Vale has announced a memorandum of understanding with Swedish company GreenIron, focusing on decarbonizing mining industry supply chains in Brazil and Sweden. The collaboration includes feasibility studies for a direct reduction plant in Brazil, to be managed by GreenIron, and the provision of Vale’s iron ore for GreenIron’s commercial operations in Sandviken, Sweden. This partnership aligns with global sustainability goals, targeting innovative solutions to reduce emissions in iron and steel production while strengthening ties between Brazilian and Swedish industries.
Tag: Mining industry
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Resolutions for Mining Companies in 2025: Lessons from 2024 Challenges
As 2024 concludes, mining expert Timothy Foden reflects on the year’s recurring challenges, emphasizing the heightened sovereign risks mining companies face globally. From resource nationalism in Mexico and Burkina Faso to the geopolitical instability of Africa’s Coup Belt, mining firms must navigate complex environments. Foden advises companies to safeguard investments by maintaining licenses, documenting interactions with officials, and structuring agreements for international arbitration. Additionally, he highlights the critical need to work with proven legal experts who can secure favorable outcomes in disputes with sovereign nations.
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Kazakhstan’s Mineral Reserves Expected to Last Up to 40 Years
Kazakhstan’s mineral reserves are projected to last for 20 to 40 years, depending on the resource, according to Akbarov, head of the country’s Geological Committee. During a briefing at the Central Communications Service, Akbarov noted that while the situation for many resources is stable, with an average reserve life of 20 years, some deposits face significant geological and technical challenges.
Key resources such as gold are estimated to last for 20 years, while copper reserves may sustain production for up to 40 years. However, certain deposits are nearing depletion, with reserves sufficient for only 5 to 10 years.
To address this, Kazakhstan is intensifying efforts in geological exploration. Starting next year, the country will transition from a 1:200,000 scale to a more detailed 1:500,000 scale for geological mapping. This shift aims to identify hidden and geologically complex deposits, enhancing the mineral resource base. Akbarov emphasized that these initiatives could significantly boost the efficiency of exploration and replenish Kazakhstan’s mineral reserves.
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Kazakhstan Considers New Royalty-Based Tax Model for Mining Sector
Kazakhstan plans to transition from its current mineral extraction tax to a royalty-based system, calculated on the sale value of mineral raw materials. Minister of Industry Kanat Sharlapayev believes this will enhance transparency and attract foreign investors. The new model aims to incentivize domestic processing by imposing lower taxes on minerals processed locally compared to those exported raw. The proposal is set to be included in the 2026 Tax Code. Additionally, the minister emphasized boosting geology research as a fundamental science, advocating increased state funding.
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United States and Uzbekistan Sign MOU to Strengthen Cooperation on Critical Minerals
Ambassador Jonathan Henick and First Deputy Minister of Geology Omonullo Nasritdinxodjaev signed a Memorandum of Understanding (MOU) today to enhance cooperation between the United States and Uzbekistan in the area of critical minerals. The signing took place just before Uzbekistan’s participation in MINExpo INTERNATIONAL, the world’s largest mining industry event, set for September 24-26, 2024, in Las Vegas, Nevada.
This agreement follows the announcement made during the September 2023 Presidential Summit in New York, where President Biden, President Mirziyoyev, and the presidents of Kazakhstan, Kyrgyz Republic, Tajikistan, and Turkmenistan agreed to launch a Critical Minerals Dialogue. The MOU aims to promote economic cooperation, drive investment in clean energy initiatives, and safeguard Central Asia’s ecosystems.
Critical minerals and rare earth elements are vital to clean energy technologies and are becoming increasingly important in global economies. The United States is actively encouraging private sector investment in Uzbekistan’s mining sector. The MOU underscores both nations’ commitment to maintaining high environmental, labor, and governance standards in the global mining sector.
Ambassador Henick stated, “The United States and Uzbekistan must cooperate to establish resilient and secure supply chains that can support the future energy landscape. This memorandum reflects our shared goal to diversify global mineral supply chains and expand our Strategic Partnership with Uzbekistan.”
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Denarius Metals to Acquire 100% of Europa Metals Iberia S.L. and the Toral Project in Spain
Denarius Metals Corp. announced today that it has signed a binding letter of intent (LOI) with Europa Metals Ltd. (AIM: EUZ) to acquire 100% of the issued and outstanding shares of Europa Metals Iberia S.L. (EMI), a subsidiary of Europa Metals. The Toral Zn-Pb-Ag Project, located in the Leon Province of Northern Spain, will become a key asset of Denarius Metals through this transaction. The closing is expected by October 31, 2024.
Serafino Iacono, Executive Chairman and CEO of Denarius Metals, highlighted that the acquisition aligns with the company’s strategy to produce low-carbon metals within the European Union. The Toral Project, known for its potential as a long-life underground mining operation, could supply material to the company’s 5,000 tpd processing plant at the Aguablanca Project in Spain. An updated Mineral Resource estimate and preliminary economic assessment are expected later this year for the Toral Project.
Denarius Metals has already invested US$3.1 million in exploration at the site through a loan agreement with Europa. As part of the exploration efforts, the company conducted 6,200 meters of drilling in 2023, which intersected mineralization within the Indicated Resource block. In 2023, Denarius also filed a formal mining license applicationfor the Toral Project.
The purchase price for EMI will consist of the amounts advanced under the Loan Agreement and an additional CA$3.5 million in the form of 7,000,000 common shares issued at CA$0.50 per share. These shares will be subject to a four-month hold period. The Option Agreement and Loan Agreement will be terminated upon closing, and the deal is subject to board, shareholder, and regulatory approvals.
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Kazatomprom Raises 2024 Uranium Production Guidance After Strong First Half
Kazakhstan’s Kazatomprom (LON: KAP) announced on Thursday that it has raised its production guidance for 2024following an increase in output during the first half of the year. The world’s top uranium producer now expects to produce between 22.5 million and 23.5 million tonnes of uranium in 2024, up from the previous guidance of 21 million to 22.5 million tonnes.
The updated forecast comes after the company boosted its uranium production by 6% year-on-year in the first half of 2024, reaching 10,857 tonnes. Production on an attributable basis rose 7% to 5,797 tonnes.
Despite the increase in production, Kazatomprom and its subsidiaries experienced an 18% decrease in sales in the first half of the year, totaling 7,779 tonnes. However, the average price of uranium concentrate surged by 41% to $66.22/lb.
Earlier this year, uranium prices soared to a 15-year high of $104/lb due to tight supply and rising demand. The company noted that average realized prices for the second quarter and the first half of 2024 were higher than in the same periods of 2023, primarily due to an increase in the uranium spot price.
“The company’s current contract portfolio pricing reflects uranium spot prices. However, some long-term contracts for 2024 include fixed pricing components and price ceilings that were set during a period of lower prices,” Kazatomprom said in a statement.
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Chromium’s Vital Role and Growing Demand in Global Industries
Since its discovery by French chemist Nicolas-Louis Vauquelin, chromium has become one of the world’s top five most extensively mined metals, with production reaching 41 million tons in 2023. Chromium is essential for producing stainless steel and is used across a variety of industries, including military, aerospace, transportation, and medical equipment.
With over 30 years of experience in the chrome ore mining industry, I have witnessed a significant rise in the demand for chromium and ferrochrome. The top chromium-producing countries are South Africa, Turkey, Kazakhstan, India, and Finland, with Albania emerging as a notable producer of high-grade chrome ore and holding Europe’s largest reserves.
Chromium’s properties, such as corrosion resistance and high-temperature resistance, make it irreplaceable with no viable substitutes. It is becoming increasingly important in the green energy sector, particularly in the manufacturing of solar panels, electrochemical cells, and electrolyzers for hydrogen production. Chromium is also used in rechargeable batteries, catalytic converters, and water treatment processes.
However, extensive mining of high-grade chrome bodies has increased the cost of extraction, leading to a surge in chrome ore prices due to a projected decline in production. Informal surveys with global mining companies confirm this scarcity, suggesting potential challenges for industries reliant on this metal.
The demand for stainless steel continues to grow, driven by economic growth, urbanization, and advancements in production processes. The chemical industry also plays a crucial role in chromium demand, particularly in specialty chemicals and eco-friendly practices.
Investing in chromium involves both risks and opportunities. Supply chain disruptions, geopolitical tensions, and emerging environmental regulations are significant factors to consider. Technological advancements in AI and automation are transforming the mining industry, enhancing sustainability, efficiency, and productivity.
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Tajikistan’s Mining Industry Surges with 18% Growth in Early 2024
Mining output in Tajikistan has grown by more than 18% over the past year. Enterprises in the mining and precious metals industry for the first four months of 2024 produced quantities worth 4.3 billion somonis ($398.6 million), which is 667 million somonis ($61.7 million) or almost 19% more than the same period in 2023.
According to Muhammadvalishokh Makshulov, a Ministry of Industry and New Technologies spokesman, the demand depends primarily on increasing enterprises’ capacity and creating new directions in their work.
According to the ministry, last year the company Zarafshon launched a metallurgical plant to produce metallic copper, built on the most modern technologies in the world, thanks to the acquisition of more than $119 million.
Also, on 5 July 2023, the enrichment plant of TVEA Dushanbe Mining Industry LLC, with a capacity of processing 900,000 tons of ore per year in the Ayni district of the Sughd region, started operating. This company started production at two mines: Kumargi Bolo and Duobai Sharqi. The first mine is located at an altitude of almost 4,000 meters, and the second is at 2,300 meters.
Last year, with the attraction of $43 million in foreign capital, construction began on the second stage of a metallurgical plant to produce lead, silver, and copper for the Tajik-Chinese mining and industrial company.
Currently, 21 companies are engaged in the mining and processing of minerals and precious metals in Tajikistan, seven of which are active due to Chinese investments.
About 12,500 people work in the business of mining and processing minerals and precious metals. Of these, 11,500 are Tajik citizens, and the rest are Chinese.
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EU’s Corporate Sustainability Directive: Far-Reaching Effects on Global Supply Chains and Africa
The European Union’s newly enacted Corporate Sustainability Due Diligence Directive (CSDDD) imposes stringent requirements on large corporations to address and mitigate human rights and environmental impacts throughout their supply chains. Effective from May 24, the directive targets businesses with more than 1,000 employees and a net turnover exceeding €450 million, including non-EU companies with substantial EU operations. This initiative, driven by France, focuses heavily on sectors like mining. However, it has faced criticism for excluding financial institutions and specific products, which some argue weakens its overall impact, especially from the perspective of African stakeholders who see continuous investments in fossil fuel projects on the continent.
For instance, in South Africa, the controversy surrounding Shell’s offshore gas exploration underscores the environmental challenges that the directive aims to tackle. Despite these intentions, the development process of the CSDDD has been criticized for insufficient engagement with stakeholders from the Global South, raising concerns about the directive’s fairness and effectiveness in ensuring accountability and equitable governance within global supply chains. The directive’s broad scope emphasizes the need for comprehensive international frameworks to support sustainable business practices globally.