MINEX Forum

Month: March 2024

  • The China Chamber of Commerce response to the Approval of the Critical Raw Materials Act (CRMA)

    The China Chamber of Commerce response to the Approval of the Critical Raw Materials Act (CRMA)

    The China Chamber of Commerce to the European Union (CCCEU) on Tuesday urged the EU not to disrupt global critical raw materials supply chains and value chains through non-market measures following the bloc’s approval of the Critical Raw Materials Act.

    The Act, adopted by the Council of the EU on Monday, identifies two lists of materials including 34 critical ones and 17 strategic ones. It aims for the EU to extract 10 per cent, recycle 25 per cent, and process 40 per cent of its annual needs for the materials, which notably encompass lithium and nickel, by 2030.

    The CCCEU said that while understanding the EU’s aim to enhance supply chain resilience, it urged the bloc not to disrupt global critical raw materials supply chains and value chains through non-market means to not affect the green and digital economic transformation.

    The chamber highlighted the vast room for cooperation between China and the EU, stressing that “dependence is mutual.”

    It urged the EU to objectively evaluate both sides’ positions in the global supply chain, refrain from politicizing trade issues, reduce market access barriers, encourage dialogue and cooperation, and provide a fair, non-discriminatory business environment for Chinese enterprises.

    The Brussels-based CCCEU represents over 1,000 Chinese companies operating across the EU, with chambers in EU member states.

  • US Imposes Sanctions on GeoProMining Over Illegal Gold Mining Activities in Azerbaijan

    US Imposes Sanctions on GeoProMining Over Illegal Gold Mining Activities in Azerbaijan

    The US Treasury Department has announced sanctions against GeoProMining for its involvement in illegal gold mining operations in the Kalbajar region of Azerbaijan during the Armenian occupation, according to a statement by the department. The mining company, which exploited mineral resources in Azerbaijani territories occupied by Armenia, has now faced repercussions under US anti-Russian sanctions.

    During the occupation, Armenian forces extensively exploited mineral deposits in Azerbaijani territories, including Karabakh and Eastern Zangezur. Notably, the largest gold mining zone in the region, situated in Kalbajar, has been under the operation of Russian company GPM Gold, a subsidiary of GeoProMining, since 2007.

    Despite its license permitting mining activities solely in the Armenian part of the mine, evidence suggests that operations extended into occupied Kalbajar, corroborated by satellite imagery. Furthermore, during the Second Karabakh War, GeoProMining reportedly bolstered its defenses in the mine by amassing weapons and deploying mercenaries to confront the Azerbaijani military.

    Additionally, Vartan Sirmakes, a Swiss entrepreneur and jeweler of Armenian descent, allegedly played a role in the exploitation of the Kalbajar mine. Gold extracted from Kalbajar and Zangilan was purportedly auctioned in Switzerland and stored in Swiss banks, implicating Sirmakes in the illicit trade.

  • Аналитики высоко оценили финансовый отчет Казатомпрома несмотря на снижение продаж урана

    Аналитики высоко оценили финансовый отчет Казатомпрома несмотря на снижение продаж урана

    Финансовые аналитики из Freedom Broker и Halyk Finance высоко оценили финансовый отчет урановой компании “Казатомпром”, особенно отметив положительную динамику роста выручки. По оценке Freedom Broker, хотя ожидается увеличение затрат на производство и снижение продаж урана, они рекомендуют приобретать акции “Казатомпрома”, предвидя возможность компании вернуться к своим целевым показателям. Точно так же, Halyk Finance признает, что “Казатомпром” не в полной мере воспользовался взлетом цен на уран, однако советует инвесторам покупать акции компании на фоне рекордных финансовых результатов, как сообщается в обзорах брокеров.

    Freedom Broker подчеркивает возможные проблемы с производством из-за трудностей с получением серной кислоты, прогнозируя их временный характер и утверждая способность “Казатомпрома” восстановить прежние показатели производства и продаж. Кроме того, эксперты отмечают рекордную выручку компании в 1,43 трлн тенге, что составляет рост на 43% по сравнению с предыдущим годом, приводимый в движение ростом продаж природного урана на 39% в 2023 году и началом продаж обогащенного урана, приносящего 91 млрд тенге дохода.

    Несмотря на незначительное снижение производства урана на 2% в 2023 году, “Казатомпром” смог продать на 10% больше этого сырья по сравнению с 2022 годом, при увеличении средней цены реализации урана на 22%. Операционная прибыль выросла на 49%, а чистая прибыль увеличилась на 23%, при этом активы компании расширились до 2,59 трлн тенге к концу 2023 года.

    Аналитики прогнозируют потенциальный рост стоимости акций “Казатомпрома” на 27%, достигнув 23,3 тыс. тенге, вместе с оцененными дивидендами на уровне не менее 1 188 тенге за акцию для 2023 года. Halyk Finance поддерживает целевую цену на уровне 22,8 тыс. тенге, подчеркивая потенциал компании к увеличению продаж урана на фоне высоких рыночных цен.

  • Analysts View Kazatomprom’s Financial Report Positively Despite Uranium Sales Dip

    Analysts View Kazatomprom’s Financial Report Positively Despite Uranium Sales Dip

    Financial analysts from Freedom Broker and Halyk Finance have lauded the financial report of the uranium company “Kazatomprom,” particularly noting a positive growth trajectory in revenue. According to Freedom Broker’s assessment, while an increase in production costs and a decrease in uranium sales are anticipated, they recommend purchasing Kazatomprom’s shares, anticipating the company’s ability to rebound to its target metrics. Similarly, Halyk Finance acknowledges that Kazatomprom hasn’t fully capitalized on the surging uranium prices, yet they advise investors to buy the company’s stocks based on the record-breaking financial results, as reported by broker reviews.

    Freedom Broker highlights potential production challenges due to sulfuric acid procurement issues, projecting them to be temporary and affirming Kazatomprom’s capability to regain previous production and sales targets. Additionally, experts underscore the company’s record revenue of 1.43 trillion tenge, marking a 43% year-on-year increase, driven by a 39% surge in natural uranium sales in 2023 and the initiation of enriched uranium sales, yielding 91 billion tenge in revenue.

    Despite a marginal 2% decline in uranium production in 2023, Kazatomprom managed to sell 10% more uranium compared to 2022, amidst a 22% increase in the average uranium selling price. While operational profitability surged by 49%, net profits grew by 23%, with the company’s assets expanding to 2.59 trillion tenge by the end of 2023.

    Looking forward, analysts foresee a potential 27% increase in Kazatomprom’s stock value, reaching 23.3 thousand tenge, alongside an estimated dividend of at least 1,188 tenge per share for 2023. Halyk Finance maintains its target price at 22.8 thousand tenge, emphasizing the company’s potential to capitalize on uranium sales amid high market prices.

  • Serbia Initiates Development of Mineral Resource Management Strategy for 2025-2040

    Serbia Initiates Development of Mineral Resource Management Strategy for 2025-2040

    Serbia has commenced the formulation of a comprehensive Strategy spanning from 2025 to 2040 aimed at managing the nation’s mineral and geological resources. Dubravka Djedovic Handanovic, the Minister of Energy, led the inaugural meeting in Belgrade, engaging with representatives from the Geology faculty to kickstart this pivotal initiative, as reported by the “Beta” press agency. Minister Djedovic Handanovic emphasized the necessity for the forthcoming document to conduct a thorough analysis of the current state of all mineral resources, outlining a trajectory from present circumstances towards future aspirations. The objective is to propose measures that enhance control and management of mineral development, ensuring maximal economic benefits while minimizing environmental damage.

    According to the minister, the Strategy is slated for completion “in the next nine months,” signifying a commitment to expedited progress in this critical area. Djedovic Handanovic highlighted Serbia’s historical reliance on mining for development, noting the absence of a coherent contemporary strategy in this domain. To address this gap, the drafting process will engage 50 professors and collaborators from the Faculty of Geology, tasked with integrating global best practices and cutting-edge technological solutions to foster sustainable mining practices.

    Minister Djedovic Handanovic stressed the importance of empowering professionals throughout this process, emphasizing their expertise and pivotal role in shaping the Strategy’s outcomes.

  • European Union Enacts Critical Raw Materials Act Amid Controversy Over Social and Environmental Impact

    European Union Enacts Critical Raw Materials Act Amid Controversy Over Social and Environmental Impact

    In a move towards achieving strategic autonomy, the European Union has implemented the Critical Raw Materials Act (CRMA) after facing significant delays in the final stages. However, lead legislators from the European Parliament express dissatisfaction with the ultimate provisions governing social and environmental considerations. The CRMA, adopted by the Council of the EU, aims to secure and sustainably diversify critical raw material supplies, aligning with Brussels’ vision of strategic autonomy.

    Critical raw materials, characterized by their economic significance and vulnerability to supply disruptions, are essential for various industrial sectors. The legislation, which includes measures to bolster circularity and recycling, underscores the EU’s ambition for reindustrialization and technological advancement, particularly in areas such as renewable energy and defense.

    While proponents of the CRMA highlight its potential to advance climate and environmental objectives, critics raise concerns about potential ecosystem damage and adverse impacts on local communities, both within the EU and in supplier nations. Despite attempts to incorporate safeguards for community involvement and indigenous rights, certain provisions, such as explicit recognition of free, prior, and informed consent (FPIC), remain contentious due to resistance from the council.

    The CRMA sets ambitious benchmarks for the EU’s consumption, including targets for local extraction, processing within the bloc, and utilization of recycled materials. However, the EU acknowledges its dependence on external sources for critical materials, with some, like heavy rare earth elements, heavily reliant on single countries such as China.

    Notably, the Act streamlines permitting processes for strategic projects, setting a deadline of 27 months for extraction proposals. This expedited timeline contrasts with shorter deadlines for recycling and processing initiatives.

    The CRMA also fosters strategic partnerships with select countries to mitigate reliance on specific suppliers. Already, agreements have been signed with several nations, including Chile, Ukraine, and Canada, while negotiations with others, such as Norway and Serbia, are underway.

  • Poland Requests Extension of EU Coal Plant Subsidies Until 2028 Amid Transition to Nuclear Energy

    Poland Requests Extension of EU Coal Plant Subsidies Until 2028 Amid Transition to Nuclear Energy

    Poland, in a bid to facilitate its transition to nuclear energy by the next decade, is seeking an extension of EU rules permitting coal plant subsidies until 2028. Maciej Bando, the deputy climate minister responsible for strategic energy infrastructure, emphasized the necessity of coal power generation until nuclear facilities become operational. With coal currently contributing 60% of electricity output and serving as a backup for intermittent renewable sources, Warsaw aims to have its first large-scale nuclear plant operational by 2033. Bando highlighted the potential collaboration among EU nations seeking support for their energy assets, citing Germany’s pursuit of EU approval for gas plant subsidies. Despite plans for a floating liquefied natural gas terminal in Gdansk, Bando suggested its expansion might not be necessary until after 2030 due to lower demand projections.

  • Казахстанский комитет Сената обсудил проблемы геологоразведки

    Казахстанский комитет Сената обсудил проблемы геологоразведки

    Члены Комитета по экономической политике, инновационному развитию и предпринимательству Сената Парламента собрались на выездное заседание в Восточном Казахстане, чтобы обсудить насущные вопросы геологоразведки. В заседании приняли участие выдающиеся руководители геологических компаний и представители уполномоченных органов.

    Сенатор Шакарым Буктугутов подчеркнул историческое значение горнодобывающей деятельности на востоке страны, которая исторически сосредоточена на добыче олова, меди, свинца и других металлов. Однако запасы из ранее изученных месторождений иссякают. Президент Касым-Жомарт Токаев дал указание расширить геологические исследования до 2,2 миллиона квадратных километров к 2026 году.

    Особенно озабоченные статистикой, согласно которой экспортные доходы от полезных ископаемых в 2023 году были в шесть раз выше, чем инвестиции в отрасль. На сегодняшний день Казахстан выделяет всего восемь долларов на квадратный километр для геологоразведки, что значительно меньше, чем в таких странах, как Россия, Узбекистан и Великобритания.

    Для модернизации и развития отрасли требуется значительное финансирование. Ведутся работы по цифровизации процессов, с онлайн-порталами, облегчающими выдачу лицензий и отчетность. Кроме того, современные методы исследований, такие как дистанционное зондирование и спектральный анализ, используются для повышения эффективности исследований.

    Однако отрасль столкнулась с серьезным дефицитом кадров, что требует инвестиций в обучающие программы для оснащения рабочей силы передовыми навыками. Сотрудничество с немецкими университетами направлено на решение этих проблем и стимулирование инноваций в отрасли.

    Хотя признается необходимость привлечения иностранных инвестиций, выдвигается требование увеличения государственного финансирования и восстановления привлекательности профессии через социальные поощрения и признание.

  • Kazakhstan Senate Committee Discusses Geological Exploration Challenges

    Kazakhstan Senate Committee Discusses Geological Exploration Challenges

    Members of the Senate Parliament’s Committee on Economic Policy, Innovative Development, and Entrepreneurship convened for an off-site session in Eastern Kazakhstan to address pressing issues in geological exploration. Prominent heads of geological companies and representatives from authorized bodies participated in the session.

    Senator Shakarym Bukutgutov highlighted the historical significance of mining activities in the eastern region of the country, historically focused on tin, copper, lead, and other metals. However, reserves from previously explored deposits are dwindling. President Kassym-Jomart Tokayev has set a directive to expand geological surveys to 2.2 million square kilometers by 2026.

    Notably, the export value of minerals in 2023 was six times higher than the industry’s investments, reflecting concerning statistics. Currently, Kazakhstan allocates a mere eight dollars per square kilometer for geological exploration, significantly lower than comparable countries like Russia, Uzbekistan, and the UK.

    The industry requires substantial funding for modernization and development. Efforts are underway to digitize processes, with online portals facilitating licensing and reporting. Additionally, modern research methods such as remote sensing and spectral analysis are being employed to enhance exploration efficiency.

    However, the sector grapples with severe staffing shortages, necessitating investment in training programs to equip the workforce with advanced skills. Collaboration with German universities aims to address these challenges and foster innovation in the field.

    While the need for foreign investment is acknowledged, there is a call to increase state funding and restore the profession’s attractiveness through social incentives and recognition.

  • EU Approves Critical Raw Materials Act to Boost Domestic Mining

    EU Approves Critical Raw Materials Act to Boost Domestic Mining

    In a significant move aimed at securing critical raw materials for green technologies, European Union governments have given their nod to the Critical Raw Materials Act (CRMA), despite some reservations from lawmakers regarding community protection. The CRMA, proposed by the European Commission to lessen reliance on foreign suppliers and propel the European Green Deal, designates 34 critical and 17 strategic raw materials as essential for the EU’s green and digital transitions, as well as for defense and space industries.

    Under the CRMA, extraction projects will be fast-tracked with permits to be issued within a maximum of 27 months, while recycling and processing projects will receive permits within 15 months. While MEPs like Henrike Hahn acknowledge the urgency of securing critical materials for industries producing essential goods, concerns remain over the lack of explicit community consent provisions.

    Lawmakers like Cornelia Ernst express mixed feelings about the final legislation, emphasizing the need to balance domestic mining with environmental and social concerns. Despite these reservations, Flemish Minister Jo Brouns lauds the CRMA as a crucial step towards strategic autonomy, highlighting its potential to bolster the mining sector, create jobs, and align industries with green and digital transitions.

    However, Roger Doome of the Industrial Minerals Association Europe suggests broadening the CRMA’s scope and enhancing permitting procedures to ensure swift implementation. Meanwhile, the European Commission is actively pursuing partnerships with mineral-rich nations like Chile, Greenland, and Ukraine to diversify supply and bolster the continent’s critical raw materials inventory.