MINEX Forum

Tag: mining

  • Mongolia’s Push for International Bonds Amid Mining Concerns

    Mongolia’s Push for International Bonds Amid Mining Concerns

    Mongolia is actively exploring avenues to raise international bonds in a bid to bolster its economic initiatives, yet investor apprehensions loom large owing to the country’s heavy reliance on mining. With the mining sector constituting a significant portion of Mongolia’s GDP and export earnings, the nation has been a magnet for substantial foreign investments, particularly in copper, coal, and various mineral deposits. However, this reliance on mining exposes Mongolia to inherent risks, exacerbated by frequent government policy shifts, which only serve to deepen uncertainties.

    The recent amendment to Mongolia’s Minerals Law by the parliament has added another layer of concern for investors. The revised law places stringent restrictions on project owners, limiting their ownership to a maximum of 34%, while empowering the government to claim up to 50% of a project without cost. Furthermore, project owners are mandated to divest their remaining stakes to third parties within a year. Such drastic measures have the potential to deter prospective investors and tarnish Mongolia’s image as an attractive investment destination.

    Compounding these worries is the uncertainty surrounding the government’s capacity to honor bond repayments, a recurring issue in the nation’s financial history. Previous commodity price downturns prompted the Ministry of Finance to undergo multiple rounds of bond restructuring, sparking apprehensions among investors about Mongolia’s fiscal sustainability.

    To assuage investor concerns and successfully issue bonds on favorable terms, Mongolia must prioritize reinforcing its legal and economic foundations. While diversifying the economy remains a strategic imperative, sustainable diversification hinges on fostering responsible mining practices. Consequently, supporting the mining industry emerges as a critical necessity. By instituting transparent and predictable regulatory frameworks that instill confidence among investors, Mongolia can harness the full potential of its mining sector while fortifying long-term financial stability. Such measures will lay the groundwork for future development, facilitating diversified growth across diverse economic sectors.

  • Umicore and STL1 Forge Exclusive Partnership for Germanium Valorization

    Umicore and STL1 Forge Exclusive Partnership for Germanium Valorization

    In a groundbreaking development for the mining sector in the Democratic Republic of Congo (DRC), Umicore, a global leader in materials technology and recycling, has inked an exclusive, long-term partnership agreement with STL1, a subsidiary of Gécamines. This partnership is set to revolutionize the valorization of germanium extracted from the Big Hill2 tailings site located in Lubumbashi, DRC.

    Under the terms of the agreement, Umicore will lend its expertise to optimize STL’s newly established processing facility at the Big Hill site. Leveraging its refining and recycling proficiency, Umicore aims to enhance the extraction process of germanium, a critical metal used in high-tech applications. In return, Umicore secures exclusive access to the processed germanium for its material solutions production.

    STL, over the years, has been extracting metals including zinc, silver, cobalt, copper, and germanium from the Big Hill’s extensive reserves. With a century’s worth of mining activity contributing to 10 million tons of metals-containing slags, STL’s focus now shifts to maximizing the value derived from these resources within the DRC. This strategic move aligns with its commissioning of a new hydro-metallurgical facility in 2023, aimed at optimizing the valorization of germanium concentrates.

    The collaboration between Umicore and STL marks a significant milestone in enhancing the local mining industry’s capabilities. The partnership not only promises to diversify Umicore’s germanium supply sources but also ensures a steady, multi-annual offtake of substantial volumes, bolstering the resilience of the supply chain.

    The commencement of refining operations by Umicore is slated for the final quarter of 2024, with subsequent plans for ramping up STL’s germanium extraction capacities. Umicore’s Electro-Optic Materials (EOM) Business Unit stands to benefit from this agreement, as it specializes in utilizing and recycling germanium for optical and electronic applications such as fiber optics, solar cells, and electronics.

    Moreover, the collaboration extends beyond operational and technical support, with Umicore committed to skill development initiatives to analyze germanium content in tailings for recycling purposes. This aligns with STL’s ambitions to expand downstream germanium product offerings while adhering to the highest Environmental, Social, and Governance (ESG) standards.

    The partnership holds promise for stimulating economic growth, creating job opportunities, and fostering skill development within local communities. Mathias Miedreich, CEO of Umicore, emphasized the significance of the agreement in advancing circular business models and contributing to the local economy through sustainable resource utilization.

    In echoing the sentiment, Guy Robert Lukama, Chairman of Gécamines SA/STL, underscored the strategic importance of the partnership in realizing the organization’s vision to emerge as a major player in strategic minerals processing. He highlighted the potential for job creation and economic empowerment, emphasizing the pivotal role of partnerships in driving industrial revolution and energy transition agendas.

    Grant Dempsey, General Manager of STL, reiterated the transformative impact of the collaboration, emphasizing its potential to bolster the local economy, industry, and environment. The partnership, he noted, will not only enhance operational efficiency but also contribute to emission reductions and resource optimization across various sectors.

  • Uranium Deposit Discovered in Southern Poland’s Świętokrzyskie Region

    Uranium Deposit Discovered in Southern Poland’s Świętokrzyskie Region

    Świętokrzyska Industrial Group Industria (ŚGP Industria) has confirmed the presence of uranium in a deposit located within the Świętokrzyskie Region in southern Poland. The company intends to conduct further exploratory work to ascertain the size of the deposit and suitable extraction methods. While the exact location remains undisclosed, detailed assessments in the coming months will focus on determining the deposit’s magnitude and optimal exploitation techniques.

    According to estimates by the International Atomic Energy Agency, Poland harbors around 100,000 tons of natural uranium, with only 7,000 tons confirmed thus far. ŚGP Industria secured an exploratory concession from the Ministry of Climate and Environment for a polymetallic deposit containing uranium in the region.

    The verification of uranium presence in the deposit follows extensive efforts by the company. Subsequent exploration endeavors will aim to precisely delineate the composition of various elements within the deposit, its dimensions, and potential extraction methodologies.

    Szczepan Ruman, president of the Board of ŚGP Industria, expressed satisfaction with the progress, emphasizing the significance of the discovery for mining development in the Świętokrzyskie Region and Poland’s access to critical raw materials, particularly uranium for the nuclear sector. Ruman highlighted the discovery’s importance in fostering cooperation with Rolls-Royce for the implementation of small modular reactors (SMRs) in Poland.

    The company’s research drew upon documents from the National Geological Archive of the State Geological Institute in Warsaw, incorporating data from the Soviet atomic program and uranium exploration activities in the Świętokrzyskie Mountains during the 1950s.

  • “Tau-Ken Samruk” at MINEX Kazakhstan 2024

    “Tau-Ken Samruk” at MINEX Kazakhstan 2024

    The 14th MINEX Kazakhstan Mining and Geological Forum opened today in Astana. The central theme of the forum is “Sustainable Development of the Mining Industry for the Benefit of Society and the Environment.”

    Approximately 120 speakers are scheduled to participate, including representatives from government agencies, international organizations, domestic and foreign mining companies, institutional and private investors, technological and consulting companies, the financial sector, industry associations, and more.

    Bakyt Chirchikbayev, Chairman of the Board of the National Mining Company “Tau-Ken Samruk,” spoke at the plenary session “Drivers of Development of the Mining and Metallurgical Industry in Kazakhstan.” He discussed the company’s priority projects and plans for further development, particularly focusing on the transfer of 100% of the shares of Kazgeology JSC to Tau-Ken Samruk. Chirchikbayev highlighted several advantages that partners could gain from this integration, stating, “The integration of Kazgeology into the structure of Tau-Ken Samruk will expand the potential scope of cooperation with existing and future partners, as Tau-Ken Samruk specializes not only in geological exploration but also in the further development of projects, including construction and production stages.”

    Chirchikbayev also emphasized that geological exploration projects remain a priority: “We plan to continue implementing current projects with partners and simultaneously study all available historical and modern geological information to identify prospective areas. Already, our geologists have made significant progress in this direction.”

    Aspects of international cooperation in geological exploration, mining, processing, and the creation of supply chains for uranium and materials critical for “green” energy technologies were discussed in a separate session of the MINEX Kazakhstan forum.

    Nariman Absametov, Chief Business Development Officer of the National Mining Company, outlined the main areas of focus for Tau-Ken Samruk regarding critical minerals. Firstly, work continues on the development of economically efficient ore enrichment technology at the largest domestic tungsten deposit, Upper Kayraktinsky. Research into the prospects of heap leaching has begun, and this year will see large-scale laboratory studies. If successful, the next step will be pilot technological tests.

    Simultaneously, the National Mining Company is exploring the reconnaissance of rare and rare-earth metals in the Akbulak area of the Kostanay region. Geological exploration is planned to begin soon in collaboration with the American company Cove Capital, with the relevant agreement already signed.

  • Chinese Mining Company Plans to Elevate Copper and Gold Operations in Serbia

    Chinese Mining Company Plans to Elevate Copper and Gold Operations in Serbia

    Zijin Mining, a prominent Chinese mining company, announced its ambitious plans on Wednesday to enhance copper and gold operations in Serbia, aiming to position the Balkan nation as the primary copper producer in Europe. Chen Jinghe, the chairman of Zijin Mining, revealed the company’s strategy to achieve an annual production target of at least 250,000 tonnes of copper and 10 tonnes of gold from its Serbian operations, indicating a slight increase from the previous year. Emphasizing a shift towards underground mining development, Chen articulated the company’s future investment direction during a press briefing.

    Zijin Mining, renowned for its significant contributions to the gold and copper industry in China, solidified its partnership with Serbia’s RTB Bor mining operation in 2018. The move aligns with China’s broader economic engagement in Serbia and neighboring Balkan countries, reflecting Beijing’s concerted efforts to expand its economic influence across central and eastern Europe. The increasing significance of China to Serbia’s economy was underscored by the country’s Minister of Trade, who ranked China as Serbia’s second most vital economic partner after the EU. This sentiment anticipates a potential visit by Chinese President Xi Jinping later in the year.

    In terms of trade, Chinese-owned enterprises emerged as dominant exporters in Serbia, with Zijin Mining leading the pack, followed by Zijin Copper and the HBIS group. Together, these entities accounted for a notable share of Serbia’s total exports, contributing approximately 8.7 percent to the country’s export revenue in the previous year. Furthermore, Serbia witnessed a substantial influx of foreign investment in 2023, with China emerging as the foremost investor, injecting 1.37 billion euros into various sectors, consolidating its position as a key economic stakeholder in the nation.

    However, amidst governmental praise and economic advancements, communities residing near the expansive mining facilities in Bor have voiced persistent opposition to the projects, staging protests since January. Demonstrations frequently disrupt local transportation routes, reflecting ongoing tensions surrounding environmental concerns and community welfare.

  • Tau-Ken Samruk to Commence Lead-Zinc Mining Operations in Shalkiya Deposit

    Tau-Ken Samruk to Commence Lead-Zinc Mining Operations in Shalkiya Deposit

    Tau-Ken Samruk to start production at the Shalkiya lead-zinc deposit in OctoberTau-Ken Samruk plans to start mining at the Shalkiya lead-zinc deposit in October 2024, aiming for 2.2 million tonnes of ore production by the next year. Chairman Bakyt Chirchikbayev revealed these plans at the MINEX Kazakhstan 2024 forum, mentioning plans “of using a third-party facility for ore processing while their processing plant is under construction.”Negotiations and assessments for ore processing at external facilities are in their final stages, with details to be disclosed once agreements are finalized. “I can’t disclose it at this point, but once the agreement is finalized, I’ll reveal the details,” he said. Chirchikbayev provided an update on the construction progress of the mining and processing plant in Shalkiya, emphasizing the procurement of technological equipment. Discussions about the potential sale of the mine are ongoing, with Tau-Ken Samruk open to selling a controlling stake. “Regarding negotiations with potential partners interested in acquiring a controlling stake, we’re open to selling from 51% to 100%. Talks are still ongoing, and it’s premature to disclose our co-founder at this stage,” he said. The Shalkiya lead-zinc deposit is one of the world’s largest. ShalkiyaZinc LTD JSC, a subsidiary of the National Mining Company Tau-Ken Samruk JSC, oversees its development. Construction of a lead-zinc mining and processing plant began in 2018, utilizing the deposit’s resources. It holds around 112.9 million tonnes of ore. The project aims to meet the demand for zinc and lead concentrates in Kazakhstan and globally, with confirmed reserves supporting operations until 2051. The total project cost is $650 million, with $295 million funded by the European Bank for Reconstruction and Development, guaranteed by the Samruk-Kazyna National Welfare Fund. Established in 2009, Tau-Ken Samruk JSC manages the state’s mining assets under the Samruk-Kazyna state fund.

     

  • Serbian Women Stage Blockade to Protest Encroaching Mine

    Serbian Women Stage Blockade to Protest Encroaching Mine

    In a small village in eastern Serbia, a group of women has mounted a blockade on a bridge, protesting against an open-pit copper mine that they argue is polluting their land and water. Led by 78-year-old Vukosava Radivojevic, these women take shifts day and night, determined to halt trucks from entering the mine operated by a subsidiary of China’s Zijin Mining.

    The mine, which dominates the village of Krivelj, has triggered concerns among residents about incessant noise, tremors, and pollution. While Zijin has relocated some villagers, those who remain, mostly Vlachs, seek to move collectively, citing environmental degradation and health risks.

    Despite assurances from Zijin’s subsidiary, Serbia Zijin Copper, about addressing environmental issues inherited from previous operators, residents remain adamant about the adverse effects of mining activities. Since Zijin took over operations in 2018, production has quadrupled, exacerbating pollution concerns and causing visible environmental damage.

    The blockade, established in January, has become a symbol of the community’s resistance. For the women involved, it has evolved into a communal space, equipped with heating and amenities, where they find solidarity and support. Their persistence has yielded some concessions, with Zijin agreeing to halt large truck traffic through the village.

    However, the battle is far from over as residents continue to advocate for their relocation to a safer environment. Discussions revolve around establishing a new village while preserving essential community institutions.

    According to a study commissioned by Zijin, published in December, Krivelj’s environment is heavily polluted with lead, arsenic, and cadmium, posing significant health risks. Despite the company’s investments in mitigating environmental impact, concerns persist among villagers regarding their safety and well-being.

  • Ireland Strategic Investment Fund Backs Irish Minerals Fund with €30m Investment

    Ireland Strategic Investment Fund Backs Irish Minerals Fund with €30m Investment

    The Ireland Strategic Investment Fund (ISIF) has revealed a €30 million investment in an Irish fund dedicated to mining ventures. The recipient of ISIF’s investment is the Irish Minerals Fund, supported by Lionhead Resources, a private equity firm specializing in mining investments. The focus of the fund will be to pursue minority stakes in environmentally sustainable mining projects within the Republic of Ireland.

    The Irish Minerals Fund’s investment strategy will prioritize projects with established mineral deposits, particularly those centered around zinc extraction. Nick Ashmore, ISIF’s director, emphasized the significance of the investment in promoting responsible mineral extraction, highlighting its potential to bolster indigenous businesses and create skilled jobs, particularly in rural areas.

    Finance Minister Michael McGrath echoed these sentiments, noting the historical significance of the mining sector in Ireland and the potential for job creation in regional areas.

    Lionhead Resources, based in London and South Africa, specializes in investments that support the transition to a low-carbon economy and the needs of a rapidly urbanizing global population.

    The investment coincides with the European Union’s recent approval of the Critical Raw Materials Act (CRMA), aimed at reducing dependence on Chinese dominance in critical mineral supply chains, particularly for technologies essential to energy transition such as electric vehicles and renewable energy.

  • Mining Company Plans Zinc and Lead Extraction at Shalkiya Deposit

    Mining Company Plans Zinc and Lead Extraction at Shalkiya Deposit

    In a recent announcement, “Tau-Ken Samruk,” a mining company affiliated with “Samruk-Kazyna,” revealed its intentions to commence zinc and lead extraction operations at the Shalkiya deposit in the Kyzylorda region by October of this year. The company aims to reach a production volume of 2.2 million tons of ore by 2025, as stated by the chairman of the company’s board, Bakyt Chirchikbayev, during the MINEX-2024 forum. Chirchikbayev further disclosed plans for potential tolling arrangements for ore processing while the company’s own factory is under construction. Negotiations with potential partners for the purchase of a controlling stake are underway, with details expected to be finalized post-discussions.

    Additionally, Chirchikbayev mentioned the positive outcome of the state expertise regarding the technical and economic feasibility of the North Katpar and Upper Kayrakty tungsten projects. The company received favorable feedback on the project’s feasibility study, which has been circulated among interested partners. Currently, the project is under review by several potential collaborators, with further steps aligned with project privatization regulations.

    The financing of the Shalkiya project involves the European Bank for Reconstruction and Development (EBRD), with agreements dating back to June 2017. Updates to the credit agreement were made in September 2021, extending credit lines up to $175 million. Recent disbursements from the EBRD, including a second tranche of $40.5 million in October 2022, demonstrate ongoing financial support for the project. “Samruk-Kazyna” has provided full guarantees for “Shalkiya Zinc’s” obligations to the EBRD, ensuring financial security for the venture.

  • Irkaz Metal Corporation Plans Expansion of Copper Smelting Plant in Kazakhstan

    Irkaz Metal Corporation Plans Expansion of Copper Smelting Plant in Kazakhstan

    Irkaz Metal Corporation, an Iranian copper producer, is looking to construct the third phase of its copper smelting plant at the Borly deposit in the Karaganda region. The new facility will cover an area of 100 hectares, with construction set to commence in July 2024. This information was revealed on the AGMP portal. The hydro-metallurgical complex is expected to process 2.5 million cubic meters (approximately 4.6 million tons) of copper ore annually through heap leaching, enabling the company to produce 5,000 tons of cathode copper per year. The plant will require over 137,000 tons of sulfuric acid annually for processing. The Borly site currently hosts a shift camp for employees, who work in two 12-hour shifts year-round. Notably, the plant has a two-story fire station on-site. Irkaz Metal Corporation inaugurated the plant in November two years ago, with an initial project investment exceeding 9 billion tenge. Currently, the facility employs 140 individuals, with the copper smelting plant’s capacity standing at 5,000 tons.