Region: Europe

Glencore to publish updated climate transition plan in March

Diversified miner Glencore plans to publish an updated Climate Action Transition Plan, as well as to report on its progress against its industrial emission reduction targets and ambitions, in March. The group on December 13 revealed that 30.25% of shareholders voted against the approval of the company’s 2022 Climate Report, while only 29.2% voted in favour of its next Climate Action Transition Plan, during the miner’s last annual general meeting (AGM) on May 26.

The company has undertaken a review of its Climate Action Transition Plan, following the commitment made at the 2021 AGM. Glencore sought investors’ views on expected changes in the updated plan during the consultation period.

“This process . . . has given us valuable insights into the evolution of shareholders’ views and voting approach on our progress and updated transition plan, representing a wide cross-section of shareholders who voted in different ways on these climate-related resolutions.

“We have reflected carefully on the feedback received and will continue to engage with shareholders and other stakeholders, as well as monitor external developments. Insights from this engagement have been and will continue to be factored into our internal deliberations,” Glencore said.

The company said its climate strategy was an important area of focus for its shareholders, and that there continued to be broad support for its climate strategy, which seeks to maintain resilience to the risks and opportunities of the evolving energy transition while maintaining focus on progressing towards the ambition of achieving a net-zero total industrial emissions footprint by 2050, assuming a supportive policy environment.

Glencore said the principal areas of interest for its shareholders included a comparison of its targets and ambition to all relevant International Energy Agency scenarios, including net-zero scenarios; understanding progress on industrial emissions reduction between Glencore’s short-term target of 2026 and medium-term target of 2035; and integration of the recently announced acquisition of 77% of Teck’s Elk Valley Resources (EVR) steelmaking coal assets into the climate strategy.

In response to the constructive recommendations received, Glencore said it would maintain its commitment to reducing its total industrial emissions footprint and report on progress against its targets and ambitions.

Additionally, the company said it would update its assessment of the resilience of its portfolio and expand its analysis of its targets and ambitions against a range of climate policy scenarios.

Glencore also said that it would address the climate-related aspects of the proposed acquisition of EVR.

December 15, 2023
Swiss-Canadian lithium project in Bosnia to supply Mercedes, despite community opposition and ESG risks

Swiss mining company Arcor and Canadian company Rock Tech have signed a partnership agreement that will include the distribution of lithium from Lopare in Bosnia and Herzegovina, and according to their claims supply Mercedes. Despite fierce local opposition.

“Lithium carbonate will be mined in an environmentally and socially responsible way at Arkor’s mine in Lopare, Bosnia and Herzegovina, and then Roc Tech will convert it into lithium hydroxide ‘Made in Germany’,” they announced, Klix.ba reported.

Rock Tech is also building its first facility in Germany to produce lithium hydroxide for the battery and automotive industries from 2026. Among other things, the company has already signed sales contracts with the Mercedes-Benz group.

In an exploration phase that has been ongoing since 2018, Arkor has confirmed deposits of lithium carbonate as well as boron, potassium and magnesium sulfate in a mine near Lopare. As Nicolas Trend, head of the Board of Directors of Arcor points out, the site is unique in the world in terms of its size and geological structure.

Estimates are that in the Lopare area there are deposits of 1,5 million tons of lithium carbonate equivalent, 14 million tons of boron, 35 million tons of potassium and 94 million tons of magnesium sulfate.

Local municipality community and public are against any mining exploration so it remains to be seen how the Swiss and Canadian developers plan to overcome this situation with fierce opposition from local citizens and start further project activities. Also remains the question on how will Mercedes shareholders react on supplier ESG issues on project location.

December 15, 2023
Boliden plans to restart Europe’s biggest zinc mine in second quarter of 2024

Boliden is planning to resume wage negotiations next month with around 650 employees at its Tara zinc operation in Ireland with a view to resuming output in the second quarter of 2024, the Swedish miner told Reuters.

Boliden put its Tara operations on care and maintenance in June due to negative cash flows after prices of the galvanizing meta hit a three-year low on June 1 2023.

A restart would boost supplies of the world’s fourth most used metal and potentially add to surpluses of refined zinc expected by analysts for next year.

The Tara mine, which produced 198 000 t of zinc concentrates in 2022, is the largest in Europe.

“We must address operational challenges at Tara Mines,” Boliden’s spokesman Klas Nilsson told Reuters in an email.

Nilsson said Boliden will present the plan to the unions in January and seek to reach an agreement with them.

“If we can reach an agreement by the first week in February, our ambition is to re-open the mine in the second quarter in 2024, assuming that there is no significant deterioration in market conditions.”

Tara zinc concentrates are mainly used as feedstock for Boliden’s Odda zinc smelter in southern Norway, where the company is aiming to increase its production capacity to 350,000 tons in the second half of next year from 200 000 t, the spokesperson said.

“We will commence production in the new facilities during the second half of 2024, we have however not communicated the pace of the ramp up and there will of course be a period of ramp up,” Nilsson said.

December 13, 2023
Europe is ‘miles behind’ in race for raw materials used in electric car batteries

European carmakers have secured less than a sixth of the key raw materials they will need by 2030 to make electric vehicle batteries, according to analysis that highlights the expected scramble for green-tech resources.

Carmakers have secured contracts for 16% of the lithium, cobalt and nickel required to hit their 2030 electric car sales targets, according to public disclosures analysed by Transport & Environment (T&E), a Brussels-based campaign group.

The world’s two biggest electric carmakers, Tesla in the US and China’s BYD, were significantly further ahead of many of their European rivals in securing access to key raw materials, the researchers found.

Batteries used in devices ranging from mobile phones to cars are made of precisely controlled combinations of metals. There is a global race to find enough lithium, the lightest metal, but cobalt and nickel are also important in many batteries.

The analysis suggested carmakers had disclosed agreements that would cover only 14% of the lithium, 17% of the nickel and 10% of the cobalt needed to meet their targets for 2030. The EU and UK will ban the sale of new fossil fuel cars in 2035.

Julia Poliscanova, the senior director for vehicles and emobility at T&E, said: “There is a clear disconnect between carmakers’ electric vehicle [EV] goals and their critical mineral strategies. Tesla and BYD are way ahead of most European players, who are only waking up to the challenge of securing battery metals now.”

T&E said Mercedes-Benz, BMW and Hyundai/Kia were the carmakers with large European operations that were lagging furthest behind rivals. Ford, Volkswagen and Stellantis have disclosed plans for battery mineral supply that rival Tesla and BYD.

Some of the carmakers may have secret deals with mining or refining companies to supply enough minerals, while some are looking at ways of reducing or eliminating the use of expensive cobalt and nickel. Nevertheless, the scale of the undersupply detailed in publicly disclosed contracts suggested carmakers would have to battle to hit their electric targets.

The analysis tallies with forecasts from the data company Benchmark Mineral Intelligence that demand for some key materials will significantly outstrip supply in the coming decade.

Benchmark predicts that lithium demand will quadruple by 2030 as China, Europe and then the US move rapidly away from petrol and diesel. However, its forecasts suggest there will be a lithium shortfall of 390,000 tonnes in 2030, compared with global production of 2.7m tonnes. It also predicts shortfalls of cobalt and nickel – part of what it describes as a “great raw materials disconnect” that could limit the pace of the transition away from petrol and diesel cars.

Caspar Rawles, Benchmark’s chief data officer, said: “In the medium and even the long term, lithium is probably going to be the limiting factor on the rate that the battery industry can scale.”

Big mining projects usuallytook at least five years to start producing material at scale, and as long as seven years if fundraising was required, Rawles said. That would mean investment decisions would need to be made in the next year or two to increase supply by 2030.

Poliscanova said it was supply chain strategies that would “make or break the EV transition in Europe, and render some companies obsolete”. However, she added that European manufacturers were ahead of rivals from China and the US in “cleaning up supply chains”. Some mineral suppliers have previously been found to have used child labour, exploited low-paid workers or used environmentally damaging methods.

December 8, 2023
Mining Equipment Production and Outsourcing to Serbia: A Strategic Move for Global Mining Industry

The mining industry relies heavily on efficient and reliable equipment to extract and process minerals. In recent years, Serbia has emerged as a promising destination for mining equipment production outsourcing. With its skilled workforce, cost-effective operations, and favorable business environment, Serbia has attracted international companies looking to optimize their supply chain and capitalize on the country’s potential. In this article, we will explore the reasons behind the growing trend of outsourcing mining equipment production to Serbia and analyze the mutual benefits for both companies and the Serbian economy.

1. Skilled Workforce and Technical Expertise:

Serbia boasts a skilled and adaptable workforce, particularly in engineering and technical fields. The country has a strong tradition of technical education, producing engineers and technicians well-equipped to work in the mining equipment production industry. This ready availability of qualified professionals allows international companies to access a pool of skilled labor, driving efficiency, and expertise in the production process. Collaborations between foreign companies and local talent contribute to knowledge transfer, skill development, and the growth of the Serbian mining equipment sector.

2. Cost-Effective Manufacturing:

One of the primary reasons for outsourcing mining equipment production to Serbia is the cost advantage it offers. Serbia provides a favorable cost structure compared to many western countries, including lower labor costs and competitive operating expenses. This cost-effective environment allows companies to optimize their production processes, reduce expenses, and maintain price competitiveness in the global mining equipment market. Furthermore, Serbia offers attractive tax incentives and investment opportunities, making it an appealing destination for international corporations.

3. Strategic Location and Infrastructure:

Serbia’s strategic location in Europe provides advantages in terms of logistics and distribution for mining equipment manufacturers. The country lies at the crossroads of key transportation routes, offering easy access to markets in Europe and neighboring regions. Serbia’s well-developed infrastructure, including road networks, rail connections, and access to seaports, facilitates efficient movement of equipment and components. This strategic positioning enables streamlined supply chain management, reduced transportation costs, and increased customer responsiveness.

4. Supportive Business Environment:

Serbia has made notable progress in establishing a business-friendly environment that attracts foreign direct investment. The government has implemented reforms to enhance the ease of doing business, resulting in improved regulatory frameworks and reduced bureaucratic obstacles. Additionally, streamlined administrative procedures, reliable utilities, and investor-friendly policies contribute to the overall favorable business climate for mining equipment producers outsourcing to Serbia. The country also collaborates with foreign entities, creating opportunities for technology transfer, joint ventures, and innovation.

5. Economic Growth and Development Opportunities:

By outsourcing mining equipment production to Serbia, international companies contribute to the economic growth and development of the country. Foreign investments in this sector result in job creation and reduction of unemployment rates. The transfer of technology and knowledge exchange between international corporations and local suppliers enhance the capabilities of the Serbian mining equipment industry. Moreover, the increased industrial activity stimulates demand for related support services, including maintenance, repairs, and spare parts, creating additional business opportunities.

Conclusion:

Outsourcing mining equipment production to Serbia presents significant advantages for international companies seeking to optimize their supply chain and maximize operational efficiency. The country’s skilled workforce, cost-effective operations, strategic location, supportive business environment, and growth opportunities make it an appealing destination for mining equipment manufacturing outsourcing. As foreign investments continue to flow into Serbia’s mining equipment sector, the country stands poised to develop a strong industrial base, foster technology transfer, create employment, and contribute to the global mining industry while driving economic growth and prosperity domestically.

Prepared by www.serbiansteel.eu

December 8, 2023
Sustainable raw materials for green technologies

Euromines President invited European Institutions and Automotive sector to jointly assess the realities of supply of raw materials to European manufacturers. His two statements summarize the past decade approach to raw materials in the EU: “For years Europe was far too complacent in outsourcing pollution – and receiving raw materials for our consumption in return” – and yet “Nowhere else mining is happening at such a high level of environmental protection as in Europe”.

From the rare earth crisis in the beginning of the 2000s, to the magnesium, gallium and germanium graphite crunch today – the intervals demonstrating European vulnerabilities are becoming shorter. The resulting dependency creates pressure on political leadership in the EU. European Institutions seem to have acknowledged this threat to competitiveness of the European industry. After all, the same materials are critical to achieving Green Deal made in Europe with or values, industry and society. Only by including all these aspects the green transformation can be a successful role model to copy for other countries.

In 1957, European leaders had the incredible foresight to make war economically impossible and eventually unthinkable. At the heart of it: integrating the production of raw materials across borders of countries, obliging them to work together. Across various economic crises, Europe calibrated a systemic prosperity and comfort by trading, finding allies and ensuring access to energy and non-energy commodities.

Today EU faces yet another challenge: climate change and the required energy, consumption and production transition, shift the rules of the game to a new level of fierce competition. War has returned to Europe, and it is not a given that allies and rivals alike step in for what Europe decided to outsource. Such increasing exposure is a serious to our prosperity and innovation power to find answers to the gargantuan task of tackling climate change.

ESG and geopolitical imperatives while maintaining prosperity will depend on a commodity transition: metals and minerals will fuel the planet. The demand increase for metals needed for goods such as e-vehicles and the infrastructure to make this work will be enormous – we cannot even fathom it. This requires bold steps in how we treat and use raw materials: not just specific in form of applications or technologies but systemic across value chains. After all, the sustainability impact of driving an e-vehicle depends on the sustainability performance of the raw materials it is made of.

European mining emerges as a strategic linchpin for autonomy in green, digital, and defence sectors. It can provide the raw materials needed to make a wind turbine run and a battery to store this electricity, but also serve as a benchmark for ESG standards for imported materials.

Europe is not alone.

The EU’s Green Deal is not the only sustainability transition policy – the race for raw materials will intensify even more, scrambling to get access to the most promising deposits. Control over extraction rights and refining capacity will be the defining geopolitical challenge for the decades to come. Europe needs to reckon with this on three accounts:

Utilize Europe’s Resources: Europe must tap into its promising deposits for critical and strategic materials, utilizing the knowledge and expertise of EU mining companies with minimal environmental impact.

Build Sustainable Partnerships: Outsourcing to areas with lower regulatory requirements is not an option. Europe must engage in partnerships with allies willing to uphold high standards in environmental, social, and governance issues.

Circular Economy Integration: Beyond recycling, integrating mining into the Circular Economy concept can minimize primary raw material extraction for other sectors.
Redefining Raw Material Approaches.

Raw materials should no longer be considered merely a procurement issue. Confirming this disparity in approaches is the fact that for many sectors, supply of raw materials is sixth or seventh tier on their demand list. Yet, without securing the premium for the ESG criteria in sourcing them, the rift between downstream manufacturing and upstream mining companies will continue to render supply chains fragile, prone to disruptions and impede sustainability and human rights standards.

Extraction, refining, and manufacturing need to compete on more than “just-in-time” and cheapest prices. This behaviour change is a catalyst to do more in a sustainable way and be honest in how we source and procure raw materials to fulfil our own sustainability ambitions.

Sustainability is not an externality.

Internalizing high production standards in upstream and security of supply externalities in downstream industries must go hand in hand to recognize costs and benefits of a sustainable raw materials extraction. Mining as the base of many Green Deal objectives – if done right – decarbonizes entire value chains. LKAB’s pellets are 7 times less CO2-intensive than sinter production and key for decarbonized steel production. Boliden’s Aitik and Kevitsa mines are prime examples of mine electrification -providing low-carbon copper and zinc that are needed for electrification through increased deployment of fossil free electricity.

The EU raw materials mining industry has all the elements ready – from deposits, environmentally friendly extraction processes to a world-class R&D ambition to further reduce the impact of mining and providing critical and strategic raw materials. To make this happen Europe must act now! The Critical Raw Materials Act is a paradigm shift politically recognizing the benefits of our own backyard. The momentum initiated with the CRM Act must not be slowed down. There is a lot to do if we are serious about our role in the global green transition – starting with the production of our daily-life consumption.

December 8, 2023
Norway parliament deal marks major step towards seabed mining

Norway’s minority government and two opposition parties have agreed to allow seabed mineral exploration in the Arctic region, they said on Tuesday, in a key step towards full-scale ocean mining.

The deal comes as Norway hopes to become the first country to make deep-sea mining happen on a commercial scale and secure critical minerals and jobs despite concerns over the environmental impact and international calls for a moratorium.

The amended version of the government’s proposal, which parliament will formally debate on Jan. 4 followed by a vote, sets stricter environmental survey requirements during the exploration phase than originally planned.

The compromise also gives parliament the final say at a later date on whether to approve full-scale mining based on data gathered from the deep-sea environment during the initial exploration.

The deal was agreed between the two parties in the minority government – Labour and the Centre Party – and the opposition Conservatives and the Progress Party, securing a comfortable majority.

Baard Ludvig Thorheim, a member of parliament for the Conservatives, told Reuters the environmental bar for seabed mining had been set fairly high in the amended proposal.

“We believe, and hope, it will become the international standard for this activity,” he said. “At the same time it is important that it is a framework that is predictable for commercial players, on which we rely on for these activities.”

He said the parties had hotly debated how to balance the need for environmental requirements against commercial viability for companies seeking to start marine mining.

“If the demands are too steep and too complicated, there won’t be any interest, but at the same time it is also in these companies’ interest to partake in an activity that has a good reputation and adheres to demands on sustainability,” he said.

Seabed mining start-up Loke Marine Minerals, which is backed by investors such as oil service company Technip FMC and Norwegian maritime group Wilhelmsen, welcomed the decision.

“Great day not only for Norway but for the world,” Loke CEO Walter Sognnes Norway told Reuters. “We need to have a fact- based evaluation of deep sea minerals as a provider of critical minerals for the green energy transition.”

Environmental group WWF, however, said the decision to move forward damaged Norway’s reputation for ocean preservation but added it hoped parliament would eventually block any move to full-scale mining.

December 7, 2023
New coal mine’s business case ‘is dead’

The business case for the UK’s first new deep coal mine for 30 years is “dead”, a Cumbrian MP has said.

Westmorland and Lonsdale Liberal Democrat MP Tim Farron said the country’s two largest steel manufacturers did not want the coking coal the mine near Whitehaven in West Cumbria would produce.

“And I obviously think that digging coal and other fossil fuels out of the ground to burn them in a climate emergency is just stupid,” he said.

The Department for Levelling Up, Housing and Communities has been approached for comment.

The mine’s operator, West Cumbria Mining, has said it would extract coking coal for steelmaking in the UK and Europe.

Most steel production involves heating coal to high temperatures and combining it with iron.

But steel manufacturers Tata and British Steel have said they plan to move to different, lower carbon, production methods.

“[They] are now on the record as saying that they’re not in the market at all for coal from any future West Cumbrian coal mine,” Mr Farron said.

“And that means that what we already suspected is kind of confirmed: the business case for the West Cumbria coal mine is dead.”

Mr Farron said 100% of the coal would need to be exported to make the mine viable.

West Cumbria Mining has been approached for comment but previously said it would “assist the steel industry migration towards the government objective of a zero net carbon emissions target by 2050”.

‘Level of cruelty’

The company has permission to dig until 2049 and expects to create about 500 jobs.

Mr Farron said these would be short term because the mine’s business case “didn’t stack up”.

He said there was “a level of cruelty” in the government’s support for the mine, accusing it of giving false hope of jobs for political reasons.

“Why would you flog this if it wasn’t for the fact that you think it’s good to put on your leaflets against the other parties in Workington and Whitehaven and around?” he said.

He said the country should be investing in tidal and marine power in West Cumbria to provide long-term, well-paid, skilled jobs.

“Britain’s got the highest tidal range on planet earth after Canada,” he said.

“We’re using nearly none of it.

“The West Cumbria coast – there you’ve got it. Use that tidal and marine energy, it’s there to be tapped.”

December 4, 2023
Five charged with 11 million euro metal theft from Aurubis

Prosecutors did not name the company, but an Aurubis spokesperson confirmed separately to Reuters that it is the producer involved.

Aurubis, Europe’s largest copper producer, has cut its earnings forecast for its current financial year and suffered a fall in its share price following major suspected metals theft.

A statement from the Hamburg state prosecutors office said five people had been charged in connection with the theft of about 5,000 kilograms of materials containing precious metals from the company between February 2020 and January 2021. A further person has been charged with assisting them.

Precious metals including silver are contained in copper ores and scrap which are refined for sale as byproducts by Aurubis.

The stolen material was allegedly sold to as-yet unidentified parties but part of it was sent for analysis and further used by an unidentified company in Turkey, prosecutors said.

The five people, aged between 33 and 50 years, used encrypted mobile phones to communicate with each other. Their trial is scheduled to start in December, prosecutors said.

December 3, 2023
The Critical Minerals to China, EU, and U.S. National Security

The Critical Minerals to China, EU, and U.S. Security

Over the last decade, minerals like nickel, copper, and lithium have been on these lists and deemed essential for clean technologies like EV batteries and solar and wind power.

This graphic uses IRENA and the U.S. Department of Energy data to identify which minerals are essential to China, the United States, and the European Union.

What are Critical Minerals?

There is no universally accepted definition of critical minerals. Countries and regions maintain lists that mirror current technology requirements and supply and demand dynamics, among other factors.

These lists are also constantly changing. For example, the EU’s first critical minerals list in 2011 featured only 14 raw materials. In contrast, the 2023 version identified 34 raw materials as critical.

One thing countries share, however, is the concern that a lack of minerals could slow down the energy transition.

With most countries committed to reducing greenhouse gas emissions, the total mineral demand from clean energy technologies is expected to double by 2040.

U.S. and EU Seek to Reduce Import Reliance on Critical Minerals

Ten materials feature on critical material lists of both the U.S., the EU, and China, including cobalt, lithium, graphite, and rare earths.

Despite having most of the same materials found in the U.S. or China’s list, the European list is the only one to include phosphate rock. The region has limited phosphate resources (only produced in Finland) and largely depends on imports of the material essential for manufacturing fertilizers.

Coking coal is also only on the EU list. The material is used in the manufacture of pig iron and steel. Production is currently dominated by China (58%), followed by Australia (17%), Russia (7%), and the U.S. (7%).

The U.S. has also sought to reduce its reliance on imports. Today, the country is 100% import-dependent on manganese and graphite and 76% on cobalt.

After decades of sourcing materials from other countries, the U.S. local production of raw materials has become extremely limited. For instance, there is only one operating nickel mine (primary) in the country, the Eagle Mine in Michigan. Likewise, the country only hosts one lithium source in Nevada, the Silver Peak Mine.

China’s Dominance

Despite being the world’s biggest carbon polluter, China is the largest producer of most of the world’s critical minerals for the green revolution.

China produces 60% of all rare earth elements used as components in high-technology devices, including smartphones and computers. The country also has a 13% share of the lithium production market. In addition, it refines around 35% of the world’s nickel, 58% of lithium, and 70% of cobalt.

Among some of the unique materials on China’s list is gold. Although gold is used on a smaller scale in technology, China has sought gold for economic and geopolitical factors, mainly to diversify its foreign exchange reserves, which rely heavily on the U.S. dollar.

Analysts estimate China has bought a record 400 tonnes of gold in recent years.

China has also slated uranium as a critical mineral. The Chinese government has stated it intends to become self-sufficient in nuclear power plant capacity and fuel production for those plants.

According to the World Nuclear Association, China aims to produce one-third of its uranium domestically.

December 3, 2023