MINEX Forum

Tag: lithium

  • Key German companies are creating a consortium for lithium mining in Kazakhstan: a new round in the lithium industry

    Key German companies are creating a consortium for lithium mining in Kazakhstan: a new round in the lithium industry

    During his working visit to Germany, Minister of Industry and Construction of the Republic of Kazakhstan Kanat Sharlapaev met with Manfred Grundke, member of the supervisory board of GP Günter Papenburg AG.

    Manfred Grundke, in addition to his role at GP Günter Papenburg AG, is also a member of the Board of Management of the Eastern Committee of the German Economy and speaker of the country group for Central Asia, which underlines his significant role in the development of economic relations between Germany and the countries of Central Asia.

    GP Günter Papenburg AG, founded in 1963, began as a construction materials trader and has grown over time to a significant size, with today 61 subsidiaries and production divisions. The company covers a wide range of activities, including the extraction of raw materials, the production of building materials, construction and logistics, which makes it a significant player in the market.

    During the meeting, the parties shared the countries’ economic performance over the past year, discussed the current economic achievements of Kazakhstan and Germany, and expressed mutual interest in deepening cooperation in the field of energy efficiency and developing supply chains for critical materials. Particular attention was paid to the possibilities of detailed cooperation, including subsoil use and the creation of joint ventures.

    A significant aspect of cooperation in the field of lithium production was also discussed. Leading companies – Knauf Gruppe, GP Gunter Papenburg AG, Roxtec, as well as the German Institute of Lithium (ITEL) have joined forces to form a consortium. This step is aimed at the development and production of lithium, using the deposits of Kazakhstan as a basis, which opens up new prospects for the development of the lithium industry in our country. 

    In addition, the parties reached an agreement to create a specialized working group aimed at exploring the potential for cooperation in the field of lithium mining and use. Additionally, we considered the prospect of developing a roadmap, which will become the basis for the successful implementation of the initiatives discussed.

  • European Lithium poised to become key player in production on the continent

    European Lithium poised to become key player in production on the continent

    European Lithium Ltd  is gaining traction in the lithium and rare earth sectors in its namesake target market, says Martin Place Securities, with a series of strategic initiatives placing it on a growth trajectory.

    The key drivers of this growth include the company’s Wolfsberg Lithium Project, a diverse portfolio that spans across Europe, and a listing on the Nasdaq.

    The company’s market capitalisation, as of January 30, stands at A$117 million.

    Revaluation due

    In its appraisal, Martin Place Securities suggests that the company’s stock is currently trading below its see-through asset backing of around A$0.80, indicating room for a substantial market revaluation.

    The report sets a value target of A$0.58 per share for European Lithium Ltd by the end of 2025.

    Martin Place Securities sees European Lithium as uniquely positioned to play a significant role in the European Union’s clean energy transition, especially with the EU’s target to phase in electric vehicles by 2035.

    The company’s diversified portfolio, strategic partnerships and involvement in critical mineral projects such as the Wolfsberg Lithium Project and the Tanbreez REE deposit, place it at the forefront of an industry poised for growth.

    Nasdaq milestone

    European Lithium’s flagship asset, the Wolfsberg lithium spodumene mining project, is slated for a Nasdaq listing, which is expected to impart a fully diluted value of A$0.61 per share, considerably enhancing the company’s market presence.

    The project, situated in Austria with a production capacity of 8.8ktpa LHM, is poised to become the first European Union producer of battery-grade lithium.

    A March 2023 definitive feasibility study (DFS) pointed to a net present value (NPV) of US$1,504 million, bolstered by high lithium hydroxide (LiOH) prices.

    “Wolfsberg would be one of the first operating lithium mines in Europe where EU regulations for the energy transition call for growing a major lithium industry to assist in the phasing in of electric vehicles there by 2035,” the report said.

    “BMW, recognising the need for security of supply, has entered into an offtake agreement with a US$15 million prepayment for all of the Wolfsberg Zone 1 output for its own battery manufacturing centre in Germany.”

    The company also has plans to access the largest lithium resource in Ukraine, which is also potentially one of Europe’s largest hard rock lithium resources.

    The report suggests that, following a resolution to the conflict in that country, an EU-Ukraine strategic partnership on critical raw materials could sponsor this development of the Shevchenkivske and Dobra deposits.

    Growth prospects in Austria and Ukraine

    The company is actively exploring additional lithium resource projects in Austria and is advancing towards acquiring significant lithium deposits in Ukraine.

    These ventures represent a strategic expansion and diversification of the company’s lithium asset portfolio.

    The lithium sector is showing signs of bottoming out, indicating a potential upswing that could benefit European Lithium’s strategic investments and market position.

    World’s largest REE deposit

    Along with its lithium exposure, European Lithium Ltd (ASX:EUR, OTCQB:EULIF) holds a 7.5% stake in the Tanbreez deposit in Greenland, touted as the world’s largest rare earth element (REE) deposit.

    The involvement in the Tanbreez REE deposit underscores European Lithium’s commitment to diversifying its portfolio in the critical minerals sector, aligning well with global trends and demands.

    This investment could yield a pass-through value potential of more than A$0.20 per European Lithium share, further enhancing the company’s asset base.

    The company is likely to target a Nasdaq listing for Tanbreez in 2025 to fund its development.

  • In search of lithium: subsoil will be studied in three regions of Kazakhstan

    In search of lithium: subsoil will be studied in three regions of Kazakhstan

    Three regions of Kazakhstan plan to begin studying the potential of lithium in 2025. LS was told about this by the Ministry of Industry and Construction.

    In response to a request from the editors, the department reported that they want to conduct geological surveys on a scale of 1:50,000 in the East Kazakhstan (Kalba-Narym ore zone), Almaty (Bayankol area) and Kyzylorda regions (Aral sedimentary basin).

    As for the amount of funding, the ministry explained that the amount required for research will be known after the development of design estimates in 2024. Source: state budget.

    “The study of the subsoil of the three objects is planned to begin in 2025 after drawing up design estimates and with the allocation of government funding,” the ministry summarized.

    Previously, the department informed LS that there are seven lithium deposits in the East Kazakhstan region. Thus, according to the ministry, the deposits are located in the Ulansky region. These include the Maralushenskoye tailings dump, the Bakennoye deposit, the Yubileinoye deposit, and the Medvedka deposit (reserve).

    Let us recall that in the East Kazakhstan region they want to build a mining and processing plant for the extraction and processing of lithium. The planned investment volume will be $100 million. Presumably, 170 people can get jobs at the enterprise. It is noted that the capacity of the project will be known after geological exploration and approval of reserves.

    According to President Kassym-Jomart Tokayev, up to 100 thousand tons of lithium are stored in the depths of Kazakhstan, which require serious investments.

    Meanwhile, the relevant ministry responded to LS’s request that the country’s state balance sheet lists lithium reserves in seven explored deposits.

  • Weardale Lithium launches public consultation on test scale lithium extraction plant

    Weardale Lithium launches public consultation on test scale lithium extraction plant

    Weardale Lithium is holding a community consultation event ahead of seeking planning permission to build a lithium extraction pilot plant.

    The company has been trialling the effectiveness of multiple direct lithium extraction (DLE) technologies to extract lithium from geothermal groundwater in Weardale, County Durham.

    The test scale facility would be located on the brownfield, former cement works at Eastgate, near Stanhope. It would involve groundwater being taken from existing high-specification wells to be transported via pipelines, negating the need for regular tanker movements on minor roads.

    Lithium is a critical raw material for electric vehicle batteries, but no commercial lithium production or refining currently takes place in the UK or Europe. Lithium produced and refined in the UK offers cost advantages, supply assurances and an environmental premium over foreign suppliers.

    The development of a pilot processing plant next to the wells ensures Weardale and the surrounding areas will receive the maximum economic benefit by ensuring processing is carried out on site.

    Initially, it is estimated the scheme will create 20 to 50 on site jobs plus additional employment within the local construction sector and supply chains.

    Scaling up to eventual commercial production could produce approximately 10,000 tonnes of lithium carbonate per year, creating around 125 jobs and generating an estimated £1bn of gross economic value for the region.

    Extraction from geothermal brines via DLE processes has been assessed by third parties to be more sustainable than alternative lithium sources. It is a low-impact, low-carbon and low-water usage method of extracting lithium from brines which Weardale Lithium intend to augment using renewable energy sources.

    The application site comprises four main parts:

    Two existing groundwater abstraction wells, south of the River Wear

    A new buried pipeline taking water from the wells to an existing gantry over the river.

    Pipeline gantry across the River Wear using the former conveyor bridge which previously took limestone from Eastgate Quarry to the former cement works. The pipelines will range from 75mm to 150mm in diameter.

    Construction of a pilot lithium processing plant on the former cement works site.

    The planning application is accompanied by comprehensive ecological, noise, air quality, highways, landscape, heritage, groundwater, surface water and flood risk assessments. For the first 12 months of the site’s operation, a Field Trials Stage will be conducted alongside the construction of the pilot plant.

    Stewart Dickson, CEO of Weardale Lithium, said: “Engaging with our neighbours, supporters and stakeholders is a key part of delivering a project that will generate both jobs and economic prosperity in the area whilst securing the supply of domestic lithium, which is of strategic importance to the UK’s net zero strategy.

    “We are keen to share our proposals with the community and look forward to welcoming visitors to the exhibition. We hope our application will gain their support and that the initial investment in lithium extraction can act as a catalyst to both grow the extraction process and attract other green technology operations to Weardale.”

     

  • Lithium in Serbia, then and now

    Lithium in Serbia, then and now

    Serbia is unique in the world because over 294,907 people (data from the Internet as of October 18th, 2023) deal with lithium and know everything about mining and obtaining lithium. According to data from 2021, 7,606 papers on lithium-ion batteries (the area of ​​greatest interest when it comes to lithium) were published in the world that year. If the average number of authors on each paper is five, this means that around 38,000 people worldwide deal with lithium. And in Serbia, eight times more people deal with lithium, that is, every 23rd resident of Serbia knows everything about the technology of mining and obtaining lithium.

    Although they acquired their knowledge about lithium from self-proclaimed lithium experts, it did not prevent them from considering themselves experts. (This is a worrying fact that shows how many people in Serbia believe inaccurate and wrong information from social networks.) Serbia still remembers how much damage the group and the party of self-proclaimed experts caused to Serbia. It was enough to consider yourself an expert and become a member of the expert party.

    Since two years ago, a group of self-proclaimed social network experts has emerged who know everything about the technology of mining and obtaining lithium. Some of these self-proclaimed “experts” have become known to the public as lithium “experts” even though they have never dealt with lithium, nor do they have any published work on lithium. The damage that these self-proclaimed experts will cause to Serbia will be calculated later.

    It all started in 2004, when the then Government of Serbia granted a permit for exploratory drilling to a multinational company. It goes without saying that whoever gets the right to exploratory drilling also gets the right to exploitation, if the results are positive. Lithium used to be, in 2004, the most harmless element of the periodic table, at least that’s what some of today’s “experts” advised the government. And also the most useful because in further contracting, according to the unwritten law on incorporation, it could be very useful for contractors from Serbia.

    When large deals are contracted, commissions are also large. Since their opportunity for contracting failed because someone else got the opportunity to mediate in contracting very large jobs, those same former advocates of lithium exploitation became the biggest opponents of that job, with the slogan “to stop everything”. Should others take a commission for the work they contracted first. They decided that they should pledge to postpone that work, until they have the opportunity to accomplish this great work.

    Our great “experts” for lithium need the citizens of Serbia, those who are not among the 294,907 “experts” for lithium, to explain how lithium, from the most harmless and most useful element of the periodic table in 2004, became the most dangerous and harmful element of the periodic table in 2020‒2021. Not even the “scientific” assembly at SAN gave an answer to this question. Anyone who has followed the literature on this subject knows that there have been no revolutionary discoveries in lithium chemistry (apart from advances in battery manufacturing). So the commission made lithium the most dangerous element.

    The Government of Serbia made the mistake of believing the stories of “experts”. The government (ministries of mining and energy, science and environmental protection) should have appointed a working group consisting of people from universities and institutes of various profiles (mining-geological, hydrological, agricultural, then chemists, physicochemists, technologists, machinists, biologists, etc. .), which would propose to the government a decision on this project based on all the existing documents or on the basis of some more that would be done, and on the basis of scientific literature and world experiences in this area.

  • The search for lithium is being intensified in three regions of Kazakhstan

    The search for lithium is being intensified in three regions of Kazakhstan

    Geological exploration companies in Kazakhstan will study the lithium potential of three regions of the republic to meet the growing demand for the rare metal. This statement was made by the head of the National Geological Service JSC Erlan Galiev during the EU-ROK partnership forum held in Belgium.

    The press service of the Ministry of Industry of the Republic of Kazakhstan reports that the state balance already includes six promising deposits where lithium can be extracted: Bakenny, Akhmirovskoye, Verkhne-Baymurzinskoye, Medvedka, Akhmetkino and Yubileinoye.

    The National Geological Survey expects to discover primary deposits of a rare metal in the southeast of Kazakhstan. According to Mr. Galiev, a significant amount of the fossil may be concentrated in the mineralized brines of the Aral sedimentary basin. In terms of its geological conditions, the object is similar to the Chilean Atacama salt marsh, which contains about 30% of the world’s metal reserves.

    They are also going to look for lithium and other rare and rare earth metals in Northern and Western Kazakhstan. In addition to new sites, the National Geological Service is interested in dumps and tailings from processing plants in the central and southern regions of the republic. Industrial waste also contains components that are valuable for extraction.

  • Fierce community opposition to copper, lithium projects threatens energy transition

    Fierce community opposition to copper, lithium projects threatens energy transition

    While nothing new, resource nationalism has ignited high-profile disputes in recent weeks, with First Quantum’s struggles in Panama and lithium miners’ in Portugal the two most radical examples.

    Panama’s ratification of a deal with the Canadian miner allowing it to operate its flagship Cobre Panama copper mine for the next 20 years, triggered violent protests that brought Panama’s capital city almost to a halt. It also scared away investors, forced authorities into a chaotic retreat, wiped out about $6.5 billion of value for shareholders of the company, and led to a nationwide ban on new mines.

    Throughout the controversy, and as the market waits to see if the Supreme Court will kill the agreement, the mine has continued to operate.

    Portuguese anti-mining groups are asking the government to halt and reassess all lithium projects, following allegations of corruption that led Prime Minister Antonio Costa to resign on Tuesday.

    Costa handed in his notice just hours after prosecutors detained his chief of staff in a probe into alleged corruption in his administration’s handling of lithium mine concessions near Portugal’s northern border with Spain. The investigation is also looking into permits granted for a green hydrogen plant and data centre in the town of Sines, about 100km south of Lisbon.

    Portuguese Environment agency APA earlier this year gave environmental approvals for local company Lusorecursos to extract battery-grade lithium and for Savannah Resources to develop four open-pit mines. Both projects are in northern Portugal.

    Savanna, which has hired investment bank Barclays and financial consultancy Barrenjoey to find partners for its Barroso lithium project, said it was cooperating with the authorities. It noted, however, that neither the company nor anyone one of its staff is a target of the investigation.

    Lusorecursos, which plans to start construction in the northern Montalegre in early 2025 and kick off lithium production in late 2027, did not reply to a request for comment.

    The challenges faced by miners in Panama and Portugal, two relatively investor-friendly nations, provide a cautionary tale for foreign investors on the vulnerability of mining projects to public hostility and resource nationalism.

    The developments come only five months after Chile announced a new public-private model for its lithium industry, which will see the state having a majority interest in all new contracts.

    They also cast doubt on plans to invest billions of dollars in the decades to extract copper, lithium and other critical minerals needed for the world to transition away from fossil fuels.

  • Eramet rues timid European banks, sees lithium plant costing $1.5 billion

    Eramet rues timid European banks, sees lithium plant costing $1.5 billion

    Eramet aims to start producing lithium in Argentina in the second quarter of next year under the first phase of its joint venture with steel giant Tsingshan, part of Eramet’s shift towards minerals needed for electric vehicle batteries.
    If the partners proceed with a second stage of the project, for which a decision is due by the end of this year, total investment is expected to reach about $1.5 billion, Eramet CEO Christel Bories told Reuters.

    This is lower than a $1.7 billion projection given by Tsingshan. It would double the estimated $735 million cost of the project’s first phase.

    Eramet will share costs with Tsingshan. It will also raise $400 million in a deal with miner Glencore to market lithium from the project’s first stage.

    Bories said Chinese investors are typically keen on mining projects internationally, but European banks are held back by onerous ESG requirements.

    “The worst is Europe. Banks ask thousands of pages of questions on ESG and due diligence,” she said in an interview before the LME Week gathering of the global metals industry.

    “We have no problem providing the evidence … but at the end of the day the whole process can take 18 months.”

    The European Union, which unveiled its Critical Raw Materials Act in March to try to secure supplies of critical raw materials for electric vehicles including lithium, cobalt and nickel, has urged European financiers to provide more funding to mineral suppliers.

    Eramet has previously criticised Europe for being slow to develop supply chains for critical minerals, saying that encouraged it to turn to Tsingshan first as a partner for a nickel mine in Indonesia and then to co-develop its lithium deposit in Argentina.

    The partners plan to reach output of 24,000 metric tons of lithium carbonate equivalent annually under the first phase of their Argentine project, with the potential second stage seeking to raise production to 75,000 tons.

    Eramet is also studying a plan with German chemical group BASF to produce battery-grade nickel and cobalt from ore extracted at Eramet’s Indonesian mine.

    The French group has pushed back a deadline for a decision to next year, with Bories saying it needed more time to find the right approach to meet Western standards.

  • US, UK and partners working on 15 critical minerals projects

    US, UK and partners working on 15 critical minerals projects

    The United States, along with its partners, is actively engaged in 15 projects aimed at securing critical mineral supplies necessary for electric vehicles and the energy transition, as revealed by a senior US official on Thursday.

    The Minerals Security Partnership (MSP), established last year by 14 governments, is committed to ensuring sufficient access to minerals such as lithium and rare earths in order to meet zero-carbon objectives.

    “We are currently exploring 15 projects across five continents, encompassing various stages from extraction to processing,” stated Jose Fernandez, the US State Department’s Under Secretary for Economic Growth, Energy, and the Environment, during a briefing in London. “Our intention is to finalize some deals within the coming months.”

    While he refrained from divulging specific company details, Fernandez did mention that at least one of the projects is located in Britain.

    The MSP, co-hosted by Britain, will convene next week during the London Metal Exchange (LME) Week, a prominent industry gathering.

    Fernandez emphasized that the MSP’s goal is to facilitate collaborations among private companies and provide assistance with financing, including support from trade banks such as the US government’s Export-Import Bank (EXIM).

    The remaining MSP members consist of the European Union, Canada, Australia, France, Germany, Italy, Sweden, Finland, Norway, Japan, India, and South Korea.

    Regarding critical minerals mined or processed in Britain, Fernandez expressed confidence that the United States would reach an agreement enabling them to qualify for US clean vehicle tax incentives.

    On Monday, Fernandez expressed optimism about reaching a similar agreement with the European Union, and Washington had already signed a minerals agreement with Japan in March.

    “These discussions are intense, and they are ongoing. We fully expect them to culminate in an agreement,” Fernandez affirmed.

    The US Inflation Reduction Act offers a $7,500 tax credit for electric vehicles purchased in the US, provided a percentage of critical battery minerals are sourced either domestically or from a free trade partner.

  • U.S. optimistic it will reach critical minerals deal with EU

    U.S. optimistic it will reach critical minerals deal with EU

    The United States expresses optimism regarding the possibility of reaching an agreement with the European Union (EU) that would enable critical minerals mined or processed in Europe to qualify for U.S. clean vehicle tax incentives. This encouraging statement was made by a senior U.S. official on Monday.

    Negotiations between the transatlantic partners are underway to determine the eligibility of EU critical minerals, such as lithium and nickel, for green subsidies under the U.S. Inflation Reduction Act. This act specifically promotes products manufactured in North America. Jose Fernandez, the Under Secretary for Economic Growth, Energy, and the Environment at the State Department, shared during a briefing in Brussels that intense negotiations are being conducted.

    Fernandez expressed hope and optimism, stating that negotiations are progressing well. Acknowledging the need for collaborative efforts, he expressed confidence in reaching an agreement between the United States and the European Union.

    He also clarified that there are no plans to link the critical minerals agreement to the resolution of the separate transatlantic negotiations addressing U.S. import tariffs on EU steel. It is important to note that the United States has already signed a minerals agreement with Japan in March. Currently, both the EU and the United Kingdom are seeking similar agreements.

    Additionally, Fernandez mentioned that he is engaging in discussions with EU officials to establish an agenda for the upcoming joint Trade and Technology Council, which the United States will host before the end of the year.

    He emphasized that both sides are committed to establishing safeguards for artificial intelligence and moving beyond general statements to concrete actions. While there is no specific timetable for reaching an agreement, there is a shared understanding that it should occur sooner rather than later. Furthermore, both parties agree that any technological advancements should uphold democratic values, human rights, and individual freedoms.

    The United States remains positive about the ongoing negotiations with the European Union, recognizing the importance of collaboration and the need to promote sustainable and innovative solutions.