In a bid to reduce dependency on imports and align with climate targets, France announces measures aimed at revitalizing copper mining and expediting lithium and geothermal energy projects. Finance Minister Bruno Le Maire outlined potential steps to streamline research permits for geothermal energy, mining, and carbon storage, with provisions allowing the repurposing of depleted oil and gas wells for carbon storage.
Speaking at a geothermal drilling site in a Paris suburb, Le Maire emphasized leveraging France’s diverse energy resources, including wind, hydro, biomass, and solar energy, alongside untapped geological assets. The proposed legislation seeks to accelerate the revival of copper mining, halted for over two decades, to meet the rising demand for cables essential in renewable energy infrastructure and cross-border power connections.
With lithium projects on the horizon, spearheaded by companies like Imerys SA, Eramet SA, and Arverne Group SA, France aims to cover a significant portion of its electric-vehicle battery needs by 2035. The national geothermal action plan, published in 2023, outlines ambitious targets to triple renewable heat production from deep geothermal energy and geothermal heat pumps by 2028 and 2030, respectively.
Antonio Costa resigned on Tuesday, hours after prosecutors detained five people, including his chief of staff, and named two formal suspects close to him in an investigation into lithium mining and hydrogen projects.
Costa’s possible role is also being investigated by the Supreme Court of Justice after prosecutors said they had become aware the suspects allegedly used his name and authority to “unblock procedures” related to the deals. He has denied wrongdoing and said his conscience is clear.
With more than 60,000 metric tons of known lithium reserves, Portugal is Europe’s biggest lithium producer, but its miners sell almost exclusively to the ceramics industry.
They are now preparing to produce the higher-grade lithium used in electric cars and electronic appliances, as Europe seeks to develop its own strategic energy resources to reduce dependence on suppliers like China.
Environment agency APA earlier this year gave environmental approvals for local company Lusorecursos to extract battery-grade lithium and for London-based Savannah Resources to develop four open-pit mines. Both projects are in northern Portugal.
Lusorecursos did not reply to a request for comment. Savannah said in a statement it was cooperating with the authorities who visited some of its locations, but that neither the company nor anyone one its staff was a target of the investigation.
Lithium projects have faced strong opposition from local residents and environmentalists. They say the processes lacked transparency and have repeatedly warned of the “dangerous promiscuity” between decision-makers and mining companies.
They have also been demanding stronger regulation.
In a joint statement, eight anti-mining groups said the current situation was proof their concerns were legitimate, namely because APA President Nuno Lacasta was named a suspect along with Infrastructure Minister Joao Galamba, who previously served as energy secretary.
“Lithium mining projects in Portugal must be immediately cancelled to not allow territories and populations to be affected based on corrupt and unclear processes,” the groups said.
Exploration rights
They accused APA of working in the interest of mining companies and said the government had “created a network of business opportunities to benefit very few (people)”.
APA did not reply to a Reuters request for comment about the criticism. It confirmed on Tuesday that its offices had been searched as part of the investigation, but has made no further comment. Galamba’s ministry has not responded to requests for comment.
In 2019, Portugal’s government came under fire from lawmakers for signing a contract giving exploration rights for lithium mining to Lusorecursos when the company was only three days old.
The UDCB movement, which is campaigning against mining expansion in the Barroso region, where Savannah Resources wants to develop its project, said in a separate statement that the environmental approvals given by APA should be reviewed.
Catarina Scarrott, from the UDCB, told Reuters the movement had been denied access by APA to environmental documents related to the project in Barroso. APA did not immediately to a request for comment on this accusation.
“The consequences of things going wrong are very serious,” Scarrott said, referring to the potential environmental impact of the mines, which according to UDCB include water contamination and threats to the region’s fauna.
UDCB said the “suspension of any licensing, prospecting or exploration licences is imperative until criminal responsibilities can be properly ascertained”.
The lithium market has been in turmoil with dramatic price swings over the last few years as demand from electric cars take off and global supply growth tries to keep up.
Junior miners are piling into the lithium market with competing new projects — the US state of Nevada is the emerging hotspot and where this year’s top three lithium projects are all located.
In a snapshot of the global project pipeline,Mining Intelligencedata provides a ranking of the largest clay and hard rock projects in 2023, based on total reported lithium carbonate equivalent (LCE) resources and measured in million tonnes (mt).
These projects will add to already robust production growth with global output set to come close to 1 million tonnes this year ramping up to 1.5 million tonnes in 2025, double production levels in 2022.
#1 McDermitt
Development status: Prefeasibility // Geology: Sediment hosted
Topping the list is the McDermitt project, located on the Nevada-Oregon border in the US and owned by Jindalee Resources. The Australian miner this year updated the resource to 21.5 mt LCE, up 65% from the 13.3 million tonnes reported last year.
#2 Thacker Pass
Development status: Construction // Geology: Sediment hosted
Development status: Preliminary economic assessment // Geology: Sediment hosted
Nevada Lithium Resources’s Bonnie Claire project Nevada’s Sarcobatus Valley slides from last year’s top spot to third place with 18.4 mt LCE.
#4 Manono
Development status: Feasibility // Geology: Pegamite
The Manono project in the Democratic Republic of Congo is in fourth place with a 16.4 mt resource. The majority owner, Australian miner AVZ Minerals, holds 75% of the asset, and is in a legal dispute with China’s Zijin over the purchase of a 15% stake.
#5 Tonopah Flats
Development status: Advanced exploration // Geology: Sediment hosted
American Battery Technology Co’s Tonopah Flats in Nevada is a newcomer to this year’s list, taking fifth place with 14.3 mt LCE. The Tonopah Flats project in Big Smoky Valley encompasses 517 unpatented lode claims covering approximately 10,340 acres, and ABTC controls 100% of the mining lode claims.
#6 Sonora
Development status: Construction // Geology: Sediment hosted
Ganfeng Lithium’s Sonora in Mexico, the most advanced lithium project in the country, comes in number six with 8.8 mt LCE. Although Mexico nationalized its lithium deposits last year, president Andres Manuel Lopez Obrador said his government wanted to reach agreement with the company over lithium mining.
#7 Cinovec
Development status: Feasibility // Geology: Greisen
The Cinovec project in the Czech Republic, the largest hard rock lithium deposit in Europe, is in seventh place with 7.3 mt LCE. CEZ holds 51% and European Metal Holdings 49%. In January, the project was classified as strategic for the Czech Republic’s Usti region.
#8 Goulamina
Development status: Construction // Geology: Pegamite
The Goulamina project in Mali is in eighth place with 7.2 mt LCE. A 50/50 JV between Gangfeng Lithium and Leo Lithium, the companies are planning to undertake a study into expanding the combined production capacity of Goulamina Stages 1 and 2.
#9 Mount Holland – Earl Grey Lithium
Development status: Construction // Geology: Pegamite
Chilean miner SQM and Australia’s Wesfarmers joint venture, Mount Holland-Earl Grey Lithium in Western Australia, takes ninth place with a 7 mt resource.
#10 Jadar
Development status: Feasibility // Geology: Sediment hosted
Rio Tinto’s Jadar project in Serbia rounds out the list with a 6.4 mt resource. The world’s second largest miner faces local opposition for the project, but is eyeing a revival and keen to reopen talks with the Serbian government after it revoked licenses in 2022 in response to protests sparked by environmental concerns.
