Region: Europe

  • Rio Tinto looking at possible lithium deals, Stausholm says

    Rio Tinto looking at possible lithium deals, Stausholm says

    Rio Tinto Group, the world’s biggest iron ore miner, is looking at a number of possible lithium acquisitions and would like to buy an asset to produce the key battery material in Canada, according to chief executive officer Jakob Stausholm.

    The London-based company was “looking at a number of opportunities” in lithium, Stausholm told media in Melbourne on Tuesday.

    “I wouldn’t mind having lithium production in Canada,” he said, but added lithium was “a pretty hot market” and he was “reluctant to come out with too big of a check.” Rio already produces aluminum, iron ore and diamonds in the nation.

    Demand for lithium, a core ingredient in electric vehicle batteries, is surging as carmakers around the world rush to build their EV manufacturing capacity. Production of the metal is dominated by smaller specialist producers, with most global diversified miners staying away.

    Rio is the exception. The world’s second-biggest miner is developing the Rincon lithium project in Argentina, and was planning to mine the battery metal in Serbia before the government there blocked the development.

    Stausholm’s comments came shortly before an announcement that Rio had signed a deal with UK-based exploration company Aterian Plc to explore for lithium in Rwanda. The agreement gives Rio the option to invest $7.5 million in the joint venture.

    Rio still sees opportunities for small-scale deals in metals that could be similar to its purchase of a majority stake in a Chilean exploration project this week, Stausholm said. Still, he stressed the need for organic growth, saying the hype around lithium and copper — another key material in the clean energy transition — wouldn’t influence the company’s thinking on deals in those sectors.

    The move into lithium is part of Rio’s strategy to expand beyond its Australian iron ore business, by far its biggest earner, Stausholm said.

    While Rio sees steel production in China as falling slightly this decade, the market currently looked to be “fairly stable,” he said. Stausholm added there would be growth in steel production in other markets, particularly India.

    (By James Fernyhough, with assistance from Mark Burton)

  • Dundee posts record free cash flow in Q2

    Dundee posts record free cash flow in Q2

    Dundee Precious Metals Inc. [DPM-TSX] says it is on track to achieve its production targets for this year after producing 76,306 ounces of gold and 7.9 million pounds of copper in the second quarter ended June 30, 2023.

    The company also said it generated $59.2 million in cash from operating activities and achieved record quarterly free cash flow of $70.5 million.

    Dundee is a Canadian-based international gold mining company with operations located in Bulgaria, Namibia, Ecuador and Serbia. The company has said it expects to produce 245,000 to 290,000 ounces of gold and 26 million to 31 million pounds of copper in 2023.

    Its operations include the Chelopech underground gold-copper mine in central western Bulgaria, the Ada Tepe open pit gold mine in southern Bulgaria and the development stage Timok gold project in Serbia.

    The Tsumeb specialty smelter in Namibia processes concentrates from the Chelopech operation, which produced 44,463 ounces of gold in the second quarter, a 10% increase from the second quarter of 2022. Ada Tepe produced 31,843 ounces of gold in the second quarter, a 35% increase from year ago levels.

    The company posted adjusted net earnings of $61.7 million or 33 cents per share and adjusted net earnings of $62.2 million or 33 cents per share. It ended the quarter with a strong balance sheet, including $542 million of cash and a $150 million undrawn revolving credit facility. The company has no debt and reported second quarter revenue of $167.5 million, a 25% increase from the second quarter of 2022.

    Dundee said it continues to progress the updated feasibility study for the Loma Larga project in Ecuador, which it secured via the acquisition of the shares of INV Metals Inc. it did not already own. The study is expected to be completed in the second half of this year.  The company said it received technical approval for the environmental impact assessment (EIA) for a 69 kV power line and launched the associated public consultation process.

    Loma Larga is a gold-copper-silver project that Dundee said is well-aligned with its core strengths and adds a high-quality growth asset to its portfolio. It said Loma Larga has the potential to produce an annual average of 200,000 ounces of gold in its first five years of production.

    Life of mine production is estimated to be approximately 170,000 ounces per year at an attractive all-in sustaining cost, net of by-products of approximately US$630 an ounce.

    Loma Larga also offers a strong reserve base and economic profile with approximately 2.6 million gold equivalent ounces of high-grade mineral reserves. That material is expected to support an initial 12-year min- life. First production is anticipated by the 2024-2025 time line.

    Dundee’s second quarter results were released after the close of trading on August 1, 2023, when the shares closed at $8.90. They currently trade in a 52-week range of $10.78 and $5.41.

  • Ferrexpo profits fall as Ukraine war continues to impact

    Ferrexpo profits fall as Ukraine war continues to impact

    Iron ore pellet maker Ferrexpo reported a fall in half-year profits as its operations in Ukraine continued to be affected by the ongoing war.

     

    Revenues fell 64% to $334m due to lower production and realised prices, while profit after tax declined 67% to $27m.

    Pellet production fell 59% year on year to 1.967 million tonnes during the half due to the conflict in Ukraine and associated logistics constraints, but were up 57% compared to the previous six months as output and demand increased, Ferrexpo said on Wednesday.

    “Improvements in sales volumes and prices helped lift revenues 7% to $334m for the first half of 2023 compared to the last six months of 2022, although admittedly lower than the first half of 2022 during which operations were running at full capacity until the invasion of Ukraine and iron ore prices were correspondingly higher,” it added.

    “Our operations have changed too, adapting to become more nimble and responsive to different challenges as they develop. We are currently running two out of four pelletiser lines, which generate enough high-quality production to utilise the available logistics capacity to continue supplying our European customers.”

    The company also revealed that 27 of its staff had been killed fighting against Russian invasion forces and chairman Lucio Genovese said many were still serving, while other veterans had returned to work.

    “At the start of the war, a large part of our workforce moved away; but, at the same time, we have absorbed even more internally displaced people fleeing the conflict on the eastern border, providing them with accommodation, food and medical supplies, and wherever possible, employment too.”

  • BMW Built Its Largest And Newest Test Site Inside An Old Mine

    BMW Built Its Largest And Newest Test Site Inside An Old Mine

    • BMW inaugurates Future Mobility Development Center (FMDC) in Sokolov, Czech Republic, aimed at testing its autonomous tech.
    • The 1482-acre site contains a variety of roads and traffic patterns, allowing the automaker to simulate a variety of real-world environments.
    • BMW is expected to offer a hands-off, eyes-off Level 3 system in its vehicles starting in 2025, joining other automakers that have also invested in such systems.

    The age of autonomous vehicles hasn’t yet dawned, but its impending arrival has already brought about significant changes to how automakers test cars.

    Even the development of advanced driver assistance systems (ADAS) has altered the way cars are tested, employing all types of digital environments to put hundreds of thousands of virtual miles on cars’ systems to validate them.

    The Real World

    Despite the growth of companies catering such simulation services, testing in physical environments is still crucial as more Level 3 and Level 4 systems approach market readiness.

    Just a few days ago BMW opened its largest test site in the world, and it’s aimed primarily at testing autonomous vehicles.

    The new site, dubbed Future Mobility Development Center (FMDC), is located in Sokolov, Czech Republic, and it’s been built in a former surface mine. The new center, covering some 1482 acres, contains a variety of simulated locations including city, freeway, country roads, and a variety of street and intersection types.

    “With our new Future Mobility Development Center, we have created a one-of-a-kind test site, designed exclusively for the highly demanding testing of automated driving and parking up to level 4,” said Frank Weber, BMW Board Member for Development.

    bmw future mobility development center fmdc

    The Future Mobility Development Center (FMDC) is designed to test autonomous vehicles up to SAE Level 4, which is how driverless but geofenced robotaxis are designated.

    UWE FISCHER

    Eco-Friendly

    The automaker did not neglect environmental aspects in developing a site this large, using 2.2 million cubic meters of soil that had already been excavated during mining operations to construct the site. The test track also features a water management system that collects rainwater to irrigate the track.

    “The special thing: We can run our test modules one after the other without stopping. This makes our testing as realistic, reliable, and customer-oriented as possible,” Weber added.

    When it comes to autonomous tech in the pipeline, BMW is known to be working on Level 3 tech along with autonomous developer Arriver, and chipmaker Qualcomm.

    The automaker is expected to offer a hands-off, eyes-off Level 3 system in at least some of its vehicles starting in 2025, following the lead of other automakers like Honda, Volvo, and Mercedes-Benz in developing Level 3 systems. Specifically, BMW is expected to use Qualcomm’s Snapdragon Ride Vision system-on-a-chip (SoC), as well as Arriver’s Computer Vision tech. And Sokolov is where these systems will be tested.

  • BMW Built Its Largest And Newest Test Site Inside An Old Mine

    BMW Built Its Largest And Newest Test Site Inside An Old Mine

    • BMW inaugurates Future Mobility Development Center (FMDC) in Sokolov, Czech Republic, aimed at testing its autonomous tech.
    • The 1482-acre site contains a variety of roads and traffic patterns, allowing the automaker to simulate a variety of real-world environments.
    • BMW is expected to offer a hands-off, eyes-off Level 3 system in its vehicles starting in 2025, joining other automakers that have also invested in such systems.

    The age of autonomous vehicles hasn’t yet dawned, but its impending arrival has already brought about significant changes to how automakers test cars.

    Even the development of advanced driver assistance systems (ADAS) has altered the way cars are tested, employing all types of digital environments to put hundreds of thousands of virtual miles on cars’ systems to validate them.

    The Real World

    Despite the growth of companies catering such simulation services, testing in physical environments is still crucial as more Level 3 and Level 4 systems approach market readiness.

    Just a few days ago BMW opened its largest test site in the world, and it’s aimed primarily at testing autonomous vehicles.

    The new site, dubbed Future Mobility Development Center (FMDC), is located in Sokolov, Czech Republic, and it’s been built in a former surface mine. The new center, covering some 1482 acres, contains a variety of simulated locations including city, freeway, country roads, and a variety of street and intersection types.

    “With our new Future Mobility Development Center, we have created a one-of-a-kind test site, designed exclusively for the highly demanding testing of automated driving and parking up to level 4,” said Frank Weber, BMW Board Member for Development.

    bmw future mobility development center fmdc

    The Future Mobility Development Center (FMDC) is designed to test autonomous vehicles up to SAE Level 4, which is how driverless but geofenced robotaxis are designated.

    UWE FISCHER

    Eco-Friendly

    The automaker did not neglect environmental aspects in developing a site this large, using 2.2 million cubic meters of soil that had already been excavated during mining operations to construct the site. The test track also features a water management system that collects rainwater to irrigate the track.

    “The special thing: We can run our test modules one after the other without stopping. This makes our testing as realistic, reliable, and customer-oriented as possible,” Weber added.

    When it comes to autonomous tech in the pipeline, BMW is known to be working on Level 3 tech along with autonomous developer Arriver, and chipmaker Qualcomm.

    The automaker is expected to offer a hands-off, eyes-off Level 3 system in at least some of its vehicles starting in 2025, following the lead of other automakers like Honda, Volvo, and Mercedes-Benz in developing Level 3 systems. Specifically, BMW is expected to use Qualcomm’s Snapdragon Ride Vision system-on-a-chip (SoC), as well as Arriver’s Computer Vision tech. And Sokolov is where these systems will be tested.

  • Uganda Seeks Serbian Investment to Develop Raw Materials

    Uganda Seeks Serbian Investment to Develop Raw Materials

    President Yoweri Museveni of Uganda has reached out to his Serbian counterpart, President Aleksandar Vucic, seeking support to advance Uganda’s economic agenda.

    During the launch of the Uganda Trade Hub in Belgrade, President Museveni urged for collaboration in adding value to Uganda’s raw materials, with the goal of increasing revenue for the country.

    “We need to add value to our agricultural products to enhance revenue generation for Uganda. I call on the Serbian Government to collaborate with us in critical sectors.” stated President Museveni.

    In a round table meeting with Serbian businessmen and women, President Museveni highlighted the importance of adding value to Uganda’s agricultural products to ensure higher returns. He urged the Serbian Government to join hands with Uganda in crucial sectors to achieve this objective.

    In response to President Museveni’s appeal, President Vucic pledged support by ensuring direct flights between Belgrade and Entebbe proposing that Serbian Career Air Serbia would fly directly to Entebbe via a code share with Uganda Airlines, aiming to enhance connectivity and reduce logistical costs for exporters. To materialize this agenda, President Vucic committed to sending a Serbian delegation to Uganda in August.

    “Serbian Career Air Serbia will fly directly to Entebbe via a code share with Uganda Airlines, strengthening connectivity and reducing logistical costs for exporters.” Stated President Vucic.

    The waterfront in Belgrade witnessed the official launch of the Uganda Connect Trade Hub, which is expected to play a significant role in marketing Ugandan products to the world.

    The hub, fully stocked with Ugandan products, is manned by Ugandan students who will coordinate bulk orders and serve as ambassadors for the nation’s exports.

    Board member of the Private Sector Foundation Uganda (PSFU), Badru Ntege, expressed his enthusiasm about the trade hub.

    Chairman of the Presidential Advisory Committee on Exports and Development, Odrek Rwabwogo, described the trade hub as the first step toward a bigger vision, representing a disruptive force in the traditional flow of trade. This venture is set to stimulate and invigorate Uganda’s export sector significantly.

    “The trade hub marks the first step into a bigger picture, disrupting the usual flow of trade,” noted Rwabwogo.

    As the Uganda flag flew high in Belgrade, local producers back home were encouraged to collaborate and establish consortiums that meet global standards, essential for accessing this new market. The strategic partnership with Serbia holds immense potential to drive Uganda’s socio-economic transformation.

    With the trade hub now operational and the commitment of the Serbian Government to support Uganda’s endeavors, the stage is set for a dynamic surge in Uganda’s exports, paving the way for increased revenue and economic prosperity in the East African nation.

  • Montenegro’s Rudnik Uglja net profit rises in H1

    Montenegro’s Rudnik Uglja net profit rises in H1

    August 1 (SeeNews) – Montenegro’s coal mining company Rudnik Uglja [MNG:RUPV] said on Friday that its net profit soared to 1.1 million euro ($1.2 million) in the first half of 2023 from 53,770 euro in the like period of last year.

    Rudnik Uglja’s revenue rose to 26.9 million euro from 20.5 million euro, while operating costs grew 19.5% to 14.1 million euro, Rudnik Uglja said in an interim financial statement filed with the Montenegro Stock Exchange on Monday.

    Following are details of Rudnik Uglja’s financial performance (in millions of euro):

    H1 ’23 H1 ’22
    Operating costs 14.109 11.787
    Revenue 26.857 20.472
    Net profit 1.130 0.530

    $ = 0.9112 euro

  • German companies in Hungary now face hostile takeovers from the Orbán Government

    German companies in Hungary now face hostile takeovers from the Orbán Government

    German companies are sounding the alarm: the expropriation of foreign companies in Hungary is becoming frequent. This is the thrust of a new exposé from the newspaper Frankfurter Rundschau. “The unbelievable is happening, right in the middle of the EU. Foreign companies are increasingly complaining about massive violations of the law by the [Hungarian] authorities,” it states.

    The newspaper claims that more and more multinationals in Hungary are reporting a political system geared for “legalised” theft and hostile takeover. More specifically, it speaks of disproportionately high “special taxes” affecting non-Hungarian companies only; of legal or logistical blockages preventing said companies from growing; of price fixing; and, quite remarkably, of arbitrary raids on the homes of employees of foreign companies, as issued by public prosecutors.

    Frankfurter Rundschau gives one example in the form of Heidelberg Materials, a German company that started selling cement in Hungary in the 1990s. In 2022, however, the group received a takeover offer from the Orbán Government, which it rejected. In return, a 90% mining tax was imposed on Heidelberg Materials. Now the Hungarian subsidiary is making a loss. Moreover, the prices for cement products are now more or less set by the state. How long the company can keep going is unclear. “But we are ready to fight,” a company manager told Frankfurter Rundschau.

    “Construction, telecommunication, energy, transportation and food trade industry are pressured the most by [Viktor Orbán],” says Edit Zgut, vice-chair of Amnesty International Hungary, whose recent research paper elaborates on this process in great detail. “Stakeholders speak anonymously about this, or decline to comment due to fear of government retaliation. Intimidation and its chilling effect is the linchpin of the regime.

    “[What is happening now] indicates a wind of change in the operation of the regime,” she adds. “While Germany is Hungary’s most important trade partner, Orbán has pushed for forced nationalisation since Covid-19, saying that the key economic sectors have to be in Hungarian hands. One of the first victims was the Heidelberg Materials.”

    Ironically, it was German and Austrian foreign investors that directly and indirectly helped Orbán decimate Hungary’s free press, as reported by Investment MonitorBut now the ‘illiberal democracy’, as Orbán proudly self-identifies, appears to be coming for them. Meanwhile, it has now been more than eight years in which German automotive companies in Hungary have turned a blind eye to Orbán’s actions (while gaining large tax benefits via opaque agreements).

    Frankfurter Rundschau’s allegations offer further evidence of the manner in which the EU, via Hungary, is being undermined. “The Orbán regime becomes more ideological, predatorial, by the day,” says Zgut. “The European Commission and Council have to move faster and more efficiently to protect the integrity of the common market.”

  • Bosnia suspends 700MW lignite-fired plant project

    Bosnia suspends 700MW lignite-fired plant project

    The spatial planning ministry of Bosnia and Herzegovina’s Republika Srpska entity has terminated the environmental permitting procedure for the proposed 700MW Ugljevik 3 lignite-fired power plant.

    The decision means the project is “practically suspended until further notice,” Redzib Skomorac, legal advisor to the Bosnian environmental organisation Centre for the Environment, told Argus. The halting of the permitting procedure comes shortly after a Bosnian district court annulled the planning ministry’s decision to approve the plant’s environmental permit following a lawsuit initiated by the Centre for the Environment, which highlighted “numerous procedural deficiencies” in the document.

    The recent termination of the environmental procedure came at the request of developer Comsar Energy Republika Srpska. The project’s suspension will last until the entity’s supreme court delivers a decision on the ministry’s request for a review of a previous court judgement to annul the plant’s environmental impact study in December 2022. This process will be complete “three years after the case is initiated,” Skomorac told Argus, giving a date of December 2025. The Centre for the Environment would expect “much greater scrutiny if the continuation of the permitting [procedure] occurs in the near future,” Skomorac said.

    “It is necessary to stop with the persistent approval of the project whose legality is as questionable as its economic justification,” Skomorac said in a post on the Centre for the Environment’s website. “The ministry’s decision to stop the proceedings, at least temporarily, was a necessary decision,” he added.

    If completed, Ugljevik 3 would consist of two 350MW units, which would generate a combined 4.9 TWh/yr of power. But a timeframe for building works at the plant is far from clear, with Bosnia’s recent draft National Energy and Climate Plan stating that the country has “no plan to increase the capacity of plants burning fossil fuels”.

    The spatial planning ministry of the Republika Srpska did not respond to an Argus request for comment on the suspension of Ugljevik 3 or the fate of other proposed lignite-fired plants, such as the 450MW unit 7 at Tuzla and the 300MW unit 8 at Kakanj.

    Power generation in the Republika Srpska is dominated by state-owned utility ERS, which also owns the existing 300MW Ugljevik lignite-fired power plant through its subsidiary RiTE Ugljevik. ERS relies on lignite-fired plants for 56pc of its generation, while the final 44pc comes from hydropower plants. The region has very limited non-hydropower renewable capacity installed, though ambitious projects such as the 500MW Nevesinje solar farm have progressed recently.

  • The Future of Coal in Bulgaria’s Energy Market

    The Future of Coal in Bulgaria’s Energy Market

    The future of coal in Bulgaria’s energy market is a topic of significant debate and concern, as the country grapples with the challenges of climate change, air pollution, and the need to transition to cleaner and more sustainable sources of energy. As a member of the European Union, Bulgaria is subject to the bloc’s ambitious climate and energy targets, which include a commitment to reduce greenhouse gas emissions by at least 40% by 2030, compared to 1990 levels, and to increase the share of renewable energy in the energy mix to at least 32% by 2030. These targets have important implications for the role of coal in Bulgaria’s energy market, as the country currently relies heavily on coal-fired power plants for electricity generation, particularly lignite coal, which is a highly polluting and carbon-intensive fuel.

    In recent years, there have been growing calls for Bulgaria to phase out coal and transition to cleaner sources of energy, such as renewable energy and natural gas. This has been driven not only by the need to comply with EU climate and energy targets but also by concerns about the negative impacts of coal on public health and the environment. Air pollution from coal-fired power plants is a major problem in Bulgaria, with the country consistently ranking among the worst in Europe for air quality. According to a recent report by the Health and Environment Alliance (HEAL), air pollution from coal-fired power plants in Bulgaria is responsible for an estimated 1,660 premature deaths, 1,600 cases of chronic bronchitis, and 2,200 hospital admissions each year.

    Despite these challenges, the future of coal in Bulgaria’s energy market remains uncertain, as the country faces significant economic, social, and political barriers to phasing out coal. One of the main challenges is the lack of alternative employment opportunities for workers in the coal industry, which is a major source of jobs and income in some regions of the country. According to the International Labour Organization (ILO), around 12,000 people are directly employed in the coal sector in Bulgaria, with many more jobs indirectly linked to the industry. The closure of coal mines and power plants could therefore have significant social and economic consequences, particularly in regions where coal is the main employer.

    Another challenge is the need to ensure energy security and affordability for consumers, as Bulgaria currently relies on coal for around 40% of its electricity generation. While renewable energy and natural gas have the potential to replace coal in the energy mix, there are concerns about the costs and reliability of these alternatives, particularly in the short to medium term. The Bulgarian government has also been criticized for its lack of ambition and clarity in its plans for the energy transition, with critics arguing that the country’s current energy strategy does not go far enough in addressing the challenges of climate change and air pollution.

    In conclusion, the future of coal in Bulgaria’s energy market is a complex and contested issue, with significant challenges and uncertainties ahead. While there is a clear need for the country to phase out coal and transition to cleaner sources of energy, this will require a careful balancing act between the competing demands of climate and energy policy, economic development, and social justice. It will also require strong political leadership and a clear vision for the future of the energy sector, as well as support from the European Union and other international partners in addressing the financial, technical, and capacity-building challenges of the energy transition. Ultimately, the future of coal in Bulgaria’s energy market will depend on the ability of the country to navigate these challenges and seize the opportunities of a cleaner, more sustainable, and more resilient energy system.