Philenews

Rare Earths Force a City to Relocate

Published December 30, 2025, 07:19
Rare Earths Force a City to Relocate

The Swedish state-owned company LKAB is forcing the town of Kiruna to relocate gradually due to the discovery of a large deposit of iron ore and rare earths underneath it. The company will pay compensation of up to 2.5 billion euros to residents and authorities to move to a new town, 3-5 kilometers north. LKAB will also take on the task of moving historical buildings from Kiruna to the new location. This decision is due to ground instability and the risk of building collapse due to extensive mining. The relocation has already begun, most recently with the move of the old church. The program is expected to be completed in 2035. Residents have the option of choosing between a new home in the new town or compensation to purchase a home elsewhere. Despite some reactions and concerns about the colder climate in the new location, the majority of residents support the move, as their economy depends on mining.