Norway is likely to play a vital role in Europe’s supply chain for critical raw materials and several companies are leading the pack in exploration and planned development.
Global mining giant BHP (ASX; BHP) recently inked a deal with Australian junior Kingsrose Mining (ASX: KRM) on joint exploration projects for nickel and copper in Norway and Finland. Another ASX listed company, Kuniko Ltd (ASX: KNI) has recently upgraded their mineral resource estimate is working towards being mine-operational in 2030.
Critical raw materials are those that are essential to produce advanced technologies, electric vehicles, green energy solutions, and defence applications. They include a range of elements such as copper, nickel, and platinum group metals, each serving critical functions in modern technologies. For instance, copper is integral to the production of electronics and renewable energy systems, while nickel is indispensable for rechargeable batteries powering electric vehicles and energy storage solutions.
Norway has an abundance of natural resources that are crucial to Europe’s industrial and technological sectors.
There is an estimated resource of nearly 20 Mt of nickel ore in Norway of which only 8.3 Mt are regarded as identified, many of these deposits are copper-rich and enriched with cobalt and Platinum Group Elements.
Although Norway is not yet a major global producer of REEs, its potential reserves are of strategic importance. Another critical resource that Norway provides is graphite and other minerals like titanium, which is used in aerospace and defence.
Norway and the EU signed a bilateral strategic industry partnership agreement in 2024 as part of the previously established "Green Alliance." The partnership aims to develop and secure integrated value chains for the sustainable production and supply of land-based critical raw materials and batteries.
Kuniko Ltd
Kuniko Ltd (ASX: KNI) has a vision to establish a “mine-to-battery” supply chain with Norway’s Ringerike district poised to become a critical minerals hub.
In December 2024 the company made a significant update to its Mineral Resource Estimate (MRE) for the flagship Ertelien Nickel-Copper-Cobalt Project.
The revised estimate outlines 40 million tonnes (Mt) of mineral resources, comprising 22 Mt classified as indicated and 18 Mt as inferred.
The Ertelien Project forms part of Kuniko’s larger Ringerike Battery Metals District, an expansive 405 km² area in southern Norway with strong geological similarities to Canada’s renowned Voisey’s Bay nickel-copper deposits.
The district includes multiple promising targets for nickel, copper, and cobalt exploration. The deposit remains open at depth and along strike, offering potential for further resource growth. A ground electromagnetic survey conducted earlier in 2024 identified untested conductors in the southern intrusion, suggesting the possibility of extending the high-grade mineralization. This reinforces Ertelien's potential to evolve into a larger, multi-commodity resource.
The updated MRE is based on nearly 4,000 meters of diamond drilling and re-analysis of historical drill cores completed in 2024. The resource now includes 71,000 tonnes of nickel, 49,000 tonnes of copper, and 5,600 tonnes of cobalt, split between indicated and inferred categories. Nickel represents 56% of the resource’s metal content, while copper and cobalt account for 39% and 4%, respectively.
Ertelien is a cornerstone of Kuniko’s strategy to supply Europe with low-carbon battery metals. Norway’s renewable energy abundance and Kuniko’s net-zero carbon commitments further bolster the project’s sustainability credentials.
Additionally, Kuniko has applied for EU recognition of the Ringerike Battery Metals Project as a strategic initiative under the Critical Raw Materials Act, underscoring its critical role in Europe’s energy independence.
Kuniko’s CEO Antony Beckmand highlighted the significance of the upgraded MRE, stating “The updated Mineral Resource Estimate is a major milestone for Kuniko, demonstrating a sizable resource at Ertelien. Our 2024 exploration efforts have successfully reinforced resource continuity while expanding confidence in the deposit’s potential and quality.
“Coupled with the extensive exploration potential across the Ringerike Battery Metals District, this project is rapidly establishing itself as a vital source of sustainable, strategic metals to support the European Union’s green energy transition.”
Building on the updated resource estimate, Kuniko plans further exploration and drilling in 2025 to expand high-grade mineralized zones, investigate untested areas identified by geophysical surveys, and refine the geological model.
Metallurgical test work is also ongoing to enhance nickel and copper recoveries, paving the way for future feasibility studies. Kuniko’s long-term vision includes adopting responsible mining practices aligned with the UN Sustainable Development Goals.
In June 2023 Stellantis N.V. and Kuniko announced a binding offtake term sheet agreement, granting Stellantis rights to 35% of Kuniko's future nickel sulphate and cobalt sulphate production from its Norwegian exploration projects for a nine-year term.
As part of the agreement, Stellantis invested €5 million in new equity in Kuniko, securing a 19.99% (now 19.4%) ownership stake and the right to nominate one director to Kuniko’s board.
“We are on an aggressive path to securing a holistic portfolio of raw materials needed to meet our Dare Forward 2030 electrification targets,” said Maxime Picat, Stellantis Chief Purchasing and Supply Chain Officer. “With Kuniko, we are adding another lever to support our European battery needs with a local and environmentally conscious solution from its Norwegian projects.”
Kingsrose Mining
BHP and Kingsrose Mining (ASX: KRM) have entered into two exploration alliance agreements, with BHP committing to fund regional exploration efforts in Norway and Finland.
In Norway’s Finnmark region, BHP is exploring a 2,736km² area, which includes the Porsanger Project situated within the Karasjok and Kautokeino Greenstone Belts. These belts are an extension of the mineral-rich zone hosting the Kevitsa and Sakatti nickel–copper-PGM projects.
In early December, Kingsrose received approval to commence drilling at the Karenhaugen prospect, part of the Porsanger Project.
This partnership with BHP has significantly strengthened Kingsrose’s financial position. The company now has $26 million in reserves and benefits from a low cash burn, thanks to BHP’s funding commitment of up to US$5 million annually.
BHP could invest up to $56 million over the next decade to acquire up to a 75% stake in Kingsrose Mining’s assets.
The collaboration will unfold in three stages, with BHP initially funding up to $20 million over four years for regional generative exploration in the two Nordic countries. This investment will give BHP exclusive rights to select the projects it wishes to develop further.
Kingsrose Managing Director Fabian Baker discussed the value proposition in May 2024 "What we have is every single year, a commitment to spend a significant amount of money on the project. BHP has the benefit of exclusive rights to explore that area. And if they find a tier-one, world-class asset, they can take that all the way to earning 75%...anything short of that, Kingsrose will retain a majority ownership position in the project and be able to continue moving it forward to create value."
Canadian based Global Energy Metals (TSXV. GEMC) is also partnering with Kingsrose through a 10% ownership of Narvik Nikel, a Norwegian holding company which holds an 100% interest in Råna project. The Råna project represents one of the few drill-ready, low capex Class-1 nickel opportunities globally that has strong mining potential and exploration upside and presents as an opportunity as a future source of material suitable for the rechargeable battery sector. GEMC also has an 1% NSR royalty on Råna. Kingrose is earning up to 80% interest in Råna by spending $15 million in project expenditures on the project.
Kingsrose Mining has been expanding its portfolio of critical minerals exploration projects in Norway and Finland, focusing on nickel, copper, and platinum group metals.
Norwegian bedrock holds significant potential to supply many critical raw materials for EU requirements. In addition its mineral industry is characterized by a low CO2 footprint, advanced sustainable processing, and exceptional expertise providing excellent foundations for companies such as Kuniko and Kingsrose as they progress along the value chain from explorer, miner to producer.