MINEX Forum

Tag: environmental protection

  • Report Reveals Human Rights Abuses in Race for Energy Transition Minerals

    Report Reveals Human Rights Abuses in Race for Energy Transition Minerals

    A recent report from the U.K.-based Business and Human Rights Resource Center sheds light on a concerning trend accompanying the global push for low-carbon technologies. As nations like the United States and Europe increasingly pivot towards renewable energy sources, the demand for critical minerals used in electric vehicles, wind turbines, and solar panels has surged. However, this transition is not without its consequences. The report highlights over 400 allegations of human rights abuses across 16 countries in Eastern Europe and Central Asia over the past five years. These allegations are linked to the extraction, smelting, and refining of metals and minerals essential for the energy transition, such as copper, zinc, uranium, and iron.

    The surge in demand for these minerals has led to a market worth $320 billion in 2022, according to the International Energy Agency. To meet the ambitious goal of net-zero greenhouse gas emissions by 2050, production of these materials will need to increase six-fold by 2040. Many of these resources are located in some of the world’s least-developed countries, where environmental regulations and labor protections may be lax.

    The report identifies numerous cases of alleged abuses, ranging from health and safety concerns for workers to environmental pollution. In Russia, which holds significant reserves of rare-earth minerals, over 100 allegations were recorded, including instances of workplace accidents and toxic pollution. Similar issues were reported in other countries like Armenia, Ukraine, and Kazakhstan, where inadequate safety measures and environmental contamination have sparked community protests.

    One concerning trend highlighted in the report is the close ties between extractive companies and political elites. In several countries, oligarchs with political connections own or control major mining operations, potentially influencing regulatory oversight and accountability mechanisms.

    Despite the gravity of these findings, the report suggests that the documented allegations may only scratch the surface due to repression and censorship in some of the countries studied. Independent journalists and human rights defenders face obstacles in investigating and reporting on abuses, leading to underreporting of incidents.

    The report’s authors call for increased transparency, community consultation, and respect for human rights in the extraction and processing of energy transition minerals. They emphasize the importance of ensuring that the transition to renewable energy promotes shared prosperity and fair treatment of workers and communities.

  • Serbia’s Minister of Energy and Mining Retains Position in New Government

    Serbia’s Minister of Energy and Mining Retains Position in New Government

    Minister of Energy and Mining, Dubravka Đedović Handanović, is set to continue her role under the new prime minister-designate, Miloš Vučević, who has also proposed to appoint Minister of Environmental Protection, Irena Vujović, as deputy prime minister, maintaining her current position.

    Following December’s general election, President Aleksandar Vučić designated Miloš Vučević, the head of the ruling Serbian Progressive Party (SNS), as the next prime minister. Vučević’s proposed cabinet includes retaining Dubravka Đedović Handanović and Irena Vujović in their respective ministerial roles, with Vujović additionally taking on the role of deputy prime minister.

    Previously serving as deputy prime minister and minister of defense under Prime Minister Ana Brnabić, Vučević brings extensive political experience, having served as the mayor of Novi Sad from 2012 to 2022.

    Đedović Handanović, who assumed office in October 2022, has overseen significant developments in Serbia’s energy sector, including the country’s inaugural renewable energy auctions and the legal restructuring of the state-owned power utility, Elektroprivreda Srbije (EPS).

    Serbia is currently in negotiations with Hyundai Engineering and UGT Renewables for a strategic partnership to construct a series of solar power plants totaling 1.2 GW in peak capacity, along with battery storage, to be transferred to EPS upon completion.

    Last week, Minister Đedović Handanović inaugurated a desulfurization system at TENT A, Serbia’s largest coal-fired power plant. She is also scheduled to speak at the upcoming Belgrade Energy Forum on May 13, organized by Balkan Green Energy News.

    With 18 years of experience in the international banking sector, Đedović Handanović brings a wealth of expertise to her ministerial role, having previously served on the Executive Board of NLB Komercijalna banka, focusing on corporate and investment banking.

  • Cluj Court of Appeal Revokes Environmental Permit for Rovina Gold Project

    Cluj Court of Appeal Revokes Environmental Permit for Rovina Gold Project

    In a significant legal development, the Cluj Court of Appeal has permanently revoked the environmental permit for the Rovina gold project, operated by Canada-based Euro Sun Mining. The decision was based on deficiencies noted in the permit, including missing chapters and uncertified experts among the signatories. Following challenges from various NGOs regarding flaws in the environmental impact assessment, the Cluj-Napoca ordinary court nullified the permit in December. This recent ruling by the Cluj Court of Appeal, issued in April of this year, definitively halts any mining activities by Euro Sun at the Rovina site. Roxana Pencea Brădățan of local non-profit Declic hailed the decision as a victory for local communities and environmental protection in Romania, emphasizing its significance in the ongoing battle for environmental preservation. Despite the setback, Euro Sun Mining expressed intentions to reinitiate procedures and secure another environmental permit following the lower court’s ruling. CEO Grant Sboros reiterated the company’s commitment to resubmitting necessary documentation and expressed confidence in obtaining timely certification. Euro Sun asserts that the Rovina project ranks among the largest developing gold deposits globally, and the second largest in Europe, with substantial gold and copper resources estimated at 286 gold equivalent tonnes. The initial gold mining license for Rovina was granted to Euro Sun’s subsidiary, Samax Romania, in 2015 for a duration of 20 years, with governmental ratification occurring three years later.

  • Aurubis to invest € 330 million in precious metals processing and environmental protection at the Hamburg site, expanding project pipeline to € 750 millionb

    Aurubis to invest € 330 million in precious metals processing and environmental protection at the Hamburg site, expanding project pipeline to € 750 millionb

    Aurubis AG, a leading global provider of non-ferrous metals and one of the largest copper recyclers worldwide, has approved additional, comprehensive investments, with a focus on its Hamburg site. At its most recent meeting, the Supervisory Board endorsed two new projects at the North German plant for a total of € 330 million. These include around € 300 million earmarked for a new precious metals processing plant, the Precious Metals Refinery (PMR). Combined with current facilities, it will create a new, integrated high-security area for the processing of precious metals at the site. Aurubis is also allocating around € 30 million to further augment environmental protection, and announced the second stage and significant expansion of the Reducing Diffuse Emissions (RDE) system used in primary copper production.

    Aurubis investing in security for precious metals processing

    The new precious metals processing plant is slated to come online at the end of 2026. Precious Metals Hamburg comprises the entire precious metals processing chain in one closed security area. In addition to upgrading plant and precious metals security and occupational safety, Aurubis is raising the bar with the innovative process technology and systems engineering involved in the project. The newly developed metallurgical process leads to higher efficiency, which will considerably reduce throughput times for materials containing precious metals and lower operating costs by around 15 %. With this new plant, Aurubis is significantly expanding production capacity in precious metals and laying the groundwork for additional growth strategy projects.

    Doubling capacity: expanding the system to reduce diffuse emissions

    An € 85 million filter system in primary copper production has been reducing diffuse emissions at the Aurubis Hamburg site since 2021. The project involved closing roof openings on the building housing the primary smelter and connecting them to a new, high-performance filter system. The system suctions off and cleans diffuse emissions, or dust, then redirects residual quantities to the production cycle, and has already lowered the diffuse emissions discharged from primary copper production by 40 %. The new expansion stage will double the system’s efficiency to 80 %. This augmentation of the filter technology represents another significant drop in the fine particulate matter released, already below the threshold level today. Since 2000, the Aurubis Group has invested about € 830 million in environmental protection measures for copper production, achieving the highest sustainability standards in the industry.

    “By endorsing these comprehensive investment projects at its most recent meeting, the Supervisory Board affirmed its support for the Aurubis growth strategy and for strengthening our core business,” Aurubis CEO Roland Harings explained. “We are making an important contribution to sustainable, environmentally friendly, and innovative metal production with these projects.”

    We are making an important contribution to sustainable, environmentally friendly, and innovative metal production with these projects.

    Roland Harings

    Chief Executive Officer

    Implementing project pipeline lays the groundwork for a state-of-the-art smelter site in Hamburg

    These new projects combined with previously approved projects, some of which are already in progress, mean that Aurubis is currently investing a total of over € 750 million in its Hamburg plant. This includes four flagship investments:

    The first is the increased extraction of carbon-free industrial heat. In the future, the roughly € 100 million project could prevent up to an additional 100,000 t of CO2 per year, roughly five times more than the first stage.
    Second is the Complex Recycling Hamburg (CRH) project with an investment volume of € 190 million. It will give Aurubis the capacity to process around 30,000 additional t of recycling material and internal, complex smelter intermediary products on a larger scale starting in 2025.
    In spring 2024, Aurubis will take new anode furnaces online that can use hydrogen instead of natural gas in the reduction process in the future, a third key step in setting the stage for the transition to carbon neutrality. The around € 40 million investment could potentially prevent around 5,000 t of CO2 per year with the exclusive use of hydrogen.
    And fourth, the largest routine maintenance shutdown in the history of the Aurubis Hamburg plant is scheduled for the spring. Aurubis is investing around € 95 million in positioning its Hamburg smelter even more robustly for the future.

    “All these projects represent a powerful commitment to the Aurubis Hamburg site, which is central to the success of our smelter network. We’re investing a total of € 750 million in our core business, in recycling activities, and in environmental protection and plant security: The new processing area for precious metals takes security to a completely new level. We are acting quickly, decisively and with resolve – all the takeaways from the most recent criminal activities directed against Aurubis have been incorporated into the plant’s design. And by expanding our filter system for diffuse emissions, we are also intensifying our leading position as a sustainable multimetal producer,” Roland Harings explained.

    The Supervisory Board also approved an investment volume increase to € 740 million for the construction of the Aurubis Richmond plant in the US, to which leasing obligations will be added. Additional design and infrastructure requirements, adjustments for inflation, and increased complexity in implementation necessitated the expansion.

    Investing in decarbonization: Aurubis nearly doubles the largest in-house solar park in Bulgaria, adding an additional 18 MWp

    The company also confirmed plans to expand its solar park at the Aurubis plant in Bulgaria. With an investment volume of just under € 15 million, the company is almost doubling the output of the existing plant and the third stage currently under construction, adding 18 MWp (megawatt peak) for a total of almost 42 MWp. Once complete, the entire solar park will generate roughly 55,000 MWh of electricity per year, covering over 10 % of the Bulgarian plant’s needs. As such, the multimetal provider is upgrading what is already the largest in-house solar park in Southeast Europe today. Taken together, all stages of the solar park will generate enough electricity to power 15,000 four-person households, or the equivalent of a small city. Aurubis will be preventing around 28,000 t of CO2 emissions per year. The approved expansion stage is anticipated to go online in mid-2025.

  • EU to launch first phase of world-first carbon dioxide border tax

    EU to launch first phase of world-first carbon dioxide border tax

    The European Union (EU) is set to commence the initial phase of its groundbreaking plan for the world’s first carbon border tax next month. Under this plan, importers will be required to disclose the carbon dioxide (CO2) emissions associated with products sold into Europe, such as steel and cement. Failure to comply may result in financial penalties. The primary objective of this new regime is to safeguard domestic EU industries from being undermined by foreign competitors that have higher levels of pollution. The EU aims to achieve this while simultaneously encouraging investment in emission reduction. By 2026, when the plan is fully implemented, imports into the EU will be subject to a CO2 fee equivalent to what European companies already pay in Europe’s carbon market.

    Turkey, Ukraine, China, and Russia are expected to be the countries with the largest exports affected by the CO2 tax, although EU trade with Russia has significantly declined since the Ukraine conflict. Industries in Europe, Ukraine, and Britain have expressed minimal concerns about the initial impact but have cautioned against potential significant repercussions once the full CO2 levy is introduced in 2026.

    Starting in October, the trial phase of the CO2 levy will mandate companies importing steel, cement, aluminum, electricity, fertilizers, and hydrogen into the EU to disclose the emissions associated with the production of these goods. Failure to report may lead to penalties of up to 50 euros per tonne of CO2. From 2026 onwards, a CO2 fee will be imposed on goods imported into the EU.

    A spokesperson from UK Steel has mentioned that they do not anticipate a significant impact during the initial reporting phase. Similarly, a representative from ArcelorMittal Kryvyi Rih, the Ukrainian subsidiary of steelmaker ArcelorMittal, has stated that they have almost all the necessary data to comply with the reporting requirements. However, concerns have been raised about the cost of adaptation and the competitiveness of Ukrainian products in 2026, as companies have limited resources to invest in decarbonization during times of conflict.

    It is worth noting that the border fee will not be applicable to imports from countries that have a CO2 price equivalent to that of the EU. This provision could prove advantageous for Ukraine, as it aligns its climate policies with those of the EU in its bid to join the bloc. Additionally, the EU levy includes exemptions for countries facing unprovoked situations that result in infrastructure destruction. The effectiveness of this clause in addressing Ukraine’s exceptional circumstances will be assessed in due time, according to a European Commission official.

    Brussels hopes that the border levy will utilize Europe’s market influence to encourage foreign companies to reduce emissions and avoid the CO2 fee. However, foreign companies, including those from China, have expressed concerns about potential consequences. The Secretary General of the China Iron and Steel Association, Jiang Wei, stated that the policy could increase the price of Chinese steel exports to the EU by 4-6%. Chinese steelmaker Baowu Steel Group also described the EU levy as a significant challenge, highlighting the capital-intensive and time-consuming nature of modifying technological processes in the steel industry.

    Initially, importers can utilize default values to calculate the CO2 footprint of goods if suppliers do not provide precise data. The first reports are due in January. European industries have urged Brussels to ensure that this leniency is only temporary. Industry experts have emphasized that the use of real emissions data is crucial to effectively penalize power generators with the highest carbon intensity. They have called for the transitional phase to be utilized to close loopholes and establish more robust rules to combat circumvention. Concerns about circumvention are expected to heighten as the full launch of the levy approaches in 2026, coupled with Brussels’ gradual phasing out of the free CO2 permits currently granted to European companies to reduce their carbon footprint.

  • Explained: The EU’s handicap in the global race for critical raw materials

    Explained: The EU’s handicap in the global race for critical raw materials

    The EU is highly dependent on third countries for the raw materials needed to engineer its energy transition and digital transformation.

    Russia’s war in Ukraine and the need to wean itself off fossil fuels in order to reach climate targets have prompted the EU to accelerate its green transition in recent months but also forced it to acknowledge its dependencies over access to critical raw materials.

    In the global race for raw materials, the EU faces multiple challenges.

    The first one is China, which recently started restricting exports of gallium and germanium, two metals essential for the production of semiconductors, in response to Western curbs on Beijing’s access to micro-processing technology.

    The EU considers both materials of high strategic importance. As well as semiconductors and other electronic devices, they are used for military applications such as missile defence and radar systems.

    Beijing’s restrictions come as a stark warning as the EU attempts to diversify and boost domestic supply of raw materials to reduce dependency on third countries.

    Reliance on ‘low-governance’ countries

    But diversifying supply chains could mean the EU has to source these materials from countries that don’t adhere to the same standards.

    Recent data suggests the EU’s supply is highly dependent on countries that have a low governance level, based on indicators including political stability, rule of law and corruption control.

    The EU’s Critical Raw Materials Act (CRMA), adopted in March this year, stipulates that EU strategic projects to scale up supply must be assessed taking into account all aspects of sustainability, including environmental protection, socially responsible practices and respect for human rights such as the rights of women.

    But many countries feeding EU supply are not aligned with European values. This raises concerns about the impact on the local communities where materials are mined, as well as the potential exploitation of natural resources.

    For example, the Democratic Republic of Congo, whose governance indicators are among the lowest in the world, supplies 63% of the EU’s cobalt, which is essential for manufacturing batteries for electrical vehicles.

    Diversifying supply a challenge

    The EU is also highly dependent on single countries for key materials such as Magnesium (China, 97%), Lithium (Chile, 97%), Iridium (South Africa, 93%) and Niobium (Brazil, 92%). These dependencies make supply chains vulnerable.

    The Critical Raw Materials Act aims to ensure no third country provides more than 65% of the Union’s annual consumption of any raw material.

    But diversifying supply is complex when refineries of many essential materials are monopolised by one or more global powers. China dominates the refining market for many critical raw materials.

    Russia’s invasion of Ukraine and the ensuing energy crisis has shown the acute dangers of over-reliance for supplies of raw materials. China’s increasingly antagonistic stance and the political instability in many African countries have also served as reminders of the fragility of the EU’s trading relationships.

    A spiralling global demand

    The demand for raw materials is growing steeply, as developed countries race to digitalise and decarbonise their economies. This can only happen with sufficient supply of raw materials, meaning countries must scale up extracting, refining and recycling operations.

    The global demand for lithium, for example, is set to increase a staggering 89-fold by 2050, according to the European Commission. Demand for gallium will multiply 17-fold during the same time.

    The Critical Raw Materials Act sets targets for the Union to extract 10%, process 40% and recycle 15% of its annual consumption of raw materials by 2030.

    To meet these targets and compete on the global stage, European Commission President Ursula von der Leyen has said the EU needs to speed up investments in research and development, recognising that the bloc’s global share of R&D expenditure has fallen 10% in the last 20 years.