MINEX Forum

Region: Europe

  • Poland’s climate-friendly coalition warned of obstacles to emissions goals

    Poland’s climate-friendly coalition warned of obstacles to emissions goals

    Poland’s probable new government can shed its reputation as a “climate laggard” but will still struggle to cut emissions quickly, environment and energy groups have said.

    The rightwing Law and Justice party (PiS), which has ruled Poland since 2015 and has slammed the brakes on climate action at home and in the EU, is unlikely to form a government despite having won the most votes in parliamentary elections on 15 October. Analysts expect a more climate-friendly coalition between the centrist Civic Coalition, the centre-right Third Way and the leftwing Lewica parties.

    The three opposition parties have promised to build more clean energy infrastructure, and to cut carbon emissions more quickly than before.

  • Spanish court suspends section of Strategic Minerals’ Penouta permit

    Spanish court suspends section of Strategic Minerals’ Penouta permit

    Canadian company Strategic Minerals Europe said on Friday it was exploring its legal avenues to reverse a decision by a Spanish court to suspend the section C permit for its Penouta tin/tantalum mine.

    The Superior Court of Xusitza of Galicia (TSXG) has provisionally suspended the licence, following a complaint filed by environmentalist group Ecoloxistas en Accion against the local mining authority Xunta de Galicia.

    Strategic Minerals stated that it believed the claim, and therefore decision, was based on inaccurate assertions that the exploitation activities at the Penouta project were affecting irrigation and the immediate area.

    “The unilateral and unfounded decision of the TSXG to suspend the section C permit at the Penouta project is a decision we cannot support,” said company CEO Jaime Perez Branger.

    “We believe that the decision of the TSXG disregards the comprehensive environmental regulations currently in place and the administrative process the company went through to ensure that such regulations were followed, and will be a detrimental precedent to the economic prosperity, job creation and technological innovation of the mining industry in Spain and elsewhere.

    “We will relentlessly explore all avenues of appeal, not only for the sake of our employees, the community, our shareholders and business partners, but also for the promise of sustainable growth, shared prosperity, and environmental responsibility,” said Branger.

  • German сoal plants may have to remain on standby longer than planned

    German сoal plants may have to remain on standby longer than planned

    The German government is evaluating prolonging the period in which decommissioned coal-fired power plants would be demanded to remain on standby for emergency backup past the currently scheduled deadline in the spring of 2024, according to a report in the esteemed German business publication Handelsblatt citing a spokeswoman for the economy ministry.

    In light of the energy and gas crisis precipitated by the loss of Russian gas last year, both utilities and governments are rightly concerned to maintain security of electricity supply during periods of peak demand. Consequently, Germany has already reactivated several coal units operated by RWE and LEAG on a temporary basis until March 2024.

    This preventative step follows the successful utilization of such backup coal capability throughout the previous winter. Now the administration is weighing an extension of this standby arrangement beyond 2024 springtime to forestall any energy shortfalls, per the source mentioned.

    Timely resolution of this matter is pressed by the need for utilities to make adequate arrangements regarding coal procurement and maintaining stable energy infrastructure, as emphasized by a spokesperson for Uniper to Handelsblatt. Currently 11 coal-fired power stations with a combined output of 6.2 gigawatts are contributing additional electricity to the German grid. A sensible decision can thus be expected from the government in due course.

  • Strategic Minerals to ‘fight’ for reopening of suspended section at its Spanish tin-tantalum mine

    Strategic Minerals to ‘fight’ for reopening of suspended section at its Spanish tin-tantalum mine

    Strategic Minerals Europe (NEO: SNTA) issued a media statement saying it will push for the restart of section C of its Penouta tin-tantalum mine in northwestern Spain, following a decision by Galicia’s Superior Court of Justice (TSXG) to provisionally suspend the permit.

    The Court’s Litigation Section issued the ruling in response to a complaint submitted by environmental organization Ecoloxistas en Acción, whose members fear the impacts the mine may have on the protected area of Pena Trevinca, part of the EU’s Natura 2000 Network.

    “Ecoloxistas en Acción has been denouncing for years the impacts of the Penouta mining operation in Viana do Bolo, including the dumping of waste in the nearby rivers, thus affecting the Pena Trevinca LIC,” the activists said in a communiqué. “Despite the warnings and allegations of environmentalist organizations, the Xunta de Galicia (regional government) issued a favourable Environmental Impact Statement in March 2022 that allowed the company to start open-pit exploitation, increasing the environmental impacts without properly assessing the effect on the Network Natura 2000, hydrology and nearby houses in the village of Penouta. Now, they demand that the Xunta respects the court decision and orders the immediate stoppage of the mining activity in compliance with the order.”

    Strategic Minerals, however, said that the NGO’s claims, and therefore the tribunal’s decision, are based on inaccurate information related to exploitation activities affecting irrigation and the immediate area.

    In the company’s view, the decision cannot be justified under Spanish law because the proper legal process for the granting of the section C permit by the Xunta adhered to all applicable consultative, regulatory and legal requirements.

    “The company’s mineral exploitation activities at the Penouta project have always remained in strict compliance with all environmental controls and reporting requirements, including but not limited to (a) testing water quality and discharge; (b) monitoring air quality, flora and fauna; and (c) the reforestation of areas of the Penouta project that had been abandoned by the previous operators approximately 40 years ago,” the firm’s press brief states.

     

    Looking for solutions

    According to the miner, it is working together with the Xunta to explore all available legal avenues to reverse the Court’s decision and to expedite the reinstatement of the section C permit. This includes the initiation of an appeal to reverse the decision.

    Strategic Minerals also said that while the appeal process is ongoing, it is allowed to conduct mineral exploitation operations at Penouta.

    “The unilateral and unfounded decision of the TSXG to suspend the section C permit at the Penouta project is a decision we cannot support and which compromises the coexistence between the mining industry and nature as well as affects the economic viability of the Penouta project and livelihood of hundreds of families,” the company’s CEO, Jaime Perez Branger, said. “Strategic Minerals has always engaged in responsible mining practices and operated within Spanish mining law regulations. We believe that the decision of the TSXG disregards the comprehensive environmental regulations currently in place and the administrative process the company went through to ensure that such regulations were followed.”

    Perez Branger pointed out that his office will work “relentlessly” to explore all avenues of appeal.

    “Not only for the sake of employees, the community, our shareholders and business partners, but also for the promise of sustainable growth, shared prosperity, and environmental responsibility,” he said.

    The Canadian miner’s statement also included a quote by Pablo Fernández Vila, director general of the Xunta de Galicia, who emphasized that the concession to exploit section C was granted after a rigorous process and in accordance with current legislation.

    The Penouta Sn, Ta and Nb mine is located in the municipality of Viana do Bolo, and is currently the only tantalum and niobium mine in production in Europe. It covers 282 hectares and has certified resources of more than 76 million tonnes, measured and indicated, according to NI 43-101.

    Mineral resources in the area were exploited from the beginning of the 20th century until the 1980s, with research being reactivated in 2011 by Strategic Minerals Spain, focusing on the use of tailings from the old exploitation.

  • EU, US could agree on critical minerals despite steel failure, says France

    EU, US could agree on critical minerals despite steel failure, says France

    VALENCIA, Spain, Oct 20 (Reuters) – The European Union and the United States could reach a deal on critical minerals over the coming weeks or months despite their failure to agree an accord on steel and aluminium, French Trade Minister Olivier Becht said on Friday.

    U.S. and EU trade negotiators had hoped to agree on how to end Trump-era metals tariffs and to lessen the impact of the U.S. Inflation Reduction Act (IRA) by Friday in time for a meeting between U.S. President Joe Biden’s and top EU officials.

    The meeting is now expected to be dominated by the crisis in the Middle East.

    “It’s clearly a disappointment that we could not advance more quickly with our American friends. The discussions were intense and I hope they will restart as soon as possible,” Becht said before an EU ministers’ meeting on trade in Valencia, Spain.

    He said, however, he expected there would be an agreement “in the next weeks, in the next months” so that critical minerals used in electric vehicle batteries sourced from Europe would be eligible for some of the IRA’s consumer tax breaks.

    “It’s in both the interest of Europe and the United States to have this agreement,” Becht said.

    The United States has suspended import tariffs on EU steel and aluminium imposed by then-President Donald Trump in 2018, but on condition both sides agree measures to address overcapacity in non-market economies such as China, and promote greener steel.

    They had set an end-October deadline. Negotiators now target a deal by the end of the year.

    But the sides are apart as Washington wants the EU to apply the metal tariffs to imports from China and Brussels has said it cannot not do so before a year-long investigation to comply with World Trade Organization rules.

  • France: €1.7 billion investment on uranium to cut ties with Russia

    France: €1.7 billion investment on uranium to cut ties with Russia

    French nuclear energy company Orano is investing €1.7 billion to increase its uranium enrichment capacity and reduce dependency on Russia.

    On Thursday, Orano’s board approved a 30% production capacity increase for its Tricastin factory, in Southern France – Europe’s largest nuclear technology site.

    The project and its consequent financing will allow France to move away from its reliance on Russia.

    “In the current geopolitical context, the purpose of this increase in enrichment capacities is to strengthen Western energy sovereignty in France,” said Claude Imauven, Orano’s board of directors chairman, in a statement.

    The French multinational company, specialised in the nuclear fuel cycle, said their increased uranium production capacities will allow them to supply energy to 120 million households.

    Enriched uranium is more efficient for energy production than natural uranium, as its fission reaction (atoms bursting and producing heat) is more easily obtained – which, in turn, produces nuclear energy.

    There are currently four uranium-enrichment groups across the world, Orano being the smallest one with its activities accounting for 12% of the global market. Chinese national company CNNC comes second (14%), followed by European group Urenco (31%).

    The world leader is Russia’s Rosatom, which produces 43% of the world’s enriched uranium.

     

    The necessity of self-reliance in the energy sector

    Russia’s war of aggression against Ukraine reminded world leaders how crucial energy independence is.

    Unpreparedness in that domain has contributed heavily to the energy and subsequent cost of living crises that Europe is currently going through.

    Since March 2022, the European Union has been looking into reducing its Russian oil and gas dependency.

    Although the bloc has already taken several crucial steps, such a change takes time: the EU plans on terminating its fossil fuel exports from Russia in 2027.

    In the meantime, European money will continue to flow into Russia, and indirectly finance the country’s war.

    In its statement, French company Orano does not directly refer to Russia, but hints at the need to regain sovereignty. Again, such a change won’t be immediate, as the announced production is expected to start in 2028.

  • Portugal’s Barroso lithium mine project faces villagers’ ire

    Portugal’s Barroso lithium mine project faces villagers’ ire

    The lithium would be used for electric car batteries and is described by the mining company as critical for Europe’s transition to green energy.

    Portugal’s lithium reserves are considered central to Europe’s increasing demand for electric cars, but the villagers say it doesn’t justify ruining their way of life.

    “It would destroy everything,” says Aida Fernandes, as she looks across the valley where four opencast pits would border the village of Covas do Barroso in northern Portugal.

    Aida, like generations before her, farms cattle in this lush, unspoilt region which has UN Food and Agricultural Heritage status for its landscape and farming traditions.

    She deftly manoeuvres a tractor-load of brushwood which she’s spent the afternoon cutting from common land owned jointly by the community. Next she spreads the springy branches across the floor of the barn for bedding for her cattle.

    Common land is key to a dispute over plans for a new opencast mine – the Barroso Lithium Project – which would produce enough lithium for 500,000 electric car batteries a year over its 14-year operational life.

    But three quarters of the mine depends on accessing lithium deposits found in rocks on common land in the area, with the majority owned by the village.

    Aida is president of the Baldios – or common land association – which has rejected international mining company Savannah Resource’s financial offer to lease the land currently used for forestry and pasture.

    The European Union is keen to reduce its dependence on mines in China, Africa and South America for lithium and other raw materials needed for the green energy transition.

    The Barroso mine could be one of the first large-scale mines to supply battery grade lithium within Europe and in May Portugal’s Environment Agency gave Savannah Resources, which is based in London, the conditional go-ahead.

    They had revised their original proposals and agreed to changes such as not taking water from the local river. They must also build a new road to avoid the villages and fill in the opencast pits when mining there is finished.

    But opposition is still strong and Aida says that at the meetings they’ve had, “There isn’t anyone who’s in favour.” She says that in spite of the changes, “this is not good for us or for the environment” and they will fight on.

    If an agreement isn’t reached the Portuguese government could expropriate the land.

    Savannah also wants to buy private land from people like Maria Loureiro, who farms at the other end of the village. She grows olive trees and has cows which trot past us with bells jingling around their necks.

    “We’re not for sale, we don’t want to sell,” she tells me. She resents the offers of compensation and royalties for the area. “If I sold my land, what would I do?” she asks. She would also lose access to pasture on the common land if the mine went ahead.

    This is echoed by Fernando Queiroga, mayor of the municipality of Boticas, which includes the village of Covas do Barroso. He says that even if people are compensated for the duration of the mine they “will never go back to producing agricultural products again because in the meantime they’ll leave or they’ll just give up farming”.

    He’s finalising a legal challenge to the conditional approval of the project. “If the national courts don’t give us our answer, we’ll appeal to the European Court,” he says.

    The parish council of Covas do Barroso and the common land association have also lodged their own legal cases in an attempt to block the project.

    Dale Ferguson, the Australian interim CEO of Savannah Resources, says they’ve “listened to the community” and have made changes but concedes that “there always is some level of impact”.

    He believes the mine is “really critical for the energy transition for Europe”. He admits though, that with legal challenges, “the courts will make those ultimate decisions but we respect everybody’s rights and everybody’s opinions”.

    Portugal’s Secretary of State for Energy and Climate, Ana Fontoura Gouveia, is backing the Barroso mine and further exploitation of lithium in Portugal. She says the mine will bring new jobs and funding through royalties to the area. The legal action, she claims, is simply part of the democratic process.

    But does she see this as a test case for the rest of Portugal and Europe? “I see it as a best practice case and we are keen to show that you can do mining in Europe in the 21st Century with the highest standards and to the benefits of local populations,” she says.

    The rest of Europe will be watching the outcome closely, as pressure grows across the continent to open new mines for raw materials needed for the green transport and energy of the future.

  • Scottish gold mine owner Scotgold in new talks

    Scottish gold mine owner Scotgold in new talks

    The company had on October 2 warned that administrators could be appointed “over the coming days” after the party which had at that stage been the “most advanced prospective investor” withdrew from discussions.

    Scotgold told the stock market today: “Further to this, the company is now in advanced discussions with a new strategic investor which, should final agreement be reached, is expected to provide sufficient funding for the company to continue as a going concern.”

    However, it added: “Whilst financing discussions are at an advanced stage, in the event the company cannot secure financing with the new strategic investor, this could result in the appointment of administrators.”

    Scotgold describes itself as “Scotland’s first commercial gold producer”.

    It poured first gold in November 2020 at its Cononish gold and silver mine near Tyndrum.

    The company noted it is developing Cononish into a “plus-23,500-ounce gold mine per annum”.

    It added: “Cononish is a high-grade underground mining operation with a central processing plant producing gold concentrate for off-take and gold doré for the Scottish jewellery industry.”

    Scotgold has in recent years highlighted its ambitions to develop other sites in Scotland.

    It noted: “It is Scotgold’s vision to build a mid-tier gold mining company in Scotland with multiple operations in the country that enhance the local environment and economy in ways that have an enduring positive impact.”

    Trading in Scotgold shares was suspended on September 11 after the company told the stock market it needed “significant capital investment” and highlighted the “highly uncertain” outcome of funding discussions.

    It said then: “On 10 July 2023, the company announced that, among other things, it was undertaking a third-party review of the Cononish mine plan for the next 12 months, encompassing a geological review of the Cononish mine mineral resource estimate (MRE) and grade control (GC) process, mine design, schedule and production forecasts. Initial findings have been fed back to the board.

    “As announced on 10 July 2023, H1 2023 was disappointing in terms of gold production and development of the underground mine at Cononish. The ability of the group to continue as a going concern over the long term would remain dependent on the quantity and grade of ore mined and processed being within a reasonable tolerance of the forecast quantity and grade and adherence to the previously planned product shipment schedule.”

    In this September 11 statement, Scotgold added: “While the geological data and documentation suggested ‘no fatal flaws’ in the MRE and GC modelling process, the draft mine plan and associated cash flow forecasts are currently being reviewed by the company, but they indicate that to deliver to the plan, a significant capital investment is required.

    “The company is actively seeking additional financing and discussions are in an advanced stage and, should they materialise, are expected to provide sufficient funding for the company to continue as a going concern. The outcome of the funding discussions is highly uncertain and if the company cannot conclude a significant fundraise, it will cast material uncertainty for the company to continue as a going concern.”

    Scotgold revealed late last month that it had placed the majority of its approximately 80-strong workforce at the Cononish mine on unpaid leave.

    This unpaid leave arrangement remains in place.

    On September 29, Scotgold told the stock market: “As at 28 September 2023, the company has placed the majority of its employees on short term unpaid leave until further notice, allowing the company time to advance the financing discussions and preserve funds to help retain some key trained staff members across mining and plant and maintenance. This care and maintenance team will maintain the company’s assets and ensure compliance with statutory, regulatory and environmental reporting obligations for the immediate future.”

  • Cornish Tin granted royal approval for gold search as part of Cornwall’s mining revival

    Cornish Tin granted royal approval for gold search as part of Cornwall’s mining revival

    Cornish Tin has been granted permission by the King to search for gold and silver as part of a revival of Cornwall’s mining industry.

    The company said the Crown Estate, the monarchy’s land holdings portfolio, has granted it exclusive exploration rights to search for the precious metals across 123,447 acres – or 14 per cent – of Cornwall for six years.

    The county was historically a global leader in copper and tin production. The revival of its mining industry could boost employment in one of the UK’s most deprived regions.

    Cornish Tin’s primary purpose is to look for lithium and tin, which are crucial in the shift to renewable energy and the production of mobile phone and electric car batteries.

    The discovery of gold and silver would boost funds available for its projects.

    The firm already has exploration and extraction rights to search for tin and lithium in a 3,900 acre zone within the larger area announced today, including its flagship Great Wheal Vor project in the historical mining district of Breage.

    The UK imports all its tin and lithium and companies are scrambling to secure a domestic supply of the minerals.

    Cornish Tin chief executive Sally Norcross-Webb said: ‘Our world is one of conflict and disruptions of supply chains of the critical minerals essential for British industry.

    All the UK’s tin and lithium is imported and it’s crucial that the UK gets its secure supply’.

    Rivals including Cornish Lithium, Cornish Metals, Imerys-British Lithium and Tungsten West are all focused on boosting the UK’s mining sector.

    In August, Cornish Lithium secured £53.6million of investment from the UK Infrastructure Bank.

    In June this year, meanwhile, British Lithium announced it has teamed up with French firm Imerys to open a mine in Cornwall which it says could extract enough lithium to power 500,000 electric cars by 2030.

    Norcross-Webb, a mining and corporate finance lawyer, founded the company in 2017, making Cornish Tin a relatively new player in the burgeoning sector.

    It is likely to be five years before it produces anything, with more fundraising and exploration on the agenda.

    It has raised £2.8million and aims for £3million more to fund a second drilling programme next year.

  • Poland begins retraining coal miners to work in wind farms

    Poland begins retraining coal miners to work in wind farms

    Polish coal miners have begun training in operating and servicing wind turbines as part of a programme to support workers leaving the mining sector.

    Poland produces around 70% of its electricity from coal – the highest figure in the EU – but has plans to replace that share with renewables and nuclear over the next two decades. The energy transition has, however, caused concern among miners and their unions over what the future holds for them.

    The two-week training – initiated and funded by EDF Renewables Polska, the biggest wind energy producer in Poland – is free for miners. The company hopes to help at least dozens of them move into new jobs.

    “In the coming years, the wind energy industry will need tens of thousands of employees, while the specialised staff leaving the mining industry seems to be particularly prepared to find employment in the renewable energy sector after appropriate training,” said Alicja Chilińska-Zawadzka, general director at EDF Renewables Polska.