MINEX Forum

Tag: sustainable mining

  • Central Asia Metals Delivers Strong Financial Performance and Targets Sustainable Growth

    Central Asia Metals Delivers Strong Financial Performance and Targets Sustainable Growth

    Central Asia Metals PLC, during its recent ShareSoc Seminar investor presentation, outlined a solid financial and operational performance for 2024, underpinned by exceptional profitability from its primary mining assets in Kazakhstan (Kunrad) and North Macedonia (Sasa). The company reported EBITDA margins of 47%, notably higher than industry averages, with Kunrad achieving margins as high as 73% owing to its unique low-cost copper recovery process. CAML closed the year with $67.6 million in cash and generated nearly $66 million of free cash flow, positioning itself firmly as a low-debt, cash-strong operator.

    Shareholders have benefited from a consistent dividend policy, with payouts between 30% and 50% of free cash flow, although the latest 18p annual dividend actually represented a payout of 63% of cash flow, reflecting the board’s commitment to return surplus capital to investors. Since its 2010 IPO, CAML’s dividend returns have exceeded funds raised, exemplifying its prudent capital management.

    Operationally, the Kunrad copper operation stands out for its innovative in-situ leaching method, extracting copper from historic waste dumps without traditional mining, resulting in first-quartile cost performance and a reliable output profile. Sasa, in North Macedonia, remains a stable but higher-cost asset due to conventional underground mining, recent capital investment in new mining methods and infrastructure, and inflationary pressures closer to Europe.

    CAML’s growth strategy pivots on selective expansion of its asset base. In 2024, the management evaluated 37 potential acquisitions, focusing on base metal properties in familiar jurisdictions such as Kazakhstan, the wider European time zone, and parts of Africa. The criteria for new investment emphasise accretive deals that bolster shareholder earnings and leverage CAML’s strong borrowing ability. The company also maintains minority stakes in exploration ventures such as the Arthra project in Scotland and the Camel X JV in Kazakhstan, aiming for scalable, affordable copper projects to support future production.

    Sustainability and community engagement remain core to CAML’s ethos, with significant investments in solar energy reducing greenhouse gas emissions and philanthropic initiatives supporting local health, education, and disaster relief. Both Kunrad and Sasa have active programmes to minimise environmental footprint, including innovative tailings management and local entrepreneurship support.

    Looking ahead to 2025 and beyond, CAML expects continued steady production, further asset optimisation, and sustained shareholder returns, maintaining its reputation as a defensive stock with a strong balance sheet. The company continues to operate debt-free, with ongoing efforts to extend mine life and pursue disciplined expansion in base metals.

  • Kyrgyzstan Launches Underground Gold Mining at Kumtor, Prioritizing Sustainability and State Control

    Kyrgyzstan Launches Underground Gold Mining at Kumtor, Prioritizing Sustainability and State Control

    BISHKEK, Kyrgyzstan — President Sadyr Zhaparov officially launched an underground gold mining project at the Kumtor Gold Company during a working visit to the Issyk-Kul region on Wednesday, marking a significant shift in the country’s mining strategy and environmental approach.

    The project, which builds on over 1,600 meters of developed tunnels, is set to tap into high-grade ore deposits containing over 5 grams of gold per ton. The underground operation is expected to last 17 years and has added 147 tonnes of gold to Kyrgyzstan’s state reserve balance.

    President Zhaparov hailed the move as both an economic and environmental milestone.

    “This marks a new chapter for Kumtor — one that aligns with our goals of sustainable development and environmental protection, especially in preserving our glaciers,” he said.

    The president underscored the importance of the Kumtor deposit’s return to state ownership, calling it a historic achievement. Under domestic management since May 2021, Kumtor has generated $3.45 billion in revenue, of which $891.6 million has gone to the state budget. Over 54 tonnes of gold have been produced in that time, with $441 million in dividends transferred to the state — a dramatic increase compared to just $100 million during the previous 28 years of foreign operation.

    The project is being executed entirely by local specialists, with underground mining chosen for its lower environmental impact compared to open-pit methods. While open-pit operations will continue, the strategic focus will increasingly shift underground.

    Zhaparov also revealed plans to process gold-rich tailings and develop new sites, including the Togolok deposit and the Jangart exploration area, as part of Kyrgyzstan’s broader efforts to maximize national resource benefits.

  • Uzbekistan Boosts Uranium and Rare Material Exports with Greener Mining Push

    Uzbekistan Boosts Uranium and Rare Material Exports with Greener Mining Push

    Uzbekistan is accelerating its efforts to become a key player in the global energy transition supply chain by expanding exports of uranium, copper, and rare earth elements. The Central Asian country is adopting cleaner mining methods and forging international partnerships to position itself as a reliable and responsible supplier of critical raw materials.

    A standout initiative is underway in the Navoi region, where a French-Uzbek-Japanese joint venture — involving France’s Orano and Uzbekistan’s state-owned Navoiyuran — is deploying in-situ leaching. This method offers an environmentally friendlier alternative to traditional open-pit mining and is expected to yield 10,000 tonnes of uranium.

    The move comes as global demand soars for strategic materials essential to renewable energy, electric vehicles, and other green technologies. Uzbek officials are aligning their practices with OECD standards and international environmental benchmarks to boost transparency and win the confidence of Western investors.

    By integrating greener extraction techniques and international oversight, Uzbekistan is not only increasing its export potential but also improving its standing in the global raw materials market. The country is actively seeking to deepen ties with European partners and attract foreign capital to scale up sustainable mining operations.

  • EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    EU Urged to Prioritise ESG in Central Asia’s Raw Materials Push

    The EU must prioritize Environmental, Social, and Governance (ESG) principles in its dealings with Central Asia to secure its access to crucial raw materials, commentators warn.

    The bloc arrived in Samarkand this April with a hefty €13.2 billion Global Gateway package, signaling a desire to move beyond merely buying raw materials from the region. A significant portion, €2.5 billion, is earmarked for new mining and processing projects in Kazakhstan, Uzbekistan, and beyond. This drive is born out of necessity: the EU still relies entirely on China for its heavy rare-earth imports and faces the growing risk of vulnerability.

    While geographically late to the game, Europe has a unique advantage: a reputation for robust ESG practices. Local executives cite European partners as “a sign of quality” due to their unwavering adherence to these standards, something often lacking in Chinese or Russian counterparts. However, this edge relies on Brussels consistently embedding ESG into every euro invested. This means robust monitoring and auditing of remediation plans, transparent royalty structures, and genuine upfront consultation with local communities.

    The EU’s Critical Raw Materials Act (CRMA) sets ambitious goals: attaining 10 percent mining, 40 percent processing, and 25 percent recycling of Europe’s annual CRM demand domestically or in trusted partner states by 2030.

    Realising these goals in Central Asia necessitates investment in sustainable technologies. This includes financing water-efficient processing plants, closed-loop waste systems, and solar-powered smelters, rather than simply opening more exploitative mines.

    The EU’s efforts are beginning to take shape, with the spotlight falling on graphite. Kazakhstan’s Sarytogan deposit has been placed on the EU Commission’s list of “strategic projects” eligible for expedited permits and loan guarantees under the CRMA. Meanwhile, the European Bank for Reconstruction and Development has taken a significant stake in the mine operator, marking a direct investment in the region’s CRM sector. The EU is now actively seeking downstream investors to refine indigenous graphite into anode-grade product, capturing added value that historically flowed to Chinese refiners.

    Lithium development is following a similar trajectory. A partnership between HMS Bergbau and Kazakhstan’s Creada Corporation aims to unlock the potential of Kazakh spodumene through extraction, processing, and refining into battery-ready lithium hydroxide. This would be a direct response to the EU’s new battery-passport regulations, which require materials of a certain purity.

    However, Europe faces a formidable competitor: China. The PRC Mineral Resources Law mandates environmental remediation planning before mining commences, setting a new baseline for responsible resource extraction. While welcomed, the application details remain vague, lacking guarantees on local community engagement and enforcement mechanisms, potentially creating loopholes for exploitation.

    Adding to the pressure, Chinese capital is expanding downstream. East Hope Group’s landmark $12 billion investment in Kazakh non-ferrous metals signifies a vertical integration approach—from mining and smelting to fabrication and renewable power generation. This $12 billion vertical integration project in Kazakhstan showcases China’s willingness to build a fully controllable supply chain.

    Europe must act strategically to counter these challenges.

    Firstly, financial aid should be contingent on stringent ESG benchmarks. EU financing must go hand-in-hand with clear, enforceable standards – ISO-compliant tailings dams, methane monitoring, gender-balanced workforce plans, and robust penalties for non-compliance.

    Secondly, the EU should focus on fostering value-adding industries beyond mining. This means investing in processing plants and recycling facilities, not just mines. By creating domestic processing hubs for cathode powders or rare-earth magnets, the CRMA’s 40 percent processing target can be achieved, generating jobs, technology transfer, and increased tax revenue for beneficiary countries.

    Finally, the EU must simplify visa requirements for Central Asian technical personnel. A targeted visa-facilitation agreement could allow them to train in Europe and return, strengthening the region’s skilled workforce.

    Securing a stable and sustainable supply of raw materials is a critical challenge for the EU. While China’s economic clout is undeniable, Europe has the opportunity to win this race by leveraging its commitment to ESG principles and building a truly sustainable, transparent, and trust-based partnership with Central Asia.

    Time is of the essence. The next 18 months, before China’s revised mining law takes full effect and East Hope’s megaproject begins construction, provide a crucial window for the EU to demonstrate its commitment to ESG beyond rhetoric. The stakes are high, as the fate of Europe’s essential raw materials supply hangs in the balance.

  • Europe’s Lithium Paradox: New Documentary Explores EU’s Critical Mineral Dilemma

    Europe’s Lithium Paradox: New Documentary Explores EU’s Critical Mineral Dilemma

    A new documentary, Europe’s Lithium Paradox, produced by Storyrunner and SIM² KU Leuven and distributed by Journeyman Pictures, delves into the European Union’s struggle to secure a sustainable and self-sufficient supply of lithium—a metal essential for electric vehicle batteries and renewable energy storage.

    Despite possessing significant lithium reserves, Europe lacks operational mines and remains heavily dependent on imports, particularly from China. The film investigates the challenges hindering the development of domestic lithium mining, including slow permitting processes and opposition from environmental groups.

    Featuring insights from policymakers, industry experts, and civil society representatives, the documentary examines key projects across the continent, such as Serbia’s Jadar mine and Portugal’s Mina do Barroso. It also addresses the broader implications of Europe’s reliance on external sources for critical raw materials and explores potential pathways toward a more resilient and environmentally conscious supply chain.

  • UK Launches New ESG Paper to Drive Responsible Lithium Supply Chain Development

    UK Launches New ESG Paper to Drive Responsible Lithium Supply Chain Development

    The UK’s ESG Working Group, under the Competition and Markets Authority (CMA), has launched a comprehensive new paper focused on advancing a responsible and sustainable lithium supply chain within the country. This initiative comes as lithium, a mineral deemed “critical” by the UK and many international partners, becomes increasingly vital for clean energy generation and storage technologies.

    The paper, developed in collaboration with Minviro and other prominent ESG experts, academics, and industry representatives, outlines a strategic roadmap for the UK to lead by example in responsible lithium sourcing and lithium-ion battery manufacturing.

    The report features a foreword from Noah Law MP, Chair of the UK All-Party Parliamentary Group (APPG) for Critical Minerals, highlighting governmental support for sustainable mineral sourcing. It also examines recent policy developments, such as the UK Critical Minerals Strategy, Invest 2035, the EU Battery Regulation, and the Critical Raw Materials Act, emphasizing the UK’s commitment to sustainable growth in critical mineral supply.

    A core focus of the report is on life cycle assessments (LCAs) and other validation tools designed to mitigate environmental and social risks throughout the lithium supply chain. From extraction and processing to cathode material production and battery recycling, the report provides a detailed examination of ESG risks and opportunities at every stage.

    The paper concludes with multi-stakeholder recommendations aimed at bolstering the UK’s capacity to secure a sustainable and responsible domestic lithium supply, ensuring alignment with international ESG standards and long-term environmental goals.

  • Germany Bets on Ion Pump Technology to Extract Lithium Sustainably from Geothermal Brine

    Germany Bets on Ion Pump Technology to Extract Lithium Sustainably from Geothermal Brine

    Germany is taking a bold step toward energy independence and environmental sustainability with the launch of the “Thermion” project, aimed at extracting lithium from geothermal brine using an innovative ion pump technology. Spearheaded by the Fraunhofer Institute for Solar Energy Systems ISE and supported by the Federal Ministry for Economic Affairs and Climate Protection, the project targets lithium-rich geothermal sources in the Upper Rhine Graben—a region considered highly promising for such extraction.

    Unlike conventional lithium mining from hard rock or salt flats—which causes significant CO₂ emissions, consumes large amounts of water, and damages local ecosystems—this method offers a clean alternative. The ion pump selectively captures lithium from thermal water extracted from depths of 3 to 5 kilometers, with the brine subsequently returned to its source almost unchanged. This closed-loop process not only conserves resources but also avoids chemical contamination and landscape disruption.

    The Thermion project will focus on both scientific evaluation of regional lithium reserves and the development of a scalable, efficient extraction process. Operating at 15 to 20 bar and 70°C within existing geothermal power systems, the ion pump enhances economic viability by utilizing dual infrastructure for both energy and lithium production.

    Backed by €2.6 million in government funding, the three-year initiative also envisions the future extraction of other valuable minerals such as cesium, rubidium, and cobalt. If successful, it could significantly reduce Germany’s dependence on lithium imports from countries like Australia and China, strengthen its battery production sector, and help meet growing demand for this critical mineral—expected to rise six-fold by 2030.

    However, challenges remain. To make geothermal lithium extraction a competitive and scalable solution, quicker project approvals and improved cost efficiency are essential. Public support will also be crucial, necessitating transparent communication and community engagement. With legislative support like the proposed Geothermal Acceleration Act, Germany could set a global example for clean, local resource extraction integrated with renewable energy.

  • European Commission Launches Critical Raw Materials Facility to Strengthen Supply Chains and Reduce Dependencies

    European Commission Launches Critical Raw Materials Facility to Strengthen Supply Chains and Reduce Dependencies

    The European Commission has awarded EIT RawMaterials and InnoEnergy a groundbreaking new project, the Critical Raw Materials (CRM) Facility, aimed at bolstering Europe’s supply chains, reducing dependencies, and mitigating disruption risks. Coordinated by EIT RawMaterials, the initiative seeks to build a resilient and sustainable supply of critical raw materials such as lithium, cobalt, nickel, and manganese by strengthening global partnerships and advancing international projects to diversify Europe’s raw materials sources.

    Bernd Schäfer, CEO and Managing Director of EIT RawMaterials, emphasized the importance of the project, stating, “Securing a stable supply of critical raw materials is not just vital for Europe’s industrial competitiveness—it is essential for European security. As we race toward 2030, we must turn ambition into action.” He highlighted that resilient supply chains require strong global partnerships and expressed pride in leading the initiative, leveraging EIT RawMaterials’ expertise in mining, recycling, and advanced materials.

    A dedicated team from EIT RawMaterials and InnoEnergy will identify and assess CRM projects in regions including Africa, Latin America, Central and Southeast Asia, Southeastern Europe, and Greenland. These projects will be evaluated for their strategic value to Europe and opportunities for mutually beneficial partnerships between host communities and European industries.

    Baptiste Buet, Director of the EU Business Unit at InnoEnergy, noted, “A value chain is only as strong as its weakest link. For batteries, securing sustainable raw materials is critical to the success and stability of a rapidly developing European industry.” He added that while domestic mining, refining, and recycling are essential, the CRM Facility underscores Europe’s commitment to securing global resources for battery cell manufacturers.

    The CRM Facility will also focus on developing mid-to-downstream mineral value chains in partner countries and delivering specialized training programs to equip professionals with expertise in CRM management, operations, and sustainable practices.

  • Euromines President Stresses Balance Between EU Climate Goals and Industrial Competitiveness

    Euromines President Stresses Balance Between EU Climate Goals and Industrial Competitiveness

    At the Strategic Dialogue on Steel, hosted by European Commission President Ursula von der Leyen, Euromines President Jan Moström (LKAB) underscored the need to balance EU climate ambitions with industrial competitiveness. Speaking at the event, Moström highlighted key priorities for ensuring a sustainable and resilient steel sector in Europe.

    He emphasized that electric arc furnace (EAF) steelmaking powered by low-carbon electricity is the future of decarbonization. To build resilient value chains, he stressed the necessity of combining scrap and direct reduced (DR) pellets, while also acknowledging the scarcity of high-grade iron ore.

    Moström also called for a robust Omnibus permitting framework to unlock sustainable raw materials and boost renewable energy capacity. Additionally, he urged the EU to implement an Affordable Energy Action Plan, advocating for electricity market reform to curb volatility and attract investment.

    For Europe’s clean industrial future, securing affordable, fossil-free electricity and reliable raw materials is essential to maintaining a competitive and resilient minerals mining industry.

  • Energy Minister Bozhinovska Highlights Safety and Innovation at SASA Lead-Zinc Mine

    Energy Minister Bozhinovska Highlights Safety and Innovation at SASA Lead-Zinc Mine

    Minister of Energy, Mining, and Mineral Derivatives Sanja Bozhinovska visited the SASA mine, the nation’s largest underground lead and zinc mine, producing 800,000 tons of ore annually. Bozhinovska commended the mine’s sustainable practices and focus on innovation during discussions with its management.

    The SASA mine employs 770 local residents and has contributed over 85 million dinars in taxes over six years, aiding national development. General Manager Christopher Colburn noted $80 million invested in safety, modernization, and digitalization since joining Central Asia Metals. Bozhinovska toured the underground corridors, engaging directly with workers and emphasizing safety improvements.

    This visit forms part of the minister’s broader initiative to engage with key mining and energy sectors under her ministry’s oversight.