MINEX Forum

Region: Europe

  • Poland extracts key metal needed for energy evolution, looks for rare earths abroad

    Poland extracts key metal needed for energy evolution, looks for rare earths abroad

    “Copper is the driving force behind the energy revolution and a crucial strategic resource. Without it, the energy transformation is not possible,” emphasized Tomasz Zdzikot, CEO of KGHM Polska Miedź, during the XXXII Economic Forum in Karpacz. Poland is also actively engaged in geological explorations in Mongolia to locate deposits of rare earth elements.

    Zdzikot participated in a panel discussion titled “Raw Materials of the Future – Which Raw Materials Should Poland Extract.” He highlighted the significance of “The State Raw Materials Policy 2050,” a strategic document accepted by the government last year, which identifies critical resources for Poland.

    The CEO of KGHM stressed that copper plays a pivotal role in the energy revolution. He pointed out that the US Energy Department added copper to its list of strategic raw materials in August, signaling a projected doubling of global copper demand by 2035. Additionally, copper is classified as a strategic raw material in the European Union.

    Zdzikot underlined the copper requirements for green technologies, noting that an electric car necessitates 150 kilograms of copper, while a 3MW wind turbine requires nearly 5 tons of the metal.

    He also emphasized KGHM’s role in ensuring Poland’s raw material security, highlighting that 50 percent of the EU’s total copper output comes from copper extraction in Poland’s Lower Silesia. Furthermore, KGHM is recognized as the world’s second-largest producer of silver.

    In the same discussion panel, Poland’s chief geologist, Piotr Dziadzio, disclosed the country’s geological work in Mongolia to locate rare earth element deposits. These geological surveys are conducted in collaboration with the local geological service.

    Dziadzio noted that various countries have established strategies for identifying rare earth element deposits, which are expected to yield benefits in the long run. He emphasized the need for transparent partnerships and community engagement in mining these minerals, ensuring they are not perceived as a form of colonialism.

    Furthermore, Dziadzio indicated that Poland has proposals for additional cooperation on rare earth element projects, including one in the Dominican Republic.

  • Help us to enable positive transformation for Ukrainian Refugees in Poland

    Help us to enable positive transformation for Ukrainian Refugees in Poland

    The MINEX Europe Forum is dedicated to more than just sharing knowledge and industry meetings. It’s about making a tangible, positive impact on the communities it touches.

    Over 1.5 million Ukrainian war refugees currently are living in Poland.

    As we plan the 7th MINEX Europe Forum scheduled for 17-19 October 2023 in Wroclaw, we’re committed to fostering change through the empowerment of 150 Ukrainian refugees living in Lower Silesia. Displaced from their homes due to conflict and uncertainty, these individuals seek solace and hope in Poland. Unfortunately, returning to their homeland remains uncertain as the war in Ukraine rages on. Among these refugees are women, the elderly, youth, and children, all striving to adapt to their new lives. The role of charitable missions in providing support cannot be overstated.

    The global response to the Ukrainian crisis has been heartening. Since the start of the invasion in February 2022, unprecedented levels of global support have been extended to Ukraine and its people. Despite this, many charitable organisations are facing “attention fatigue”, and there’s a noticeable reduction in humanitarian aid.

    Recognising this, the MINEX Europe Forum has partnered with the Foundation Ukraine non-profit organisation to address this concern directly. Our mission is ambitious yet concrete: to raise €25,000 to facilitate the comprehensive adaptation and integration of Ukrainian refugees and migrants in Lower Silesia. Advantix Ltd, the Founding Organiser of MINEX Europe Forum, has pledged €5,000 towards this endeavour. We now call upon you, our community, to contribute and make a lasting impact.

    Join us in this journey of transformation, and let’s create a brighter future for Ukrainians in Lower Silesia. Your contribution, regardless of its size, carries immense weight in this endeavour.

    Donate before 1 October.

    Help us to raise 20,000 Euro. Donate as little or as much as you can.
    We would be grateful if you could share this fundraising call with your colleagues and social media.

    Read more about our join campaign[/vc_column_text][/vc_column][/vc_row]

  • Ukraine, despite possessing considerable lithium deposits, has come close to missing out on the lithium rush

    Ukraine, despite possessing considerable lithium deposits, has come close to missing out on the lithium rush

    Ukraine possesses 1% of the world’s lithium reserves, a key component in battery production. In 2022, lithium prices surged to record levels of $80,000 per tonne, only to drop by half in 2023. In Ukraine, two companies are getting close to lithium mining, though years and hundreds of millions of dollars in investments separate them from the first tonne sold. What are entrepreneurs counting on?

    “Ukraine has the largest lithium reserves in Europe, as well as significant deposits of other minerals,” wrote Yulia Svyrydenko, the First Vice Prime Minister and Minister of Economy of Ukraine, on Facebook during the London URC summit.

    Lithium is a vital component in the production of batteries for smartphones and electric vehicles. In 2022, electric car production increased by 55% to 10.5 million units, according to the consulting firm EV volumes.

    The electric car boom is driving the lithium market upwards. Lithium production is expected to increase sevenfold from 2021 to 2030, according to BloombergNEF. However, the price peak in the market likely occurred in 2022. As of July 2023, the price per ton of lithium carbonate had fallen to $40,000, half of the peak price in November 2022, according to Trading Economics. Nevertheless, current prices remain significantly higher than in previous years.

    According to the U.S. Geological Survey, 70% of global enriched lithium production comes from Australia and Chile.

    “Ukraine’s lithium reserves are sufficient to supply batteries for almost 20 million electric vehicles,” says Roman Opimakh, the head of the State Service of Geology and Subsoil of Ukraine. According to him, Ukraine’s lithium ore reserves account for 1% of the world’s total or one-third of Europe’s reserves. “Exact volumes are classified as ‘secret,’” he adds.

    However, no one in Ukraine has yet mined lithium. Who in Ukraine has a chance to benefit from the lithium fever, which could end within the next 10 years?

    Challenges of Ukrainian lithium In 2017, “Ukrlitidobycha,” owned by Sergei Tabalov, the son of Kirovograd businessman and former MP Alexander Tabalov, acquired a license for the development of the Polohivsky deposit in the Kirovograd region for UAH 119 million. “I was able to convince other family members that this was a promising idea,” says Sergei Tabalov.

    There are four lithium ore deposits explored in Ukraine. Two are in the Kirovograd region – Polohivsky and the Dobro site. Another two are located in the territories temporarily occupied by Russia – the Shevchenkivsky and Krutaya Balka deposits in the Zaporizhzhia and Donetsk regions.

    The last centralized assessment of Ukrainian deposits was carried out in the 1980s, says Yegor Perelygin, a member of the Board of the United Mining and Chemical Company. In Soviet times, exploration of these deposits was not thorough, as lithium was only used for glass production and had little demand, says Mikhail Zhernov, the executive director of the Australian company European Lithium.

    Lack of accurate data is not the only problem with lithium mining in Ukraine. Not all Ukrainian lithium can be used for battery production because the ore is poorer than in Australia or Chile, says Zhernov.

    From 2017 to 2023, “Ukrlitidobycha,” according to Tabalov, invested $20 million in the exploration of the Polohivsky deposit. The deposit’s reserves are 75 million tonnes, but the company still doesn’t have exact data on how much enriched lithium carbonate, used for batteries, can be produced from this ore. “The share of lithium is sufficient,” Tabalov assures.

    Currently, “Ukrlitidobycha” is at the Prefeasibility Study stage. Tabalov is assisted by consultants from Finland, South Africa, Brazil, the UK, and Australia.

    The final project for the development of the deposit is planned to be prepared in 2024. “Ukrlitidobycha” is in negotiations with several potential investors, which it does not disclose. By the beginning of 2025, “Ukrlitidobycha” plans to attract $700 million, half of which will go to the construction of a mine and processing plant (GOK), while the rest will be allocated to a plant for the production of enriched lithium carbonate.

    According to “Ukrlitidobycha’s” plans, the plant will be able to produce 20,000 tonnes of lithium carbonate per year and will be located in one of the EU countries. “Potential investors insist that the plant can only be in Europe, even after the war,” says Denis Aleshin, the Director of Strategic Development at “Ukrlitidobycha.”

    Since 2019, Mikhail Zhernov of European Lithium has been trying to start lithium mining in Ukraine. His company MillStone&Co had a license for the Shevchenkivsky deposit and wanted to obtain another license for the Dobro site. However, the court revoked the company’s first special permit, and Roman Opimakh, the head of the State Service of Geology and Subsoil, denied the second permit due to rule changes, according to the specialized publication Nadra.info.

    However, Zhernov is not giving up. In 2021, he acquired a stake in the Australian company European Lithium, which mines lithium in Austria and has an ore processing plant. According to Zhernov’s plan, the Australian company should help defend the right to the Dobro site in Ukrainian courts.

    “We are ready to invest $10-15 million in exploration,” says Zhernov, “and build a processing plant if the reserves are confirmed at more than 12.88 million tonnes.”

    Time is not on the side of Zhernov and Tabalov. In 10 years, demand and prices for lithium will decline, predicts Alexey Falkovich, the Director of the Geological Service Company. “Technologies for battery production without using lithium are developing rapidly,” Falkovich says.

    Zhernov predicts the end of the lithium era in 15 years. Graphene, for example, could replace lithium.

  • Court suspends case against Poland’s Turów coal mine

    Court suspends case against Poland’s Turów coal mine

    The decision, which allows the mine to continue operating for the time being, was welcomed by the Polish government. However, the environmental groups that brought the case have expressed disappointment that the proceedings will drag on further.

    It marks the latest twist in a long-running legal battle over the mine, which has also drawn in Poland’s neighbours, the Czech Republic and Germany, whose borders are close to Turów.

    The provincial administrative court in Warsaw had yesterday been due to rule on the environmental decision that granted Turów, an open pit brown coal mine that feeds a nearby power station, a concession to operate until 2044.

    Instead, the court suspended the case because parallel proceedings before the General Directorate for Environmental Protection (GDOŚ) regarding an application from the mine’s owner – state-owned energy firm PGE – to amend the environmental decision have not been concluded.

    The judge noted that PGE recently withdrew its bid to amend the environmental decision, which led GDOŚ to discontinue proceedings. However, she stressed that, until the discontinuation becomes final and binding, the administrative court cannot rule on the legality of the permit.

    This development was welcomed by government figures, who argue that the mine and power plant in Turów are essential for Poland’s energy security.

    “The fight for Turow continues,” wrote climate minister Anna Moskwa. State assets minister Jacek Sasin called it “a key decision for Poland’s energy security”, adding that “the functioning of the mine is not threatened and the mining concession is valid until 2044”.

    Even before the ruling was issued, Moskwa had insisted that the mine would remain open whatever happened. “Obviously, regardless of this ruling and decision – because we have different experiences – Turow will not be closed. We will defend energy security,” she told Polskie Radio.

    A lawyer from one of the environmental groups that has challenged the legality of the environmental decision, Agnieszka Stupkiewicz of Frank Bold, admitted that the court had no choice but to suspend proceedings.

    However, she criticised the “scandalous” behaviour GDOŚ, saying that the agency had not kept parties in the case nor the administrative court informed of PGE’s decision to withdraw its bid to amend the environmental decision.

    Her group and other climate organisations from Poland, the Czech Republic and Germany brought their case against the environmental decision last year, arguing that there were a number of shortcomings in how it was reached, including a failure to take account of the mine’s impact on the climate.

    In July, the provincial administrative court in Warsaw ordered the environmental permit to be provisionally suspended ahead of a final ruling, finding that there is a risk of significant environmental damage.

    That decision was, however, later overturned by the Supreme Administrative Court. It meant that the mine was allowed to continue functioning until a final ruling on the environmental decision is issued by the Warsaw court.

    Meanwhile, yesterday’s decision by the court to suspend proceedings was welcomed PGE’s CEO, Wojciech Dąbrowski, who said that “Turów mine and power plant will remain one of Poland’s most important sources of energy for at least 20 years”.

    “From the very beginning, we have not recognised the legitimacy of any allegations made against the environmental decision on the Turów mine,” he added.

    His comments come just a day after PGE presented a new strategy to become carbon neutral by 2040, including abandoning the use of coal by 2030. That will be achieved in part by a government plan to transfer energy firm’s coal assets to a single, separate entity.

     

     

  • Huge theft rocks Europe’s largest copper producer

    Huge theft rocks Europe’s largest copper producer

    “During a scheduled review of metal inventories, Aurubis has identified considerable discrepancies in target inventory,” the German company said Thursday in a statement. Aurubis claimed that “criminal activity” was behind the shortfall.

    Aurubis produces about 1.1 million tonnes (1.2 million tons) of copper “cathodes,” or square sheets, per year at plants in Europe and the United States. The company accounts for around 30% of Europe’s production of such copper and 3% to 5% of global output, a spokesperson told CNN.

    Copper is widely used in construction, including in electrical wires and water pipes. It is also a vital metal for energy transition as it is used in wind turbines, solar panels and electric cars.

    The financial hit from the theft at Aurubis “might be in the low, three-digit-million-euro range,” the company said, warning that as a result it will not achieve the profit it has forecast for this fiscal year.

    Shares of Aurubis plunged Friday, trading 12% lower by mid-afternoon in Europe.

    The company has involved the State Office of Criminal Investigation in Hamburg, Germany, where Aurubis is based, the copper producer said. A spokesperson for the public prosecutor’s office in Hamburg told CNN on Friday that it had not yet received any information from local police or the criminal investigation office about the reported theft.

    Aurubis has also opened investigations by internal and external experts to understand what happened and how its security could be improved.

    This is not the first time the company has disclosed suspected theft. In June, Aurubis said it had identified “past criminal activities.” The public prosecutor’s office and police are investigating an “organized theft ring” targeting “intermediate products” that contain precious metals and which are the result of the company’s production processes.

  • Kosovo lead-zinc complex Trepca to get 1.1 mln euro subsidy

    Kosovo lead-zinc complex Trepca to get 1.1 mln euro subsidy

    Kosovo’s Ministry of Economy has inked a deal with the state-owned lead and zinc mining and smelting conglomerate, Trepca, for the provision of 1.13 million euros ($1.23 million) in state funding. This sum represents the second installment of a total 3 million euros in subsidies earmarked for investments aimed at facilitating a financial turnaround for the complex, according to Deputy Economy Minister Getoar Mjeku.

    Additionally, the government has greenlit a 20 million euro loan to support Trepca’s equipment needs, Mjeku announced via a social media post.

    The year 2022 marked a significant milestone for Trepca as it recorded its first profitable year since 1999. The complex reported a net profit of 1 million euros, a positive shift from the 1.4 million euro loss incurred in 2021.

    In May, Kosovo’s Ministry of Economy and Trepca formalized an agreement for the initial state subsidy installment amounting to 1.9 million euros.

    Established in 1927, Trepca specializes in the production of lead and zinc, along with manufacturing machinery for metal and mining, as well as batteries.

  • Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    In a recent interview with leading Polish business publication Business Insider, CEO Yuriy Ryzhenkov unveiled Metinvest mining and metallurgical group’s plans to invest in a logistics center in Poland. The objective behind this investment is to enhance the supply of Ukrainian metal products for export.

    Ryzhenkov revealed that Zaporizhstal and Kamet Steel, two subsidiaries of Metinvest, are currently operating at 65-70% and 75% of their respective capacities. Approximately 25% of their products are sold within the domestic market, while the majority is exported, primarily to European Union countries. Notably, neighboring nations such as Poland, Slovakia, the Czech Republic, Romania, and Bulgaria are significant destinations for these steel products. The company also caters to customers in countries like Italy, Germany, and France.

    Ryzhenkov acknowledged that steel mills are faring relatively well in terms of sales. However, iron ore enterprises face different challenges. Aside from serving domestic consumption, China was a key buyer. Unfortunately, due to current circumstances, exports to China are nearly impossible as Black Sea ports are blocked. Consequently, EU border countries remain as buyers. Iron ore enterprises are currently operating at 35-40% of their capacity. Efforts were made to send raw materials to China through Romanian and Polish ports, but the logistics economics proved unviable in the current market conditions.

    Ryzhenkov pointed out that the company’s coal production in Ukraine is operating at full capacity. The coal is supplied to Metinvest’s coking enterprises within Ukraine and is also sold in the local market. Exports, mainly to Slovakia and Poland, account for the remaining portion.

    The CEO also mentioned that Metinvest’s 2022 steel production decreased by 69% compared to the previous year, significantly impacting various financial indicators, with profits in 2022 down by 54% compared to the prior year.

    Despite these challenges, Metinvest’s overarching strategy remains unchanged. The company aims to integrate Ukraine and its iron ore resources into the European steel production chain. Consequently, Metinvest continues to seek opportunities to acquire assets that facilitate the utilization of Ukraine’s raw materials to produce goods in the EU and supply them to European consumers.

  • PGE accelerates the transformation of Poland’s energy sector – zero-carbon company by 2040

    PGE accelerates the transformation of Poland’s energy sector – zero-carbon company by 2040

    The Polish economy’s competitiveness hinges on a transition to clean, safe, and sustainable energy. The updated strategy of the PGE Group is a direct response to the evolving geopolitical and economic landscape in Europe, as well as the shifting role of electricity, now recognized as the fuel of the future and a pivotal component in the security and sovereignty of European nations.

    Wojciech Dąbrowski serves as the President of the Management Board of PGE Polska Grupa Energetyczna.

    PGE’s revised strategy is a carefully considered, rational, and responsible blueprint for advancing Poland’s energy sector through modern solutions. Our commitment to environmental responsibility and sustainable development positions us as the first energy company in Poland to achieve climate neutrality by 2040, a decade earlier than originally planned.

    The successful execution of this strategy owes much to the proactive measures of the Polish government, including the establishment of the National Energy Security Agency, tasked with overseeing Poland’s coal-fired generation sources. This decision, endorsed by rating agencies like Fitch and Moody’s, accelerates our transformation efforts. It enhances our capacity to secure funding for new investment projects while ensuring the systematic decarbonization of an energy sector currently reliant on coal (70%). Importantly, it safeguards the stability of our electricity system and supports jobs in existing conventional generation units, mines, and the communities around them, all while preserving Poland’s energy security.

    PGE’s emerging energy mix will pivot towards renewable sources, with a prominent focus on offshore wind farms in the Baltic Sea, where we stand as Poland’s largest investor with a potential capacity exceeding 7 GW. Ensuring optimal utilization of renewable energy capacity, we will deploy energy storage facilities that also play a stabilizing role in a digitally managed distribution network. The renewable energy segment will be complemented by an ongoing nuclear power plant project in collaboration with our Polish and Korean partners, along with gas-fired power plants where hydrogen and biomethane will replace gaseous fuel after 2030. Customers remain a vital part of Poland’s energy transition, and we continue to expand our offerings, including photovoltaics, heat pumps, and home energy storage solutions, to support their energy independence.

    Implementing PGE’s strategy requires unprecedented investments in Poland’s energy sector. By 2030 alone, we will invest more than EUR 27 billion. This substantial commitment will serve as a catalyst for job creation and the development of industries centered around modern energy in Poland. The green transition will significantly enhance Poland’s overall economic competitiveness on the global stage, driven by green energy.

  • China Eyes Billion Dollar Serbian Copper Mine Investment

    China Eyes Billion Dollar Serbian Copper Mine Investment

    China is gearing up for a substantial expansion of copper mining activities in Serbia as global demand for this vital metal, crucial for the global transition to green energy, outpaces supply. The race to secure materials and supply chains essential for green-energy transition has intensified, with China emerging as a dominant supplier of critical minerals required for technologies such as wind turbines, power grids, and electric vehicles.

    Zijin Mining Group, China’s largest gold miner and a significant copper producer, is set to increase copper extraction at the Cukaru Peki copper and gold mine in Eastern Serbia. This mine was inaugurated approximately two years ago, with an initial investment of US$678 million to commence operations. Now, China is eyeing further exploration, drilling nearly two kilometers deeper to tap into additional reserves.

    Branko Rakocevic, the leading Serbian official associated with the mine, revealed in media statements, “These are extensive reserves, necessitating additional infrastructure and an extra investment of approximately US$3.5 billion to US$3.8 billion.”

    Situated in the eastern Bor region, the mine comprises an upper and lower zone. Last year, production from the upper area yielded 111,000 tons of copper and 152,000 ounces of gold. Its potential annual capacity is estimated at 91,400 tons of copper and 2.5 tons of gold, with the possibility of reaching peak outputs of 135,000 tons of copper and 6.1 tons of gold.

    Once both zones reach their full capacity, the Cukaru Peki mine is poised to position Serbia as Europe’s second-largest copper-producing nation. Europe’s largest copper producer is the Skouriotissa Mine in Nicosia, Cyprus.

    Rakocevic emphasized, “Copper enjoys consistent global demand, justifying long-term investments. The market remains stable, with prices experiencing a decline from last year, but we anticipate limited volatility.”

    According to McKinsey, the global transition toward a greener economy will drive annual copper demand to 36.6 million tons by 2031. In contrast, supply is projected to reach around 30.1 million tons by the same year, up from the current 22 million tons, resulting in a potential shortfall of 6.5 million tons at the beginning of the next decade.

    Serbia, not being part of the European Union, maintains a Free Trade Agreement with the Eurasian Economic Union (EAEU), encompassing Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. China also holds a non-preferential Free Trade Agreement with the EAEU, a flexible arrangement allowing Beijing to negotiate tariff reductions as needed.

    In April 2023, China and Serbia initiated negotiations for a free trade agreement. Serbia stands as China’s primary trading partner in Central and Eastern Europe, with bilateral trade surging by 10.1% year-on-year to reach US$3.55 billion in 2022.

  • Bosnia’s coal miner Banovici seeks 1.5 mln euro loan

    Bosnia’s coal miner Banovici seeks 1.5 mln euro loan

    Bosnia’s coal mining firm, Banovici, has announced its intention to secure a one-year revolving loan totaling 3 million Bosnian marka (approximately $1.7 million or 1.5 million euros). The estimated value of the loan agreement, excluding taxes, stands at 133,930 Bosnian marka. This announcement was made through a tender posted on Bosnia’s e-Procurement portal and comes with a submission deadline set for September 19.

    As of the most recent data available from the Sarajevo Stock Exchange, the government of Bosnia’s Federation entity holds a 69.5% stake in Banovici. The company’s shares were last traded on the Sarajevo bourse on June 9, experiencing a 20% decline and closing at 10.8 Bosnian marka on that day.

    It’s important to note that Bosnia consists of two autonomous entities: the Federation and the Serb Republic.

    (Conversion rate: 1 euro = 1.95583 marka)