European critical-mineral projects moved closer to financing and production during the week, with developments spanning Sweden, Portugal, Germany and Greece. Barroso, Zinnwald and Skouries advanced through financing and commissioning stages, while Sweden strengthened the strategic status of critical-mineral development.
Sweden expands state support for critical minerals
Sweden has classified critical-metal and rare-earth extraction as a national-security interest, strengthening its position in land-use, permitting and public-finance decisions. The strategy, presented on 23 July 2026, aims to accelerate approvals, attract institutional investment and reduce European dependence on Chinese mining and refining. LKAB’s Per Geijer deposit near Kiruna contains 1.2 billion tonnes of mineral resources, including approximately 2.2 million tonnes of rare-earth oxides.
The government is considering a state-owned mining investment company, faster environmental assessments and greater mineral-related revenue for mining municipalities. LKAB has invested approximately SEK800 million in a critical-minerals demonstration facility and secured an environmental permit for an industrial park at Svartön in Luleå.
Barroso enters project-finance process
Savannah Resources has started formal project-finance work for the Barroso lithium project in Portugal, appointing technical, environmental, social and legal advisers after receiving initial non-binding bank offers. The definitive feasibility study estimates US$417 million of initial capital expenditure, including pre-stripping and contingency, or US$377 million excluding contingency. After the capital portion of Portugal’s grant, the requirement falls to approximately US$283 million.
Portugal has awarded up to €110 million in non-reimbursable support, including about €82.25 million for construction and €27.42 million linked to operating milestones. Savannah is also discussing a possible German-backed loan guarantee and debt facility with KfW IPEX-Bank and Euler Hermes. Phase one has a 14-year operating life, with average production of 183,000 tonnes a year of 5.5% lithium-oxide spodumene concentrate. Initial reserves support 2.56 million tonnes of concentrate from 20.6 million tonnes of processed ore.
At an assumed concentrate price of US$1,788 per tonne, the study gives Barroso a US$913 million post-tax NPV, 43.2% post-tax IRR and 1.9-year payback. Average C1 costs are estimated at US$473 per tonne, with all-in sustaining costs of US$646 per tonne. Savannah has non-binding letters of intent covering potential demand for approximately 865,000 tonnes a year of by-products, compared with 600,000 tonnes assumed in the feasibility study. The company already has an offtake relationship with AMG Critical Materials and expects to select a second potential spodumene partner later in 2026. Construction is targeted for 2027, with first production in 2028.
AMG takes control of Zinnwald
The UK court has sanctioned AMG Critical Materials’ acquisition of the remaining approximately 71% of Zinnwald Lithium. The transaction is expected to become effective on 27 July, followed by suspension of Zinnwald’s AIM shares and cancellation of its listing on 28 July. AMG is paying approximately US$56 million, split equally between cash and new AMG shares. The offer valued Zinnwald at approximately £57.2 million, or around 10 pence per share.
Zinnwald’s German project has an estimated €1.048 billion initial construction requirement for an integrated underground mine and lithium-hydroxide operation in Saxony. Its maiden reserve is 128 million tonnes grading approximately 0.44% lithium oxide, with a mine life exceeding 40 years. Phase one is designed to produce 18,000 tonnes a year of battery-grade lithium hydroxide, with peak output reaching 35,100 tonnes annually. The feasibility study gives the project a €2.19 billion post-tax NPV and 19.8% post-tax IRR, based on a long-term lithium-hydroxide price of approximately €26,288 per tonne. AMG has provided Zinnwald with more than £14 million of funding since 2023 and operates a lithium-hydroxide refinery at Bitterfeld-Wolfen. Management plans to spend the next 18–24 months assessing a staged development rather than immediately committing to the full €1.048 billion construction plan.
Skouries begins ore processing
Eldorado Gold’s Skouries copper-gold project in northern Greece has processed its first ore through the crushing circuit, moving from construction into staged commissioning. The project has stockpiled approximately 3.9 million tonnes of ore, including 3.4 million tonnes from the open pit. Wet, dry and hot commissioning is progressing across crushing, grinding, flotation, concentrate handling and filtered-tailings systems.
Skouries has 157.7 million tonnes of proven and probable reserves, grading 0.74 grams per tonne gold and 0.49% copper. Over its initial 20-year life, production is expected to average 140,000 ounces of gold and 67 million pounds, or about 30,400 tonnes, of copper annually. Phase 2 construction capital has increased to approximately US$1.315 billion, with US$1.116 billion invested by 31 March. A further US$260 million of accelerated operating capital includes expanded open-pit and underground mining, while US$82 million is intended to improve start-up readiness and stockpile availability.
Hellas Gold has fully drawn a €680.4 million term facility, while a €60 million contingent cost-overrun facility remained undrawn at the end of March. The project’s power connection is nearing completion, with all 12 towers and conductors installed and initial substation testing completed. Final energisation still requires inspection, metering, testing and approval from the relevant Greek electricity authority. First concentrate remains targeted for the third quarter of 2026, followed by commercial production in the fourth quarter.
