MINEX Forum

Tag: critical minerals

  • Norge Mining Advances with Eigersund Project After Government Fast-Track Approval

    Norge Mining Advances with Eigersund Project After Government Fast-Track Approval

    Norge Mining has received fast-track approval from the Norwegian government for critical mineral extraction and has confirmed the viability of its most advanced mining initiative with a newly delivered pre-feasibility study (PFS). This study focuses on the first of three zones at the Eigersund project, which represents the initial phase of the Anglo-Norwegian firm’s mining plans.

    The Eigersund project is located within the Storeknuten licence area, which constitutes just 5% of the company’s total 520 sq. km exploration area. The mineral resource estimate stands at 3.4 billion tonnes across all categories, supporting at least 30 years of mining. The Storeknuten area alone contains nearly 1 billion indicated tonnes with grades of 1.73% P2O5, 4.83% TiO2, 0.07% V2O5, and 3.41% Fe3O4, according to a recent JORC resource statement by SRK.

    The PFS assigns a net present value of $2.01 billion to this zone, with expectations for this figure to rise as the project progresses and further optimizations are identified. The initial extraction phase will supply critical raw minerals, including phosphate, titanium, vanadium, and ferro magnetite, for the first 23 years, with an anticipated annual output of 20 million tonnes.

    The estimated capital cost for the project is $2.31 billion, covering expenses for open-pit mining, tailings management, beneficiation, and infrastructure development. Opportunities to reduce these costs will be explored as the project advances. In June, Norway awarded extraction rights for the Eigersund project and all other exploration licenses in the municipality, marking the largest such award in the nation’s history at 26 sq. km.

    John Vergopoulos, CEO of Norge Mining, commented on the PFS milestone, emphasizing that it is a critical step towards establishing a vertically integrated European supply source for EU critical and strategic raw materials. He noted that this achievement aligns with the company’s commitment to high standards of environmental and social sustainability.

    Norge Mining is also focused on sustainability at the Eigersund project, having established a research and development company to explore alternative uses for the mine’s tailings. This initiative aims to reduce the need for tailings deposits and enhance the project’s economic viability. Following the PFS, a bridging study will evaluate project optimization and tailings utilization, leading to a definitive feasibility study (DFS). Concurrently, the company is advancing potential downstream activities related to the production of white phosphorus, phosphoric acid, titanium metal, and vanadium, expected to progress alongside the DFS.

  • Cove Capital Explores Rare Earth Metals in Kazakhstan’s Kostanay Region

    Cove Capital Explores Rare Earth Metals in Kazakhstan’s Kostanay Region

    The American investment firm Cove Capital is actively exploring potential rare earth metal deposits in Kazakhstan’s Kostanay region. The project is partnered with the Kazakh company Kazgeology, which is part of the “Tau-Ken Samruk” structure. The geological exploration is being funded by Cove Capital, according to an interview with Pini Althaus, managing partner and founder of the company, published in the Kazakh outlet “Kursiv.”

    “The site contains a variety of rare earth metals, with a primary focus on four elements used in the production of permanent magnets: neodymium, praseodymium, dysprosium, and terbium,” said Mr. Althaus. The deposit also has significant reserves of yttrium, for which supply and demand are yet to be fully assessed.

    The project is currently in the early stages of implementation, with preliminary feasibility studies indicating the presence of 380,000 tons of rare earth metals. Mr. Althaus noted, “The project looks promising, which is why we invested in it, and we hope it becomes a major rare earth project.”

    However, the profitability of the mining operation remains uncertain, as partners need to confirm the feasibility of extracting these high-value materials. “It will take several years to develop the resource, ensure the metals can be processed, and verify our reserves before we start considering mining scenarios and profitability,” explained the managing partner of Cove Capital.

    Cove Capital holds 11 concessions for the development of critical materials such as lithium, beryllium, tantalum, rhodium, cesium, rubidium, and tin in Eastern Kazakhstan. Represented by its subsidiary, KAZ Critical Minerals, Cove Capital relies on data from Soviet-era geological surveys, refined with modern technologies and research methods.

    Additionally, Cove Capital is in discussions with the Kazakh government regarding the construction of a rare earth metals processing plant, with capital investment potentially reaching $500 million. This facility could serve as an industrial hub and an alternative to exporting these metals to China.

    Founded in 2016, Cove Capital invests in the mining industry, with projects focused on critical minerals, precious metals, and base metals in North America, Australia, Argentina, and other countries.

  • Kaz Critical Minerals Expands Exploration in East Kazakhstan with New Licenses and Partnerships

    Kaz Critical Minerals Expands Exploration in East Kazakhstan with New Licenses and Partnerships

    Kaz Critical Minerals LLP, a wholly-owned subsidiary of Kaz Resources LLC and a portfolio company of Cove Capital LLC, has achieved a major milestone in its exploration activities in East Kazakhstan. The company recently completed drilling the first 1,000 meters on its critical minerals licenses, uncovering several previously unreported positive anomalies. This discovery has prompted the company to extend its drilling program to better define these anomalies.

    In addition to these findings, Kaz Critical Minerals has been granted two new exploration licenses, further expanding its operational footprint. This expansion will enhance the company’s ability to explore key areas with high potential for valuable mineral deposits, with an immediate focus on continued drilling operations.

    Kaz Resources is also collaborating with Hatch, a globally recognized mining and engineering consulting firm. Hatch will provide professional services in key areas, leveraging its extensive experience in mining and infrastructure projects, including those in Kazakhstan. This partnership aims to enhance the efficiency and effectiveness of Kaz Critical Minerals’ exploration programs.

    Pini Althaus, CEO of Kaz Resources, expressed enthusiasm about the progress, stating, “The encouraging drilling results, coupled with the new licenses and our partnership with Hatch, position us strategically to unlock Kazakhstan’s rich mineral resources. We are committed to driving progress and creating value for our stakeholders and Kazakhstan through meticulous exploration and innovative partnerships.”

    Yuri Savguira, Senior Engagement Manager at Hatch, added, “We are excited to collaborate with Kaz Resources on this promising venture. Our combined expertise will support the development and execution of these projects, bringing our experience and excellence to the forefront.”

    Kaz Resources remains focused on exploring and developing critical minerals essential for the energy transition, advanced technology, and defense applications. The company’s efforts align with Kazakhstan’s broader economic and sustainable resource management goals.

    In 2023, Kaz Resources, through Kaz Critical Minerals LLP, became the first U.S. company to receive critical minerals and rare earths land concessions in Kazakhstan. These concessions include valuable minerals such as rare earth elements, lithium, tantalum, beryllium, niobium, cesium, and tin. A significant partnership with Kazakhstan’s national mining company, Tau-Ken Samruk, and Cove Capital was formed to explore and develop rare earth and critical metals, particularly at the Akbulak rare earth project in the Kostanay region.

  • EU Urged to Establish Independent Pricing for Critical Minerals

    EU Urged to Establish Independent Pricing for Critical Minerals

    The head of an EU-funded group has called for a European system to set prices for critical minerals essential for the energy transition, independent of China’s influence. Bernd Schaefer, CEO of EIT RawMaterials, emphasized the need for a pricing mechanism that reflects the supply and demand within Europe, rather than being susceptible to China’s market decisions.

    Western start-ups are struggling with oversupply and weak prices of materials like lithium, cobalt, and rare earths, which are impacting their cash flows and ability to compete with China. “Europe should have a critical materials platform that has a price-building mechanism that reflects the supply and demand situation in Europe,” Schaefer told Reuters at the World Materials Forum in Paris.

    Schaefer also advocated for the creation of an exploration fund to enhance the mining of critical minerals in Europe, suggesting a substantial investment, “This should not be just a couple of million (euros), it should be a billion, it must be a big number.”

    EIT RawMaterials, an alliance of over 300 companies and academics, is instrumental in executing the EU plan to secure raw materials necessary to achieve net zero greenhouse gas emissions by 2050. The EU Critical Raw Materials Act, effective since May, sets ambitious targets for the mining, recycling, and processing of minerals like lithium and copper by 2030.

    Schaefer warned that political uncertainty could hinder progress towards these targets, citing recent elections in France, the European Parliament, and instability in Germany. “This discussion is in limbo. We are in a period of transition within the Commission and within Europe,” he noted. “We might be losing time, but we cannot afford to lose time.”

    As a neutral, non-political entity, EIT RawMaterials could play a pivotal role in driving the necessary changes, Schaefer added.

  • Sweden Joins Sustainable Critical Mineral Alliance to Promote Green and Inclusive Mining

    Sweden Joins Sustainable Critical Mineral Alliance to Promote Green and Inclusive Mining

    In a significant step towards a sustainable future, Sweden has joined the Sustainable Critical Mineral Alliance (SCMA). This coalition, led by Canada and established in December 2022, includes Australia, France, Germany, Japan, the UK, and the US. The alliance aims to ensure environmentally sustainable and socially responsible mining practices, crucial for achieving net-zero emissions. The SCMA focuses on supporting local and Indigenous communities, reducing greenhouse gas emissions, and promoting a circular economy. Canadian Minister Jonathan Wilkinson and Swedish Minister Ebba Busch emphasized the importance of high environmental, social, and governance (ESG)standards in the mining industry.

  • Australia and EU Sign Agreement to Enhance Supply of Critical Minerals and Technology

    Australia and EU Sign Agreement to Enhance Supply of Critical Minerals and Technology

    A new agreement between Australia and the European Union (EU) aims to bolster the supply of critical minerals and technology, marking a significant step toward comprehensive free trade negotiations. Signed by Australian Trade Minister Don Farrell and Resources Minister Madeleine King, alongside EU Trade Commissioner Valdis Dombrovskis and Internal Market Commissioner Thierry Breton, the memorandum of understanding (MoU) focuses on several key areas of collaboration.

    The agreement outlines the establishment of talks between officials from both sides and enhanced information sharing, with a roadmap to be developed within six months. One of the primary goals is to attract European investment into Australian renewable energy projects. Senator Farrell emphasized the need for international capital to help Australia extract, process, and add value to its mineral resources.

    Key objectives include identifying and developing projects together, enhancing business links in the critical minerals sector, and fostering closer cooperation on research. The partnership is designed to strengthen Australia’s domestic critical mineral sector and help the EU diversify its suppliers for materials necessary for the green and digital transition.

    A significant aspect of the agreement is its aim to reduce over-reliance on China, aligning with broader efforts by the United States, Australia, and Europe to increase domestic manufacturing and reduce dependency on China, which currently dominates the critical minerals supply chain. Critical minerals such as lithium, nickel, and cobalt are essential for producing batteries and renewable energy technologies, crucial for achieving net-zero emissions by 2050. These minerals are also vital for manufacturing microchips and advanced technologies, including defense capabilities.

    Australia holds significant deposits of critical minerals, including 52% of global lithium production, making it a key player in the global supply chain for low-emission technologies.

    The MoU is seen as a positive step towards resuming free trade agreement negotiations, which had stalled over agricultural product discussions. Senator Farrell noted that this agreement reflects the EU’s understanding of the importance of the Australia-Europe relationship, particularly concerning the decarbonization of economies. The agreement underscores the pivotal role of Australia’s critical minerals in the clean energy transition, helping both Australia and its export partners meet climate commitments.

  • Britain – Kazakhstan rare earth relations

    Britain – Kazakhstan rare earth relations

    In March, Kazakhstan and the United Kingdom signed a Roadmap for Cooperation in the field of critical minerals. This initiative aims to strengthen the partnership by establishing joint ventures within Kazakhstan. Kazinform’s correspondent investigates the benefits that Kazakhstan stands to gain from this collaboration with the UK.

    As the world rapidly moves towards a “green” future, the demand for critical minerals is steadily increasing. These minerals, including rare elements and certain metals, are crucial for the economic prosperity and national security of leading nations. The creation of sustainable supply chains and access to these elements’ deposits are at the heart of the UK’s strategy for critical minerals, adopted in July 2022 and updated in March last year.

    “We are moving towards a world based on critical minerals: we need lithium, cobalt, and graphite for electric vehicle batteries; silicon and tin for our electronics; rare earth elements for electric vehicles and wind turbines,” states the UK strategy document.

    The document emphasizes that critical minerals will become even more significant in the future, with expectations that by 2040, the world will need four times more of these minerals for clean energy technologies.

    Participants at the “Energy Transition 2023” conference at the Chatham House in the UK reported that wind generators and electric vehicle manufacturers urgently need neodymium and praseodymium, while suppliers of high-voltage power lines require cobalt and aluminium.

    Of the 18 critical minerals identified by the British Geological Survey, eight are already produced in Kazakhstan, with raw material bases for the other eight available in the country. This positions Kazakhstan among the top 10 key partners for the UK in this sector.

    Kazakhstan and the UK approved a Roadmap for Strategic Partnership in the field of critical minerals in March 2024. The British side emphasizes “sharing experience in mineral extraction and processing with support for the full lifecycle of raw material extraction,” viewing London as a financial and trade hub. Kazakhstan’s Ministry of Industry and Construction aims to create production with added value for critical raw materials, parts, or components for subsequent delivery to consumer countries.

    Deputy Minister of Industry and Construction, Iran Sharkan, noted that the minimum raw material processing threshold for investors matches the intermediate level, meaning goods of low technological complexity or semi-finished products. Specific projects include collaborative work on advanced international practices and modern technology for geological mapping, as well as promoting best practices in regional exploratory and mapping work for critical minerals between the Geological Survey of Kazakhstan and the British Geological Survey.

    One existing example of cooperation is the joint venture between MaritimeHouse and “Zhezkazganredmet” for rhenium processing in Kazakhstan. Rhenium is a rare metal mainly used as an alloying addition in the production of heat-resistant alloys essential for high-temperature installations like aircraft engines, industrial gas turbines, and rocket engines.

    According to Kazakhstan’s Ministry of Industry and Construction, beryllium, tantalum, vanadium, copper, titanium, and phosphorus are already being supplied to the UK market. However, the ministry did not comment on the degree of processing or the form of the exported products in response to Kazinform’s inquiry.

    Experts highlight that cooperation with Kazakhstan is vital for the UK to achieve its goals of securing access to mineral resources. Jeff Townsend, founder of the British Critical Minerals Association, stated that about 40% of Kazakhstan’s territory has been fully explored, making it an incredible opportunity to build a continuous supply chain from initial exploration and extraction to early processing stages and subsequent processing and marketing in the UK.

    Political changes in Kazakhstan over recent years have made the country more attractive to British companies. However, Townsend noted three challenges: the lack of understanding of Kazakhstan’s business environment among British companies, logistical difficulties in delivering goods to the UK, and competition with Chinese companies. Despite these challenges, the British believe that their technological advantages and expertise will help them overcome these obstacles and maintain their competitiveness.

  • EU to Launch Critical Minerals Initiative for Green Transition

    EU to Launch Critical Minerals Initiative for Green Transition

    The European Commission is poised to issue calls for projects aimed at enhancing the EU’s supply of critical minerals within the coming days, according to a senior official. This initiative is part of a broader strategy to secure essential materials like lithium and copper, which are vital for the EU’s green and digital transformations. The EU Critical Raw Materials Act, which becomes effective on May 23, is at the heart of this effort, ensuring that the EU can independently produce electric vehicles and wind turbines, thereby reducing reliance on China.

    Maros Sefcovic, the Commission Vice-President, announced that the first meeting of the board overseeing the act, comprising EU member representatives, will be convened soon. “Shortly after this meeting, we aim to launch the first call for strategic projects,” Sefcovic stated during the EU Raw Materials Summit in Brussels.

    Projects focused on processing, recycling, or mining that are deemed strategic will benefit from an expedited permitting process, receiving approvals within 15-27 months, significantly faster than the usual timeframe. Sweden’s Eurobattery Minerals AB has already indicated its intention to apply for a strategic project designation for a mine in Finland.

    Additionally, the Commission is planning joint EU purchases of approximately 30 critical materials, leveraging its experience with joint gas purchases. Sefcovic emphasized the need for swift action, although he acknowledged the necessity of garnering support from EU member states, which had been a challenge with gas.

    The existing platform for gas procurement could serve as a model for these mineral purchases, despite the increased complexity of managing multiple materials. This system is expected to enhance the EU’s ability to forecast future demand more accurately. The Commission is also exploring the potential for stockpiling key minerals, drawing inspiration from Japan’s approach to rare earth reserves.

  • EU to Launch Calls for Critical Minerals Projects and Joint Purchases

    EU to Launch Calls for Critical Minerals Projects and Joint Purchases

    The European Commission is set to initiate calls for projects aimed at improving the EU’s supply of critical minerals, with plans to start joint EU purchases similar to its existing gas scheme, announced a senior commissioner on Wednesday. The EU Critical Raw Materials Act, which ensures a stable supply of essential minerals like lithium and copper for the EU’s green and digital transitions, comes into effect on May 23. This act is crucial for the production of electric vehicles and wind turbines, reducing the bloc’s reliance on China.

    Commission Vice-President Maros Sefcovic mentioned that the EU executive would soon hold the inaugural meeting of a board overseeing the act. “Within days after that… we would like to launch the first call for strategic projects,” Sefcovic stated at the EU Raw Materials Summit in Brussels. Strategic projects in processing, recycling, or mining will benefit from expedited permits within 15-27 months. Eurobattery Minerals AB from Sweden has expressed intentions to apply for a strategic mine in Finland.

    Additionally, Sefcovic revealed that the Commission is drafting plans for joint purchases of around 30 critical materials, leveraging its gas purchase scheme experience. The EU executive aims to facilitate connections between global suppliers and EU buyers, hoping to launch the scheme promptly despite potential hesitations from member states. The existing gas purchase platform could serve as a model, though acquiring diverse critical minerals presents more complexity. The Commission is also exploring stockpiling key minerals, inspired by Japan’s approach to rare earths.

  • Minerals Security Partnership (MSP) Strengthens Global Collaboration for Responsible Critical Minerals Investment

    Minerals Security Partnership (MSP) Strengthens Global Collaboration for Responsible Critical Minerals Investment

    During the Prospectors and Developers Association of Canada annual convention (PDAC) in Toronto on Sunday, March 3, the Minerals Security Partnership (MSP) convened its principals’ meeting. Chaired by Jose W. Fernandez, U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, the meeting centered on responsible investment in critical minerals. The MSP, committed to enhancing critical mineral supply chains, aims to foster collaboration with governments and industries, emphasizing environmental, social, and governance (ESG) standards. With the inclusion of Estonia as its newest partner, MSP announced the establishment of the MSP Forum to further engage in policy dialogue, project development, and supply chain resilience. Noteworthy advancements include the authorization of a senior debt facility for EcoGraf’s Epanko Graphite Project in Tanzania and the signing of a Memorandum of Understanding (MOU) between Gecamines and JOGMEC, signaling a milestone in mineral exploration and cooperation.