MINEX Forum

Tag: mining

  • Savannah Resources to Resume Drilling at Barroso Lithium Project After Suspension Lifted

    Savannah Resources to Resume Drilling at Barroso Lithium Project After Suspension Lifted

    Savannah Resources (LON: SAV) will immediately restart fieldwork and drilling at its Barroso lithium project in Portugal after the government lifted a temporary suspension order.

    The British company had paused work earlier this month following a precautionary injunction filed by landowners challenging the government’s approval for Savannah to access land it does not own. However, authorities issued a “reasoned resolution” stating that delays would be costly and harmful to the public interest, according to Savannah’s statement.

    Despite the news, Savannah’s stock fell 1.02% to £4.36 per share in London on Friday, giving the company a £95 million ($120 million) market capitalization.

    Barroso’s spodumene deposit is Europe’s largest, with recent prospecting results indicating it could exceed the previously estimated 28 million tonnes of high-grade lithium. However, the project has faced strong local opposition, including protests, legal battles, and refusals to sell land. Approximately 24% of the required land is privately owned, while 75% consists of common land (“baldios”).

    First Lithium Output in 2027

    Savannah aims to build four open-pit mines to supply lithium for 500,000 to 1 million electric vehicle batteries annually. The company is targeting first production by 2027.

    Once operational, Barroso is expected to produce 1.5 million tonnes annually over a 14-year mine life, based on a 20.5-million-tonne resource at 1.05% lithium oxide.

  • Ukraine’s Rare Earth “Deal” with the US: More Political Theater than Economic Reality

    Ukraine’s Rare Earth “Deal” with the US: More Political Theater than Economic Reality

    As US Treasury Secretary Scott Bessent toured Ukraine this week, President Volodymyr Zelenskyy put forward a proposal for potential rare earth mining deals—reminiscent of the legendary “Potemkin villages.” This maneuver appears designed to court former President Donald Trump, who has suggested Ukraine’s rare earths could secure continued US military support.

    While a formal agreement may be announced during the Munich security conference, the reality of such a deal is tenuous at best. Ukraine does not currently produce rare earths, has no proven reserves, and is unlikely to become a significant player in the global market. Developing a rare earth mine would require either massive US funding or tax incentives, with little financial return.

    The numbers further undermine the proposal. The US annually imports just $200 million worth of rare earths, while Trump has speculated about securing $500 billion worth. Even the only major non-Chinese rare earth producer, Lynas, posted revenues of just $293 million last year.

    Moreover, despite their strategic-sounding name, rare earths are largely used in mundane manufacturing applications—fridge magnets and lighter flints account for more consumption than defense-related uses like missiles and lasers. The US’s relatively small manufacturing sector cannot absorb a significant share of global supply, even with optimistic projections.

    Some commentators have suggested the US may actually be eyeing Ukraine’s lithium or mineral sands. However, Ukraine’s lithium resources are modest at best, dwarfed by US reserves. Similarly, its ilmenite reserves are just 1% of the global total.

    Ultimately, while a rare earth agreement may bolster political ties and diplomatic optics, it is unlikely to reshape global minerals markets or offer tangible benefits for either side. The true advantage seems to lie in the political theater rather than economic substance.

  • Kazakhstan’s Unified Subsoil Use Platform Processes 506 Applications

    Kazakhstan’s Unified Subsoil Use Platform Processes 506 Applications

    Since the launch of minerals.e-qazyna.kz, authorities have processed 506 applications from subsoil users for geological exploration, mining, and other state services. This was announced during an expanded meeting of the Ministry of Industry and Construction of Kazakhstan.

    According to Vice Minister of Industry Zhanat Dubirova, by 2025, the Unified Subsoil Use Platform (USP) will offer a seamless process, from application submission to auction participation and license issuance for exploration or extraction.

    The official noted that the full launch of the USP in early 2024 was the result of extensive work since July 2024. Developers analyzed international geological portals from Canada, the UK, Finland, and the UAE, redesigned business processes, and restructured the platform’s architecture.

    Currently, the website provides 22 state services in geology and subsoil use. To facilitate transactions, an “electronic wallet” service has been introduced, allowing companies to pay subscription bonuses directly on the platform.

    The National Geological Service has digitized and uploaded approximately 56,200 secondary geological reports. Additionally, the monitoring of contractual obligations for solid mineral deposits and the submission of annual reports by exploration and mining companies has been automated.

    In January 2024, the USP auctioned 26 subsoil plots, with investors acquiring 21, generating 20.69 billion tenge in revenue.

  • Poland May Extend Copper Output Tax Reduction Beyond 2027

    Poland May Extend Copper Output Tax Reduction Beyond 2027

    Poland’s Finance Minister, Andrzej Domański, announced on Monday that a planned reduction in the copper output tax could be extended beyond 2027. The government is considering prolonging tax relief measures to support the industry amid economic challenges.

    Earlier in the day, Domański confirmed that the tax cuts would lower government revenues by approximately 500 million zlotys ($123.4 million) in 2026 and 700 million zlotys in 2027. The move aims to provide financial relief to copper producers, ensuring competitiveness in the global market.

    The Polish government’s decision on whether to extend the tax reduction beyond 2027 will depend on economic conditions and industry performance in the coming years.

  • Ukraine’s Critical Materials Sector: Challenges and Investment Opportunities

    Ukraine’s Critical Materials Sector: Challenges and Investment Opportunities

    Ukraine’s critical materials sector is at a crossroads as industry experts and policymakers seek solutions to investment barriers and economic growth challenges. The recent conference, Strategic Resources of Ukraine: Scenarios for the Development of the Subsoil Use Industry, held as part of the Economic Growth Strategy of Ukraine until 2040, outlined key issues and opportunities in the mining sector. The event was organized in collaboration with the Boston Consulting Group and the think tank We Build Ukraine.

    Ukraine’s mining industry, a major contributor to GDP and exports, is facing significant obstacles, including asset losses, supply disruptions, and infrastructure damage due to the ongoing conflict. While the Kryvyi Rih basin remains under Ukrainian control, non-ferrous metals, including rare earth elements and precious metals, present potential growth areas. However, challenges such as outdated geological data, a lack of strategic policies, and complex land acquisition processes hinder investment.

    On a global scale, access to critical raw materials is essential for industries, technological progress, and renewable energy development. However, risks such as high geographic concentration of production, lengthy project development times, and environmental concerns contribute to market volatility.

    To attract investors, Ukraine must address several barriers, including the absence of a clear state policy on critical materials, outdated classification systems, and limited support for businesses seeking mining rights. Additionally, the country lacks fiscal incentives, export support, and mechanisms to insure against war-related risks.

    Despite these challenges, Ukraine remains an attractive destination for investment in critical raw materials. By creating economic clusters and strengthening policies, the country can enhance its economic resilience, improve energy independence, and attract international investors. A strategic approach to resource development could unlock Ukraine’s vast raw material potential, contributing to long-term economic stability.

  • Navoi Mining Secures ESG Rating, Reinforcing Sustainability Commitment

    Navoi Mining Secures ESG Rating, Reinforcing Sustainability Commitment

    Navoi Mining & Metallurgical Company (NMMC), the world’s fourth-largest gold producer, has received its first Environmental, Social, and Governance (ESG) Entity rating from Sustainable Fitch. The company was assigned a rating of ‘3’ on a five-point scale, where ‘1’ indicates low risk and ‘5’ represents high risk, with an overall entity score of 51 out of 100.

    The rating reflects an in-depth evaluation of NMMC’s sustainability initiatives, corporate governance standards, and environmental and social performance. The company’s environmental and social metrics earned a rating of ‘3,’ acknowledging strong internal policies on emissions and water management, an absence of major environmental incidents, and a low gender pay gap. Its corporate governance received a rating of ‘2,’ highlighting adherence to international financial reporting standards, robust internal audits, and a structured risk management framework.

    NMMC’s ESG rating aligns with global mining industry standards, considering the sector’s environmental footprint, high resource consumption, and waste generation. Notably, NMMC is the first mining company in Uzbekistan to secure a public ESG rating, reinforcing its leadership in sustainability and transparency.

    Eugene Antonov, First Deputy CEO and Head of Transformation at NMMC, emphasized the company’s commitment to ESG principles as part of its ongoing transformation program. He also noted that Uzbekistan’s designation of 2025 as the “Year of Environmental Protection and the Green Economy” aligns with NMMC’s sustainability goals under the national “Uzbekistan-2030” strategy.

    Boris Samoylenko, Head of ESG at NMMC, stated that the rating validates the company’s efforts to integrate sustainable practices while setting a benchmark for future improvements in ESG performance.

  • Kazakhstan’s Coal Industry Advocates to Remain Under Industrial Ministry

    Kazakhstan’s Coal Industry Advocates to Remain Under Industrial Ministry

    Kazakhstan’s coal industry should remain under the Ministry of Industry and Construction rather than being transferred to the Ministry of Energy, according to the Association of Mining and Metallurgical Enterprises (AMME). The proposal was voiced by AMME representative Tulegen Mukhanov during a ministry meeting.

    Mukhanov emphasized that the Ministry of Industry plays a crucial role in developing the sector, addressing export challenges, railway logistics, and ensuring the timely supply of coal for communal and residential needs during the heating season.

    Additionally, the ministry has worked with mining enterprises, research institutions, and potential investors to develop a national coal chemistry industry program. As part of this initiative, a scientific and technical center for coal chemistry is planned at the Institute of Coal Chemistry and Technology.

    Upon learning of the government’s intention to transfer oversight of the coal sector to the Ministry of Energy, AMME conducted a survey among mining companies. The respondents unanimously opposed the move and expressed their willingness to appeal directly to the Prime Minister and the President.

    Although Kazakhstan’s coal industry was previously under the Ministry of Energy, it was later separated—a structure that coal companies now wish to maintain. They argue that the Energy Ministry already oversees multiple sectors, while the current arrangement under the Ministry of Industry is more effective.

  • Kazakhstan and Japan Strengthen Cooperation on Critical Minerals

    Kazakhstan and Japan Strengthen Cooperation on Critical Minerals

    Kazakhstan’s Minister of Industry and Construction, Kanat Sharlapaev, met with representatives of Japan’s International Cooperation Agency (JICA) and the Japan Organization for Metals and Energy Security (JOGMEC) to discuss future collaboration on critical minerals.

    JICA has supported Kazakhstan since 2011, helping establish the country’s State Energy Registry based on Japanese expertise. Meanwhile, JOGMEC signed a memorandum with Kazakhstan in August 2024 on geological exploration, mining, and mineral processing.

    The meeting focused on expanding joint projects related to critical minerals essential for industrial and energy sectors. Kazakhstan aims to strengthen international partnerships in rare earth metals to boost investment appeal and integrate advanced geological exploration technologies.

  • KAZ Minerals Bozshakol to Extract Over 6 Million Tons of Construction Materials by 2029

    KAZ Minerals Bozshakol to Extract Over 6 Million Tons of Construction Materials by 2029

    KAZ Minerals Bozshakol, controlled by Kazakh businessmen Vladimir Kim and Oleg Novachuk, plans to extract 6.076 million tons of crushed and gravelly soil, as well as gravelly sand, from the Northern deposit between 2025 and 2029. This volume represents the site’s entire balance reserves.

    The Northern deposit, located 60 km west of Ekibastuz in Pavlodar Region, covers 169.9 hectares. Excavation will be carried out using heavy machinery, with materials transported for constructing embankment dams at the Bozshakol copper mine. Workers will reside in a shift camp, and operations will require 2,280 cubic meters of diesel fuel.

    Bozshakol is one of KAZ Minerals’ key sites, producing 79,200 tons of copper in January–September 2024. In comparison, Aktogay contributed 172,200 tons, while operations in East Kazakhstan and Kyrgyzstan produced 35,600 tons.

    Vladimir Kim, who owns 63.5% of KAZ Minerals, ranks fourth among Kazakhstan’s richest individuals, with a net worth of $3.6 billion (Forbes) or $7.23 billion (Bloomberg). Oleg Novachuk, with a 36.5% stake, has an estimated wealth of $265 million.

  • Kazakhstan to Develop AI-Powered Geological Data Platform

    Kazakhstan to Develop AI-Powered Geological Data Platform

    The Ministry of Industry and Construction of Kazakhstan has convened a scientific and technical council meeting to discuss promising research in the mining sector. One of the key initiatives approved was the creation of a digital platform for geological data, which will utilize artificial intelligence to analyze information.

    This innovative system aims to reduce exploration costs, improve the accuracy of deposit forecasting, and accelerate exploration timelines. The implementation of this platform is driven by the industry’s ongoing need for digitized geological data to support efficient resource planning.

    In addition to digitalization efforts, the council reviewed research projects from major industry players, including Sokolov-Sarbai Mining and Processing Production Association (SSGPO) and Kachary Ruda, both subsidiaries of ERG. Key research areas include developing methods for pre-reducing ore from the Sarbai deposit, improving carbon-based reductants and exploring alternatives, enhancing the quality of pelletizing ore from the Sokolov deposit, and optimizing the processing of refractory ores from the Kachary deposit.

    The discussion also focused on the introduction of “green” technologies in the mining and metallurgical industry, particularly at the Korzhankul deposit. Experts believe that adopting environmentally friendly solutions will reduce the industry’s environmental footprint and enhance its long-term sustainability.

    Additionally, the council approved a new scientific program by Kazakhmys, which aims to implement high-efficiency reagents to improve the processing of copper ores at the Balkhash Processing Plant.

    The outcomes of the meeting highlight Kazakhstan’s commitment to modernizing its mining sector through digital technologies, scientific advancements, and environmentally sustainable practices.