MINEX Forum

Tag: mining

  • Poland’s industrial production and producer prices fall sharply in July

    Poland’s industrial production and producer prices fall sharply in July

    July industrial production fell by 2.7% year-on-year, well below the consensus forecast of 0.6%. There were yearly declines in all four major commodity groups, double-digit drops in mining and quarrying of 10.2%, and in manufacturing by 2.4%. Producer price deflation was deeper than expected, with July PPI falling 1.7% YoY against a consensus of -1.2%

    Poland’s industry saw a surprisingly weak start to the third quarter, although this coincided with dismal industrial PMI readings in Poland (43.5pts in July) and Germany (below 40pts in July).

    Year-on-year declines in industrial production in July were recorded in 24 of 34 industrial production divisions, the deepest in coal and lignite mining (by 27.7%), chemical products (9.6%), wood products (15.5%), paper (11.5%), metals (10.4%), and other non-metallic products (8.8%). The 10 divisions that saw an increase in production were led by machinery and equipment repair (up 20.7%), motor vehicles (15.0%), other transport equipment (8.1%) and machinery and equipment (4.9%). Production’s positive growth was driven by pro-export sectors.

    The deep fall in PPI producer prices was largely due to the statistical base effect and clearly lower energy prices than a year ago, but also reflected weakness in demand. A similar picture emerged from Germany’s July PPI reading. On a monthly basis, Polish manufacturing prices have been falling since November, and we expect PPI deflation to continue at least until the end of the year, which should facilitate further CPI disinflation.

    Available leading indicators (PMIs, new orders data) do not suggest a rapid recovery in manufacturing, although the most acute phase of inventory reduction by Polish companies seems to have passed. This week the preliminary August PMIs for the eurozone and Germany will be published; our forecasts do not assume a significant improvement compared to July. The economy of Poland’s largest trading partner is balancing between stagnation and recession.

    We expect that industrial production in Poland will remain low in the third quarter and experience a more visible rebound in the fourth quarter.

    Poland’s industrial production, YoY changes, in %

    Source: ING based on CSO data.
    ING based on CSO data.
  • Belgium leads the way in rare earth metals recycling

    Belgium leads the way in rare earth metals recycling

    Belgium is a European leader in recycling, one of the few nations to meet recycling targets set out by the EU. Other than household and commercial waste, Belgian recycling plants are now helping to reduce Europe’s dependence on foreign minerals.

    Rare earth metals, commonly used in the production of high-tech goods, are desperately needed for the European economy. China has a monopoly on the supply of these metals, producing up to 97% of the world’s supply.

    In July, China placed export restrictions on gallium and germanium metals, which are indispensable for the production of advanced chips.

    China accounts for about 80% of the global production of gallium, which is used in integrated circuits, LEDs and solar panels, among others. The country also dominates the production of germanium, which is used in the production of fibre-optic cables and infrared applications.

    The European Commission is concerned that restrictions on exports of certain rare earth metals will impact EU supply chains, especially within the context of growing demand for these metals for the green transition. It wants to reduce dependence on third countries such as China to 65% for imports of 18 critical resources.

     

    Rare metals from scrap

    Belgian companies want to play a role in the transition away from reliance on rare earth metals imports. Even if Europe is not well-suited for the extraction of these precious metals, it can play a role in reducing imports, notably through recycling.

    One factory in Liège is one of the very few places in Europe to process metallurgy-related waste and recover the valuable rare earth metals. Hydrometal has been extracting gallium and germanium from waste for nearly 20 years. However, this is no simple process.

    “It’s very precise, difficult to make profitable, very competitive, and you can’t find a lot of raw materials on the market. It really requires specific knowledge and specific chemistry. Our factory is the only one in Wallonia. Today, there are two actors in Belgium who can do it, and only two actors in Europe too,” Phillipe Henry, administrator of Hydrometal, told RTL Info.

    Recent Chinese export restrictions have caused prices on the market to skyrocket. The current market price for gallium is $614 per kg, and $2,716 per kg for germanium. Faced with these rising prices, recycling has become a more profitable endeavour.

    “We are contacted almost every day to be able to respond to these challenges. They will not be easy, because we have to remain competitive, answer also have to see if it can be maintained in the long-term,” Henry noted.

    For now, Belgian companies are focused on the extraction of rare earth minerals from waste in the metallurgy industry. Granted, much of our tech and smartphones contain highly sought after rare earth metals, but these amounts are still too small to be profitable for major recycling companies.

    The amounts contained in phones amount to just a few grams per tonne, and it is not currently viable to extract gallium, germanium, or indium from them, at least in Belgium.

    While recycling plays an important role in reducing dependence on Chinese exports, Europe may soon switch to encouraging their extraction from European soil. Currently, no rare earth metals are mined in Europe.

    But new studies have revealed massive deposits of valuable rare earth metals, which could feasibly be extracted. In Sweden, mineral group LKAB discovered an untapped reserve of more than 10 million tonnes of oxides, the largest known deposit of its kind in Europe.

    The EU will reflect on the possibility of the opening of new rare earth metal mines in Europe, but will likely still face resistance from locals due to environmental concerns. The largest potential extraction site for Europe is at Kvanefjeld in Greenland, but extraction has been prevented by indigenous groups and local residents.

    The need to find new solutions is growing. Last year, European Commission President Ursula von der Leyen predicted that “Lithium and rare earth metals will soon be more important than oil and gas.”

  • Reluctance to mine puts Europe’s energy transition at risk

    Reluctance to mine puts Europe’s energy transition at risk

    Europe has been effective in driving sector trends necessary for the energy transition through strong investment, target setting and policy employment. Prime examples include the ‘Fit for 55’ deal in electric vehicles (EV), the Renewable Energy Directive and European Green Deal in renewable power. Such policies and strategies have instigated governments to set their own strategies to meet or exceed EU targets as a result.

    Efforts to source and refine CRMs on European soil need to be a focus

    Whilst these are arguably the most crucial sectors to tackle, Europe’s progress in these sectors is heavily reliant on the supply of critical raw materials (CRMs) which are largely sourced and refined abroad over geographically restricted areas. For example, the Democratic Republic of the Congo mines more than 70% of the world’s cobalt, and China is unchallenged in its dominance over rare earth element (REE) production – in addition to its worldwide dominance in processing for a whole suite of CRMs.

    Consequently, Europe’s ability to deliver an Energy Transition is potentially vulnerable to geopolitical tensions and supply chain volatility in these regions, not to mention the potential for shortages in these CRMs, which will occur without significant upscaling in mining.

    Map of primary material production.

    Europe is a leader in the renewable power and electric vehicle rollout, but for how long?

    Europe’s accelerated investment towards net-zero targets is predicted by GlobalData to drive continued growth in renewable power generation over the next decade. Still, power generation is Europe’s largest source of emissions despite an 18% reduction in associated emissions being achieved from 2010-2017, as well as a reduction of 10% in overall emissions in the continent.

    Strict EU targets have been implemented in line with the UN Paris Agreement and as part of the established campaign, ‘Europe Beyond Fossil Fuels’. Incentivisation for renewable energy development, the decommissioning of fossil fuel power plants, and a fall in the cost of renewable power production should continue the increasing renewable power generation share from 51% in 2022 to almost 75% by 2035.

    This is expected to largely be achieved by increasing wind and solar generation capacity, the largest players in each being Orsted (wind), and Iberdrola SA (both), with pipeline capacities of over 35GW each.

    The other sector in which Europe is leading the way in terms of development is EVs. Strong EU and government targets, funding, and policies have guided the phasing out of internal combustion engine vehicles and resulted in a tripling of EV registrations in 2020 from 2019 (right car registrations).

    Lawmakers have endorsed a 55% reduction in automobile emissions by 2030 when compared to 2021. Development of charging infrastructure that facilitates the increase in EVs on roads has been encouraged by subsidies, and major companies are now involved with EV rollout in Europe including Volkswagen, Tesla, and Stellantis.

    Can Europe source its own minerals?

    Progress in the power and EV sectors demands a need for Lithium, Cobalt, REEs, and other CRMs, thereby increasing the need to upscale the production of these resources within the EU. The slow response by Europe to source and refine such resources locally has only been recognised recently. According to the UK government, as of November 2022, 89% of lithium processing occurred in East Asia, and no lithium refineries existed in Europe.

    Recently the UK government provided a £600,000 grant to Green Lithium to open a refinery in Teesside. Considering that lithium is crucial to both the power and EV sectors and is not particularly scarce, more European governments should follow suit. Similarly, the geology of Europe may be favourable for novel sources of cobalt (Horn et al 2021), with a 2018 EU report on cobalt highlighting that existing nickel mines on the continent could provide up to half the cobalt necessary for European lithium-ion battery plants.

    Only as recently as March this year, the European Commission released its Critical Raw Materials Act, permitting reduced timeframes for mining projects and setting clear priorities to futureproof Europe’s supply chains. This comes after the US Inflation Reduction Act with similar aims, illustrating the recent trend towards regionalised supply chains as powers recognise the need to escape dependency on China’s mineral monopolies. China’s recent restrictions on its exports in gallium and germanium highlight the risks of such dependency.

    Whilst the CRMs Act is a step in the right direction, the timeline for prospecting and setting up an operational mine is around a decade, and in addition to Europe’s reluctancy to harm the environment through mining, it might be too little and too late to meet energy transition demand for CRMs – putting Europe’s strong growth thus far in key energy transition sectors at severe risk.

  • Italy vows to jump-start mining renaissance by year’s end

    Italy vows to jump-start mining renaissance by year’s end

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    Enterprise Minister Urso recalled that the Italian underground holds 16 of the EU’s 34 “critical” raw materials, and promised that the legal and geographic framework that will allow the resurgence of Italy’s mining sector “will be clear” by the end of 2023

    [/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_separator][vc_empty_space height=”10px”][vc_row_inner][vc_column_inner width=”2/3″][widget-SocialWidget][/vc_column_inner][vc_column_inner width=”1/3″][link url=”https://decode39.com/7302/italy-mining-renaissance-2023/#:~:text=Italy%20pushes%20forward%20mines%20re,country’s%20ageing%20mineral%20resource%20maps.” content_text=”News source”][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_column_text]Italy pushes forward mines re-opening effort. Back in April, Enterprise Minister Adolfo Urso announced that Rome was updating the country’s ageing mineral resource maps. On Thursday, he indicated that the companies who want to take part in resurrecting the Italian mining and refining industry “will be able to present their projects” as early as late 2023.

    • “I think that by the end of the year, the whole picture will be clear: European regulations, Italian regulations, and the potential of our territory,” he explained, referring to the extraction and processing of critical raw materials in Europe.

    Hidden, transition-relevant riches. When it unveiled its Critical Raw Materials Act, which seeks to boost the EU’s in-house production and de-risk from monopolistic suppliers (namely, China), the European Commission identified 34 critical raw materials. As Minister Urso underscored, 16 can be found in the Italian underground – in mines “that were closed 30 years ago” and that the country must now re-open and invest in to “re-activate their potential.”

    • The Italian earth houses reserves of lithium, cobalt, nickel, copper and zinc, as well as beryllium and tungsten, which are required across the greentech and digital sectors.
    • Resuming their extraction and processing is conducive to reaching the EU’s goal of producing at least 10% of the CRMs it consumes by 2030.

    It’s bigger than Italy. Today, the supply chain of such materials is firmly in Chinese hands, which gives Beijing the leverage to threaten Europe’s ecological and digital transitions. Last week, the Chinese Communist Party announced restrictions on the export of two key metals, gallium and germanium, in a warning shot to the countries that are curbing its access to other products – such as semiconductors – the country requires for its tech autonomy ambitions.

    • “We have just realised how dangerous it is to rely on Russian fossil sources. We cannot do the same with China on rare earths and precious minerals,” as Minister Urso remarked back in April – especially given Beijing’s “expansionist policy,” which entails “the acquisitions of [CRM] deposits, mainly in Africa, and then concentrating processing at home.”

    A concerted effort. In late June, Minister Urso launched a structural cooperation with his French and German counterparts to coordinate the three countries’ approaches to sourcing CRMs. The trio, representing nearly half of the EU’s GDP, vowed to expand data exchange practices and cooperation in the fields of minerals extraction, refining, processing, recycling and ESG standards while keeping the industries looped in, to work on a green transition that may cater to their needs and ultimately foster the emergence of European industrial champions.[/vc_column_text][vc_empty_space][epic_post_tag compatible_column_notice=”” font_size=”17px”][/vc_column][vc_column width=”1/6″][vc_text_separator title=”LATEST NEWS” color=”juicy_pink”][vc_empty_space height=”10px”][widget-LatestPosts post_number=”4″][vc_empty_space height=”10px”][vc_text_separator title=”MOST POPULAR” color=”juicy_pink”][vc_empty_space height=”10px”][widget-popular-posts post_count=”4″][vc_empty_space][vc_wp_search title=”Search”][vc_empty_space][lvs display_like=””][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][/vc_section][vc_section][vc_row][vc_column][distance desktop_type=”50″][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][epic_block_28 compatible_column_notice=”” number_post=”6″ post_offset=”0″ first_title=”You may also like”][/epic_block_28][vc_empty_space][/vc_column][vc_column width=”1/2″][epic_hero_5 compatible_column_notice=”” hero_margin=”0″ content_filter_number_alert=”” post_offset=”0″][/vc_column][/vc_row][/vc_section][vc_section][vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”1/2″][vc_row_inner][vc_column_inner][vc_empty_space][vc_column_text]

    Enterprise Minister Urso recalled that the Italian underground holds 16 of the EU’s 34 “critical” raw materials, and promised that the legal and geographic framework that will allow the resurgence of Italy’s mining sector “will be clear” by the end of 2023

    [/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_separator][vc_empty_space height=”10px”][vc_row_inner][vc_column_inner width=”2/3″][widget-SocialWidget][/vc_column_inner][vc_column_inner width=”1/3″][link url=”https://decode39.com/7302/italy-mining-renaissance-2023/#:~:text=Italy%20pushes%20forward%20mines%20re,country’s%20ageing%20mineral%20resource%20maps.” content_text=”News source”][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_column_text]Italy pushes forward mines re-opening effort. Back in April, Enterprise Minister Adolfo Urso announced that Rome was updating the country’s ageing mineral resource maps. On Thursday, he indicated that the companies who want to take part in resurrecting the Italian mining and refining industry “will be able to present their projects” as early as late 2023.

    • “I think that by the end of the year, the whole picture will be clear: European regulations, Italian regulations, and the potential of our territory,” he explained, referring to the extraction and processing of critical raw materials in Europe.

    Hidden, transition-relevant riches. When it unveiled its Critical Raw Materials Act, which seeks to boost the EU’s in-house production and de-risk from monopolistic suppliers (namely, China), the European Commission identified 34 critical raw materials. As Minister Urso underscored, 16 can be found in the Italian underground – in mines “that were closed 30 years ago” and that the country must now re-open and invest in to “re-activate their potential.”

    • The Italian earth houses reserves of lithium, cobalt, nickel, copper and zinc, as well as beryllium and tungsten, which are required across the greentech and digital sectors.
    • Resuming their extraction and processing is conducive to reaching the EU’s goal of producing at least 10% of the CRMs it consumes by 2030.

    It’s bigger than Italy. Today, the supply chain of such materials is firmly in Chinese hands, which gives Beijing the leverage to threaten Europe’s ecological and digital transitions. Last week, the Chinese Communist Party announced restrictions on the export of two key metals, gallium and germanium, in a warning shot to the countries that are curbing its access to other products – such as semiconductors – the country requires for its tech autonomy ambitions.

    • “We have just realised how dangerous it is to rely on Russian fossil sources. We cannot do the same with China on rare earths and precious minerals,” as Minister Urso remarked back in April – especially given Beijing’s “expansionist policy,” which entails “the acquisitions of [CRM] deposits, mainly in Africa, and then concentrating processing at home.”

    A concerted effort. In late June, Minister Urso launched a structural cooperation with his French and German counterparts to coordinate the three countries’ approaches to sourcing CRMs. The trio, representing nearly half of the EU’s GDP, vowed to expand data exchange practices and cooperation in the fields of minerals extraction, refining, processing, recycling and ESG standards while keeping the industries looped in, to work on a green transition that may cater to their needs and ultimately foster the emergence of European industrial champions.[/vc_column_text][vc_empty_space][epic_post_tag compatible_column_notice=”” font_size=”17px”][/vc_column][vc_column width=”1/6″][vc_text_separator title=”LATEST NEWS” color=”juicy_pink”][vc_empty_space height=”10px”][widget-LatestPosts post_number=”4″][vc_empty_space height=”10px”][vc_text_separator title=”MOST POPULAR” color=”juicy_pink”][vc_empty_space height=”10px”][widget-popular-posts post_count=”4″][vc_empty_space][vc_wp_search title=”Search”][vc_empty_space][lvs display_like=””][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][/vc_section][vc_section][vc_row][vc_column][distance desktop_type=”50″][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][epic_block_28 compatible_column_notice=”” number_post=”6″ post_offset=”0″ first_title=”You may also like”][/epic_block_28][vc_empty_space][/vc_column][vc_column width=”1/2″][epic_hero_5 compatible_column_notice=”” hero_margin=”0″ content_filter_number_alert=”” post_offset=”0″][/vc_column][/vc_row][/vc_section]

  • Europe needs to embrace green mining for the sake of its energy transition goals

    Europe needs to embrace green mining for the sake of its energy transition goals

    [vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – euronews.com” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.euronews.com%2F2023%2F07%2F13%2Feurope-needs-to-embrace-green-mining-for-the-sake-of-its-energy-transition-goals|target:_blank”][distance desktop_type=”30″][vc_column_text]

    In order to move to using 100% renewable energy, the world will need as much copper over the next two decades as we have taken from the Earth since the beginning of civilization.

    If that figure seems staggering, it is because the task of the green energy transition is a daunting task in itself.

    Copper wiring, for instance, will be needed for nearly every component of this shift, from the devices and cars powered by green energy sources to the renewable plants and solar panels themselves.

    Silver is needed for super-conductive wiring in wind turbines, and vast amounts of nickel and lithium will also be necessary to build the batteries to store electricity from renewable sources.

    Add to that the aluminium and iron that are key to building green energy infrastructure.

    Fortunately, these common metals are widely distributed and found in most countries, including most of Europe.

    Less fortunately, Europe has so far been extremely reluctant to mine these materials.

    Europe has to become resource-independent

    Last week we saw the announcement of an Anglo-French joint venture to mine lithium in the southwest of England, with the goal of meeting around two-thirds of the UK’s estimated battery demand.

    However, there still is very low acceptance in Europe of the mining industry.

    For many, mining is viewed as a developing world activity, one which is disruptive and polluting and is best done in Africa or South America. We currently import most of our metals.

    If Europe does not become a mining continent, it will become dependent on countries like China for resources, particularly when it comes to lithium.

     

    Tsvangirayi Mukwazhi/AP
    An armed soldier stands on the grounds of Prospect Lithium Zimbabwe’s processing plant in Goromonzi, July 2023Tsvangirayi Mukwazhi/AP

    However, if Europe does not become a mining continent, it will become dependent on countries like China for resources, particularly when it comes to lithium.

    It is possible to import lithium from more politically friendly countries such as Argentina, Chile, and Mali. But being dependent on international supply chains for crucial resources is untenable.

    A period of enormous change is happening

    We do not need to import metals from the developing world, even lithium. There are major lithium resources in the Czech Republic, Serbia, Bosnia, and Spain.

    Nickel exists plentifully in Europe. There are several large iron mines in Scandinavia, and copper is intensively mined in Spain and Portugal.

    The Vareš silver mine in Bosnia is due to start production this year. But all European countries need to be promoting the extraction of these resources if they are to have a chance of achieving net zero.

    Yes, this means mining, but it doesn’t have to mean mining in the way that Europeans and residents of other continents have historically experienced it.

     

    Darko Vojinovic/Copyright 2022 The AP. All rights reserved.
    An environmental demonstrator holds a banner reading: “No Pasaran” as a highway is blocked, during a protest against a lithium mine in Belgrade, January 2022Darko Vojinovic/Copyright 2022 The AP. All rights reserved.

    Yes, this means mining, but it doesn’t have to mean mining in the way that Europeans and residents of other continents have historically experienced it; the slag piles and the “pits” of the increasingly obsolete coal mines.

    The mining industry has been going through a period of enormous change and shifting towards something called “non-disruptive mining”.

    Non-disruptive mining exists — and there’s proof it can be done easily

    Non-disruptive mining means mines that run on renewable energy and whose transport logistics and water use is green.

    It means restoring the nature that is disturbed by mining in a way that preserves and enhances local biodiversity and being careful about all the social and environmental impacts of a mine.

    Most importantly, it means that the waste products which used to end up in slag piles — called “tailings” in the industry — are properly processed to recover all of the plentiful amounts of ore which they contain.

    Sweden is Europe’s pioneer in non-disruptive mining. Its carbon-free iron mine in Kiruna is a sustainable mining flagship for the world, and the Grängesberg iron mine in central Sweden is also a notable sustainable mine.

     

    AP Photo/Malin Moberg
    Reindeer herder Niila Inga from the Laevas Sami community walks across the snow as the sun sets on Longastunturi mountain near Kiruna, Sweden, November 2019AP Photo/Malin Moberg

    Sweden is Europe’s pioneer in non-disruptive mining. Its carbon-free iron mine in Kiruna is a sustainable mining flagship for the world, and the Grängesberg iron mine in central Sweden is also a notable sustainable mine.

    Several of the companies that are expected to mine lithium in the UK have already committed to using a range of sustainable mining techniques ranging from running a plant on hydrogen or lithium-ion power, transporting ore via electric conveyors rather than trucks, and souring electricity from an off-shore wind farm to be built nearby.

    Mining can be the bedrock of Europe’s green energy transition

    All of Europe needs to follow Sweden and the UK’s example and build greener mines, particularly copper, nickel and lithium ones.

    In addition to these national projects, Europe as a whole should be investing in research into and proactive exploration of the major metal deposits in Europe and putting together large-scale green mining projects.

    To achieve this, the image of the mining industry needs to change. Mining needs to become seen for what it is, the bedrock of Europe’s green energy transition and energy independence.

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