MINEX Forum

Region: Europe

  • Ukraine selects U.S.-linked consortium to develop Dobra lithium deposit

    Ukraine selects U.S.-linked consortium to develop Dobra lithium deposit

    Ukraine has chosen a consortium that includes U.S.-connected investors as the preferred bidder to develop the Dobra lithium deposit in Kirovohrad Oblast, according to a report by The New York Times. The decision was taken on January 8 by a government commission and is expected to receive formal approval from the Cabinet of Ministers, though officials say the outcome is effectively settled.

    The winning consortium includes TechMet, an energy investment company partly owned by a U.S. government-backed investment agency, and billionaire Ronald Lauder, a long-time associate of U.S. President Donald Trump. Commission members cited the consortium’s strong technical and financial proposal, saying it met most of the tender’s criteria and denying allegations of favoritism.

    The Dobra deposit is one of Ukraine’s largest known lithium resources and is considered strategically important for technologies such as electric vehicle batteries. Development will take place under a production-sharing agreement, allowing investors to extract lithium in exchange for sharing output with the Ukrainian state.

    Under a broader U.S.-Ukraine minerals framework, half of the revenue generated for Ukraine from the project is to be channelled into a joint investment fund. Companies seeking to develop mineral deposits are also required to first present their projects to this fund, a mechanism designed to attract U.S. investment.

    While the minimum investment threshold for the tender was set at $179 million, officials indicated that the consortium’s pledged investment exceeds that figure. The agreement предусматривает spending at least $12 million on geological exploration and $167 million on launching extraction and processing, alongside compliance with environmental standards, use of Ukrainian labour and goods, and investment in local communities.

    Before mining can begin, the consortium must complete detailed geological studies to confirm the deposit’s commercial value and then finance the necessary infrastructure. Industry experts note that moving from exploration to full-scale production typically takes more than a decade.

    The Dobra project is expected to become one of the first initiatives implemented under the U.S.-Ukraine minerals partnership, following the launch of a joint reconstruction investment fund earlier this year.

  • Czech Republic to close its last black coal mine, ending more than 250 years of deep mining

    Czech Republic to close its last black coal mine, ending more than 250 years of deep mining

    The Czech Republic will shut its final black coal shaft at the end of January, marking the end of more than 250 years of deep coal mining that once underpinned the rise of heavy industry in Central Europe. The last coal is now being extracted from kilometre-deep shafts at the CSM mine in Stonava near the Polish border, as low global coal prices and Europe’s industrial and environmental transition erode demand.

    State-owned miner OKD had planned to close the operation three years earlier, but Russia’s full-scale invasion of Ukraine in 2022 temporarily boosted energy markets and extended the mine’s life. According to OKD director Roman Sikora, increasing mining depth has driven costs higher, making the operation uncompetitive amid weak prices.

    Coal mining in the Ostrava region began in the late 18th century, transforming the area into an industrial hub supported by railways, steelworks and large-scale infrastructure. Employment peaked in the 1980s with more than 100,000 miners and annual output of up to 25 million tonnes. Following the collapse of communist-era heavy industry after 1989, mines closed gradually and employment fell sharply. By October last year, OKD’s output had dropped to 1.1 million tonnes, with its workforce reduced to 2,300 and a further 1,550 jobs set to be cut.

    The region has since diversified its economy, supported by retraining programmes, foreign investment and EU funding. It is set to receive 19 billion Czech crowns from the EU’s Just Transition Fund to support post-coal redevelopment. OKD plans to remain active above ground through coal trading and new projects, including a battery park, data centre and a small methane-powered plant using gas from former shafts.

  • Critical Metals shares jump on Tanbreez upgrades and renewed US focus on Greenland

    Critical Metals shares jump on Tanbreez upgrades and renewed US focus on Greenland

    Shares of Critical Metals surged to their highest level in nearly three months after the company announced further upgrades to its flagship Tanbreez rare earth project in southern Greenland, amid renewed geopolitical attention on the Arctic territory from the United States.

    Earlier this week, the Nasdaq-listed company said it will acquire a fully integrated, mobile assay laboratory to support its Tanbreez project, which hosts one of the world’s largest known rare earth deposits. The laboratory, developed by mining solutions provider Bromet, will enable real-time, on-site geochemical analysis of drill core and pilot plant samples, strengthening data collection and accelerating decision-making as the project advances toward pilot-scale operations.

    Critical Metals CEO Tony Sage described the acquisition as a transformative step in moving Tanbreez from exploration into pre-mining development. The company is expected to pay around $1 million for the mobile laboratory. The move follows a recent decision to construct an Arctic-grade storage and pilot facility in Qaqortoq, scheduled for completion by mid-2026, and comes alongside potential logistics improvements linked to the planned opening of a new international airport near the project site.

    The upgrades are part of a modular, turnkey development strategy aimed at fast-tracking Tanbreez into production as early as this year. A preliminary economic assessment released last year outlined an initial production target of approximately 85,000 tonnes of rare earth oxides per year, with potential expansion to 425,000 tonnes annually. The assessment estimated a pre-tax net present value of about $3 billion and an internal rate of return of 180%, based on resources of at least 45 million tonnes within the largely underexplored kakortokite unit.

    Investor interest has also been boosted by rising geopolitical tensions surrounding Greenland. US President Donald Trump reiterated his desire for US control of Greenland this week, citing national security concerns, and senior US, Danish and Greenlandic officials held discussions in Washington on the issue. Analysts view Greenland’s vast untapped mineral resources, including rare earths, as a key driver behind Washington’s intensified interest.

    Following the announcements and geopolitical developments, shares of Critical Metals jumped as much as 35% in New York trading, lifting the company’s market capitalization to around $2.1 billion.

  • EU steps up critical minerals policy but risks falling behind the US and China

    EU steps up critical minerals policy but risks falling behind the US and China

    The European Union has intensified efforts to strengthen critical mineral supply chains that underpin the energy transition, but analysts warn that Europe is moving more slowly and offering weaker support than the United States, leaving it exposed to China’s dominant position in global markets.

    China already controls much of the global supply of solar power components and dominates processing capacity for key battery and clean energy materials, including lithium, nickel, cobalt, manganese, graphite, rare earths and permanent magnets. According to Eurostat, 95% of EU rare earth imports in 2024 came from just three countries: China, Malaysia and Russia. Data from Wood Mackenzie shows China accounts for 32% of global lithium production and controls a further 18% through overseas projects, while holding 81% of global critical minerals processing capacity.

    This concentration creates significant risks for European clean energy developers, as over-reliance on a small group of suppliers increases exposure to licensing delays, export controls and sudden supply disruptions. Industry experts note that despite growing awareness among policymakers, Europe’s response remains fragmented and underpowered.

    To accelerate investment, the EU adopted the ResourceEU action plan in December 2025. Backed by €3 billion from the Critical Raw Materials Act, the plan aims to expand domestic extraction and refining, promote recycling, reduce dependence on dominant suppliers, speed up permitting and restrict scrap exports. The EU has set targets to extract 10% of its critical minerals needs domestically, host 40% of processing capacity within the bloc and reach a 15% recycling rate by 2030.

    However, analysts say the funding and policy tools fall short of a fully fledged industrial strategy. Investment momentum has weakened amid low commodity prices, and existing regulations have not yet made most European projects sufficiently bankable. Several high-profile projects, including the Chvaletice manganese project in the Czech Republic, have stalled due to permitting delays and grid access issues, despite being labelled strategic.

    By contrast, the United States has adopted a more aggressive, security-driven approach. Through measures such as the Inflation Reduction Act, the One Big Beautiful Bill and the use of the Defense Production Act, Washington offers tax credits, grants, loans, price guarantees and offtake support to accelerate mine-to-battery and mine-to-magnet supply chains. As a result, the US is advancing diversification faster than Europe.

    While projects such as LKAB’s rare earth and phosphorus processing plant in Sweden signal progress, experts caution that Europe’s public tools for de-risking investments remain limited compared with those of the US and China. Without stronger financial instruments, streamlined permitting and a greater focus on processing and recycling, Europe risks remaining vulnerable in the global race for critical minerals.

  • Portugal aims to launch lithium prospecting tender in 2025 with focus on local benefits

    Portugal aims to launch lithium prospecting tender in 2025 with focus on local benefits

    Portugal’s government plans to launch a long-delayed tender for lithium prospecting licenses later this year, as part of efforts to strengthen Europe’s battery materials supply chain while addressing local opposition to mining projects. Environment Minister Maria da Graca Carvalho said the government is preparing a national mining strategy to be finalized by the summer, with an emphasis on community involvement and regional value creation.

    Portugal currently holds around 60,000 tonnes of lithium reserves and is Europe’s largest lithium producer, though output has traditionally been used for ceramics rather than battery-grade material. Expanding into battery-quality lithium is seen as critical for reducing Europe’s dependence on imports and supporting the continent’s clean energy transition.

    Carvalho told Reuters that future mining projects would prioritize keeping economic benefits within the country, sharing revenues regionally and creating local jobs. She added that the government is reviewing international best Reed practices while moving quickly to unlock investment. The original tender was first planned in 2018 but was repeatedly delayed due to political instability, including the collapse of several governments. The current minority administration took office in March 2025.

    Regulatory progress has already been made on specific projects. Portugal’s environmental agency APA has granted initial approval for lithium extraction at the Barroso mine, operated by Savannah Resources, as well as the Montalegre project developed by local firm Lusorecursos.

    Separately, Carvalho commented on ongoing talks between Portuguese energy company Galp and private equity-backed Moeve regarding a potential merger of their oil refining businesses. If completed, the deal would create one of Europe’s largest refining groups, with a combined capacity of about 700,000 barrels per day. The Portuguese state currently holds an 8% stake in Galp.

  • Greenland’s Kvanefjeld rare earth project highlights Europe’s late scramble for strategic minerals

    Greenland’s Kvanefjeld rare earth project highlights Europe’s late scramble for strategic minerals

    On Greenland’s southern tip, the Kvanefjeld mining project has become a symbol of both vast opportunity and prolonged paralysis. Beneath its icy terrain lies one of the world’s most significant deposits of neodymium and praseodymium, rare earth elements essential for wind turbines, electric vehicles and advanced military technologies. If developed, Greenland, a semi-autonomous territory within the Kingdom of Denmark, would become the first European source of these critical materials.

    The project is led by Energy Transition Minerals, which has long signaled readiness to move into production. However, progress stalled after the Greenlandic government imposed a ban on uranium mining in 2021, citing environmental and public health concerns. Because rare earths at Kvanefjeld are geologically associated with uranium, the ban effectively froze the project, triggering legal disputes that continue to delay development.

    Former Danish foreign minister Jeppe Kofod, now a strategic adviser to Energy Transition Minerals, said the case illustrates how regulatory uncertainty, geopolitics and high capital requirements can obstruct even strategically vital projects. Despite Greenland holding rare earth resources estimated to cover up to a quarter of global demand, alongside substantial oil, gas and other mineral potential, only two small mines are currently operating on the island.

    European interest has increased only recently. In 2023, the European Union signed a memorandum of understanding with Greenland to cooperate on mining projects, followed by the adoption of the EU Critical Raw Materials Act, which explicitly recognizes Greenland’s strategic importance. The European Commission has since committed funding to Greenland’s Malmbjerg molybdenum project to support defense-related supply chains.

    Analysts warn, however, that Europe may have moved too slowly. With the United States and China intensifying their focus on Greenland’s resources and U.S. President Donald Trump openly signaling aggressive ambitions toward the island, European policymakers risk being sidelined. Greenland’s harsh climate, limited infrastructure, small population and strict environmental rules further complicate development, even as climate change gradually improves access to previously icebound regions.

    While Brussels maintains that the future of Greenland’s resources rests solely with its people and elected authorities, growing geopolitical pressure suggests that external powers may play an increasingly decisive role in shaping the island’s mining future.

  • European Metals submits full EIA for Cinovec lithium project in Czech Republic

    European Metals submits full EIA for Cinovec lithium project in Czech Republic

    European Metals Holdings has submitted the full environmental impact assessment (EIA) for its Cinovec lithium project to the Czech Ministry of the Environment, marking a key regulatory milestone and meeting an important condition tied to EU funding. The EIA was formally lodged on 31 December, completing the two-stage environmental assessment process that began with an initial screening submission earlier in the year.

    The filing covers the entire Cinovec development and aligns with the recently completed definitive feasibility study, which outlined a mine life exceeding 26 years and forecast annual production of about 37,500 tonnes of battery-grade lithium carbonate. The ministry will now begin its formal review, with public consultations and hearings expected later in the quarter.

    The submission also satisfies a core requirement of the EU Just Transition Fund grant awarded to the project. In April, Czech authorities approved CZK 800 million, around $36 million at the time, subject to the EIA being filed by the end of 2025 and approved by mid-2026. European Metals said the project remains on track to meet the full timetable.

  • Zinnwald Lithium advances German lithium project after planning assessment

    Zinnwald Lithium advances German lithium project after planning assessment

    Zinnwald Lithium has completed the spatial impact assessment for its proposed integrated lithium mining and processing project in Germany. The Saxony State Directorate concluded that the development concept outlined in the company’s pre-feasibility study is spatially compatible and the most favourable option for large-scale development.

    The concept предусматривает processing at Liebenau with ore transported via a conveyor tunnel. While the assessment does not constitute a development permit, it provides the planning framework needed to proceed to the environmental impact assessment and mining permitting stages under the Saxon Mining Authority. The milestone reduces regulatory risk and supports the project’s role in supplying lithium to Europe’s battery industry.

  • Ukraine’s lithium sector emerges as a strategic pillar for Europe’s critical minerals security

    Ukraine’s lithium sector emerges as a strategic pillar for Europe’s critical minerals security

    Ukraine’s lithium sector is drawing growing international attention as global supply chains for critical minerals are reshaped by geopolitical tensions and Europe’s push for greater resource independence. Investors increasingly view Ukrainian lithium not merely as an alternative source, but as part of a broader restructuring of supply chains that prioritises security, resilience and regional integration over lowest-cost production.

    At the centre of this shift is the Dobra lithium deposit in the Kirovohrad region, one of the most prominent hard-rock lithium prospects in continental Europe outside the Nordic countries. Pegmatite-hosted resources such as Dobra could offer European battery producers a closer and potentially more secure supply base compared with traditional producers in South America and Australia.

    Ukraine’s lithium ambitions align with the European Union’s critical raw materials strategy, which emphasises diversification and reduced dependence on a narrow group of suppliers. Pegmatite deposits, however, require different extraction and processing technologies than brine-based lithium operations, resulting in higher upfront capital costs and longer development timelines. These technical factors, combined with political and security risks, make project structuring and risk management central to investment decisions.

    The Dobra project is being advanced under a production sharing agreement rather than a conventional mining licence. Under this framework, the state retains a share of future revenues while investors gain operational control. In January 2026, authorities announced that a consortium led by Dobra Lithium Holdings committed a minimum of $179 million to the project, including $12 million earmarked for exploration and reserve verification. The remaining capital is expected to fund mine development and processing infrastructure, following successful resource validation.

    Analysts note that PSA frameworks are gaining traction in emerging markets as they allow governments to participate in strategic resource projects without direct capital expenditure, while offering investors greater flexibility and clearer risk allocation. For Ukraine, this structure is also intended to attract foreign capital and technology transfer at a time when access to financing remains constrained.

    From a geological perspective, Ukrainian lithium deposits differ from many global peers. Hard-rock pegmatite resources typically offer higher grades but require complex crushing, flotation and hydrometallurgical processing. Proximity to European markets partially offsets higher development costs by reducing transport distances and supporting supply chain resilience, a factor increasingly valued by battery manufacturers.

    Future development pathways depend heavily on security conditions and investor confidence. Under an accelerated stabilisation scenario, production could begin within four years, while a more cautious, phased approach could extend timelines to five or six years. A third, technology-driven pathway envisages modular and automated processing facilities that reduce on-site risks but require higher initial capital outlays.

    Demand fundamentals remain supportive. Europe’s electric vehicle expansion, grid-scale energy storage projects and manufacturing reshoring efforts are all expected to drive lithium consumption over the next decade. While lithium prices have proven volatile, European buyers are increasingly placing a premium on secure, transparent and ESG-compliant supply chains.

    Ultimately, Ukraine’s lithium sector represents a high-risk, high-reward opportunity. Its success will depend on effective risk mitigation, regulatory stability, access to long-term financing and the ability to integrate into Europe’s evolving battery value chain. For investors with the appetite and expertise to navigate these challenges, Ukrainian lithium could become a strategically significant component of Europe’s critical minerals landscape.

  • EU carbon border tax could give Canadian nickel a competitive edge in Europe

    EU carbon border tax could give Canadian nickel a competitive edge in Europe

    The European Union’s Carbon Border Adjustment Mechanism (CBAM), which entered its full phase this month, has begun imposing a carbon price on imports of carbon-intensive goods such as steel, iron, aluminum and cement from non-EU countries. Importers must now pay a levy equivalent to the cost of carbon allowances under the EU’s Emissions Trading Scheme, currently close to €90 per tonne.

    In December, the European Commission proposed expanding CBAM to cover around 180 downstream products with a high steel or aluminum content, including car parts, machinery and construction equipment. While nickel was not included in this round, the Commission has left the door open to adding it in future updates, potentially from 2028, when the next legislative proposal is due.

    Such a move could significantly benefit Canadian nickel exporters. Canada’s nickel production is relatively low-carbon, largely because of the country’s clean electricity mix, making it more competitive under CBAM compared with higher-emission producers such as Indonesia, where coal-fired power dominates.

    Mark Selby, chief executive of Canada Nickel, said the company already expects to benefit indirectly from CBAM through steel and alloy exports, and would gain further if nickel itself is covered. Canada Nickel is advancing the Crawford sulphide nickel project in Ontario, targeting construction by the end of 2026 and initial production of around 30,000 tonnes of nickel per year, rising to 50,000 tonnes. Europe is expected to be a key export market.

    Nickel is classified as a critical raw material for the EU, essential for electric vehicles, batteries and defence applications. Europe remains highly dependent on imports, with all of its mined nickel production in 2024 coming from just two sulphide mines in Finland. Canada, the world’s sixth-largest nickel producer, already supplies the EU and could expand its market share if CBAM favours low-carbon producers.

    Photinie Koustavlis of the Mining Association of Canada said a well-designed CBAM that accurately measures embedded emissions would tend to favour responsible producers. Independent analysis consistently shows Canadian nickel among the lowest in carbon intensity globally, in contrast to significantly higher emissions from some Indonesian operations.

    With CBAM’s full rollout next year set to test compliance systems and reporting, exporters and importers alike will be watching closely. For Canadian nickel producers, a future expansion of CBAM could strengthen their position in a market increasingly shaped by carbon costs.