MINEX Forum

Tag: Mining industry

  • European Mine Owners Explore Green Future with Underground Energy Storage

    European Mine Owners Explore Green Future with Underground Energy Storage

    As mining operations wind down across Europe, mine owners are turning to innovative solutions for a sustainable future, eyeing underground energy storage as a pathway to a low-carbon economy.

    Active deep mine operators in Slovenia, Germany, The Czech Republic, and Finland are investigating the potential of underground gravity energy storage offered by Edinburgh-based firm Gravitricity, providing green opportunities to mining communities grappling with dwindling employment prospects.

    Gravitricity’s revolutionary energy storage system, dubbed GraviStore, utilizes heavy weights totaling up to 12,000 tons suspended in deep shafts by cables attached to winches. This presents a promising alternative for end-of-life mine shafts, mitigating the need for costly infilling and decommissioning processes.

    Teaming up with energy multinational ABB and lifting specialists Huisman, Gravitricity aims to commercialize the technology for mine operators, transforming recently decommissioned mines into potential sites for sustainable energy storage solutions.

    Projects are already underway, including installations at the Velenje mine in Slovenia, Pyhäsalmi Mine in Finland, Darkov Mine in the Czech Republic, and Grube Teutschenthal mine in Germany. At Velenje, feasibility assessments for installing systems in specific shafts are ongoing, with potential pilot projects on the horizon.

    Martin Wright, Founder, and Executive Chairman of Gravitricity, emphasized the transformative potential of gravity energy storage, presenting not only an alternative to decommissioning but also fostering economic and employment opportunities in declining mining communities.

    Gravitricity’s successful demonstration of the GraviStore technology with an above-ground 250 kW demonstrator underscores its viability, showcasing its ability to rapidly respond to demand fluctuations and its potential in frequency response and backup power markets.

  • Anglo Asian Mining Unveils Major Copper Discovery in Azerbaijan

    Anglo Asian Mining Unveils Major Copper Discovery in Azerbaijan

    Anglo Asian Mining (AAM), a leading British mining entity operating in Azerbaijan, has disclosed a substantial copper finding at the Kharhar site, marking a significant milestone in the nation’s mining landscape.

    In adherence to Joint Ore Reserve Committee (JORC) standards, the revelation delineates a copper mineralization zone estimated at 24.9 million tons with an average copper content of 0.48%. Notably, from 22 million tons of ore, approximately 106,000 tons of copper have been identified, contributing to a total mineral reserve estimate of 119,000 tons.

    Scheduled for copper production initiation in 2026, AAM aims to extract approximately 9,000 tons annually over a span of seven years, leveraging open-pit mining methodologies due to the site’s favorable terrain.

    The original contract inked between Anglo Asian Mining and Azerbaijan in 1997 entailed the development of six sites, with Azerbaijan holding a 51% stake and Anglo Asian Mining possessing 49%. A revised agreement in September 2021 expanded this contract to cover eight areas, granting AAM rights to three additional blocks while ceding rights to one site.

    Industry analysts foresee substantial revenue streams stemming from the Kharhar site and other contract zones, underscoring the pivotal role of the mining sector in diversifying Azerbaijan’s economy away from oil dependence. Azerbaijan, in alignment with global standards, is actively exploring innovative techniques, seeking investments, and concentrating efforts on recently liberated territories known for their significant mineral reservoirs.

    Azerbaijan’s mineral resource base, as outlined in the State Programme for Geological Exploration and Efficient Utilization of Mineral Resources Base for 2020-2024, is undergoing comprehensive exploration and development, particularly in liberated territories rich in gold, mercury, copper, and other minerals.

  • Report Reveals Human Rights Abuses in Race for Energy Transition Minerals

    Report Reveals Human Rights Abuses in Race for Energy Transition Minerals

    A recent report from the U.K.-based Business and Human Rights Resource Center sheds light on a concerning trend accompanying the global push for low-carbon technologies. As nations like the United States and Europe increasingly pivot towards renewable energy sources, the demand for critical minerals used in electric vehicles, wind turbines, and solar panels has surged. However, this transition is not without its consequences. The report highlights over 400 allegations of human rights abuses across 16 countries in Eastern Europe and Central Asia over the past five years. These allegations are linked to the extraction, smelting, and refining of metals and minerals essential for the energy transition, such as copper, zinc, uranium, and iron.

    The surge in demand for these minerals has led to a market worth $320 billion in 2022, according to the International Energy Agency. To meet the ambitious goal of net-zero greenhouse gas emissions by 2050, production of these materials will need to increase six-fold by 2040. Many of these resources are located in some of the world’s least-developed countries, where environmental regulations and labor protections may be lax.

    The report identifies numerous cases of alleged abuses, ranging from health and safety concerns for workers to environmental pollution. In Russia, which holds significant reserves of rare-earth minerals, over 100 allegations were recorded, including instances of workplace accidents and toxic pollution. Similar issues were reported in other countries like Armenia, Ukraine, and Kazakhstan, where inadequate safety measures and environmental contamination have sparked community protests.

    One concerning trend highlighted in the report is the close ties between extractive companies and political elites. In several countries, oligarchs with political connections own or control major mining operations, potentially influencing regulatory oversight and accountability mechanisms.

    Despite the gravity of these findings, the report suggests that the documented allegations may only scratch the surface due to repression and censorship in some of the countries studied. Independent journalists and human rights defenders face obstacles in investigating and reporting on abuses, leading to underreporting of incidents.

    The report’s authors call for increased transparency, community consultation, and respect for human rights in the extraction and processing of energy transition minerals. They emphasize the importance of ensuring that the transition to renewable energy promotes shared prosperity and fair treatment of workers and communities.

  • Uzbekistan Aims to Tap into Mining Potential, President Urges Action

    Uzbekistan Aims to Tap into Mining Potential, President Urges Action

    Main Body: The domestic geological sector receives an annual allocation of one trillion sums, with last year’s implementation of targeted programs pushing the production volume in the mining industry to nearly $11 billion. However, the bulk of this output is directed towards precious and non-ferrous metals, despite a vast untapped potential for minerals crucial to industry. Thirty-two such valuable minerals have been identified in the country. In response, during a presentation on January 15th, the head of state issued directives to harness opportunities in this sphere. Measures, plans, and proposals were discussed at today’s meeting. With technological advancements driving global developments, there’s a growing demand for rare earth metals in industries like electric vehicles, green energy, and electronics. Consequently, prices for molybdenum, tellurium, selenium, and graphite have surged in recent years. The President emphasized the significant prospects emerging and underscored the need to expand exploration of existing and new deposits of critical raw materials. Currently, six types of such materials are extracted in the country, with the potential to derive high-value-added products from platinum group metals, indium, vanadium, as well as minerals containing tungsten, molybdenum, rhenium, zinc, and manganese. For instance, the production of previously non-existent powder metallurgy products worth $300 million annually and equipment and components worth $100 million annually could be organized. A critical raw material agreement with the European Union has recently been reached, opening access to this vast market. In light of this, officials have been tasked with formulating, with the involvement of foreign experts and investors, a program of promising projects worth $500 million for rare earth metals. Emphasis is placed on developing this direction with a scientific approach, establishing a project office for this purpose, and engaging leading institutions and research centers. The meeting also addressed increasing the production of precious metals at the Navoi Mining and Metallurgical Combine. Responsible officials reported on opportunities for further increasing both reserves and gold production volumes. The President instructed to reduce production costs at the combine by 10-15%, expand industrial cooperation and localization. A directive was issued to establish a Scientific Center for Advanced Technologies in Precious Metals.

  • Polish Mining Industry Faces Challenges, Ministry Official Warns

    Polish Mining Industry Faces Challenges, Ministry Official Warns

    During the European Economical Congress in Katowice, Marta Jamo, the director of the Ministry of Industry’s analytics department, highlighted the critical state of Poland’s mining sector. Despite turning a profit last year, the industry struggles to convert it into tangible assets, she stated. Jamo pointed out the persistent issue of high coal piles, stemming from past practices of unregulated imports and a lack of understanding of market and energy industry demands. Emphasizing the urgency, she stressed the need to address the social contract.

  • Prime Minister of Kyrgyzstan Visits Kumtor Gold Mine

    Prime Minister of Kyrgyzstan Visits Kumtor Gold Mine

    During a recent working trip to the Issyk-Kul region, Akylbek Japarov, the Prime Minister and Head of the Administration of the President of the Kyrgyz Republic, visited the operations of the closed joint-stock company “Kumtor Gold Company.” The Prime Minister toured the plant’s machinery workshop, where he inspected the assembly of new excavators and refueling stations. Currently, the mine utilizes over 800 various types of transportation vehicles, machinery, and equipment. Japarov also visited Kumtor’s main quarry, where a project for underground gold mining has been underway since February of this year. According to estimates, the project aims to extract approximately 115 tons of gold. As reported by the cabinet, gold extraction from the mine’s ore waste, located in the tailings facility, is planned to commence from 2026. Preliminary calculations suggest an additional yield of 120 tons of gold through this initiative. In 2023, Kumtor mine yielded 13,567 tons of gold, generating a total revenue of $848 million with a net profit of $302.5 million.

  • Uzbekistan’s Ambitious Rare Earth Investment Plans

    Uzbekistan’s Ambitious Rare Earth Investment Plans

    Uzbekistan is set to make a bold move into the rare earth market with plans to invest $500 million in rare earth projects, aiming to position itself as a major producer in Central Asia. President Shavkat Mirziyoyev unveiled this ambitious endeavor, emphasizing the country’s commitment to developing existing deposits and exploring new ones.

    The mining industry in Uzbekistan has already demonstrated significant economic potential, reaching a production volume of nearly $11 billion last year, primarily driven by precious and non-ferrous metals. However, the focus now shifts towards tapping into the untapped potential of critical minerals, including rare earths. A 2018 study by the U.S. Geological Survey identified 87 deposits of rare earths and rare metals within the country, laying the foundation for Uzbekistan’s strategic investment in this sector.

    The European Union emerges as a potential key market for Uzbekistan’s rare earth exports, aiming to reduce its reliance on rare earth imports from China. Just over a month ago, Uzbekistan signed a memorandum of understanding with the EU on critical raw materials, signaling a promising avenue for future collaboration and trade partnerships.

    Meanwhile, neighboring Kazakhstan, linked to the EU through its own raw materials agreement, has also announced a significant expansion of its rare earth industry. With 15 deposits of rare earth metals and 160 rare earth element-bearing mineral occurrences, Kazakhstan presents formidable competition in the regional rare earth market.

  • Cornish Metals Receives Favorable Assessment for South Crofty Tin Project

    Cornish Metals Receives Favorable Assessment for South Crofty Tin Project

    Cornish Metals expresses satisfaction with the Preliminary Economic Assessment (PEA) conducted independently for the South Crofty tin project in Cornwall, heralding promising financial prospects. The base case after-tax Net Present Value (NPV) of US$201 million and an Internal Rate of Return (IRR) of 29.8% validate the project’s potential to operate as a cost-effective mine, according to Cornish Metals. Projected estimates, based on a 14-year life of mine (LOM) and a tin price of US$31,000 per tonne, foresee South Crofty yielding a clean, high-grade tin concentrate. With the PEA indicating a payback of upfront capital expenditure within three years and a projected total revenue of US$626 million over the project’s lifespan, Cornish Metals underscores the financial viability of South Crofty. The forecasted all-in sustaining cash cost (AISC) of US$13,661 per tonne positions South Crofty as a competitive player in the tin production market, notes Cornish Metals. Over the 14-year LOM, the project anticipates producing 49,310 tonnes of tin metal in concentrate, maintaining an average annual tin production exceeding 4,700 tonnes for years 2 through 6, with a peak of over 5,000 tonnes in year four. Owen Mihalop, the chief operating officer, highlights the NPV as a robust starting point for further project evaluation, signaling Cornish Metals’ progression towards a construction decision and targeted first tin production in 2027. Ken Armstrong, interim chief executive, emphasizes the significance of the PEA as a pivotal step towards responsible tin mining revitalization in Cornwall and the UK, underscoring South Crofty’s strategic advantages in terms of existing permits and infrastructure.

  • First Quantum Minerals Launches Extensive Geological Survey Project in Kazakhstan

    First Quantum Minerals Launches Extensive Geological Survey Project in Kazakhstan

    First Quantum Minerals (FQM) has unveiled plans for extensive geological survey operations in Kazakhstan, aiming to identify promising copper deposits, as reported by inbusiness.kz. Last year saw the establishment of FQM’s Kazakhstan division in Astana, accompanied by the recruitment of local personnel, signaling the company’s commitment to local engagement and investment.

    According to geologist James Banyard, overseeing FQM’s activities in Kazakhstan, the company’s specialists will commence geological surveying activities in the summer of 2024. Initial efforts will focus on mapping and geophysical exploration of subsurface formations, laying the groundwork for potential mining endeavors.

    In collaboration with Pallas Resources, an existing partner in several projects, FQM aims to execute its strategic vision of a five-year presence in Kazakhstan, with aspirations to discover lucrative copper-rich sites worthy of future investment.

    Currently, the company is in the process of securing exploration licenses for multiple sites across various regions of the republic. Prospecting efforts will primarily target areas with known concentrations of copper ore, including the Balkhash-Ili territories, Bozshakol-Chingiz, and the Chu-Sarysu basin.

    FQM’s foray into the Kazakh market follows the enactment of the Subsoil Code in 2018, reflecting the company’s strategic assessment of risks and opportunities within the region. Despite the inherent challenges, FQM remains optimistic about the prospects of collaboration in Kazakhstan’s burgeoning mining sector.

  • Kumtor Gold Company to Pay Kyrgyzaltyn $151.3 Million in Dividends

    Kumtor Gold Company to Pay Kyrgyzaltyn $151.3 Million in Dividends

    Kumtor Gold Company (KGC) has announced its plans to pay Kyrgyzaltyn $151.3 million in dividends. This amount exceeds the 2022 figure by $11.3 million when Kyrgyzaltyn received $140 million. According to KGC’s financial report, the company’s net profit amounted to $371.721 million last year, marking a 59.4% increase from 2021.

    It’s worth noting that with the dividend payout by Kumtor, Kyrgyzstan’s total income from the gold mining company for 2022 and 2023 will reach $291.3 million. This nearly triples the dividends received by Kyrgyzstan from Canadian company Centerra Gold Inc. between 2010 and 2021, which amounted to $101.7 million.

    Recall that Kumtor fully transitioned into Kyrgyzstan’s ownership on July 29, 2022, following the exchange of relevant documents at the Kyrgyzstan Embassy in the United Kingdom.