MINEX Forum

Region: Europe

  • LME seeks to move on from nickel crisis as traders return

    LME seeks to move on from nickel crisis as traders return

    The chief executive of the London Metal Exchange (LME) expresses his optimism regarding the recovery of the trading venue from the destabilizing nickel crisis that had posed a significant threat to its existence. The past 19 months have been tumultuous for the LME, marked by a runaway short squeeze that prompted the suspension of the world’s benchmark nickel market and the cancellation of $12 billion worth of trades. These controversial decisions resulted in the departure of disgruntled investors, legal battles, and regulatory scrutiny, all while the nickel contract remained severely damaged.

    However, Matthew Chamberlain, the CEO, now cautiously speaks of a glimmer of hope. He notes the return of “a degree of stability” in the nickel market, citing increased liquidity and reduced volatility. Additionally, trading volumes in the LME’s other metals contracts exhibit early signs of recovery after years of decline.

    Chamberlain asserts that the LME is on a path of gentle growth, acknowledging the challenges faced but emphasizing the exchange’s attractiveness for trading. While acknowledging that there is still much work to be done, he emphasizes a renewed focus on the future.

    As the primary hub for benchmark prices of key metals ranging from copper to zinc, the LME occupies a central position in the global metals industry. Consequently, any crises or controversies within the exchange have far-reaching implications for the entire sector.

    During his tenure, Chamberlain has confronted various challenges, including the proposed closure of the LME’s historic trading floor, disputes over the acceptance of Russian metal, and, of course, the handling of the nickel crisis.

    As traders, financiers, and investors gather in London for the annual LME Week, Chamberlain can point to tangible signs of market confidence restoration. Nickel trading volumes have shown improvement in recent months, and the extreme volatility that plagued the market for the past year is subsiding, although the nickel contract remains diminished compared to its previous state.

    Furthermore, trading activity in other metals is poised to halt the prolonged decline that has impeded Chamberlain’s efforts to boost LME revenues and those of its owner, Hong Kong Exchanges & Clearing Ltd. This turnaround comes at a critical juncture with rivals circling.

    However, challenges persist for Chamberlain and the LME. The outcome of a legal battle with hedge fund Elliott Investment Management and trading firm Jane Street, who challenged the legality of the LME’s actions during the nickel crisis and seek damages of $472 million, remains uncertain. A judgment in this case is expected in the coming months. Other firms, including AQR Capital Management, have also filed separate lawsuits against the LME, while the exchange is under investigation by the UK’s Financial Conduct Authority regarding its handling of the crisis.

    Meanwhile, Chamberlain proceeds with efforts to modernize the exchange and address weaknesses in its market structure identified in an independent probe of the crisis. Reforms have already been announced, such as the requirement for dealers and clients to report their over-the-counter positions. These rules enhance transparency in a previously opaque segment of the market that played a pivotal role in last year’s crisis, where nickel producer Tsingshan Holding Group Co. and other short position holders incurred substantial off-exchange trading losses with bilateral counterparties unbeknownst to the LME.

    Additionally, Chamberlain aims to incentivize dealers to conduct more trades electronically rather than relying on the LME’s telephone-based market or bilateral over-the-counter deals. Trading on an OTC basis is considerably cheaper, and there are speculations that the LME may introduce levies on such trades.

    While Chamberlain does not disclose specific changes in OTC volumes over the past year, he notes that the market remains active. The CEO confirms that the LME is examining cost differences and potential measures to attract more business to the exchange.

    Overall, Chamberlain expresses his optimistic belief that the LME has turned a corner after the turbulence of the previous year. He acknowledges that there is still much to be done but emphasizes the stability of the market, which brings renewed confidence to all involved.

    As the LME navigates this pivotal moment, its ability to regain trust and adapt to changing market dynamics will be crucial for its future success.

  • Essential integration of mining with circular economy highlighted at FT Mining Summit

    Essential integration of mining with circular economy highlighted at FT Mining Summit

    As the circular economy grew in importance, many miners were also starting to look more closely at recycling operations, it was stated during a panel discussion covered by Mining Weekly.

    Financial Times commodities correspondent Harry Dempsey, who moderated, referred to the apparent exponential rise of recycling and the circular economy as demand for critical minerals rose for the global energy transition.

    Panel participants were Glencore global recycling head Kunal Sinha, Norsk Hydro executive VP corporate development Trond Olaf Christophersen, International Copper Association material stewardship global director Louise Assem, and Circular CEO Douglas Johnson-Poensgen.

    Cross-portfolio upcoming demand for critical minerals is roughly calculated to be six times greater than current supply, pointing to the need for as much responsible mining production as possible between now and 2050.

    “Even if you ramp up all the responsible production you can between now and 2050, we think there’s still a gap. It’s hard to quantify, but there’s still a gap. So, how you meet that gap is through what we would like to think of as responsible consumption, which is essentially your circular economy,” said Sinha.

    “The circular economy is not just recycling. It’s product life extension, repair, reuse, all of that, and the very last step is recycling, so it’s not a competition with primary mining because you need as much mining as you can responsibly do, but you also need to consume more responsibly and have a circular ecosystem.

    “Every mining company is different. Your portfolio is different. I can only speak for Glencore. From my point of view, our vantage point comes down to three things from our portfolio. One is assets. We have two types of assets. We have assets that have been recycling for a long time. These are very complex metallurgical assets, so what you can do is operate at a massive scale where you blend both the primary feeds and the recycled feeds, very difficult to process materials,” said Sinha, who added that Glencore also had other built assets that could be repurposed, exemplified by lead refinery outside London, parts of which are being repurposed for electronics recycling and potentially also battery recycling.

    “So, instead of building greenfield, you can pivot and use these existing assets to do it much faster,” Sinha noted.

    Then there was risk management: “From our experience to do recycling properly, the risk is very high. To manage that risk, you need the same skills as commodity trading because you’re not sitting on a deposit of copper and know exactly what it is in there and you’re mining it and you have a plan. You have to buy this feed across hundreds of suppliers. You don’t really know what you’re getting, so you have all kinds of risks in terms of financial risk, counter-party risk, a lot of these risks, which is the same as in commodity trading, so our trading DNA helps with the recycling.

    “In a world where you have a lot of primary production into the energy transition, as we have, and a history of recycling, you can easily combine those two to close the loop,” added Sinha.

    ALUMINIUM

    When it comes to aluminium, Christophersen reported that the circular economy was already in place, with roughly one-third of the total aluminum metal supply being recycled material.

    In more mature markets such as in Europe and the US, 40% to 45% of the total metal production is based on aluminium scrap.

    “A significant share of the total metal supply is secondary aluminium and part of the circular economy,” Christophersen emphasised.

    Going forward, Norsk Hydro is of the view that growth in the circular part of the market will be much higher than the growth in the primary side.

    The main drivers of this are expected to be customer demand, with car makers giving much more attention to sustainable supplies, as well as regulations of countries. These include end-of-life vehicle regulations in Europe and waste shipment directives in the US.

    More than two-million tons of aluminium scrap in the US and a million tons-plus of aluminium scrap in Europe currently being exported could be recycled internally.

    In addition, considerable investment going into scrap-sorting technology development could also result in much more secondary aluminium being recycled within the US and Europe.

    Norsk Hydro, an integrated aluminium and renewable energy company, mines and refines bauxite and smelts and recycles aluminium.

    More than half of its aluminium metal production is based on secondary material, with mining and scrap dealing being completely different businesses, with recycling being very much more commercial.

    “You have to deal with a lot of small suppliers on the scrap side. ‘Scrap is not scrap’. It depends a lot on the quality that you are buying, so it’s a completely different business and you need a completely different business model in order to operate in the recycling business compared to the mining business,” said Christophersen.

    COPPER

    Assem reported that the metals value chains were already circular, “and mining plays a role in that because without the stocks from mining, there would be no circular value chain, there would be no stock to recycle”.

    “So, they are already playing a role, although mining has been left out of the perception of what a circular economy looks like. There is huge demand increase expected for many of the metals, including copper, and that demand is already being filled by both primary and secondary material, and it will continue to be filed by both, as it should be,” Assem said.

    “There are many other drivers, like the throw-away society and the negative perception of mining that does exist, driving what is an attractive concept in the circular economy. It’s nice to think that if we can be fully circular, we won’t have to dig things out of the ground and cut down trees, for example. But the reality is that we do need both.

    “There are also regulatory drivers. Europe has a lot of legislation around the circular economy itself and also around sustainable products, along different aspects of the circular value chain. In Asia, there are also lots of circular pieces of legislation in Japan, China and South Korea and they are going at it from different perspectives.

    “In the US it is slightly different. There’s more of a carrot than a stick, like you would get in Europe. You also have the original-equipment manufacturers (OEMs) that are driving things from the bottom, particularly when we look at targets around recycled content for end-user products. So, that’s also driving things up the supply chain,” Assem added.

    BATTERY MATERIALS

    In Europe, OEMs using batteries are expected to have a per battery carbon footprint, said Johnson-Poensgen, whose company is pursuing traceability in the battery value chain, which means that probably from 2026, consumers will be able to compare embodied carbon in a battery.

    He reported that the battery in an electric vehicle accounts for roughly half the supply chain’s contribution to the carbon footprint in manufacturing each vehicle and recycled battery materials have half the energy requirement to turn scrap into battery-grade materials.

    Indicated during the panel discussion was that going forward, markets would likely be more intent on procuring recycled secondary material than primary material in the interests of global sustainability and mitigation against climate change

  • Growing cities and mineral reserves are transforming Kazakhstan into an economic powerhouse

    Growing cities and mineral reserves are transforming Kazakhstan into an economic powerhouse

    Thank you for expressing your interest in the exciting opportunities available for businesses outside the UK, particularly in Kazakhstan. This vast country, with its stunning landscapes and untapped potential, offers a wealth of prospects for those seeking to expand their ventures.

    Kazakhstan, being the ninth-largest country in the world, boasts soaring mountain ranges, sprawling deserts, and arid steppes. Its strategic location between the Caspian Sea, Russia, and China, positions it at the heart of the historic Silk Road. With a diverse population of 19 million, Kazakhstan is a modern market with a strong financial outlook and a rapidly growing economy.

    The country’s transformation is evident in its cities, where once-empty plains and grasslands have given way to thriving urban centers. Astana, the gleaming capital, stands as a testament to Kazakhstan’s ambitions and achievements. The magnificent Khan Shatyr, designed by renowned British architect Sir Norman Foster, symbolizes the country’s dominant position in the region. With an economy that grew by 4.1 percent in 2021, Kazakhstan’s economic strength surpasses that of its neighboring countries, making it an attractive destination for investment.

    A significant contributor to Kazakhstan’s economic success is its exceptional mineral wealth. The country is home to abundant reserves of uranium, copper, zinc, and many other elements. The natural resource sector, responsible for a substantial portion of the country’s GDP and exports, presents exciting opportunities for UK firms involved in geological exploration, mining systems development, drilling, and engineering services.

    To ensure transparent and comprehensive state regulation of the mining industry, Kazakhstan adopted a new Mining Code in 2018, aligning national standards with internationally recognized ones. This step has made it even easier for foreign businesses to engage with the mining sector and participate in its development.

    In addition to mineral resources, Kazakhstan’s oil and gas reserves contribute significantly to its natural riches. The industry is embracing innovation and modernization, creating a demand for efficiency solutions and clean technology. The country also offers immense potential for the modernization of its energy infrastructure, including renewable energy projects.

    Agriculture is another thriving sector in Kazakhstan, with over a third of the population relying on the country’s extensive rangelands for their livelihoods. After years of underinvestment, agricultural businesses are seeking modern production technologies. Opportunities abound for businesses to provide farm management technologies, advanced veterinary techniques, and invest in specialty crops, greenhouse operations, and sustainable irrigation systems.

    These technological advancements in sectors such as mining, agriculture, and energy lay the foundation for Kazakhstan’s evolution into a high-tech, diversified economy. UK companies have the opportunity to contribute to the country’s development by providing telecommunications and infrastructure expertise, catering to the demands of a modern regional powerhouse.

    Kazakhstan’s financial reforms have positioned it as one of the most promising markets in the region. The Astana International Financial Centre (AIFC), established in 2018, offers a comprehensive legal platform based on English Common Law, making it an attractive destination for foreign businesses. The AIFC Court, operating independently from the domestic judicial system, ensures fair and enforceable decisions, providing reassurance to companies entering the market.

    From its robust economy and strong regulatory environment to its gateway status for Central Asian markets, Kazakhstan presents a range of benefits for UK businesses looking to capitalize on its vast opportunities.

    The Department for Business and Trade (DBT) is dedicated to supporting businesses like yours as you explore the potential of selling to Kazakhstan. We offer a wide range of free support throughout your exporting journey. To learn more about Kazakhstan and how DBT can assist you, please visit our website at great.gov.uk.

  • US, UK and partners working on 15 critical minerals projects

    US, UK and partners working on 15 critical minerals projects

    The United States, along with its partners, is actively engaged in 15 projects aimed at securing critical mineral supplies necessary for electric vehicles and the energy transition, as revealed by a senior US official on Thursday.

    The Minerals Security Partnership (MSP), established last year by 14 governments, is committed to ensuring sufficient access to minerals such as lithium and rare earths in order to meet zero-carbon objectives.

    “We are currently exploring 15 projects across five continents, encompassing various stages from extraction to processing,” stated Jose Fernandez, the US State Department’s Under Secretary for Economic Growth, Energy, and the Environment, during a briefing in London. “Our intention is to finalize some deals within the coming months.”

    While he refrained from divulging specific company details, Fernandez did mention that at least one of the projects is located in Britain.

    The MSP, co-hosted by Britain, will convene next week during the London Metal Exchange (LME) Week, a prominent industry gathering.

    Fernandez emphasized that the MSP’s goal is to facilitate collaborations among private companies and provide assistance with financing, including support from trade banks such as the US government’s Export-Import Bank (EXIM).

    The remaining MSP members consist of the European Union, Canada, Australia, France, Germany, Italy, Sweden, Finland, Norway, Japan, India, and South Korea.

    Regarding critical minerals mined or processed in Britain, Fernandez expressed confidence that the United States would reach an agreement enabling them to qualify for US clean vehicle tax incentives.

    On Monday, Fernandez expressed optimism about reaching a similar agreement with the European Union, and Washington had already signed a minerals agreement with Japan in March.

    “These discussions are intense, and they are ongoing. We fully expect them to culminate in an agreement,” Fernandez affirmed.

    The US Inflation Reduction Act offers a $7,500 tax credit for electric vehicles purchased in the US, provided a percentage of critical battery minerals are sourced either domestically or from a free trade partner.

  • Green energy in JSW – strategic loan for environmental projects

    Green energy in JSW – strategic loan for environmental projects

    Jastrzębska Spółka Węglowa has entered into an agreement with the National Fund for Environmental Protection and Water Management to secure a loan of PLN 85 million for the “Commercial Methane Utilization – KWK Budryk” project. The signing of this agreement, which took place on 4 October at JSW’s headquarters, aims to provide support for innovative environmental initiatives and sustainable development activities. The signing ceremony was attended by Marek Wesoły, Deputy Minister of State Assets, Tomasz Cudny, President of the JSW Management Board, Dominik Bąk, Deputy President of the National Fund for Environmental Protection and Water Management, and Wojciech Kałuża, Vice-President of the JSW Management Board for Development.

    Deputy Minister Marek Wesoły expressed his appreciation for this initiative, emphasizing the awareness of the dangers posed by mining and the need for necessary changes to be implemented. He welcomed any financial support that can be directed towards mining companies, recognizing that Jastrzębska Spółka Węglowa plays a crucial role in our development through the production of coking coal, which is vital for the energy transition and the production of steel.

    The loan proceeds are specifically designated for financing projects aimed at reducing the environmental impact of mining operations and promoting nature-friendly solutions. The total cost of the “Commercial Methane Utilization – KWK Budryk” project amounts to PLN 88,165,130, and the loan will cover 96.4 percent of this cost.

    Tomasz Cudny, President of the JSW Management Board, expressed his satisfaction with the financial support received for their environmental projects, aligning with the environmental strategy adopted by the JSW Group. He appreciated the collaboration with the National Fund for Environmental Protection and Water Management, which actively supports environmental projects not only within JSW SA but also in other companies of the Group. Cudny also highlighted the recent support of PLN 150 million received by JSW Koks for the construction of the Radlin Combined Heat and Power Plant.

    The “Commercial Methane Utilization – KWK Budryk” project focuses on reducing methane-related hazards through enhanced methane drainage efficiency and a reduction of methane emissions into the environment by 13 thousand tons annually. This will be achieved by utilizing methane in cogeneration units for the generation of electricity and heat, resulting in a reduction of CO2 emissions by 328.5 thousand tons per year. Furthermore, the implementation of this project will lead to a decrease in energy procurement from external suppliers and a reduction in fees associated with methane emissions.

    The project at the Budryk mine encompasses the construction of six cogeneration units with a total capacity of 20 MWe, enabling the production of up to 120,000 MWh of electricity per year. Additionally, infrastructure such as the main switchboard at the VI shaft site, methane drainage pipelines, and other technical facilities have been expanded.

    Dominik Bąk, Vice-President of the Management Board of the National Fund for Environmental Protection and Water Management, highlights the significance of this project. He explains that it involves the construction of infrastructure that enables the utilization of methane extracted from the mine for electricity and heat generation by Jastrzębska Spółka Węglowa SA. The project primarily focuses on the utilization of methane from the Budryk mine to meet the energy needs of the mine itself.

  • EU carbon price to hit €400 mark with 90% climate goal: analysts

    EU carbon price to hit €400 mark with 90% climate goal: analysts

    In a display of strong commitment to ambitious climate policies, the European Union’s new climate commissioner, Wopke Hoekstra, has affirmed his support for a 90% reduction in net greenhouse gas emissions by 2040. This declaration, made during a Parliament hearing earlier this week, has garnered backing from the Parliament’s environment committee and has led to Hoekstra’s formal confirmation in his new role.

    The 2040 target for greenhouse gas reductions will have a significant impact on the supply of CO2 allowances in the EU’s emissions trading scheme, which imposes limits on carbon emissions from large industrial emitters. Financial analysts predict that a 90% reduction target for 2040 will push EU carbon prices above €400 by that time, according to researchers at the London Stock Exchange Group (LSGE).

    Currently, carbon prices on the EU ETS stand at €81 per tonne, reaching a peak of €100/t in February of this year. LSGE’s analysis suggests that with the current 2030 decarbonisation target of -55%, the EU’s carbon price is expected to rise to €160/t by the end of the decade. However, if the 90% decarbonisation target is met, the carbon price could soar to €400/t by 2040.

    Paula VanLaningham, the director of LSEG Carbon Research, emphasizes that the €400/t price is not the cost of decarbonisation itself, but rather the potential cost faced by businesses that fail to decarbonize under the 90% scenario. Achieving the 90% target would result in near full-decarbonization across various industries, such as power, manufacturing, transportation, and construction.

    The European Commission is set to present its 2040 climate target plan in early 2024. This proposal will undergo scrutiny and approval by EU member states and the European Parliament. Hoekstra assures that the Commission’s 2040 plan will be informed by the recommendations of the European Scientific Advisory Board on Climate Change, which supports a 90-95% target range. Hoekstra pledges to act in line with the Board’s advice and utilize all available instruments to facilitate the EU’s achievement of the minimum recommended target of 90% net reductions.

    Maroš Šefčovič, the Slovak EU commissioner overseeing the coordination of Europe’s green policies, also backs the 90% target, emphasizing that it will provide clarity and predictability to economic actors and citizens. While the responses from Hoekstra and Šefčovič are not binding decisions, they indicate a clear direction from the commissioners on this issue. The European Union’s carbon market underwent significant reforms this year to align with the EU’s decarbonization objectives for 2030.

  • Germany extends emergency coal capacity for another winter

    Germany extends emergency coal capacity for another winter

    Faced with the challenge of another winter with limited gas supplies, the German government has made the decision to keep its lignite coal power plants on standby for one more season. This decision comes as part of Germany’s plan to gradually and collectively shut down its coal power plants in exchange for a portion of the government’s €40 billion coal phase-out fund.

    Last year, the coal plants were kept operational due to disruptions in gas supplies from Russia following the Ukraine conflict, as well as issues with France’s nuclear generation capacity. To address this emergency situation, the government has extended the measure for the upcoming winter, ensuring that approximately 1.9 GW of lignite capacity remains available. This adds to Germany’s existing 45 GW of coal power plants.

    The primary purpose of keeping the lignite plants on standby is to reduce the reliance on gas in electricity generation during periods of peak demand, thus helping to maintain lower electricity prices. By reactivating the supply reserve, the government aims to save gas in electricity generation and prevent supply bottlenecks during the 2023/2024 heating period. It is estimated that this measure will result in gas savings ranging from 3.9 TWh to 5.6 TWh, leading to a reduction in electricity prices by €0.4 per Megawatt-hour (MWh) to €2.8 per MWh.

    While these gas savings are significant, it is important to acknowledge the climate impact associated with running lignite coal power plants. Lignite is known to be the biggest contributor to climate pollution. The government has expressed its commitment to assessing the additional carbon emissions resulting from keeping the coal plants on standby. These emissions are estimated to range from 2.5 to 5.6 tonnes of CO2.

    Despite the decision to keep the lignite plants operational, the government emphasizes that the goal of achieving a coal phase-out by 2030 remains unchanged, as do the climate targets. The data from the third quarter of 2023 supports this assertion, as Germany witnessed its lowest-ever power generation from coal, amounting to only 22.2 TWh. This is a significant decrease compared to the over 60 TWh produced eight years ago.

  • Rio Tinto–backed firm InoBat selects location for battery gigafactory in Serbia

    Rio Tinto–backed firm InoBat selects location for battery gigafactory in Serbia

    A Slovakian startup has made the decisive choice of a suitable location for its gigafactory, which will be dedicated to the manufacturing and recycling of batteries. This strategic move follows earlier preliminary agreements that were signed with the Government of Serbia.

    InoBat, the esteemed startup, has recently entered into a memorandum of understanding with Serbia’s Ministry of Finance and the Municipality of Ćuprija, a town situated in the central part of the country. This memorandum solidifies their commitment to construct their second gigafactory in this region.

    The startup proudly announced, “We are delighted to reveal Ćuprija as the chosen location for our Serbia Giga Factory and recycling project, codenamed Lion. This project has been in development for the past two years in collaboration with the International Financing Corporation (IFC).”

    InoBat further elaborated that Lion will mark their second gigafactory in the region of Central and Eastern Europe. The company is already in the process of developing the Voderady research and development pilot line, as well as a mini-giga factory in Slovakia.

    It is worth noting that one of the esteemed shareholders of InoBat is Rio Tinto, a prominent entity in the industry. Furthermore, the Government of Serbia has expressed its readiness to offer an enticing incentives package totaling EUR 419 million for the Lion project. This state-of-the-art facility will focus on assembling energy storage solutions, electric vehicle batteries, and recycling batteries. InoBat has committed to aligning its activities with the comC2C circular value chain development platform.

    Back in November 2022, InoBat had already entered into preliminary agreements with the Government of Serbia regarding the construction of a gigafactory. Notably, one of the investors in InoBat, Rio Tinto, has been actively involved in the development of a lithium mining and processing project in Serbia. Although the project faced significant public opposition and protests, there are hints that it might be revived, making the collaboration with InoBat even more likely.

    InoBat has also forged a partnership with China-based Minth Group in Serbia. The CEO of InoBat, Marian Bocek, expressed the reason behind selecting Ćuprija as the location, highlighting the welcoming and enthusiastic local community, as well as a proactive municipal government. He added that the potential for co-developing a distributed power smart grid and utilizing renewable sources of electricity for their own consumption was an additional advantage.

    Tara Lindstedt, a board member and Chief Development Officer (CDO) of InoBat, commended the progress of the Lion project. She mentioned that earlier this year, InoBat had signed a memorandum of understanding with Minth Group, a collaboration that spans the battery value chain in Europe, starting with Serbia.

    Jimmy Wong, the Managing Director for Europe at Minth Group, proudly asserted that his company, based in China, has eight sites in the Balkan country. This strong presence further influenced InoBat’s decision to establish their second facility in Serbia.

    The Prime Minister of Serbia, Ana Brnabić, expressed her satisfaction with InoBat’s investment in Serbia, as it will contribute to job creation in the new decarbonized circular economy. Maria Paulina Mogollon, the InoBat Manager of Upstream and Advisory for Manufacturing, Agribusiness, and Services (MAS) in Europe and Latin America, expressed her belief that the Lion project will firmly establish Serbia as a prominent player in European low-carbon and circular renewable energy storage solutions, as well as electric vehicle battery value chains.

  • Designs chosen for mini nuclear reactors

    Designs chosen for mini nuclear reactors

    The government has selected designs from six companies for the development of the next generation of mini nuclear reactors. EDF, GE-Hitachi Nuclear Energy International LLC, Holtec Britain Limited, NuScale Power, Rolls Royce, and Westinghouse Electric Company UK Limited have been chosen to proceed to the next phase of the Small Modular Reactor (SMR) competition. This initiative is part of the government’s plan to derive up to a quarter of the UK’s electricity from nuclear power by 2050.

    SMRs, being smaller in size compared to conventional nuclear reactors, can be manufactured in factories, resulting in faster and more cost-effective construction. The government and Great British Nuclear have deemed these selected designs as the most capable of delivering operational SMRs by the mid-2030s.

    In the upcoming stage, the companies will have the opportunity to bid for government contracts. Successful bids from the six companies will proceed to the contract award stage in the summer of next year.

    Claire Coutinho, the Energy Security Secretary, emphasized the benefits of Small Modular Reactors in rapidly expanding nuclear power in the UK. She highlighted that SMRs will contribute to delivering cheaper, cleaner, and more secure energy for both households and businesses, while also creating well-paid, high-skilled jobs and fostering economic growth. This competition has attracted designs from around the world, positioning the UK at the forefront of the global race in developing this cutting-edge technology and solidifying its status as a leader in nuclear innovation.

    Gwen Parry-Jones, the CEO of Great British Nuclear, expressed the significance of this announcement in advancing the government’s objective of bolstering nuclear power in the country. The priority throughout this process has been to prioritize reliable and sustainable power supply to the grid at an early stage. Therefore, the initial focus was on technologies that were deemed most likely to achieve a final investment decision by 2029. The selected companies can now prepare for the subsequent stages of the competition, with the aim of reaching a final contract agreement in the summer. They may potentially benefit from significant support from public funds.

    Through these advancements, the UK is taking significant strides towards realizing its nuclear power goals, ensuring a reliable and sustainable energy future.

  • Adriatic Metals and Boliden in ‘green zinc’ partnership

    Adriatic Metals and Boliden in ‘green zinc’ partnership

    In 2021, Boliden, the renowned Swedish firm, made an announcement regarding the expansion of its Odda smelter, a significant development aimed at producing green zinc. To achieve this, Boliden has partnered with Adriatic Metals PLC, which will supply zinc concentrates from the Vares silver project. The objective is to ensure the highest standards of environmental, social, and governance (ESG) practices in the production of this essential metal.

    The expansion of the Odda smelter will result in a remarkable 75% increase in production capacity, reaching an impressive 350 kilotonnes per year. As a result, the Odda site is now recognized as one of the most environmentally friendly locations worldwide.

    Vildana Mahmutovic, the Head of Sustainability at Adriatic Mines, expressed admiration for Boliden’s exceptional ESG performance within a demanding industry landscape. She emphasized that Adriatic Metals is fully aligned with Boliden’s dedication to sustainability standards and best practices, making their operations the ideal partner to support Boliden’s sustainability goals.