MINEX Forum

Website: Asia.com

  • Mongolia and France’s Orano Group Reach Preliminary $1.6 Billion Uranium Mining Deal

    Mongolia and France’s Orano Group Reach Preliminary $1.6 Billion Uranium Mining Deal

    Mongolia has announced a preliminary agreement with Orano Mining Group, a leading French uranium producer, to develop a significant uranium mining project worth $1.6 billion. This project will commence its preparatory phase in 2024, with the goal of initiating uranium production by 2028. The peak production target of 2,600 metric tons is expected by 2044. The government emphasized the importance of this agreement in promoting foreign investment and creating substantial employment opportunities for the Mongolian workforce.

    Orano has been present in Mongolia for over 25 years, conducting extensive exploration activities. The French company, with established mining operations in regions such as Canada, Kazakhstan, and Niger, is expected to bring its expertise to the country’s uranium sector. This agreement follows years of anticipation and is viewed as a strategic move to enhance Mongolia’s role in the global uranium market. However, a previous announcement about the finalization of the agreement was corrected, confirming that only a preliminary deal had been reached.

  • Resolutions for Mining Companies in 2025: Lessons from 2024 Challenges

    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.

  • Global Gold Production to Peak in 2024, Enter Long-Term Decline

    Global Gold Production to Peak in 2024, Enter Long-Term Decline

    Global gold production is set to reach a historic high of approximately 3,250 tonnes (105 million ounces) in 2024 before entering a prolonged decline, according to industry experts at the International Metals Symposium in London on December 2.

    From 2025 onwards, production will steadily decrease due to depleting reserves, declining ore quality, and the closure of aging mines, warned Oliver Blagden, a gold and base metals analyst at CRU Consulting. “This will be the most gold we’ve ever mined in a single year, ever,” he stated.

    The decline represents a pivotal moment for the gold mining sector, which faces challenges such as geopolitical risks, shrinking reserves, and a lack of new projects. Despite strong profits driven by high gold prices, analysts caution that without increased investment, global production could fall by as much as 17% by 2030, significantly tightening supply.

    China and Russia, the world’s leading producers, face specific hurdles. China, contributing 11% of global output, struggles with limited reserves relative to its production rate. Russia, meanwhile, contends with geopolitical pressures and lower ore quality.

    Jurisdictional challenges also loom large. In West Africa, nations like Mali and Burkina Faso have embraced resource nationalism, nationalizing mining operations and discouraging foreign investment. Conversely, regions such as Argentina and North America offer some optimism with mining-friendly reforms and potential regulatory shifts. However, Blagden cautioned that North America remains the most expensive region for gold production globally.

    Despite profitability—97% of gold producers maintain positive margins at a gold price of $2,235 per ounce—the lack of new greenfield projects poses a long-term threat. High prices have not incentivized sufficient exploration, and high-grade deposits are becoming increasingly rare.

    Blagden emphasized gold’s unique role as an accumulated commodity, noting that existing stockpiles could meet global demand for decades if mining ceased entirely. However, he stressed the urgency for the industry to invest strategically during this period of high prices. “Without new projects, mines will close, production will fall, and profits will shrink,” he said, urging miners to focus on acquisitions, brownfield expansions, and exploration to sustain the sector’s future.

  • Martin Engineering Expands Operations to Central Asia

    Martin Engineering Expands Operations to Central Asia

    Martin Engineering has announced the establishment of a new regional hub in Kazakhstan, aiming to provide its full range of products and services to the rapidly expanding mining sector across Central Asia.

    Kazakhstan, the world’s ninth-largest country by land area, boasts a rich and diverse geology filled with valuable metal ores and mineral resources. The mining and minerals production industry plays an increasingly pivotal role in the nation’s economy, with most materials being exported.

    Building on its previous successes in Kazakhstan, Martin Engineering decided to solidify its presence by forming a dedicated business unit. Notably, the company has already delivered innovative conveyor belt cleaning solutions to one of Kazakhstan’s largest copper producers, significantly enhancing plant efficiency and productivity.

    The new venture will be overseen by General Manager Oleg Glukhov, who has been with the company for seven years. Glukhov emphasized Martin Engineering’s readiness to support Kazakhstan’s leading mineral processing firms in improving operational performance and safety.

    “Kazakhstan is one of the world’s key sources of metals and industrial minerals,” Glukhov stated. “Processing materials safely, efficiently, and profitably is important, and that’s where Martin Engineering comes in.”

  • Rio Tinto to Invest $2.5 Billion in Argentina Lithium Mine

    Rio Tinto to Invest $2.5 Billion in Argentina Lithium Mine

    The Rio Tinto Group has announced plans to invest $2.5 billion in a lithium mine in Argentina, marking a significant step in President Javier Milei’s agenda to deregulate the economy and attract foreign investment. The UK-based company will develop a processing plant at the Rincon mine, aiming for an annual production capacity of 60,000 metric tons of lithium carbonate. Construction is slated to begin mid-next year, pending necessary permits.

    The project aligns with Argentina’s RIGI incentives program, enacted last year to provide tax, currency, and trade benefits for energy and mining sectors over the next 30 years. Rio Tinto CEO Jakob Stausholm, who plans to meet Milei in Italy, praised the program as a model framework for foreign investment.

    Despite falling lithium prices and slowed expansion by other miners, Rio Tinto remains committed to advancing its lithium projects, including Rincon, which will use direct extraction methods to conserve water and reduce waste. Located in the lithium triangle of South America, Rincon is part of a region holding over half of global lithium resources.

    Rio Tinto’s expansion comes as competition heats up in Argentina, with companies like Eramet SA and Posco Holdings Inc. launching new plants this year. The firm is also targeting copper reserves, holding a stake in the Los Azules project, which recently passed a key permitting milestone. Stausholm emphasized Rio’s commitment to delivering on both lithium and copper developments in Argentina.

  • Kazakhstan Intensifies Search for Rare Earth Metals

    Kazakhstan Intensifies Search for Rare Earth Metals

    Kazakhstan continues exploration efforts across 12 sites as part of a government initiative to study mineral resources and boost the development of the rare earth metals sector.

    According to Kanat Sharlapayev, the Kuyrektikol site in the Karaganda region has shown significant promise, with reserves estimated at approximately 800,000 tons and forecasted resources reaching 935,400 tons of rare earth metals, including cerium and lanthanoids.

    Private companies like Cove Capital and HMS Bergbau are spearheading these exploration activities. Sharlapayev noted that the Ministry of Industry is actively working to declassify reserve data, excluding osmium and rhenium, to attract investment and enhance the sector’s development potential. This initiative is expected to be completed by the end of 2024.

    Currently, Kazakhstan boasts 15 rare earth deposits, 11 of which are under subsoil use agreements. Key deposits include Melovoye, Tomak, Taybogar, Tasmuryn, Kundybay, Akbulakskoye, Dzhamschi, Moynkum, Inkay, Akdala, Kanjugan, Mynkuduk, and Budenovskoye.

  • Kazakhstan’s Mineral Reserves Expected to Last Up to 40 Years

    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.

  • Kazakhstan Reaffirms Commitment to EITI Standards and Modernizes Mining Sector

    Kazakhstan Reaffirms Commitment to EITI Standards and Modernizes Mining Sector

    During a discussion, President Kassym-Jomart Tokayev emphasized Kazakhstan’s dedication to the Extractive Industries Transparency Initiative (EITI) since joining the organization in 2007. He noted that Kazakhstan has legislatively mandated subsoil users to comply with the organization’s standards, including reporting on taxes and other payments to the national budget.

    President Tokayev informed the head of EITI, Helen Clark, about regulatory measures aimed at enhancing the country’s geological exploration and mining industries. Key initiatives include the adoption of a Comprehensive Development Plan, the launch of a Unified Subsoil Use Platform featuring an interactive map and access to more than 50,000 geological reports, and streamlined processes for obtaining exploration and production licenses.

    In response, Helen Clark shared the strategic priorities of EITI for the coming period and praised Kazakhstan’s efforts to improve legislation in line with transparency standards for the extractive sector.

  • China Bans Antimony Exports to the U.S., Prices Soar Amid Trade Tensions

    China Bans Antimony Exports to the U.S., Prices Soar Amid Trade Tensions

    Antimony prices surged by 40% on Wednesday following China’s ban on exports of key critical minerals to the United States. The ban, announced on Tuesday, enforces restrictions on antimony, gallium, and germanium, minerals critical to military applications. The decision comes as the U.S. prepares for President-elect Donald Trump to take office next month.

    “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” stated the Chinese Commerce Ministry.

    China, the world’s largest producer of antimony, accounted for 48% of global production in 2023, with an output of 40,000 tonnes, nearly double that of second-place Tajikistan. Turkey ranks third with 6,000 tonnes. Antimony, recognized as a strategic metal, is widely used in military applications, including ammunition, infrared missiles, and nuclear weapons. Its heat-resistant properties make it valuable in automotive batteries and brake pads, as well as in solar cell glass and smartphone screens.

    “This is a clear signal of rising geopolitical tensions,” commented Christopher Ecclestone, a mining strategist at Hallgarten & Company. “The military importance of antimony is driving this move, which will significantly impact U.S. and European defense industries.”

    The announcement sent rare metal producer stocks soaring. Shares of Hunan Gold Corporation, a leading antimony producer, have risen by 64% this year, while Perpetua Resources has surged by 270%.

    The ban follows Washington’s recent measures targeting China’s semiconductor industry, escalating the trade war between the world’s two largest economies. Last year, China imposed export restrictions on gallium and germanium products, and in August 2023, further tightened controls on antimony exports.

  • East Star Resources Announces Significant Progress on Copper Exploration in Kazakhstan

    East Star Resources Announces Significant Progress on Copper Exploration in Kazakhstan

    East Star Resources Plc (LSE: EST), a company focused on copper exploration in Kazakhstan, has shared promising updates from its exploration strategy at the Snowy licence. The project, located on the Paleozoic Balkash-Ili volcanic arc, received initial funding through a US$500,000 BHP Xplor grant.

    Recent soil sampling efforts have revealed two significant anomalies. The first is a 5 km by 1 km gold anomaly aligned with the alteration patterns observed in multispectral imagery and situated near an artisanal gold mine. The second anomaly spans 2 km by 2 km and exhibits strong molybdenum (Mo) and bismuth (Bi) signals, exceeding thresholds by over 10 times for Mo and 100 times for Bi, indicative of potential porphyry systems.

    Chris van Wijk, East Star’s Technical Director, remarked, “The geochemical results align with regions known for hydrothermal activity, strengthening the case for further exploration. These findings showcase the value of integrating multispectral imaging and soil geochemistry in mineral exploration.”

    The next steps include field verification and geological mapping to identify mineralisation characteristics. If supportive data is obtained, the company plans to proceed with Induced Polarity (IP) surveys to target disseminated sulphides.

    During the 2024 field season, East Star collected 1,469 soil samples, revealing two targets, the Central Target and East Target. The Central Target displayed anomalies in Mo and Bi, consistent with porphyry systems. The East Target showed elevated gold and silver levels, aligning with epithermal vein systems observed in nearby artisanal operations.

    Systematic soil geochemistry, combined with multispectral analysis using ASTER data, has been pivotal in refining exploration areas. The analysis highlighted silica lithocaps with distinct geochemical signatures, further substantiating their potential.

    East Star’s strategy underscores its commitment to leveraging advanced techniques in uncovering mineral resources in Kazakhstan, paving the way for future exploration milestones.