MINEX Forum

Tag: TechMet

  • Ukraine’s Dobra Lithium Deposit Could Sustain Mining for 60 Years on Conservative Estimates, Geologists Say

    Ukraine’s Dobra Lithium Deposit Could Sustain Mining for 60 Years on Conservative Estimates, Geologists Say

    The Dobra lithium deposit in Ukraine’s Kirovohrad Region may contain between 60 and 100 million tonnes of ore, sufficient to sustain decades of production and potentially making it one of the most significant lithium assets in Europe, according to the geologists leading its development.

    Mykhailo Heichenko, CEO and Chief Geologist of UkrLithiumMining, estimates the deposit at around 60 million tonnes, while Bohdan Slobodian, a PhD candidate at the Institute of Geochemistry, Mineralogy and Ore Formation of the National Academy of Sciences of Ukraine, puts the figure closer to 100 million tonnes based on exploration data from Kirovgeology. At an extraction rate of one million tonnes per year, 60 million tonnes would support 60 years of operations; even scaling up to 1.5 to 2 million tonnes annually, the deposit would remain productive for decades. “With 100 million tonnes, our grandchildren could still be working here,” Heichenko said.

    Slobodian explained that the assessment draws on borehole data collected between 1989 and 1994, with lithium ore beginning at depths of 60 to 80 metres below surface sediments and extending to 500 metres across the 1,700-hectare licensed area.

    Lithium-bearing ores at the site were first identified in 1989 during gold exploration, with the discovery also revealing associated deposits of tantalum, niobium, rubidium, beryllium, tin, cesium and tungsten. In 2017, the Ukrainian State Commission on Mineral Resources consolidated the Nadiya and Stankuvata ore deposits into the unified Dobra zone. The deposit contains two key lithium minerals — petalite and spodumene — and is located in Novoukrainka district, stretching between the villages of Novostankuvata and Ternove.

    Ukraine’s Cabinet of Ministers has selected Dobra Lithium Holdings JV as the winner of a tender to develop the deposit under a production sharing agreement. The joint venture is backed by internationally recognised companies Techmet and The Rock Holdings, and the project is expected to attract at least $179 million in capital investment — $12 million for new geological exploration and international reserve audits, and $167 million for mining and processing operations subject to confirmation of industrial-scale reserves.

  • Ukraine Opens Lithium Tender at Dobra Deposit Amid Ownership Dispute

    Ukraine Opens Lithium Tender at Dobra Deposit Amid Ownership Dispute

    Ukraine has launched a tender for the right to develop the Dobra lithium deposit in the central Kirovohrad region, a move hailed as a cornerstone of its new minerals cooperation deal with the United States. The announcement, made by Prime Minister Yulia Svyrydenko, underscores Kyiv’s strategy to leverage its critical mineral wealth — estimated at around 5% of global reserves — to attract Western investment and reduce dependence on China for processing.

    Lithium, essential for battery production, is considered one of Ukraine’s most strategic assets, with the Dobra site believed to hold significant reserves. The government said the winning bidder would sign a 50-year agreement and commit to at least $179 million in investment covering geological exploration, production, and enrichment. “We expect an investor who will ensure not only extraction but also the development of value-added,” Svyrydenko noted.

    The tender, however, risks being overshadowed by a looming legal dispute. Nasdaq-listed Critical Metals (NASDAQ: CRML) and its top shareholder, Australia’s European Lithium (ASX: EUR), claim rights to the project. Board member Mykhailo Zhernov told the Financial Times in July that the Dobra licence had been due to go to Petro Consulting — later acquired by European Lithium — under a prior court ruling. “It is our licence, it is our rights. You cannot propose something for another investor before you finish with us,” Zhernov said. Neither company has provided documentation to substantiate the claim.

    Meanwhile, US-backed mining investor TechMet, which counts Washington among its largest shareholders, confirmed it will bid. CEO Brian Menell said the company has been evaluating the project since 2023 and sees it as a strategic opportunity.

    The Dobra tender is the first major initiative under the April minerals cooperation agreement between Kyiv and Washington, part of President Donald Trump’s transactional approach to Ukraine. The pact gives US firms preferential access to mining projects, with profits earmarked for reinvestment in Ukraine.

  • US-backed TechMet Ltd has its eyes on Ukraine’s Dobra lithium project

    US-backed TechMet Ltd has its eyes on Ukraine’s Dobra lithium project

    The Dublin based US-backed TechMet Ltd has its eyes on Ukraine’s Dobra lithium project. CEO Brian Menell says they’ve been sizing it up since 2023. But there’s a twist, progress could hinge on a minerals deal between Washington and Kyiv. And after a chaotic meeting between Presidents Zelenskiy and Trump in February, that’s looking uncertain. Despite some over the top claims about Ukraine’s rare earths, the country does have serious mineral potential about a third of Europe’s lithium is sitting there.

    During his recent appearance on Bloomberg’s “The Opening Trade,” Menell highlighted how Ukraine’s vast yet underdeveloped resources could reshape global supply chains for green energy, defense, and high-tech industries, while outlining prerequisites for economic viability.

    Unlocking Ukraine’s Mineral Potential

    Menell pointed to Ukraine’s abundance of strategic minerals, including lithium, titanium, and elements crucial for advanced batteries and electronics. “There’s immense potential here,” he stated, noting that Soviet-era geological data indicates significant reserves. However, he emphasized that outdated surveys, infrastructure gaps, and complex regulations present major obstacles to investment.

    Key Requirements for Successful Development

    According to Menell, moving forward requires:

    • Modernising data and infrastructure through updated geological mapping and improved transport and processing facilities
    • Implementing regulatory reforms and investment incentives with streamlined permitting and clearer policies to lower capital barriers
    • Ensuring security and political stability through robust guarantees to protect long-term investments amid regional volatility

    Impact of a Potential US-Ukraine Minerals Deal

    A minerals agreement between the US and Ukraine could significantly boost Ukraine’s economic recovery while reducing Western dependence on Chinese supply chains. “A well-structured US-Ukraine minerals deal could be a game-changer,” Menell asserted, suggesting deeper US involvement could promote modernized mining projects aligned with international environmental and operational standards.

    While Ukraine’s mineral wealth presents substantial opportunities, Menell acknowledged that development requires decades of sustained investment. His insights align with broader discussions viewing critical minerals as the next frontier in geopolitical strategy.

    As global powers compete for essential resources, Menell underscores the need for a coordinated, transparent, and secure investment framework in Ukraine that balances economic opportunity with strategic imperatives of national security and sustainable development.

  • Cornish Lithium raises £5.1m through crowdfunding

    Cornish Lithium raises £5.1m through crowdfunding

    UK-based Cornish Lithium has raised £5.1-million through crowdfunding on a platform called Crowdcube, marking it as one of the largest crowdfunding endeavours undertaken in the UK this year.

    Cornish launched the crowdfunding to provide exiting shareholders, as well as new retail shareholders, the opportunity to invest alongside a landmark £53.6-million fundraise announced on August 8 by UK Infrastructure Bank, Energy and Minerals Group, and TechMet.

  • Cornish Lithium secures £53.6m to open first mine for the metal in Britain

    Cornish Lithium secures £53.6m to open first mine for the metal in Britain

    The startup opening Britain’s first lithium mine in Cornwall has secured $67m (£53.6m) of investment led by the UK Infrastructure Bank, in a much-needed boost to efforts to extract the metal that is used for making vehicle batteries.

    Cornish Lithium is to receive the funds from the Treasury-funded bank and other investors as part of a larger funding package of up to $210m (£168m).

    The funding package is expected to speed up progress towards British mining of battery-grade lithium compounds, which are key to production of batteries for electric vehicles and renewable energy storage.

    The investment is part of a push to boost financing for climate crisis-related infrastructure projects, and to create a hub for supplies of lithium to Europe from Cornwall.

    The initial investment is led by the UKIB alongside the Energy & Minerals Group (EMG), a US private investment firm focused on energy and minerals, and TechMet, which invests in clean energy and electric vehicle technologies and counts the US government’s development finance corporation among its backers.

    The UKIB and EMG will each put in £24m while TechMet, Cornish Lithium’s largest shareholder, is investing a further £5.6m, bringing its total investment in the business to £30m.

    Core samples from Cornish Lithium’s exploratory drilling at its research site, August 2022.
    Core samples from Cornish Lithium’s exploratory drilling at its research site, August 2022. Photograph: Jim Wileman/The Guardian

    Cornish Lithium aims to increase its 70-strong workforce to more than 300 people once it is in commercial production. It had warned in its annual accounts in June that there would be material uncertainty over its future if it did not raise bridge funding by July to buy it time before its next fundraising round. The company plans to raise a further £6.9m by selling shares to small shareholders through Crowdcube, with a focus on existing investors.

    Lithium is a vital ingredient in the current generation of batteries used in portable devices ranging from mobile phones to electric toothbrushes. But vastly more lithium will be needed for electric vehicles as combustion engines are phased out around the world.

    Cornish Lithium is one of several projects that seek to revive Cornwall’s 4,000-year-old mining heritage. Another company, British Lithium, has teamed with the French mining firm Imerys to start a mine in Cornwall and to extract enough lithium to power 500,000 electric cars a year by the end of the decade.

    Jeremy Wrathall, founder and chief executive of Cornish Lithium, said it was “essential to secure funding from institutional investors with the financial muscle to bring our projects into commercial production”.

    He said the funds would enable the company to advance its project at Trelavour, near St Austell, to “construction-ready status” and allow it to “complete the engineering design work required to build a demonstration-scale geothermal waters extraction facility”.

    John Flint, chief executive of the UKIB, said: “Globally the supply of lithium is far outpaced by demand, and yet in the UK it remains a nascent market.”

    He said the investment would “greatly accelerate domestic production of a mineral which is critical to the future of electric vehicle battery production and decarbonisation of the transport sector”.

    Andrew Griffith, economic secretary to the Treasury, who visited Cornish Lithium on Tuesday, said the investment would improve the domestic supply of lithium, helping “the UK’s transition towards net zero whilst also boosting local and regional economic growth”.

    Kemi Badenoch, business and trade secretary, said that, coupled with Tata Group’s recent pledge to build a £4bn electric car battery gigafactory in Somerset last month, the investment would ensure the UK automotive sector is “well set for the future”.