MINEX Forum

Region: Europe

  • Coal Demand Rebounds in Europe as Energy Security Concerns Drive Temporary Shift

    Coal Demand Rebounds in Europe as Energy Security Concerns Drive Temporary Shift

    Rising uncertainty over Europe’s energy security is prompting several countries to temporarily increase coal use for electricity generation as global supply disruptions and higher gas prices reshape energy markets.

    Thermal coal prices for power generation have climbed roughly 20%, reaching around $135 per tonne. The increase follows escalating tensions in the Gulf and disruptions affecting energy flows through the Strait of Hormuz, as geopolitical tensions between the United States and Israel on one side and Iran on the other place pressure on global energy supply chains.

    With natural gas prices rising, coal-fired power plants have again become economically viable in parts of Europe. Although coal remains one of the most carbon-intensive fuels, the current market environment is forcing governments and utilities to prioritise energy security and cost stability in the short term.

    Despite the recent rise, coal prices remain far below the levels seen during the 2022 energy crisis following the Russia–Ukraine war. At that time, coal prices surged above $400 per tonne, prompting countries such as Germany to reopen coal-fired power plants and temporarily extend the life of existing mines.

    Global coal supply conditions are currently more stable than during the 2022 crisis. Major producers continue to maintain significant reserves, while China — the world’s largest coal producer and consumer — has expanded or reopened several mining operations. Higher prices may also encourage Indonesia, one of the world’s leading coal exporters, to reconsider earlier export restrictions.

    In the longer term, the International Energy Agency expects global coal demand to stabilise or gradually decline by 2030 as renewable energy, nuclear power and natural gas expand their share of the energy mix. However, geopolitical tensions and volatility in global gas markets could slow this transition.

    At the same time, Europe’s energy system is continuing to shift toward renewables. According to data from Ember Energy Research, electricity generated from wind and solar surpassed fossil fuel generation for the first time in 2025. Renewable sources accounted for 30% of EU electricity production, compared with 29% from coal, gas and oil combined.

    Analysts note that coal may still play a limited backup role in Europe’s energy mix, particularly during periods of high gas prices or supply disruptions.

  • Boliden Reviews Kevitsa Mine Operations After Finland Quadruples Mining Tax

    Boliden Reviews Kevitsa Mine Operations After Finland Quadruples Mining Tax

    Swedish mining group Boliden has launched change negotiations at its Kevitsa open-pit mine in northern Finland, a process that could affect up to 285 employees as the company reassesses operations following a significant increase in the country’s mining tax.

    Boliden said the review was triggered by the Finnish government’s decision earlier this year to quadruple the tax applied to metal ores. The levy is calculated based on the taxable value of metals, which is linked to international market prices.

    The Kevitsa mine, located north of Sodankylä in the Lapland region, is one of Europe’s largest nickel and copper operations. Boliden warned that the higher tax burden could undermine the competitiveness of large-scale mining projects in Finland.

    Tom Söderman, general manager of Boliden Kevitsa, said the company believes European mining of critical metals such as nickel and copper should be supported by stable and competitive long-term business conditions.

    According to the company, the tax increase has already forced it to suspend plans for a €1 billion investment programme intended to extend the life of the Kevitsa mine beyond 2034. The company also noted that contractors and service providers linked to the operation could be negatively affected if operational adjustments are implemented.

    The review comes despite Boliden reporting strong financial performance. The company posted profits of 9.4 billion Swedish kronor (approximately €879 million) in 2025, representing a net profit margin of around 10 percent.

    Industry observers say the development highlights growing tensions in Europe between efforts to strengthen domestic supply of critical minerals and policy decisions that may increase costs for mining companies.

  • Poland Weighs New Mining Pact to Balance Coal Profitability and Energy Transition

    Poland Weighs New Mining Pact to Balance Coal Profitability and Energy Transition

    Poland’s government is preparing new policy measures for the coal mining sector as it seeks to balance economic viability with the country’s ongoing energy transition, according to Deputy Minister of State Assets Grzegorz Wrona.

    In an interview with PAP Biznes, Wrona said the Ministry of State Assets and the Ministry of Energy are working on a draft “social agreement” aimed at defining a broader pact between society and the mining industry, rather than a traditional agreement between employers and trade unions.

    The initiative is intended to ensure that coal mining operations remain profitable and sustainable while continuing to support Poland’s electricity generation and industrial development. Wrona emphasised that coal still plays a key role in the country’s energy mix, even as Poland faces growing pressure to meet European climate and regulatory requirements.

    Government officials are examining options that could improve the profitability of the sector, including initiatives focused on coal processing and value-added uses of the resource. According to Wrona, such approaches could allow the industry to remain economically viable without driving up electricity prices.

    The deputy minister acknowledged the complexity of managing the transition, noting that Poland must simultaneously address decarbonisation goals and maintain energy security.

    Industry representatives have also raised concerns about current support mechanisms. Bogdanka CEO Zbigniew Stopa recently stated that some domestically produced thermal coal is being sold below extraction cost due to subsidy programmes, placing companies that do not receive state support at a competitive disadvantage.

    Wrona echoed criticism of the subsidy system, arguing that policies should prioritise mining operations that are economically viable, safe and capable of meeting market demand. He highlighted Bogdanka, along with certain mines in Lesser Poland and Silesia, as examples of operations with strong long-term potential.

    Under Poland’s existing legislation governing hard coal mining, certain companies receive state subsidies to reduce production capacity as part of restructuring efforts. These include major mining groups PGG and PKW, as well as Weglokoks Kraj, whose last mine ceased production at the end of 2025.

    The government’s ongoing policy discussions aim to identify a sustainable framework for the sector while addressing concerns about economic competitiveness, employment and regional development in mining areas.

  • Proposed ERG Ownership Restructuring Raises Geopolitical and Sanctions Concerns

    Proposed ERG Ownership Restructuring Raises Geopolitical and Sanctions Concerns

    A reported restructuring of ownership at Eurasian Resources Group (ERG) is drawing attention from analysts and policymakers due to potential geopolitical implications involving sanctions enforcement, Russian financial influence and the control of critical mineral assets.

    ERG is one of the largest mining groups operating across Eurasia and Africa, with major copper and cobalt operations in the Democratic Republic of Congo. These minerals are essential for battery production, defence technologies and advanced manufacturing, placing the company within supply chains considered strategically important by Western governments.

    According to media reports and industry sources, Kazakh businessman Shakhmurat Mutalip is expected to acquire a significant stake in ERG in a transaction estimated at around $1.4 billion. The move has been interpreted by some observers as part of a broader effort by Kazakhstan’s leadership to reshape ownership structures among major domestic industrial assets.

    However, questions have emerged regarding the potential sources of financing and the broader network of business relationships connected to the proposed transaction. Some reports have suggested possible links between Mutalip and Russian banking institutions including VTB and Sberbank, both of which are subject to Western sanctions. If confirmed, such connections could raise concerns among regulators about exposure to secondary sanctions risks.

    Additional scrutiny has focused on ERG’s chief executive, Shukhrat Ibragimov. Ukrainian authorities have imposed a travel ban on Ibragimov on national security grounds, citing alleged concerns about possible involvement in facilitating sanctions circumvention by individuals connected to Russia. He has not been publicly included in Ukraine’s formal sanctions list.

    Observers have also highlighted business ties between Ibragimov and Kazakh investor Kenes Rakishev, a prominent figure in Kazakhstan’s financial sector. Rakishev is known for longstanding relationships within Kazakhstan’s political and business circles and has previously been associated with networks linked to Chechen leader Ramzan Kadyrov.

    Some reports have further drawn attention to allegations involving Kazakhstan Paramount Engineering, a defence manufacturing company reportedly linked to Rakishev through leaked communications referenced by the Kazakhstani Initiative on Asset Recovery. According to those claims, vehicles produced by the company were later observed in areas of Ukraine during the conflict. These allegations remain a subject of debate and scrutiny.

    The broader concern for policymakers lies in the strategic significance of ERG’s mineral assets. Copper and cobalt resources controlled by the group are central to global supply chains for energy transition technologies, defence systems and advanced industrial production.

    Analysts note that any ownership restructuring that increases exposure to sanctioned financial networks could potentially attract attention from regulators in the United States and the European Union. Western authorities have previously taken enforcement actions where indirect ownership structures were used to bypass sanctions.

    The situation also reflects wider dynamics within Kazakhstan’s political and economic landscape. In recent years, President Kassym-Jomart Tokayev has pursued efforts to reshape elite ownership structures that emerged during the Nazarbayev era. However, analysts note that shifts in corporate control do not necessarily eliminate the influence of longstanding financial and political networks operating across the region.

  • Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Bosnia’s Nova Ljubija Iron Ore Mine Preparing Bankruptcy Filing Amid Financial Struggles

    Iron ore producer Nova Ljubija in Bosnia and Herzegovina is preparing to initiate bankruptcy proceedings after its owners determined that continuing operations is no longer financially viable.

    According to local media reports, the company is currently finalising documentation and is expected to file for bankruptcy in the coming days. Suzana Gasic, deputy director of Nova Ljubija, confirmed the move, noting that prolonged financial difficulties faced by its sole customer, steel producer Nova Zeljezara Zenica, have significantly impacted the mine’s operations.

    Nova Zeljezara Zenica has reportedly been unable to settle outstanding obligations to the mining company, creating a sustained liquidity strain that contributed to the decision to seek bankruptcy protection.

    The Nova Ljubija mine employs around 600 workers and has been a key iron ore supplier to Bosnia’s steel industry. The company is jointly owned by local diversified group Pavgord and mining operator Rudnici Zeljezne Rude Ljubija.

    The situation follows a broader restructuring of steel assets in the country. In June 2025, Luxembourg-based steel giant ArcelorMittal agreed to sell its shares in steel plant operator ArcelorMittal Zenica and iron ore producer ArcelorMittal Prijedor to Pavgord.

    Industry observers note that the difficulties faced by Nova Ljubija reflect broader pressures within the regional steel sector, including financial instability among downstream producers and shifting market conditions.

  • Mundoro Capital Highlights Copper Generator Model and Exploration Partnerships at PDAC 2026

    Mundoro Capital Highlights Copper Generator Model and Exploration Partnerships at PDAC 2026

    Mundoro Capital Inc. used the PDAC 2026 conference in Toronto to outline its exploration strategy focused on copper projects in Eastern Europe and the United States, emphasising the company’s use of a “generator” model designed to advance exploration while limiting shareholder dilution.

    Speaking during the event, Chief Executive Officer Teo Dechev explained that the generator model allows the company to assemble prospective land packages and develop exploration targets before bringing in larger mining companies to fund drilling and project development. This approach reduces the need for continuous equity financing while enabling exploration to move forward through partnerships.

    Mundoro Capital focuses primarily on copper opportunities in regions with strong geological potential. The company currently concentrates its exploration activities in Serbia and Arizona, where it identifies and secures land positions, compiles geological data and generates exploration targets before partnering with major mining companies.

    According to Dechev, option agreements with industry partners provide funding that can be reinvested into developing additional exploration opportunities. The strategy allows the company to build a pipeline of projects while sharing financial risk with larger operators.

    One of the most significant examples of this approach is Mundoro’s Serbian portfolio in the Timok region, a well-known copper district in eastern Serbia. The company has assembled approximately 940 square kilometres of prospective ground in the area and entered into multiple agreements with global mining company BHP.

    Under the partnership, BHP is expected to carry out systematic drilling campaigns across several exploration targets during the year, a development Dechev described as a major step forward for advancing the district’s copper potential.

  • Euromines Urges Stronger Raw Materials Integration in EU Industrial Accelerator Act

    Euromines Urges Stronger Raw Materials Integration in EU Industrial Accelerator Act

    The European Union’s proposed Industrial Accelerator Act (IAA) represents a significant step toward building a more proactive and coordinated industrial policy aimed at strengthening competitiveness, resilience and strategic autonomy across key manufacturing sectors. However, industry representatives warn that the legislation must more clearly integrate the upstream raw materials sector to ensure the effectiveness of Europe’s strategic supply chains.

    The IAA seeks to stimulate investment and accelerate the development of strategic industries by promoting the production of key technologies and introducing measures such as simplified permitting, “Made-in-EU” criteria and requirements related to low-carbon content. These provisions are intended to create stronger regulatory certainty and targeted incentives capable of mobilising private capital and supporting the EU’s green and digital transitions.

    According to industry association Euromines, these policy tools reflect a growing recognition within the EU that achieving climate and technological goals requires a comprehensive industrial strategy capable of aligning supply and demand across critical value chains.

    However, the organisation argues that the current framework does not sufficiently address the role of domestic raw materials production. Without stronger links between manufacturing policies and upstream resource extraction, increased demand for strategic goods could fail to translate into greater supply security within the European Union.

    Euromines also notes that the proposed reliance on non-preferential rules of origin primarily reinforces final manufacturing stages rather than recognising the strategic importance of raw materials produced within the EU. While cooperation with trusted international partners remains important, extending recognition of EU origin to certain Free Trade Agreement partners may do little to strengthen Europe’s internal resource base.

    The organisation has called for greater integration of raw materials policy into the Industrial Accelerator Act, arguing that minerals and metals form the foundation of all strategic industrial value chains.

    Euromines said it is prepared to work with EU lawmakers to address these gaps, emphasising that fully incorporating domestic raw materials production into the IAA will be essential for building resilient supply chains and achieving the bloc’s long-term industrial, strategic and climate objectives.

  • Czech Cinovec Lithium Project Faces Local Opposition Despite EU Strategic Backing

    Czech Cinovec Lithium Project Faces Local Opposition Despite EU Strategic Backing

    A major lithium mining project in the Czech Republic’s north-west is drawing increasing local opposition even as it gains strategic support from the European Union as part of its efforts to secure critical mineral supplies for the green transition.

    The Cinovec deposit, located near the German border in the Ore Mountains, is considered one of the largest lithium resources in Europe. Developed by Geomet, a company jointly owned by Czech state-controlled energy group CEZ (51%) and European Metals Holdings (49%), the project could become a cornerstone of the EU’s emerging domestic lithium supply chain.

    The deposit is estimated to contain up to three percent of global lithium reserves. Current development plans envisage mining roughly 3.2 million tonnes of ore annually, producing about 37,000 tonnes of battery-grade lithium carbonate each year, enough to supply materials for around 1.3 million electric vehicles.

    The project has been designated a strategic initiative under the EU’s Critical Raw Materials Act, enabling accelerated permitting procedures and financial support. The development has also received a €36 million grant from the EU’s Just Transition Fund and a €360 million subsidy from the Czech government. Total project investment is estimated at around CZK 42 billion (€1.75 billion), with mining potentially beginning by 2030.

    However, residents and local officials in the Usti nad Labem region have raised concerns that the project could reverse years of environmental recovery following the decline of heavy industry and coal mining. The area, which transitioned from large-scale industrial extraction to tourism and spa services, now faces the prospect of renewed mining activity.

    Local leaders warn that lithium extraction could bring environmental and social impacts, including noise and air pollution, groundwater contamination and disruption to landscapes and biodiversity. Critics also point out that parts of the proposed mining area lie within protected Natura 2000 zones and the Ore Mountains UNESCO World Heritage site.

    Activists and environmental researchers argue that large-scale lithium extraction cannot be considered environmentally neutral, even if linked to renewable technologies and electric vehicle production. Concerns have also been raised about transparency, community consultation and the long-term economic benefits for local residents.

    Economic uncertainties further complicate the project’s outlook. Lithium prices have fallen sharply since their peak in 2022, raising questions about the financial viability of large-scale hard-rock lithium mining at Cinovec. Analysts note that the project’s costs may be relatively high due to the ore’s lower lithium concentration, while reliance on public subsidies and volatile global markets adds additional risk.

    Despite these challenges, Czech authorities continue to view the project as strategically important for maintaining the country’s role in the European automotive supply chain and supporting the EU’s broader goal of reducing dependence on imported battery materials.

  • Rock Tech Lithium and Siemens Partner to Develop Digitalised Lithium Converter in Ontario

    Rock Tech Lithium and Siemens Partner to Develop Digitalised Lithium Converter in Ontario

    Rock Tech Lithium and Siemens Canada have signed a non-binding memorandum of understanding to establish a long-term strategic partnership aimed at developing advanced lithium conversion capacity in Canada, centred on the planned Red Rock converter project in Ontario.

    The agreement, announced during the Canadian Critical Minerals Forum hosted by Natural Resources Canada at PDAC 2026 in Toronto, focuses on applying Siemens’ digitalisation technologies, including Digital Twin systems, throughout the design, construction and operation of the lithium processing facility.

    The Red Rock converter will be developed using the engineering blueprint of Rock Tech’s fully permitted Guben lithium converter project in Germany. By replicating the design, the company aims to accelerate development timelines, reduce technical risks and improve capital efficiency while moving toward a final investment decision in Canada.

    The planned facility is expected to produce up to 32,000 tonnes of lithium carbonate equivalent annually, enough to supply battery materials for roughly 900,000 electric vehicles each year. Once operational, the plant would become Ontario’s first lithium conversion facility and a key component of Canada’s emerging battery materials supply chain.

    Rock Tech said the project will form part of a vertically integrated supply chain alongside its Georgia Lake lithium mining project, creating a regional “rock-to-battery” corridor within Ontario.

    Under the partnership, Siemens will deploy its Digital Twin technology to model process design, energy use and material flows across the entire project lifecycle. The digital system is intended to optimise plant efficiency, emissions performance and operational reliability before major capital investments are committed.

    The collaboration also reflects growing strategic cooperation between Canada and Germany on critical minerals supply chains. Officials said the Red Rock project aligns with priorities under the G7 Critical Minerals Production Alliance and could serve as a reference model for future lithium conversion facilities in allied markets.

    The partnership will be implemented in multiple phases, beginning with the integration of digital technologies into feasibility and engineering studies. The companies will also explore additional Siemens services and potential joint funding opportunities with Natural Resources Canada, the Government of Ontario and bilateral Canadian-German programmes.

    Canadian Energy and Natural Resources Minister Tim Hodgson said initiatives such as the Red Rock project demonstrate how G7 partners are moving from policy commitments to concrete investments aimed at building secure and sustainable critical mineral supply chains.

  • Katco JV Boosts Uranium Output to 3,700 Tonnes in 2025, Strengthening Orano’s Overseas Portfolio

    Katco JV Boosts Uranium Output to 3,700 Tonnes in 2025, Strengthening Orano’s Overseas Portfolio

    The uranium joint venture Katco, owned by France’s Orano (51%) and Kazakhstan’s Kazatomprom (49%), produced more than 3,700 tonnes of uranium in 2025, marking a significant increase in output following the commissioning of the South Tortkuduk section at the Moinkum deposit.

    The figures were disclosed during a conference call by Orano, which confirmed that production at Katco rose from just under 2,400 tonnes in 2024 to slightly above 3,700 tonnes in 2025. Katco operates at the South and Tortkuduk sections of the Moinkum uranium field in the Sozak district of Turkestan region.

    Development of the South Tortkuduk project, formalised through an additional agreement in 2022, has enabled the joint venture to extend production by up to 15 years while targeting annual output of around 4,000 tonnes. A new uranium processing plant under the South Tortkuduk project was launched in July 2024, with production from the new section gradually replacing output from older mining areas.

    According to Kazatomprom’s annual reports, Katco produced 2,564 tonnes in 2022, 2,103 tonnes in 2023 and 2,388 tonnes in 2024, underscoring the scale of the 2025 increase. As of the end of 2024, Katco’s uranium reserves stood at 47,900 tonnes. Based on 2025 production levels, reserves may have declined to approximately 44,200 tonnes by year-end. With a subsoil use contract valid until 2039, sustained production at 4,000 tonnes per year would allow remaining reserves to be mined over roughly 11 years.

    Financially, Katco remains one of Orano’s most profitable international uranium assets. In 2025, the Kazakh joint venture generated €628 million in revenue and €324 million in net profit, compared with €479 million and €273 million respectively in 2024.

    Kazatomprom’s share of net income amounted to €159 million, reflecting its 49 percent ownership stake, along with an additional €36 million under a previously agreed 11 percent profit distribution arrangement valid through the end of the contract period. This implies that Orano’s net income from Katco in 2025 totalled approximately €129 million, a significant contribution given the French group’s adjusted net loss of €25 million for the year.

    During the call, Orano’s management also indicated plans to expand exploration activities into Canada, Botswana, Australia and Mongolia, as the company seeks to diversify its uranium portfolio following the loss of operations in Niger, which had previously accounted for a substantial share of its global production.