MINEX Forum

Tag: mining

  • Glencore Abandons Sale of Kazzinc Stake After Unmet Valuation

    Glencore Abandons Sale of Kazzinc Stake After Unmet Valuation

    Glencore Plc has abandoned plans to sell its stake in the Kazakh mining company Kazzinc after potential buyers failed to meet its valuation, sources familiar with the situation reported. Glencore, holding a 70% stake in Kazzinc, had been contemplating an exit from the business amid interest from Chinese buyers. The company has now issued a termination letter to the bidders, the sources said, requesting anonymity due to the private nature of the discussions. A Glencore spokesperson declined to comment on the matter.

    Kazzinc, established in 1997 through the merger of eastern Kazakhstan’s three main non-ferrous metals companies, comprises a sprawling network of mines, concentrators, and metal finishing plants. This setup allows the company to transition from digging ore to producing finished zinc metal and products.

    Glencore’s Chief Executive Officer, Gary Nagle, has continued the strategy of his predecessor, focusing on simplifying the business by selling off smaller or more challenging assets. The company has previously sold zinc assets in Peru and some of its smaller copper operations.

    While zinc prices have surged this year due to supply constraints, the long-term outlook remains uncertain. The metal’s future is clouded by its heavy reliance on the struggling construction sector and its limited applications in rapidly growing industries like renewable energy and electric vehicles.

  • 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.

  • Kazakhstan Proposes New Tax Code Affecting Mining Companies

    Kazakhstan Proposes New Tax Code Affecting Mining Companies

    The Ministry of National Economy has introduced a draft of the new tax code for discussion on the “Open NPA” portal. Several changes in the code will impact the activities of mining companies.

    Specifically, oil companies are offered an alternative mineral extraction tax with reciprocal investment obligations instead of benefits under the current mineral extraction tax (MET). This measure aims to stimulate the development of depleting fields. Companies will be required to invest the freed-up funds into intensifying production and the socio-economic development of the region, rather than distributing them as dividends.

    Additionally, the new code includes changes for geological exploration. Companies will be allowed to deduct all expenses related to subsurface studies as part of non-contractual activities and other contracts or licenses. This initiative aims to reduce all risks for potential investors in the event of unsuccessful exploration.

    The Ministry also seeks to draw more attention to waste processing in mining. Those engaged in the development of man-made mineral formations can now expect reduced MET rates.

    Another proposal includes temporary benefits for those developing new sections of existing fields with low profitability.

    Overall, the new code aims to reduce the number of taxes and other mandatory payments in the country by more than 20%.

  • Kazatomprom Signs New Contract for Mining Operations at Inkai Deposit

    Kazatomprom Signs New Contract for Mining Operations at Inkai Deposit

    Kazatomprom JSC has signed another mining contract. The agreement involves extracting radioactive metal from the subsurface of site No. 3 at the Inkai deposit. The relevant documents were signed following negotiations with the Ministry of Energy of Kazakhstan. This contract is crucial for the national company as it will significantly increase its mineral resource base, according to the operator’s press center.

    According to Kazatomprom, obtaining the license will allow the extraction of 701 tons of metal over the next four years. It is noteworthy that Inkai holds significant uranium reserves and is one of the main uranium deposits in the country. Experts estimate the reserves at the site to exceed 83,000 tons. Furthermore, developing these resources will positively impact the Turkestan region.

    Additionally, the company believes that in the future, the contract for the right to develop this area will go to Kazatomprom-SaUran LLP, a subsidiary of the current operator.

  • Bulgaria’s Industrial Sectors Need Comprehensive Strategy to Overcome Challenges

    Bulgaria’s Industrial Sectors Need Comprehensive Strategy to Overcome Challenges

    Bulgaria’s manufacturing and mining sectors are currently facing serious challenges due to global economic shifts and rising competition. High energy consumption and largely outdated equipment make these sectors particularly vulnerable. A comprehensive National Industrial Strategy is necessary, aligning with European Union priorities such as the European Green Deal and the Net-Zero Industry Act, to increase sustainability, competitiveness, and innovation.

    According to Petar Murginski, the manufacturing and mining sectors are vital to Bulgaria’s economy, significantly contributing to industrial production and employment. However, high energy consumption, outdated equipment, and a heavy reliance on fossil fuels pose significant challenges. The 2023 European Semester Country Report for Bulgaria shows that 63% of the country’s energy mix comes from fossil fuels, while renewables only account for 15%. Additionally, Bulgaria has one of the lowest circular economy rates in Europe, with only 4.8% material reuse compared to an EU average of 11.5%, according to the 2022 Eurostat Circular Economy Report.

    Despite these challenges, Bulgaria holds significant potential in critical raw materials and green technology adoption. The country’s strategic position in the European supply chain is underutilized, and there are substantial regional disparities in productivity and infrastructure. The Sofia Capital region alone generates 41% of the national GDP, according to 2022 National Statistical Institute GDP Data. To address these issues, a comprehensive National Industrial Strategy focusing on reducing carbon emissions, enhancing energy efficiency, and promoting the circular economy is essential.

    The strategy’s primary objective should be to facilitate Bulgaria’s transition towards greener, more innovative, and technologically advanced industries. It aims to increase competitiveness by promoting resource efficiency, digitization, and circular economy practices. Aligning Bulgaria’s industrial growth with EU policies, such as the Critical Raw Materials Act, and setting clear policy objectives to empower the Bulgarian Ministry of Economy and Industry are crucial for implementing reforms that enhance productivity, attract investment, and secure strategic autonomy.

    Key Findings reveal that both the mining and manufacturing sectors face significant technological gaps and supply chain vulnerabilities. High energy consumption per unit of production and outdated equipment make these industries particularly vulnerable. Modernizing equipment and processes is essential to increase efficiency and reduce carbon emissions. Investment in new technologies and infrastructure is crucial for overcoming these challenges. Supply chain disruptions, especially of critical raw materials, also present significant risks to industrial stability.

    Despite these challenges, there is considerable potential for green technology adoption. Bulgaria’s strategic position and rich mineral resources offer opportunities for sustainable development. Enabling zero-emission technologies and promoting the circular economy are critical. Investing in renewable energy sources and improving energy storage solutions can significantly enhance the sustainability of these sectors.

    The strategy recommends several measures for modernization and sustainability, including modernizing existing infrastructure, adopting new technologies to improve energy efficiency, and reducing emissions. Implementing circular economy practices, encouraging innovation through investment in research and development, and supporting companies in the green technology sector are vital for sustainable growth.

    Policy recommendations include providing incentives for the adoption of zero-emission technologies, supporting projects that contribute to carbon neutrality, encouraging the circular use of critical raw materials, and supporting recycling initiatives. Developing industrial parks as hubs for innovation and sustainable growth is also emphasized, with a focus on upgrading infrastructure, creating favorable conditions for attracting strategic investors, and addressing regional disparities.

    The strategy outlines a clear roadmap for implementation, including engaging with key stakeholders, establishing a monitoring and evaluation framework, and maintaining flexibility to adapt based on ongoing feedback and changing conditions.

    Expected outcomes include enhanced competitiveness, sustainable growth, increased adoption of sustainable practices, and reduced regional disparities. Linking the strategy to EU funding opportunities, such as the Critical Raw Materials Act, Innovation Fund, and LIFE Programme, is crucial for its successful implementation and achieving sustainable growth.

  • Chromium Leads Albania’s Mining Sector in Production and Permits

    Chromium Leads Albania’s Mining Sector in Production and Permits

    Chromium continues to be the mineral with the greatest weight in Albania in terms of the number of permits granted for exploitation, as well as the quantity produced. The annual publication by the National Agency of Natural Resourcesreveals that a total of 920 thousand tons of chrome were produced in 2023, primarily for export.

    “Albania is known for its significant potential in chrome ore compared to other Mediterranean and Balkan countries,” the report states. As of December 31, 2023, there were 236 active exploitation licenses in the chrome mining sector. Production activities are concentrated in the Bulqiza district, with around 120 active permits, followed by Kukës, Tropoja, and Hasi.

    By the end of 2023, 920,769.98 tons of chrome ore were produced, mainly for export. The main chromium deposits are located in the Ophiolites of the Eastern Belt area, stretching from Tropoja and Kukës to Bulqizë, Shebenik, and Pogradec. Lesser development has been identified in the ophiolites of the western belt.

    Geologically, chrome ore in Albania is found in three main regions:

    • Northeast Region (Ultrabasic Massif of Tropoja and Kukës);
    • Central Region (Ultrabasic Massif of Bulqiza and Lura, which is the most important);
    • Southeast Region (Shebenik-Pogradec Ultrabasic Massif).

    The publication also notes that in 2023, there were 552 active usage permits, mainly in Bulqiza, Krujë, Berat, Tirana, or Librazhd. Besides chrome, which holds the majority of active permits, limestone ranks second with 137 permits, according to the National Agency of Natural Resources.

  • Kyrgyzstan Budget Committee Approves Concept of Uranium and Thorium Mining Law

    Kyrgyzstan Budget Committee Approves Concept of Uranium and Thorium Mining Law

    The Committee on Budget, Economic, and Fiscal Policy of the Jogorku Kenesh (Parliament) of the Kyrgyz Republic today, May 27, considered and approved the draft law “On Amendments to Certain Legislative Acts of the Kyrgyz Republic (to the Code of the Kyrgyz Republic on Administrative Offenses, the Law of the Kyrgyz Republic “On Subsoil”) and the recognition of the Law of the Kyrgyz Republic “On Prohibition of Activities Related to Geological Exploration of Subsoil for the Purpose of Uranium and Thorium Deposits Exploration and Development in the Kyrgyz Republic” as no longer in force in the first reading.

    The Minister of Natural Resources, Ecology, and Technical Supervision, Melis Turgunbaev presented the information about the draft law. The Minister noted that the draft law proposes to declare the Law of the Kyrgyz Republic “On Prohibition of Activities Related to Geological Exploration of Subsoil for Uranium and Thorium Deposits Exploration and Development in the Kyrgyz Republic” dated December 14, 2019, No. 139, which prohibits activities related to geological exploration of subsoil for uranium and thorium deposits, as no longer in force. The adoption of the Law will be accompanied by monitoring by state bodies of modern technologies for uranium and thorium extraction, which will contribute to minimizing the negative impact of mineral extraction on the environment. If such technologies are identified, state bodies will introduce requirements for their implementation by subsoil users.

    During the discussion, deputies Azamat Isirailov, Aisarakan Abdybaeva, and Nadira Narmatova raised questions about mechanisms and procedures for ensuring environmental safety and protecting public health. The Minister emphasised that adopting the draft law will be accompanied by introducing and enforcing environmental protection standards by subsoil users, including minimising emissions of harmful substances, ensuring workplace safety, and compliance with norms regarding the permissible impact on water and soil resources.

    The lifting of the ban would enable the extraction of valuable minerals at 83 deposits highly demanded in the global market. Turgunbayev highlighted the Kyzyl-Ompol deposit, which holds significant reserves of titanomagnetite, with mining operations to be conducted by state-owned companies.

  • Gravitricity to Develop Underground Gravity Energy Storage Projects in Europe

    Gravitricity to Develop Underground Gravity Energy Storage Projects in Europe

    Edinburgh-based company Gravitricity has announced its plans to develop underground gravity energy storage projects for deep mine operators in Slovenia, Germany, the Czech Republic, and Finland. This innovative approach repurposes end-of-life mine shafts, which would otherwise face expensive infilling and decommissioning costs.

    Gravitricity’s energy storage system, known as GraviStore, utilizes heavy weights—up to 12,000 tonnes—suspended in deep shafts by cables attached to winches. During periods of excess electricity, such as on windy days, these weights are winched to the top of the shaft, ready to generate power when needed. The weights can be released in less than a second, with the winches acting as generators to produce electricity either in a quick burst or more gradually, depending on demand.

    The company highlighted that GraviStore offers many advantages similar to pumped storage hydro and lithium-ion batteries, but without the performance degradation that affects batteries over time. This system can operate for decades with consistent efficiency.

    Gravitricity’s current clients include the Velenje coal mine in Slovenia, owned by the government-run Premogovnik Velenje; First Quantum Minerals’ Pyhäsalmi mine in Finland, Europe’s deepest zinc and copper mine; the former Darkov mine in the Czech Republic, managed by the state enterprise DIAMO; and the Geiger Group’s Grube Teutschenthal mine in Germany.

    “Gravity energy storage presents a powerful green opportunity for mine operators, extending the life of mines beyond material extraction,” said Martin Wright, founder and executive chairman of Gravitricity. “This alternative to decommissioning provides economic and employment opportunities in communities facing the decline of traditional jobs. Our engagements with mine operators demonstrate significant interest in our technology, and we are working with both mine owners and public sector organizations to transform these plans into operational realities.”

    Gravitricity has already demonstrated its GraviStore technology with a 250kW above-ground prototype, successfully raising and lowering two 25-tonne weights to generate power and verify the system’s rapid response capabilities. The £1-million, 12-meter-high test rig proved the system can achieve full power in less than a second, making it highly valuable for frequency response and backup power markets, with the flexibility to adjust power output based on demand.

  • Expansion Underway at Navoi Mining and Metallurgical Combine

    Expansion Underway at Navoi Mining and Metallurgical Combine

    Recent updates from the press office of NGMK reveal progress within their 2024 Investment Program, focusing on the implementation of a project titled “Ore Extraction at the Gold Deposits of Kokpatas and Daugyztau (Phase III)” at the Navoi Mining and Metallurgical Combine.

    Presently, construction is underway at Hydro-Metallurgical Plant No. 3, where two new milling units are being erected to process 2 million tons of gold-bearing ore annually. This initiative aims to augment the number of milling units to eight, with an annual ore processing capacity reaching 10 million tons.

    Oibek Ashurov, Chief Technologist of the Northern Ore Management, anticipates a significant boost in production volumes upon the commissioning of the new milling units. Expansion plans include enlarging flotation, bio-oxidation, filtration, drying, and roasting workshops, facilitating further augmentation of production capacities.

    Essential equipment and spare parts for the milling units are manufactured at the Navoi Machine-Building Plant and subsidiaries of the Northern Ore Management. Construction activities are supervised by the Zarafshan Construction Management.

  • New Leader Appointed at Mining and Metallurgical Company

    New Leader Appointed at Mining and Metallurgical Company

    In a recent development, Jeanat Zhanbotin has been appointed as the new head of the mining and metallurgical company. Formerly serving as the Executive Director of Finance, Zhanbotin brings a wealth of experience and expertise to his new role.

    Born in 1980, Jeanat Dusenovich holds degrees in Mining Engineering, Economics and Finance, and a Master’s in Business Administration (MBA). His professional journey commenced in the banking sector, where he climbed the ranks from a specialist to a department head in credit management.

    Since 2007, Zhanbotin has been associated with AO “Vasilkovsky GOK,” a subsidiary of AO Altyntau Kokshetau (a subsidiary of TOO “Kazcink”). By 2021, he had assumed the position of Executive Director of Finance at “Kazcink.”

    Married with four children, Zhanbotin emphasizes his commitment to both his family and his professional responsibilities.

    Speaking on his new role, Zhanbotin acknowledges the dynamic nature of “Kazcink” within the mining and metallurgical sector, highlighting the need to address current challenges posed by global market turbulence and geopolitical uncertainties. He pledges to uphold the company’s legacy of social responsibility while navigating through these complexities.