MINEX Forum

Tag: Bernd Schäfer

  • EIT RawMaterials Invests €0.5 Million in Novana’s Vanadium Recovery Project

    EIT RawMaterials Invests €0.5 Million in Novana’s Vanadium Recovery Project

    Berlin, 15 October 2024: EIT RawMaterials has announced a €0.5 million seed investment in Novana, a Finland-based subsidiary of Neometals, to advance the Vanadium Recovery Project (VRP1) in Pori, Finland. Novana utilizes innovative circular technology to produce high-purity vanadium pentoxide (V2O5) from steelmaking slag, while also consuming CO2, thus reducing environmental impact compared to traditional methods.

    This initial funding aims to spur the project’s growth by securing additional financing. EIT RawMaterials is assisting Novana in raising €400 million in equity and debt to fully develop the project.

    Strategic Importance of Vanadium for Europe

    Europe heavily relies on imports for vanadium, a critical raw material essential for high-strength steel alloys and emerging technologies like Vanadium Flow Batteries (VFBs). With this seed investment, VRP1 is set to become Europe’s first domestic producer of Vanadium Pentoxide (V2O5), expected to produce 9,000 tonnes annually, covering over 40% of Europe’s current demand. The project will also cut up to 1.5 million tonnes of CO2 over the next decade, aiding Europe’s green transition.

    Catalyzing Further Growth

    Beyond the €0.5 million seed investment, EIT RawMaterials is helping Novana secure the remaining €400 million needed for the project’s completion. This will be achieved through a mix of debt and equity financing, managed by SEB and Aventum. The European Investment Bank (EIB) has conditionally approved debt financing, recognizing the project’s strategic importance for Europe’s resource independence.

    EIT RawMaterials’ investment grants them a 1.1% stake in Novana, with an option to invest an additional €10 million in equity later, contingent on project milestones. With all key permits, a take-or-pay offtake agreement, and advanced slag supply discussions in place, the project is well-positioned to attract significant financial commitments from both private and public sectors.

    Championing Circular Economy Innovation

    This investment underscores EIT RawMaterials’ dedication to fostering growth and innovation in Europe’s raw materials sector. Bernd Schäfer, CEO of EIT RawMaterials, stated: “This €0.5 million seed investment is intended to support Novana in laying the groundwork for further project growth. Novana exemplifies how innovative technologies can unlock critical materials from waste, reduce Europe’s import dependency, and contribute to a circular and sustainable economy.”

    Novana’s Vision as Europe’s First Domestic Vanadium Producer

    Johanna Lamminen, CEO of Novana, expressed: “We are thrilled to have partnered with EIT RawMaterials to advance our circular economy vanadium recovery project. We look forward to securing the necessary funding and commencing construction, with strong support from the Finnish State and the EU, to become Europe’s first domestic producer of zero-carbon high-purity vanadium, essential for high-strength steel, aerospace titanium alloys, and stationary energy storage batteries.”

  • ERMA and Greenland Resources mark a successful partnership advancing responsible mining in Europe.

    ERMA and Greenland Resources mark a successful partnership advancing responsible mining in Europe.

    Outstanding collaboration supporting ESG standards and EU circularity. 

    The Malmbjerg molybdenum project, exemplifying responsible mining practices with top-tier Environmental, Social, and Governance (ESG) standards, will supply high-quality molybdenum to meet a substantial portion of Europe’s demand. Notably, among the world’s largest molybdenum producers—China, USA, Chile, Peru, Mexico— Greenland leads in education and health spending as a percentage of GDP and boasts the lowest poverty rates.

     

    The outstanding collaboration with ERMA has allowed Greenland Resources to sign documentation on offtake agreements directly with six major EU metallurgical steel and chemical companies as well as secure letters of intent to finance the Malmbjerg molybdenum project capex from AAA credit-rated financial institutions like the Export and Investment Fund of Denmark (EIFO) among other development banks, and commercial banks like Deutsche Bank AG. ERMA has also played an important role in securing documentation with major European and Canadian mining equipment suppliers like Danish FLSmidth A/S and Austrian Doppelmayr Transport Technology GmbH.

     Malmbjerg molybdenum project will answer 25% of Europe’s total molybdenum demand.

    Molybdenum is a fundamental element in the manufacturing of all clean renewable energy technologies such as wind, geothermal, solar, and hydro, as well as in the manufacturing of most mining equipment, making it vital for Europe’s Green Transition. Currently, China produces around 45% of world’s molybdenum while the EU is the second largest molybdenum user worldwide and has no production of its own. Greenland Resources will be able to supply some 25% of Europe’s total molybdenum demand for over 20 years from a responsible EU source with one of the highest-grade and clean molybdenum deposits in the world.

     As global demand for molybdenum continues to soar, its prices have surged, making it one of 2023’s top-performing metals. The London Metal Exchange reported a closing price of US$23.95/lb Mo on Sept.22, nearly 33% higher than the base case price used in the Company’s NI 43-101 Feasibility Study.

    Naaja H Nathanielsen, Greenland’s Minister of Finance, Minerals, Justice and Gender Equality, underscores Greenland’s unique advantage in providing a high-quality, easily accessible Molybdenum supply chain to Europe, while prioritising responsible mining: 

     “Greenland is committed to fostering responsible mining ventures that not only tap into our abundant natural resources but also prioritise the well-being and empowerment of our local communities. It’s crucial that we set a benchmark for Environmental, Social, and Governance (ESG) standards while maintaining our competitive advantage. Projects such as the Malmbjerg project with proximity to Europe and high-quality ore serve as a model of responsible mining practices, and they hold immense importance for our region in terms of growth and job creation.”

     Strengthening cooperation and training between Canadian and Greenlandic Inuit communities.

    In June, Greenland Resources expanded its support to Ittoqqortoormiit, the nearest community to the Malmbjerg project. This included a boost in financial support and mining training, enhancing internet infrastructure, and allocating funding to strengthen culture and education initiatives. In addition, Greenland Resources recently signed an MOU with Nuna Group of Companies, a world class Canadian majority Inuit-owned civil construction company that specializes in Arctic construction and contract mining operations. This will add to the cooperation and training between Canadian and Greenlandic Inuit communities.

     Bernd Schäfer, CEO and Managing Director of EIT RawMaterials, expresses his enthusiasm for this impactful collaboration: “The partnership between ERMA and Greenland Resources is a great example of a win-win scenario. We are excited about the development of multi-country value chains for this indispensable raw material, and our commitment in seeking global partners goes far beyond this project. EIT RawMaterials and ERMA, together with the European Commission, are actively engaging in dialogue with partners including the upcoming Strategic Partnership on responsible raw materials value chains between the European Union and Greenland.” 

     Dr. Ruben Shiffman, Executive Chairman of Greenland Resources, highlights the collaboration’s achievements, including capex finance support from financial institutions, successful off-take documentation with prominent European steel and chemical companies, and with leading mining equipment suppliers.

     “ERMA’s support has been instrumental in our success. Recently, in the presence of the Prime Minister of Belgium, we signed terms with Molymet, the world largest molybdenum roaster, to convert our molybdenite concentrate in Belgium to ferromolybdenum, molybdenum oxide, and ammonium dimolybdate and sell them directly to the EU steel and chemical industry. We expect a significant percentage of our 2022 Feasibility Study US$820 million capex to come from EU and Canadian financial institutions. Also, over US$300 million on mining equipment will be sourced from the EU and a similar amount from Canada.”

  • EU Working on E-Bus for Lithium Deal With Latin American Nations

    EU Working on E-Bus for Lithium Deal With Latin American Nations

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    European Union officials are working on a plan that can help provide electric buses to Latin American nations in exchange for lithium supplies, as they seek to curtail the bloc’s reliance on China for this critical raw material.

    [/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_separator][vc_empty_space height=”10px”][vc_row_inner][vc_column_inner width=”2/3″][widget-SocialWidget][/vc_column_inner][vc_column_inner width=”1/3″][link url=”https://www.miningweekly.com/article/eu-working-on-e-bus-for-lithium-deal-with-latin-american-nations-2023-07-14″ content_text=”News source”][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_column_text]The European Commission, the bloc’s executive arm, is in talks with automakers and governments to create a private sector consortium that can supply e-buses to Latin America, according to people familiar with the plan who did not want to be named as the discussions are private. In return, this will facilitate access to lithium deposits for the EU firms in these resource-rich countries, they said.

    The initiative is part of a broader push among western economies to ringfence their core industries and counter China, which has a stronghold over the green energy supply chain. For the Latin American countries, the deal will expedite a switch to cleaner public transport and curb carbon emissions.

    The quid pro quo pact is part of the EU’s 300-billion-euro ($335-billion) plan called the Global Gateway, the people said. It aims “to boost smart, clean and secure links in digital, energy and transport sectors” globally, according to the commission’s website.

    The EU has been “working intensively with its Latin American and Caribbean partners on an Investment Agenda,” a spokesperson for the commission said in an email, without sharing specific details. “The partnerships allow both sides to advance trade and investments into secure, sustainable and resilient raw materials value chains.”

    The 27-nation bloc plans to invest around 10-billion euros in projects across Latin America and the Caribbean, with additional contributions coming from the Member States bilaterally and the private sector.

    EU’s ambitious green goals are dependent on obtaining a large amount of minerals, including lithium whose demand is projected to surge 12 times by 2030 and 20 times by 2050.

    “We have to act now and with the highest speed,” said Bernd Schäfer, chief executive officer of EIT RawMaterials that is co-funded by the EU. “It’s a make or break moment.”

    LARGEST RESERVES
    The commission signed a pact with Argentina last month for developing “innovative and sustainable and responsible raw materials value chain projects.” It is expected to sign a similar agreement with Chile next week, two of the people familiar said. Chile and Argentina are among the countries with largest lithium reserves on the planet.

    Europe is not the only one racing to tie-in raw materials for key sectors such as electric vehicles and clean energy.

    A bill was introduced in the US this week to create a national strategy for securing supply chains of critical minerals from the Democratic Republic of Congo. Another US government program has given a $9.2 billion loan to Ford Motor Co. for building battery factories, in a bid to help local firms catch up to China in green technologies.

    The commission is still discussing the details of the plan with member states and the industry, the people said. This includes how the European companies could benefit from being part of the consortium.

    While the whole arrangement could take years to be finalized, the demand in the Latin American region — estimated at about 10,000 e-buses over the next few years — is large enough to stoke interest among European automakers, according to the people familiar.

    BRUSSELS MEETING
    Leaders from the EU, Latin American and Caribbean nations are expected to discuss Global Gateway investment projects in Brussels early next week. Business leaders and officials will also hold a roundtable in the city on critical raw materials and mobility on Monday.

    “It is not about buying lithium, but about sharing a resource that is scarce and that is strategic for sustainable mobility,” Xiana Mendez, Spain’s junior trade minister said in an interview.

    She added that EU intends to set up manufacturing in these resource-rich countries and not just extract minerals from them.

    “The difficulty would be for EU companies to cooperate,” she added. “It would be the first time something like this has been done.”[/vc_column_text][vc_empty_space][epic_post_tag compatible_column_notice=”” font_size=”17px”][/vc_column][vc_column width=”1/6″][vc_text_separator title=”LATEST NEWS” color=”juicy_pink”][vc_empty_space height=”10px”][widget-LatestPosts post_number=”4″][vc_empty_space height=”10px”][vc_text_separator title=”MOST POPULAR” color=”juicy_pink”][vc_empty_space height=”10px”][widget-popular-posts post_count=”4″][vc_empty_space][vc_wp_search title=”Search”][vc_empty_space][lvs display_like=””][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][/vc_section][vc_section][vc_row][vc_column][distance desktop_type=”50″][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][epic_block_28 compatible_column_notice=”” number_post=”6″ post_offset=”0″ first_title=”You may also like”][/epic_block_28][vc_empty_space][/vc_column][vc_column width=”1/2″][epic_hero_5 compatible_column_notice=”” hero_margin=”0″ content_filter_number_alert=”” post_offset=”0″][/vc_column][/vc_row][/vc_section]