MINEX Forum

Region: Europe

  • Energy Cooperation between Hungary and Azerbaijan gains new dimensions

    Energy Cooperation between Hungary and Azerbaijan gains new dimensions

    Hungarian Minister of Foreign Affairs and Foreign Economic Relations Peter Szijjarto recently stated that energy cooperation between Hungary and Azerbaijan is gaining new dimensions. According to Reuters, Szijjarto said that Hungary is in talks with Azerbaijan’s state energy firm SOCAR to start importing gas via Southern Europe from the end of 2023, Azernews reports, citing Prime Minister.

    “We have been in partnership with Azerbaijan for more than a decade. We currently have an agreement under which we plan to purchase 100 million cubic meters of gas from Azerbaijan in the fourth quarter of this year,” Szijjártó said.

    The Hungarian Prime Minister Viktor Orban sought to expand the import-reliant European Union member’s long-term gas contract with Russia during a visit to Moscow on Tuesday. President Vladimir Putin said Russia was ready to provide an additional one billion cubic meters of gas per year.

    The EU and Azerbaijan have also signed a new Memorandum of Understanding on a Strategic Partnership in the Field of Energy. This agreement includes a commitment to double the capacity of the Southern Gas Corridor to deliver at least 20 billion cubic meters to the EU annually by 2027. This will contribute to the diversification objectives of the REPowerEU Plan and help Europe to end its dependency on Russian gas.

    The new Memorandum of Understanding underlines the strategic role of the Southern Gas Corridor in the diversification efforts. Azerbaijan has already increased the natural gas deliveries to the EU and this trend will continue, with up to 4 billion cubic meters of additional gas this year and volumes expected to more than double by 2027.

    The EU and Azerbaijan are also negotiating a new comprehensive agreement, which will allow for enhanced cooperation in a wide range of areas, including economic diversification, investment, trade, and making full use of the potential of civil society while underscoring the importance of human rights and rule of law.

    The strengthened energy cooperation between Hungary and Azerbaijan, as well as the EU and Azerbaijan, will help to ensure stable and reliable gas supplies to the EU via the Southern Gas Corridor and also lay the foundations of a long-term partnership on energy efficiency and clean energy.

  • Polish Briefing: Poland’s quest for rare minerals I Bogdanka mine wants to go green

    Polish Briefing: Poland’s quest for rare minerals I Bogdanka mine wants to go green

    Poland is looking for a substitute for lithium and other rare earth metals

    Poland is exploring the possibility of using a substitute for lithium and other rare earth metals. “The raw materials policy defines those raw materials that are used today. Today it is apparent that the energy transition makes it necessary to develop economic areas, which we should launch in our country. If we define the areas that we will launch in Poland, then we can adjust the needs for raw materials. Perhaps some of these needs are met, so we will open a discussion and try to introduce the point of view that not only critical raw materials are necessary, but they can also be replaced by other generally available raw materials, such as rare earth metals, lithium,” said Deputy Minister of Climate and Environment Piotr Dziadzio, Chief Geologist of the Country.

    “We should look for substitutions for raw materials and that is what we are doing. I do not want to reveal the details now, but in the coming weeks there may be additional information on this subject,” added minister Dziadzio.

    Lithium is used for the production of electric car batteries, among others. Rare earth metals are used to make semiconductors, which are an essential element of electronics, military equipment or vehicles. They are also needed for the energy transition.

    Wojciech Jakóbik / Jedrzej Stachura

    Bogdanka’s new strategy to turn the mine green

    Bogdanka Lubelski Węgiel presented a development strategy that involves more coal mining until the mine is closed in Poland, and in the meantime investments in renewables, their components and recycling.

    “The average level of coal production in 2023-2025 will be approx. 9.1 million tonnes, in the years 2026-2030 approx. 10.1 million tonnes, and in 2031-2040 approx. 9.1 million tons,” the new Bogdanka strategy announced in Lublin on May 17 said. Bogdanka intends to maintain more than half of the market share of coal.

    One of the priorities is to “guarantee production by 2049 by starting production from the K-6 and K-7 resource base in 2024 and preparing for the availability of a vertical Ostrów field, which after 2038 will guarantee the flexibility and energy security of the state in the energy transition.” The social contract with Polish miners provides for the pahse-out of mines by 2049.

    The company also declares “support for Ukraine’s energy recovery through the use of Bogdanka’s competencies and resources, which can actively support the reconstruction of critical infrastructure in Ukraine after the war.”

    Bogdanka is also expected to develop multi-resource mining based on the exploration and commercial extraction of a number of minerals crucial for sustainable transformation and attractive to the market. The aim is also to produce res components, i.e. foundation baskets for wind farms and structures for the installation of PV panels. The mine also wants to scale up RES installations to diversify Bogdanka’s revenue stream by adding 500MW RES installations and selling the energy produced by them, as well as trading batteries and PV waste.

    LW Bogdanka / Wojciech Jakóbik

  • KGHM has entered into long-term agreement with NKT. The Company will sell copper wire rod with a total value up to PLN 14.2 billion

    KGHM has entered into long-term agreement with NKT. The Company will sell copper wire rod with a total value up to PLN 14.2 billion

    KGHM Polska Miedź S.A. has signed another long-term sales agreement with NKT. Polska Miedź will supply entities belonging to NKT with copper wire rod in the years 2023-2027. The value of the transaction is in a range of PLN 9.6 billion to 14.2 billion, depending on additional options regarding the amount and lifetime of the agreement.

    „The continuation of cooperation in such a demanding market environment is a mark of effectiveness and attests to the quality of our products. We are efficient and trustworthy. We ensure the security of supplies of metals which are critical for the global energy transformation.  We are satisfied with our cooperation with NKT, our wire rod is going to one of the leaders of the European wire and cable marketplace, which provides key solutions for the European energy transformation,” said Tomasz Zdzikot, President & CEO of KGHM.

    “We are pleased to strengthen our long-term collaboration with KGHM by entering into this frame agreement for the supply of copper rod for the coming years. And even more so, that we are able to source copper close to where it is needed, which supports our efforts to reduce the environmental impact of our operations,” says President & CEO of NKT, Claes Westerlind.

    Responsible production  

    KGHM consistently strengthens its status as a preferred supplier. Company’s products and services meet the highest market standards, while its stability in delivering raw materials, rapid reaction time to customer needs and its „just in time” logistics distinguish the Company on the European wire rod market.

    The metallurgical plants of KGHM produce metals responsibly and in accordance with the highest standards. KGHM’s Głogów and Legnica Copper Smelters/Refineries and Cedynia Wire Rod Plant are Copper Mark certified, which is a testimony to responsible operating practices with regards to the environment, employees, local communities and governance.

    The Company ensures the safe supply of metals which are critical for the global energy transformation through its access to primary copper deposits. At the same time the goals of the Circular Economy are being developed whilst the possibilities of utilizing recycled materials are growing. In response to the global challenge associated with sustainable development, the Company adopted an ambitious Climate Policy, in which it declared the intention of achieving climate neutrality by the year 2050. KGHM has published the results of its analysis of the environmental and carbon footprint of its products: cathodes, wire rod and Cu-OFE rod. The carbon footprint of its copper wire rod at the level of 2.3 tonnes of CO2 equivalent per tonne of copper is significantly lower than the global average of such indicators.

    Highest quality

    8 mm copper wire rod is one of KGHM’s main products. It is manufactured through the Contirod® continuous process of melting, casting and drawing, and is mainly produced from cathodes manufactured by KGHM Polska Miedź S.A. The Cedynia Wire Rod Plant produces wire rod in five classes of quality, depending on the needs of the customer. The product is primarily used in the wire and cable, electromechanical and electrotechnical industries. The wire rod market, due to its specific nature, is highly competitive and demanding.

    In 2022 KGHM Polska Miedź S.A. produced 284.8 thousand tonnes of wire rod and OFE rod, nearly 11% of European production. This result makes the Company one of Europe’s leading producers of these copper semi-products.

    About NKT

    NKT connects a greener world with high-quality power cable technology and takes centre stage as the world moves towards green energy. NKT designs, manufactures and installs low-, medium- and high-voltage power cable solutions enabling sustainable energy transmission. Since 1891, NKT has innovated the power cable technology building the infrastructure for the first light bulbs to the megawatts created by renewable energy today. NKT is headquartered in Denmark and employs 4,500 people. NKT is listed on Nasdaq Copenhagen and realised a revenue of EUR 2.1 billion in 2022.

  • Poland’s industrial production and producer prices fall sharply in July

    Poland’s industrial production and producer prices fall sharply in July

    July industrial production fell by 2.7% year-on-year, well below the consensus forecast of 0.6%. There were yearly declines in all four major commodity groups, double-digit drops in mining and quarrying of 10.2%, and in manufacturing by 2.4%. Producer price deflation was deeper than expected, with July PPI falling 1.7% YoY against a consensus of -1.2%

    Poland’s industry saw a surprisingly weak start to the third quarter, although this coincided with dismal industrial PMI readings in Poland (43.5pts in July) and Germany (below 40pts in July).

    Year-on-year declines in industrial production in July were recorded in 24 of 34 industrial production divisions, the deepest in coal and lignite mining (by 27.7%), chemical products (9.6%), wood products (15.5%), paper (11.5%), metals (10.4%), and other non-metallic products (8.8%). The 10 divisions that saw an increase in production were led by machinery and equipment repair (up 20.7%), motor vehicles (15.0%), other transport equipment (8.1%) and machinery and equipment (4.9%). Production’s positive growth was driven by pro-export sectors.

    The deep fall in PPI producer prices was largely due to the statistical base effect and clearly lower energy prices than a year ago, but also reflected weakness in demand. A similar picture emerged from Germany’s July PPI reading. On a monthly basis, Polish manufacturing prices have been falling since November, and we expect PPI deflation to continue at least until the end of the year, which should facilitate further CPI disinflation.

    Available leading indicators (PMIs, new orders data) do not suggest a rapid recovery in manufacturing, although the most acute phase of inventory reduction by Polish companies seems to have passed. This week the preliminary August PMIs for the eurozone and Germany will be published; our forecasts do not assume a significant improvement compared to July. The economy of Poland’s largest trading partner is balancing between stagnation and recession.

    We expect that industrial production in Poland will remain low in the third quarter and experience a more visible rebound in the fourth quarter.

    Poland’s industrial production, YoY changes, in %

    Source: ING based on CSO data.
    ING based on CSO data.
  • NKT signs long-term contract with European copper producer

    NKT signs long-term contract with European copper producer

    To secure the supply of copper in the coming years for its production of power cables, NKT has signed a long-term agreement with Polish copper supplier KGHM.

    KGHM will supply NKT with a minimum of 52,500 tons of copper wire rod annually in the years 2023-2027 with an option to expand quantities and extend the contractual period. The copper will cover a substantial part of NKT’s required supply. KGHM is an integrated copper producer with its own mineral resources, mines, smelters and copper rod production facilities in Europe.

  • Rio Tinto commits $150 million to Centre for Future Materials led by Imperial College London

    Rio Tinto commits $150 million to Centre for Future Materials led by Imperial College London

    LONDON, July 31, 2023–(BUSINESS WIRE)–Rio Tinto has committed $150 million to create a Centre for Future Materials led by Imperial College London to find innovative ways to provide the materials the world needs for the energy transition.

    The ‘Rio Tinto Centre for Future Materials’ will fund research programmes to transform the way vital materials are produced, used and recycled, and make them more environmentally, economically and socially sustainable.

    Under the partnership, Rio Tinto and Imperial will together define a set of major global challenges that need to be addressed. These will form the basis of the first research programmes the Centre pursues, in partnership with a selection of international academic institutions.

    The Centre will be established in the second half of 2023, with the first research programmes funded in 2024. Rio Tinto will contribute $150 million over 10 years to fund the Centre.

    Rio Tinto Chief Executive Jakob Stausholm said “For the world to reach net zero, we must find better ways to provide the materials it needs. No single player can do this alone, and research and development plays a vital role. Imperial College London is one of the world’s leading institutions focused on science and engineering – I cannot wait to see the progress we make, as we bring together the best of industry and academia, with shared ambition.”

    Professor Mary Ryan, Vice Provost (Research and Enterprise) at Imperial, said “All aspects of human society rely on materials – from housing to transport, energy, communications and health. We need to create sustainable ways to extract, process, and reuse these resources.

    “Moving to a truly sustainable society requires a holistic approach to these complex industrial processes. This is inherent to Imperial’s approach. We will tackle these challenges and design future innovations that are resource and energy efficient, nature positive, humancentric and just. By working hand-in-hand with other leading international institutions, we will create a truly multidisciplinary, global effort to drive the next industrial revolution in harmony with nature.”

    The $150 million commitment has been made in Rio Tinto’s 150th anniversary year. It will be delivered in 10 annual instalments and will fund research that empowers diverse, inter-disciplinary teams to deliver innovative, and transformative solutions with environment, society, and governance at their core.

    The Centre builds on Rio Tinto’s long-standing support of research and innovation. It will complement an Innovation Advisory Committee of global experts in their fields that Rio Tinto recently established to accelerate its innovation portfolio and provide external insights and guidance on emerging and disruptive technologies.

    The Innovation Advisory Committee includes members with experience in academia, industry and government. More information on the Committee can be found at riotinto.com.

  • Vulcan begins commissioning of lithium extraction plant in Germany

    Vulcan begins commissioning of lithium extraction plant in Germany

    ASX-listed Vulcan Energy Resources has started commissioning of its lithium extraction optimisation plant (LEOP) in Landau at Upper Rhine Valley in Germany.

    Considered to be a milestone for Vulcan, the plant will extract, purify and increase the concentration of lithium chloride from brine. This phase is said to be a major step forward for the company and its zero-carbon lithium project.

    The start of the plant will enable the domestic supply independence of lithium, a critical raw material that is used in the production of electric vehicle (EV) batteries.

    Vulcan stated that the commissioning phase will continue until October, which is also when the first brine will be introduced into the plant to begin the lithium extraction process.

    Construction on the project began last year and was designed for optimisation, operational training and product qualification facility to provide commercial readiness by the end of 2025.

    Vulcan CEO Cris Moreno said: “By 2030, Europe is likely to face a significant lithium shortage, which could have serious implications for the European battery and automotive industries if domestic supplies are not realised. Vulcan is gearing up to be the first to produce lithium from Europe, for Europe, but also to be the first company worldwide to produce carbon-neutral lithium.

    “The start of the commissioning of our LEOP facility is a key step toward the implementation of phase one of our Zero Carbon Lithium™ Project, and in enabling a secure and independent European supply chain for lithium.”

    The initial phase of commercial operations at the plant aims to have a production of 24,000tpa of lithium hydroxide production, which will be supplied to off-takers in Europe.

    For lithium extraction from brine, Vulcan will use adsorption-type direct lithium extraction (A-DLE), which is claimed to have been commercially proven.

    The method can be deployed for low operating costs, more time efficiency and reduced carbon footprint compared to legacy industry methods for producing lithium. It will be powered using renewable heat instead of gas.

  • Belgium leads the way in rare earth metals recycling

    Belgium leads the way in rare earth metals recycling

    Belgium is a European leader in recycling, one of the few nations to meet recycling targets set out by the EU. Other than household and commercial waste, Belgian recycling plants are now helping to reduce Europe’s dependence on foreign minerals.

    Rare earth metals, commonly used in the production of high-tech goods, are desperately needed for the European economy. China has a monopoly on the supply of these metals, producing up to 97% of the world’s supply.

    In July, China placed export restrictions on gallium and germanium metals, which are indispensable for the production of advanced chips.

    China accounts for about 80% of the global production of gallium, which is used in integrated circuits, LEDs and solar panels, among others. The country also dominates the production of germanium, which is used in the production of fibre-optic cables and infrared applications.

    The European Commission is concerned that restrictions on exports of certain rare earth metals will impact EU supply chains, especially within the context of growing demand for these metals for the green transition. It wants to reduce dependence on third countries such as China to 65% for imports of 18 critical resources.

     

    Rare metals from scrap

    Belgian companies want to play a role in the transition away from reliance on rare earth metals imports. Even if Europe is not well-suited for the extraction of these precious metals, it can play a role in reducing imports, notably through recycling.

    One factory in Liège is one of the very few places in Europe to process metallurgy-related waste and recover the valuable rare earth metals. Hydrometal has been extracting gallium and germanium from waste for nearly 20 years. However, this is no simple process.

    “It’s very precise, difficult to make profitable, very competitive, and you can’t find a lot of raw materials on the market. It really requires specific knowledge and specific chemistry. Our factory is the only one in Wallonia. Today, there are two actors in Belgium who can do it, and only two actors in Europe too,” Phillipe Henry, administrator of Hydrometal, told RTL Info.

    Recent Chinese export restrictions have caused prices on the market to skyrocket. The current market price for gallium is $614 per kg, and $2,716 per kg for germanium. Faced with these rising prices, recycling has become a more profitable endeavour.

    “We are contacted almost every day to be able to respond to these challenges. They will not be easy, because we have to remain competitive, answer also have to see if it can be maintained in the long-term,” Henry noted.

    For now, Belgian companies are focused on the extraction of rare earth minerals from waste in the metallurgy industry. Granted, much of our tech and smartphones contain highly sought after rare earth metals, but these amounts are still too small to be profitable for major recycling companies.

    The amounts contained in phones amount to just a few grams per tonne, and it is not currently viable to extract gallium, germanium, or indium from them, at least in Belgium.

    While recycling plays an important role in reducing dependence on Chinese exports, Europe may soon switch to encouraging their extraction from European soil. Currently, no rare earth metals are mined in Europe.

    But new studies have revealed massive deposits of valuable rare earth metals, which could feasibly be extracted. In Sweden, mineral group LKAB discovered an untapped reserve of more than 10 million tonnes of oxides, the largest known deposit of its kind in Europe.

    The EU will reflect on the possibility of the opening of new rare earth metal mines in Europe, but will likely still face resistance from locals due to environmental concerns. The largest potential extraction site for Europe is at Kvanefjeld in Greenland, but extraction has been prevented by indigenous groups and local residents.

    The need to find new solutions is growing. Last year, European Commission President Ursula von der Leyen predicted that “Lithium and rare earth metals will soon be more important than oil and gas.”

  • Joint Venture Submits Application For Decision-In-Principle On New Nuclear At Patnow Coal Site

    Joint Venture Submits Application For Decision-In-Principle On New Nuclear At Patnow Coal Site

    A Polish joint venture company has submitted an application for a decision-in-principle on the construction of a nuclear power plant consisting of at least two South Korean-supplied APR1400 reactors with a target date for commercial operation of 2035.

    PGE Pak Energia Jadrowa, a joint venture between state energy group PGE and private energy company Ze Pak, said the application was submitted to the Ministry of Climate and Environment for a nuclear power station at a coal site in the Patnow-Konin region of the Wielkopolska province in central Poland.

    PGE Pak Energia Jadrowa was formed earlier this year to be responsible for all aspects of the project to build at least two South Korean APR-1400 pressurised water reactor units at the Patnow coal plant site, including an initial feasibility study, site surveys, an environmental impact assessment, licensing procedures and securing of financing.

    In January, a Korea Hydro & Nuclear Power (KHNP) official said it would be feasible to deploy up to four of the company’s APR-1400s at Patnow.

    The site has two coal-fired power plants in commercial operation with a combined output of about 1,100 MW, which makes it one of Poland’s largest energy facilities.

    Ze Pak, which owns the Patnow site, has been looking at nuclear energy as an option to decarbonise its generation portfolio. The company operates four power plants in Poland and has interests in lignite mining.

    In October 2022, Ze Pak and PGE signed a letter of intent with KHNP for eventual deployment of APR1400 plants at Patnow.

    PGE said two reactors could provide Polish homes and businesses with about 22 TWh of energy, or about 12% of today’s energy consumption in Poland.

    Crucial Step In Planning Process

    The company said obtaining a decision-in-principle is crucial for starting further works related to the location, environmental studies and finally applying for a permit to build a nuclear power station.

    Jakub Rybicki, president of PGE Pak Energia Jądrowa, said: “We are starting negotiations with our Korean partner regarding the feasibility study, agreements on financing our project and the creation of a Polish-Korean company that will directly lead this process.”

    Poland is bullish on nuclear and a number of projects have begun to develop large-scale plants and small modular reactors.

    In July the climate ministry approved plans for the country’s first commercial nuclear power station, which will be built in Pomerania in the north of the country with for Westinghouse-supplied AP1000 plants.

    The ministry has also issued a decision-in-principle for copper and silver producer KGHM Polska Miedz’s plan to build a NuScale Voygr SMR plant with a capacity of 462 MW.

    KGHM wants to explore the deployment of SMR technology to repurpose or replace existing coal-fired power plants and provide electricity and heat for its industrial processes.

    KGHM said that by 2030, it wants 50% of the electricity it uses to come from its own sources.

  • Vulcan fires up European lithium extraction plant

    Vulcan fires up European lithium extraction plant

    Vulcan Energy Resources has fired up its lithium extraction optimisation plant (LEOP) in Germany’s Upper Rhine Valley – a moment the company describes as a “significant milestone”.

    The budding carbon-neutral lithium developer is nudging closer to being the first company in Europe to produce the sought-after lithium hydroxide concentrate – crucial in the manufacturing of lithium-ion batteries – for the European market.

    Management has today revealed it has begun the commissioning phase for its LEOP and it is is expected to run until October, when the first bubbling-hot brine will be introduced into the plant for the lithium extraction process to begin.

    The newly-constructed LEOP is a ramped-up version of Vulcan’s pilot plant that has successfully produced lithium chloride from its producing well sites for the past two and half years.

    To extract lithium from brines, Vulcan is employing the adsorption-type direct lithium extraction (A-DLE) method, which has the added benefits of lower operating costs, greater time efficiency and a lower carbon footprint than legacy industry methods of lithium production.

    In the extraction process, the company will use its proprietary sorbent “VULSORB®”, which it has demonstrated to have a higher performance and lower water consumption for lithium extraction when compared with other commercially-available sorbents.

    From the LEOP, the lithium chloride will be refined to lithium hydroxide at Vulcan’s downstream central lithium electrolyser optimisation plant (CLEOP) in Frankfurt- Höchst and packaged up for further testing by notable offtake partners including Stellantis, Volkswagen, Renault, Umicore and LG Energy Solution.

    The commencement of the commissioning of our LEOP facility represents a significant milestone for us, as well as the entire European battery industry. By 2030, Europe is likely to face a significant lithium shortage, which could have serious implications for the European battery and automotive industries if domestic supplies are not realised. Vulcan is gearing up to be the first to produce lithium from Europe, for Europe, but also to be the first company worldwide to produce carbon-neutral lithium. The start of the commissioning of our LEOP facility is a key step toward the implementation of Phase One of our Zero Carbon Lithium Project, and in enabling a secure and independent European supply chain for lithium.

    Vulcan Energy Resources managing director and chief executive officer Cris Moreno

    With the company’s sights set firmly on a 2025 production target, it is also stepping up to help solve Europe’s looming lithium supply shortfall, with production forecast to supply up to 24,000 tonnes per annum of lithium hydroxide monohydrate.

    Located in the Upper Rhine Valley that extends across France, Germany and Switzerland, Vulcan has its foot on a 300km “graben” system that contains a sedimentary-hosted geothermal lithium reservoir that hosts 26.6 million tonnes of lithium carbonate equivalent – the biggest lithium resource in the European Union.

    Pioneering a carbon-free future, the company lays claim to the world’s first integrated renewable energy lithium extraction and lithium hydroxide project with net-zero greenhouse gas emissions, with the co-production of renewable geothermal energy on a mass scale.

    As Europe sweats through one of its hottest summers on record, discussions around climate change continue to be front and centre as the subcontinent steers towards its lofty 2050 carbon-neutral goals. With the transition to a global electric mobile fleet in full swing, Vulcan is neatly positioned to meet the unprecedented demand for the critical battery metal with its net-carbon neutral lithium.