion for decades, facing repeated delays due to high costs, infrastructure needs, and environmental concerns. However, this latest investment marks a significant step toward determining whether mining can be economically and technically viable.
EU Raw Material Needs in Focus
The Finnish government believes the project could be crucial for the EU’s access to strategic minerals. “If the project is realized, it will be of great importance for the EU’s mineral supply. The state wants to promote responsible mining and processing operations in Finland,” said Joakim Strand, Minister for European Affairs and Ownership Steering, in a press release.
Minister of Economic Affairs Sakari Puisto also highlighted potential local benefits. “The project would also promote the construction of new infrastructure, such as electricity and road networks in the area, thereby improving the conditions for other industries,” he stated.
Several uncertainties remain, however. Significant investments are required for transport solutions and energy supply in the remote area, and the environmental review process is expected to be comprehensive. A final decision on a full-scale mine will not be possible until after the pilot phase is complete.
Sokli is considered one of Europe’s larger known deposits of rare earth elements, located in a sparsely populated wilderness area in northeastern Finland. Sokli Oy is developing the mining project, and in January 2026, applied for strategic project status under the EU Critical Raw Materials Act (CRMA), with a decision expected later in 2026. Finnish Minerals Group will capitalize FMG with approximately EUR 65 million to enable the prefeasibility study. Rare Earth Exchanges reports that phosphate concentrate production is expected between 2027–2029, with rare earths evaluated at a later stage.
