MINEX Forum

Website: Eurasia.com

  • Heavy Industry Issues “Code Red” for Europe: Urgent Call to Halt 2026 Carbon Cost Hikes

    Heavy Industry Issues “Code Red” for Europe: Urgent Call to Halt 2026 Carbon Cost Hikes

    BRUSSELS – In a major intervention aimed at the highest levels of EU governance, Euromines and a coalition of Europe’s energy-intensive industries (EIIs) have issued a stark warning: without immediate policy intervention, the continent faces “irreversible deindustrialisation.”

    The joint statement, released on 2 February 2026, comes at a critical juncture for European manufacturing. Highlighting a “deteriorating fast” situation, the industry group revealed that production levels in some sectors plummeted by as much as 40% in 2025.

    Key Alarms: A Sector in Retreat

    The coalition, representing a turnover of €1.5 trillion and 6.6 million employees, argues that the backbone of Europe’s strategic autonomy—including steel, cement, chemicals, and mining—is crumbling under three main pressures:

    • Sky-High Energy: Costs remain twice as high as pre-crisis levels.

    • Crushing Carbon Prices: CO2 prices are now roughly four times higher than in 2020, far outpacing international competitors.

    • Global Trade Headwinds: Unfair trade practices, exacerbated by aggressive US tariffs and state-induced global overcapacities, have left European firms unable to compete.

    “In 2025 alone, an estimated 200,000 jobs were lost in these sectors. This is a critical situation at a time when self-sufficiency is becoming increasingly important,” the statement warns.

    The “Four Pillars” of Survival

    As EU leaders prepare for an informal summit on competitiveness on 12 February, the industry is demanding a “Clean Industrial Deal” with four immediate priorities:

    1. Freeze Carbon Cost Hikes: A total pause on any planned increases in carbon costs for 2026. The group warns that upcoming reductions in “free allocations” could slash support by up to 34%, a move they label “detrimental.”

    2. Target €50/MWh Energy: Aligning with the landmark Draghi Report, industries are calling for all levers to be pulled to bring industrial electricity costs down to €50/MWh to make electrification viable.

    3. Aggressive Trade Defense: Rapid deployment of Trade Defence Instruments (TDIs) to counter “economic coercion” and non-EU imports produced under lower environmental standards.

    4. “Proudly Made in Europe” Demand: New rules in public procurement to prioritise European-made products, ensuring that the EU’s high environmental and social standards are reflected in market demand.

    Looking Ahead

    The timing of this statement is no coincidence. It serves as a direct “input” for the 12 February retreat at Alden Biesen Castle, where European Council President António Costa has invited former Italian PMs Mario Draghi and Enrico Letta to discuss a radical overhaul of the Single Market.

    With carbon prices projected by some analysts to reach €100/t in early 2026, the industry’s message is clear: Europe cannot afford to pay for tomorrow’s climate goals by bankrupting today’s industrial base.

  • Allied Nations to Meet in Washington on Critical Minerals Strategy as De-Risking from China Accelerates

    Allied Nations to Meet in Washington on Critical Minerals Strategy as De-Risking from China Accelerates

    Ministers from the United States, the European Union, the United Kingdom, Japan, Australia and New Zealand will gather in Washington this week to discuss the creation of a closer strategic alliance on critical minerals, as governments intensify efforts to reduce dependence on China-dominated supply chains.

    The meeting, convened by United States Department of State and led by Secretary of State Marco Rubio, will also include around 20 countries such as G7 members, India, South Korea, Mexico and potentially Argentina. It marks the second such summit in less than a month and is widely seen as part of a broader attempt to repair strained transatlantic relations and coordinate non-China sourcing strategies for minerals essential to energy transition, defence and advanced manufacturing.

    Australia underscored the urgency of the talks last week by announcing plans to establish a A$1.2 billion strategic reserve of critical minerals considered vulnerable to supply disruption from China. Canberra’s move follows Beijing’s decision last April to restrict rare earth exports in response to trade measures introduced under US President Donald Trump.

    A key issue on the Washington agenda will be whether the United States should guarantee minimum prices for critical minerals and rare earths to support investment in alternative supply chains. Reports this week that Washington may have ruled out such guarantees triggered a sell-off in Australian mining stocks, highlighting the sensitivity of the sector to policy signals. Australia has positioned itself as a major alternative supplier to China and plans to stockpile minerals such as antimony and gallium regardless of US pricing decisions.

    “Strengthening critical mineral supply chains with international partners is vital for the US economy, national security, technological leadership, and a resilient energy future,” the State Department said ahead of the summit.

    The European Union is expected to use the meeting to push for progress on broader trade irritants, including US tariffs on steel derivatives. EU officials argue that new levies on products containing steel, from bicycles to wind turbines, undermine trust following a tariff deal agreed last year. Brussels hopes the talks could pave the way for a joint statement that would signal a shift toward closer coordination with Washington on de-risking from China rather than recurring trade disputes.

    The European Commission has repeatedly warned that Europe remains highly exposed to Chinese supply chains, particularly for rare earth permanent magnets. According to Commission officials, the EU consumes around 20,000 tonnes of permanent magnets annually, with roughly 17,000–18,000 tonnes sourced from China and only about 1,000 tonnes produced domestically.

    Japan, which has long maintained strategic mineral stockpiles to guard against supply disruptions, is often cited by policymakers as a model for resilience. European and UK officials say closer alignment with partners such as Japan and Australia will be essential if Western economies are to secure stable access to minerals critical for everything from smartphones and electric vehicles to fighter jets and renewable energy systems.

  • EU Unlikely to Cut Critical Minerals Dependence on China by 2030, Auditors Warn

    EU Unlikely to Cut Critical Minerals Dependence on China by 2030, Auditors Warn

    The European Union is unlikely to diversify its supply of critical raw materials in time to meet its climate and industrial targets, leaving the bloc heavily dependent on China well into the next decade, according to a new report by the European Court of Auditors (ECA).

    Despite the signing of 14 major trade agreements and sustained diversification efforts led by the European Commission, EU auditors concluded that the EU27 is “unlikely to succeed in time” in securing alternative sources of minerals essential for clean technologies such as electric vehicle batteries, wind turbines and solar panels.

    China remains the dominant supplier. The ECA report shows that the EU sources 97% of its magnesium imports from China, alongside large shares of gallium (71%), germanium (45%), baryte (44%), arsenic (39%), graphite (40%) and tungsten (31%). Magnesium is a key input for hydrogen electrolysers, while gallium and germanium are vital for semiconductors and renewable technologies.

    “Without critical raw materials, there will be no energy transition, no competitiveness, and no strategic autonomy,” said Keit Pentus-Rosimannus, warning that the EU is “dangerously dependent” on a small group of external suppliers.

    While countries such as Chile (lithium) and Turkey (boron) are also important partners, China remains unrivalled in both mining output and refining capacity. According to EU data, China controls around 60% of global production of critical raw materials and about 90% of global refining capacity. The European Parliament estimates that the EU depends on China for roughly 90% of its raw materials and 98% of rare-earth magnets.

    The pending Mercosur trade agreement, covering Argentina, Brazil, Paraguay and Uruguay, could help diversify supply once approved by the European Parliament. EU lawmakers are also debating whether to revive a stalled trade and minerals agreement with the United States.

    Speaking in December, EU Executive Vice President Stéphane Séjourné acknowledged the bloc’s raw material dependence and said dialogue with China “remains essential,” even as Brussels rolls out new monitoring measures and prepares to launch a European raw materials centre to coordinate supply, stockpiling and market oversight.

    Auditors noted that Beijing has increasingly used its dominance as geopolitical leverage. Export restrictions on rare earths in recent years, including in 2025, disrupted EU industries. Data from the European Chamber of Commerce in China shows that Chinese authorities approved only 19 out of 141 licence applications submitted by European companies in mid-2025.

    The report also questions whether the EU’s Critical Raw Materials Act (CRMA), adopted in 2024, can realistically meet its targets. The law sets non-binding goals for 2030, including 10% domestic extraction, 40% local processing and 25% recycling, while limiting reliance on any single non-EU supplier to 65%. Auditors say these targets are difficult to achieve given China’s grip on processing for materials such as magnesium, gallium and all rare earth elements.

    The ECA highlights recycling as an underused lever. Ten critical materials needed for the energy transition are not recycled at all in the EU, and existing targets do little to incentivise recycling of specific materials. The auditors recommend binding recycling targets, improved waste collection rules and easier movement of critical-material waste within the bloc to improve the commercial viability of recycling.

    “China’s vertical integration, scale and low costs give it a structural advantage,” Pentus-Rosimannus said, adding that without stronger action on recycling, partnerships and strategic projects, the EU risks falling short of its green and industrial ambitions.

  • Kazakhstan Drafts National Coal Power Project While Expanding Gas, Digital Energy Planning

    Kazakhstan Drafts National Coal Power Project While Expanding Gas, Digital Energy Planning

    Kazakhstan’s Ministry of Energy of Kazakhstan is preparing a National Project for the development of coal-fired power generation with a total potential capacity of around 7.6 GW, according to QazMonitor.

    Energy Minister Erlan Akkenzhenov said the initiative will prioritize modern “clean coal” technologies designed to meet environmental standards. As part of the programme, the ministry is overseeing the construction of three combined heat and power plants in Kokshetau, Semey and Ust-Kamenogorsk, with a combined capacity of 960 MW.

    The energy planning is being adjusted in the context of Kazakhstan declaring 2026 the Year of Digitalisation and Artificial Intelligence. Given the high electricity demand of data centres, the Energy Ministry and the Ministry of Digital Development, Innovations and Aerospace Industry will revisit timelines and volumes for new power capacity additions.

    Strengthening the gas sector
    To expand the country’s natural gas resource base, national gas company QazaqGaz is currently carrying out geological exploration across 14 licence areas, with preliminary resources estimated at about 515 billion cubic metres. In the medium term, the exploration portfolio is expected to grow to 30 sites, with total potential resources of roughly 1.7 trillion cubic metres.

    Around 50 subsurface blocks are planned to be offered via electronic auctions to attract investors and share geological risks. Exploration will be financed jointly by QazaqGaz, Samruk-Kazyna, and private investors.

    Digital map for hydropower development
    The ministry is also developing a unified digital map of Kazakhstan’s hydropower resources. The platform will integrate hydrological, topographical, infrastructure and legal data, helping to accelerate hydropower project design and shorten pre-investment preparation periods.

    Lower aviation fuel costs
    As part of efforts to develop aviation hubs, the price of jet fuel supplied directly to aircraft has been reduced from $1200 to $940 per tonne, with a further decrease to $890 planned. The ministry said the move has improved the competitiveness of Kazakhstan’s airports and supported the expansion of international routes, including services by Air Atlanta, Hungary Airlines and One Air.

  • Binding Solutions and Mitsui Partner on Low-Carbon Iron Ore Pellets in Australia’s Pilbara

    Binding Solutions and Mitsui Partner on Low-Carbon Iron Ore Pellets in Australia’s Pilbara

    UK-based Binding Solutions has entered into an agreement with a subsidiary of Mitsui & Co to develop low-carbon iron ore pellets using material from Western Australia’s Pilbara region, one of the world’s largest iron ore hubs.

    Under a newly signed memorandum of understanding with Mitsui Iron Ore Development, Binding Solutions will apply its proprietary cold agglomeration technology to convert lower-grade iron ore fines into pellets. The company says the process significantly reduces energy use and carbon dioxide emissions compared with conventional pelletizing methods, which rely on high-temperature heat treatment.

    Binding Solutions chief executive Jon Stewart said the work already carried out with Mitsui’s unit demonstrates strong commercial potential. According to Stewart, the ability to upgrade Pilbara iron ore fines into premium pellets opens up a sizeable new market opportunity, particularly as steelmakers seek cleaner feedstock options.

    The preliminary agreement focuses on utilizing fines that would otherwise require sintering, a highly energy-intensive and polluting step, before they can be used in traditional blast furnaces. Pellets produced via Binding Solutions’ method can bypass this stage and are also suitable for electric arc furnaces, which are increasingly being adopted by steel producers aiming to lower emissions.

    Mitsui holds iron ore interests in the Pilbara through partnerships with major miners including BHP and Rio Tinto. In 2024, the Japanese trading house agreed to acquire a 40% stake in Rio Tinto’s Rhodes Ridge iron ore project in Western Australia for $5.34 billion.

    Binding Solutions has previously completed industrial trials of its technology with British Steel and Germany’s Salzgitter and is now working toward the development of a full-scale industrial plant to commercialize the process.

  • EU Weighs Ban on Russian Platinum Group Metals and Copper in New Sanctions Package

    EU Weighs Ban on Russian Platinum Group Metals and Copper in New Sanctions Package

    The European Union is considering expanding its sanctions regime against Russia to include a ban on imports of several platinum group metals and copper, as Brussels looks to tighten economic pressure over Moscow’s war in Ukraine.

    According to sources familiar with the discussions, the proposed measures could cover iridium, rhodium, platinum and copper. The initiative is still under negotiation and would require unanimous approval from all EU member states. The bloc is aiming to finalize the new sanctions package later this month. The European Commission, which coordinates sanctions policy, declined to comment.

    The potential ban comes at a time of already strained global metals markets. Copper prices have reached record levels this year, driven by strong demand and limited mine supply, while platinum is also expected to remain in deficit. Western trading hubs have been progressively distancing themselves from Russian-origin metals. The UK has barred Russian copper produced after April 13, 2024 from trading or delivery on the London Metal Exchange, and Russian refiners were removed from the London Platinum and Palladium Market’s approved delivery list in 2022.

    These restrictions have reduced demand for Russian metals among Western industrial consumers, particularly because sanctioned material can no longer be used for financing purposes. In the copper market, many European buyers have effectively exited Russian supply altogether, especially as several major Russian producers have come under sanctions. Nevertheless, Russian metals continue to find their way into global markets, with much of the volume redirected to Asia.

    If implemented, the new EU measures would primarily affect MMC Norilsk Nickel, Russia’s largest mining group and a key supplier to global industry. The company accounts for roughly 40% of global palladium used in automotive catalysts, a metal not included in the current proposal. Norilsk Nickel is also Russia’s largest producer of platinum, iridium, rhodium, nickel and copper, and has so far avoided direct EU sanctions because of its systemic importance to global supply chains.

    Separately, the EU is also reviewing options to replace its existing price cap on Russian oil with a ban on maritime services, according to earlier reports.

  • Coal Self-Ignition at Pavlodar Deposits Triggers Fines and Environmental Scrutiny

    Coal Self-Ignition at Pavlodar Deposits Triggers Fines and Environmental Scrutiny

    Environmental inspectors have identified multiple violations at coal deposits in Kazakhstan’s Pavlodar region after detecting spontaneous coal combustion at four separate sites, leading to excessive atmospheric emissions.

    According to Kazinform, supervisory authorities launched inspections following complaints from local residents about persistent smog. Investigations confirmed air pollution caused by burning coal waste at the Bogatyr, Shygys, Angrensor Energo and Maikuben deposits. Three of the affected sites are located in Ekibastuz, while the Maikuben operation lies in the Bayanaul district.

    Regulators found that the subsoil users had failed to fully comply with the conditions of their environmental emission permits. As a result, the companies were held administratively liable and fined. Bogatyr Komir was ordered to pay 680,000 tenge, Eurasian Energy Corporation’s Shygys mine 889,000 tenge, Angrensor Energo 702,000 tenge, and Maikuben-West 658,000 tenge.

    In addition to the penalties, the coal producers have been instructed to develop and implement technical action plans aimed at containing and eliminating the self-ignition hotspots. The regional environmental department will oversee compliance with the prescribed deadlines.

  • Greenland’s Vast Mineral Potential Draws Strategic Attention as Arctic Competition Intensifies

    Greenland’s Vast Mineral Potential Draws Strategic Attention as Arctic Competition Intensifies

    Greenland’s mineral resources are increasingly attracting international interest as competition over critical raw materials expands into the Arctic, according to Prof. Krzysztof Szamałek, director of the Polish Geological Institute in Warsaw. He noted that the island’s geological potential has gained prominence amid growing geopolitical rivalry and renewed debate over Arctic security.

    Greenland, an autonomous territory within the Kingdom of Denmark, has recently returned to the global spotlight following statements by US President Donald Trump emphasizing the island’s importance to American security. According to estimates cited by Poland’s state news agency PAP, the theoretical value of Greenland’s resource base could reach USD 4.4 trillion, including around USD 1.4 trillion in oil and approximately USD 1.5 trillion in rare earth elements.

    Szamałek explained that Greenland’s resources are strategically significant because they include critical raw materials essential for modern industry, where supply disruptions could severely constrain production. The European Union identified 34 critical raw materials two years ago, many of which are vital for advanced technologies and energy systems.

    However, he cautioned that current knowledge of Greenland’s mineral wealth remains preliminary. Most assessments confirm the presence of mineral-bearing formations rather than verified reserves. Detailed exploration, drilling, and resource calculations would still be required, and the island’s ice-covered interior could hold additional geological insights in the future.

    Potential deposits identified so far include graphite, molybdenum, niobium, tantalum, platinum group elements, and precious metals used in electronics and electrical engineering, as well as strontium, titanium, hafnium, and zirconium. Szamałek stressed that these resources are “estimated, not fully documented,” and that development would be a long and complex process.

    Most known deposits are located in offshore areas and along Greenland’s coastline, reflecting the fact that roughly 80 percent of the island is covered by an ice sheet. Of the EU’s 34 critical raw materials, Szamałek said 25 are believed to occur in Greenland, compared with only four or five in Poland, depending on classification.

    He also pointed out that China currently dominates the production of many rare earth elements, and that interest in Greenland is driven largely by efforts to diversify supply chains rather than by an immediate global shortage. Extracting minerals from beneath Greenland’s ice sheet, he added, remains technologically untested and unnecessary at this stage.

  • Poland Set to Remain EU’s Last Coal Producer Until 2049 Despite Losses

    Poland Set to Remain EU’s Last Coal Producer Until 2049 Despite Losses

    Poland will continue mining coal until at least 2049, despite the sector’s chronic unprofitability, due to a binding agreement signed between the government and labor unions in 2021, according to Interia Biznes. The agreement legally fixes the coal phase-out date, making any earlier shutdown politically and socially difficult.

    The issue has gained renewed attention after the Czech Republic closed its last coal mines at the end of January. From February 1, Poland effectively becomes the only European Union member state still extracting coal, highlighting its exceptional position within the bloc’s energy transition.

    Coal output in Poland has been declining for decades. Production peaked at around 180 million tons in 1989, before falling to 102 million tons in 2000, 76.5 million tons in 2013, and approximately 44 million tons in 2025. Despite this sharp contraction, the industry remains heavily subsidized.

    Domestic coal production is currently loss-making and sustained through state budget support. Coal sells on the Polish market for about 458 zloty (roughly $114) per ton, while production costs are estimated at 944 zloty (around $236) per ton, underscoring the scale of ongoing financial support required to keep the sector operating.

  • Kazakhstan and China Plan $500m Chromium Processing Plant in Aktobe Region

    Kazakhstan and China Plan $500m Chromium Processing Plant in Aktobe Region

    Kazakh Invest and China’s Sichuan YinHe Chemical have agreed to establish a high-tech facility for the deep processing of chromium-bearing raw materials in Kazakhstan’s Aktobe region. The decision followed a series of negotiations and a site visit to the Chinese partner’s operations, Kazakh Invest said in a statement.

    The planned industrial complex will focus on the production of fertilizers, chemical products, metallurgical components and dietary supplements. According to preliminary estimates, the plant will have an annual output capacity of up to 200,000 tonnes, with projected yearly production valued at around $1 billion.

    Total investment in the project is estimated at approximately $500 million. The facility is expected to create more than 600 jobs and generate stable demand for locally available chromium raw materials, strengthening the region’s industrial base.

    Kazakh Invest said its analysis of the Aktobe region identified chromium and chemical-metallurgical industries as priority areas, citing significant ore reserves, export potential and favorable conditions for building a full value chain. The project is intended to increase the depth of raw material processing, shifting away from exports of semi-processed materials toward higher value-added products.

    The initiative follows earlier announcements involving another Chinese investor, Suzhou Hunan New Materials, which has proposed a $150 million project to process chromium concentrate in the Aktobe region, with plans to later add metallic chromium production.