MINEX Forum

Tag: lithium

  • 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.

  • Cornish Lithium raises £5.1m through crowdfunding

    Cornish Lithium raises £5.1m through crowdfunding

    UK-based Cornish Lithium has raised £5.1-million through crowdfunding on a platform called Crowdcube, marking it as one of the largest crowdfunding endeavours undertaken in the UK this year.

    Cornish launched the crowdfunding to provide exiting shareholders, as well as new retail shareholders, the opportunity to invest alongside a landmark £53.6-million fundraise announced on August 8 by UK Infrastructure Bank, Energy and Minerals Group, and TechMet.

  • UK’s ‘first large scale’ lithium refinery gets green light on Teesside

    UK’s ‘first large scale’ lithium refinery gets green light on Teesside

    A plant which will refine lithium – a material used in electric car batteries – is to be built on Teesside.

    Green Lithium, which it said would be the first large-scale facility in the UK, will be located at PD Ports’ Teesport site after getting approval from Redcar and Cleveland Council.

    The company said it was “confident” the plant would open in 2027. It added more than 1,000 jobs would be created during construction, with about 250 more when it opens.

    Chief executive officer Sean Sargent said: “I’m confident we’ve got a great team together and a lot of delivery partners supporting us and that gives me the confidence that we know what we are doing and we’ve got a team in place that understands the risk profile of a project of this nature and knows how to overcome those risks.

    “The next step is we’ve got to complete a fundraising round that’s going on at the moment.”

    The company said the plant would provide an alternative market for European electric car manufacturers who are reliant on China and East Asia, where 89% of the world’s lithium is currently refined.

    Lithium is a key component in rechargeable batteries that power numerous gadgets such as smartphones and laptops, as well as electric cars.

    Last month the mining of battery-grade lithium carbonate in Cornwall was announced.

    It is expected the Teesport plant will produce 50,000 tonnes of battery-grade lithium chemicals to provide batteries for one million EV car batteries every year.

    The 58-acre site was chosen because of its access to a deep-water port, locally supplied renewable energy and hydrogen gas.

    As well as refining lithium for EV batteries, the chemical will also be used in the production of lithium-ion batteries and energy storage.

    Green Lithium hopes the plant will encourage more gigafactories, which produce batteries, to be built in the UK.

    It said over the next three-and-a-half years it would spend 14 months designing the plant and then 28 months building it.

    Redcar and Cleveland Borough Council leader Alec Brown, Labour, said it demonstrated the developer’s “significant confidence in our area”.

    “This investment will create hundreds of jobs supporting electric vehicle production and the decarbonisation of the UK.

    “With the port on our doorsteps, this will hopefully draw other industries linked to battery production to Teesside.”

     

  • Metso expands into Finland

    Metso expands into Finland

    Metso has modernised its pilot facility at Metso Research Center in Pori, Finland, with expanded capabilities for lithium hydroxide (LiOH) and other battery chemicals process testing. The unique pilot line serves mining and battery industry customers processing battery minerals. In connection with the expansion, Metso has also opened a battery materials precursor (pCAM) pilot plant, available now for customer trials.

    “Pilot run requests for battery minerals like lithium, nickel and cobalt have increased significantly during the last three years. Currently, we are working on several battery black mass recycling and precursor projects and have several lithium and other battery chemicals project pilots on our laboratory schedule,” says Janne Karonen, Director for Hydrometallurgical Research & Development at Metso.

    Process simulations are essential in the piloting phase, supporting process and equipment design, training and plant operation. For this purpose, Metso uses its unique metallurgical digital twin Geminex, which is based on the company’s proprietary HSC-Sim software for predictive process simulations. Pilot plant and real-time plant data enrich the simulation model to accurately predict plant behavior.

    Metso has developed sustainable hard rock lithium soda leaching technologies for 20 years already. The pilot facility expansion it says “complements Metso’s frontrunning piloting capabilities for minerals processing and metals refining, enabling minerals and battery industry customers to have end-to-end testing, piloting services and technology and equipment deliveries from one supplier.”

    Metso’s expertise in battery minerals covers the extraction of lithium from brines and pegmatite ores up to battery-grade lithium salts. These patented processes are designed to meet the needs for high-end lithium-ion battery chemicals production. Metso can provide sustainable technology and equipment for the entire lithium, nickel and cobalt production chain – from the mine to battery materials and black mass recycling – with project scopes ranging from equipment packages to plant deliveries.

     

     

  • Serbia and Jadar lithium mines: will the project resume?

    Serbia and Jadar lithium mines: will the project resume?

    Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, emphasized the need for a responsible approach to the country’s critical natural resources, including lithium, during a recent statement. Minister Đedović Handanović highlighted the importance of considering not only the exploitation of mineral wealth but also the establishment of a value chain that encompasses battery and electric vehicle production. Recognizing the global shift towards a new industrial order, she emphasized Serbia’s potential to become a part of this transformative movement.

    Minister Đedović Handanović reiterated this viewpoint when discussing the potential exploitation of lithium in Serbia. She emphasized that Serbia possesses abundant mineral resources, some of which are classified as critical by the EU. Referring to the suspended “Jadar” project and the importance of the value chain, she emphasized the need to explore ways to capitalize on Serbia’s wealth, including the establishment of factories for battery and electric vehicle production.

    The Jadar deposit, identified as one of the largest lithium deposits globally by the think-tank Blue Europe, had been the focus of the mining project initiated by British-Australian mining company Rio Tinto. However, due to environmental concerns, the company’s license was revoked in 2022.

    Although the Jadar project was halted, speculations have arisen following a report by German tabloid Hadensblatt in December 2022, which revealed a confidential list of investments under the EU’s “Global Gateway” initiative, including a lithium mine in Serbia. This has sparked speculation about the potential revisiting of the Jadar project in the future.

  • North East and Cumbria river metal pollution tackled by £9m scheme

    North East and Cumbria river metal pollution tackled by £9m scheme

    In the Ore Mountains, a vast reserve of lithium is found. If the Czech Republic authorities proceed with its extraction, known as the “white gold,” it has the potential to boost the economy of both the country and the Usti nad Labem region. However, not everyone shares the same enthusiasm for these plans. The village of Cinovec, located near the German-Czech border, possesses a small yet valuable treasure. Situated approximately 100 km northwest of Prague, this village holds around three to five percent of the world’s lithium reserves, making it the largest lithium deposit in Europe.

    Lithium mining has become a strategic investment area in the Czech Republic, gaining immense significance in recent years, particularly in the field of battery production. The transition to alternative energy sources and the advancement of electromobility heavily rely on lithium-based energy storage. Furthermore, the soaring prices of lithium make its extraction economically viable for the Czech Republic. According to an analysis conducted by the Czech Chamber of Commerce, the country has exhausted its previous sources of economic growth, which indicates potential stagnation in the upcoming years. However, Prime Minister Petr Fiala remains hopeful that lithium mining could breathe new life into the Czech economy. In his vision for the country’s development over the next thirty years, Fiala outlined six strategic investment areas, with lithium mining and processing receiving the most attention.

    Fiala emphasized the pivotal role of lithium as a crucial raw material for electromobility, especially in battery cells. He stressed the government’s commitment to initiating extraction as soon as possible, ideally by 2026.

    The region possesses sufficient raw materials to produce one million lithium batteries annually. Cinovec is situated in a mining region with a long history of extracting various ores since the 13th century, including tungsten and tin in the 1940s. In the 2010s, geological surveys revealed significant lithium reserves in the area, extending across the German-Czech border into Zinnwald, albeit to a lesser extent. Prague has already entered into an agreement with the federal state of Saxony to explore potential cooperation in lithium mining. On the Czech side, the state-owned company Czech Energy Works (CEZ) will spearhead these efforts. Over a 25-year period of lithium extraction, it is estimated that a thousand miners will find employment in the region. Additionally, the construction of a gigafactory dedicated to electric vehicle battery production will generate new job opportunities and revenue. CEZ anticipates that mining this scarce resource could commence within four years.

    The authorities in the Usti nad Labem region support the development of the lithium deposit, provided that it adheres to stringent environmental standards. Jan Schiller, head of the region’s administration and a member of the opposition party “Action of Dissatisfied Citizens” (ANO), views lithium mining as an opportunity. However, he underscores the importance of establishing favorable conditions before commencing mining operations. The region still bears the consequences of coal mining, and any negative impact on living conditions must be adequately compensated.

    The prospect of new opportunities or further resource extraction?
    The Usti nad Labem region receives funding from the JTF, an EU fund dedicated to mitigating the consequences of ending coal mining and facilitating economic restructuring in affected regions. It is expected that a portion of the fund’s resources will be allocated to further develop the lithium project.

    Nonetheless, some experts caution against simply replacing coal mining with lithium extraction after the end of brown coal mining in the region. They recommend utilizing the funds from Brussels to invest in education and overall economic restructuring. Similar sentiments are echoed among the local population. Michal Koletzko, a professor at the Jan Evangelista Purkyne University in Usti nad Labem, staunchly opposes lithium mining in the region. Koletzko believes that lithium is not the right path and suggests focusing on fundamental changes to secure a new future for the region. He advocates for investing in areas that have the potential to not only provide an economic backbone but also transform the social composition and educational level of the population.

    Concerns about negative environmental impact
    Opinions among the residents of the Cinovec area are divided. On September 7, 2023, a discussion was held in the nearby town of Dubi between local residents and representatives of CEZ, and the venue was filled to capacity. Czech Radio reports that the primary concerns among villagers revolve around threats to the water supply and deterioration of air quality due to the transportation of extracted raw materials. Like any non-renewable resource, lithium mining does have environmental consequences. In South America, where approximately 70% of the world’s lithium reserves are concentrated in the “lithium triangle” spanning Bolivia, Chile, and Argentina, the extraction of lithium-containing brine has caused a significant decline in groundwater levels in certain regions. Careless actions by mining companies have also resulted in instances of air, water, and soil pollution. In Cinovec, lithium will be extracted from solid rock formations. While this method is water-intensive and consumes more energy compared to brine extraction

  • Europe’s largest deposit: lithium frenzy in the Czech Republic

    Europe’s largest deposit: lithium frenzy in the Czech Republic

    In the Ore Mountains, lies an abundance of lithium deposits. Should the Czech Republic’s authorities embark on its extraction, the region of Usti nad Labem, as well as the country’s economy, could reap the benefits of this “white gold.” However, not everyone is enthused about such plans. The village of Cinovec, situated near the German-Czech border, holds a small yet significant fortune. This village, approximately 100 km northwest of Prague, is home to approximately three to five percent of the world’s lithium reserves, making it the largest lithium deposit in Europe.

    Lithium mining has become an area of strategic investment in the Czech Republic, gaining immense importance in recent years, particularly in battery production. The transition to alternative energy sources and the advancement of electromobility heavily rely on lithium-based energy storage. Furthermore, the soaring prices of lithium make its extraction economically viable for the Czech Republic. The Czech Chamber of Commerce’s analysis reveals that the country has depleted its previous sources of economic growth, signaling potential stagnation in the near future. However, Prime Minister Petr Fiala remains hopeful that lithium mining could rejuvenate the Czech economy. In his vision for the country’s development over the next three decades, Fiala identified six strategic investment areas, with lithium mining and processing taking the spotlight.

    Fiala emphasized the significance of lithium as a crucial raw material for electromobility, particularly for battery cells. He expressed the government’s commitment to initiating extraction as soon as possible, ideally by 2026.

    The raw materials in the region are ample, with the potential to produce a million lithium batteries annually. Cinovec is situated in a mining region with a long history of extracting various ores since the 13th century, including tungsten and tin in the 1940s. In the 2010s, geological surveys unveiled substantial lithium reserves in the area, extending across the German-Czech border into Zinnwald, albeit to a lesser extent. Prague has already signed an agreement with the federal state of Saxony to explore potential cooperation in lithium mining. On the Czech side, the state-owned company Czech Energy Works (CEZ) will spearhead these efforts. Over a 25-year span of lithium extraction, it is estimated that a thousand miners will find employment in the region. Moreover, the construction plans for a gigafactory dedicated to electric vehicle battery production will generate new job opportunities and revenue. CEZ anticipates that mining this scarce resource could commence within four years.

    The authorities in the Usti nad Labem region support the development of the lithium deposit, provided that the process adheres to strict environmental standards. Jan Schiller, head of the region’s administration and a member of the opposition party “Action of Dissatisfied Citizens” (ANO), considers lithium mining as an opportunity. However, he emphasizes the importance of establishing favorable conditions before commencing mining operations. The region still bears the consequences of coal mining, and any negative impact on living conditions must be justly compensated.

    New possibilities or further resource extraction?
    The Usti nad Labem region receives funding from the JTF, an EU fund dedicated to mitigating the consequences of coal mining cessation and facilitating economic restructuring in affected regions. It is anticipated that a portion of the fund’s resources will be allocated to further lithium project development.

    Nonetheless, some experts caution against simply replacing coal mining with lithium extraction after the end of brown coal mining in the region. They recommend utilizing the funds from Brussels to invest in education and overall economic restructuring. Similar sentiments are echoed among the local population. Michal Koletzko, a professor at the Jan Evangelista Purkyne University in Usti nad Labem, staunchly opposes lithium mining in the region. Koletzko believes that lithium is not the right path and suggests focusing on fundamental changes to secure a new future for the region. He advocates for investing in areas that have the potential to not only provide an economic backbone but also transform the social composition and educational level of the population.

    Concerns about negative environmental impact
    Opinions among the residents of the Cinovec area are divided. A discussion held on September 7, 2023, in the nearby town of Dubi between local residents and CEZ representatives witnessed a packed hall, highlighting the significant concerns among villagers. Czech Radio reports that the primary concerns revolve around threats to water supply and deterioration of air quality due to the transportation of extracted raw materials. Like any non-renewable resource, lithium mining does have environmental consequences. In South America, where approximately 70% of the world’s lithium reserves are concentrated in the “lithium triangle” spanning Bolivia, Chile, and Argentina, the extraction of lithium-containing brine has resulted in a significant decline in groundwater levels in certain regions. Mining companies’ careless actions have also led to instances of air, water, and soil pollution. In Cinovec, lithium will be extracted from solid rock formations. Although this method is water-intensive and consumes more energy compared to brine extraction, it is considered less detrimental to the environment.