MINEX Forum

Website: Eurasia.com

  • EU Backs Sweden’s Largest Rare Earth Project but Faces Legal Barriers of Its Own Making

    EU Backs Sweden’s Largest Rare Earth Project but Faces Legal Barriers of Its Own Making

    The European Union is channelling significant financial support into LKAB’s Per Geijer rare earth project in northern Sweden as part of its strategy to reduce dependence on China for critical raw materials. However, the same EU legal framework designed to protect the environment and Indigenous rights is emerging as a major obstacle to the project’s progress.

    The Per Geijer deposit near Kiruna has been granted Strategic Project status under the EU’s Critical Raw Materials Act (CRMA), making it eligible for EU-backed loans, guarantees and other de-risking instruments. The designation reflects the project’s importance to Europe’s green transition, defence capabilities and electric vehicle supply chains. Under the CRMA, the EU aims to mine at least 10% of its strategic raw materials domestically and process 40% within the bloc by 2030.

    To support these targets, Brussels is deploying financing through tools such as InvestEU, the Innovation Fund and European Investment Bank lending, with nearly €3 billion earmarked for mining, processing and recycling projects. Northern Sweden has been identified as a priority region, and Per Geijer is seen as a flagship initiative.

    Despite this political and financial backing, the project remains subject to Sweden’s Environmental Code and EU environmental legislation, including the Environmental Impact Assessment Directive and the Habitats and Birds Directives. These rules require extensive assessments of impacts on biodiversity, water resources, emissions and climate, and allow for legal appeals that can delay projects for years. Strategic status does not provide exemptions from these requirements.

    Additional complexity arises from Indigenous rights considerations. The Per Geijer deposit overlaps with traditional reindeer-herding land used by the Sami people, triggering legal obligations under Swedish law, EU law and international human rights conventions. Requirements for meaningful consultation and protection of minority rights sit uneasily alongside the CRMA’s push for faster permitting.

    Per Geijer is part of a broader LKAB value chain that includes rare earth extraction at Malmberget and processing facilities in Luleå, all of which have also received Strategic Project status. However, the European Commission retains the right to withdraw this status if sustainability criteria are not met or if projects fail to deliver.

    The case highlights a structural tension within EU policy. While Brussels is accelerating funding and political support to secure raw material autonomy, its environmental and rights-based legal framework gives courts and civil society strong tools to slow or block projects. The outcome in Kiruna is increasingly seen as a test of whether the EU can reconcile its industrial ambitions with the legal principles at the core of the Green Deal.

  • Kazakhstan Proposes Revised Energy Efficiency Targets for Major Energy Consumers

    Kazakhstan Proposes Revised Energy Efficiency Targets for Major Energy Consumers

    Kazakhstan’s Ministry of Industry and Construction has submitted for public discussion a draft order revising energy efficiency targets for the country’s largest energy consumers. The proposed changes apply to enterprises included in the State Energy Register (SER) that consume more than 50,000 tonnes of standard fuel per year.

    According to the ministry, the introduction of energy-saving and energy-efficiency measures should not affect product prices or regulated tariffs. Instead, the measures are aimed at more rational energy use and reducing losses, while investments in energy-efficient technologies are expected to pay for themselves through lower energy consumption.

    The draft order forms part of a broader policy framework to reduce the energy intensity of Kazakhstan’s economy under the Energy Conservation Development Concept for 2023–2029. The previous set of target indicators was approved on 29 November 2022.

    At present, 108 organisations fall within the scope of the proposed regulation. Of these, 51 operate in the energy and water supply sector (47.2%), 29 in manufacturing (26.9%), 22 in mining (20.3%), four in pipeline transportation (3.7%), and two in the transport sector (1.9%). The ministry noted that this list is not final and may change as companies’ energy consumption increases or decreases.

    Energy efficiency targets are set individually for each enterprise, based on consumption trends over recent years and the results of mandatory energy audits. Companies will be required to meet the approved targets starting from the first year of implementation.

    The indicators include fuel and energy consumption for electricity and heat generation, specific electricity use per unit of output, energy costs for extraction, processing and transportation, as well as permissible loss levels in electricity and heat transmission.

    Oversight of data accuracy will be carried out by the National Institute for Energy Conservation and Energy Efficiency Development. Failure to comply with annual energy reduction requirements or to submit data to the State Energy Register will result in administrative liability.

  • Kazakhstan Changes R&D Funding Mechanism for Subsoil Users

    Kazakhstan Changes R&D Funding Mechanism for Subsoil Users

    Kazakhstan has revised the procedure for financing research and development (R&D) by subsoil users operating in the hydrocarbons and uranium sectors, the Ministry of Energy has reported.

    Under a joint order signed on 17 December 2025 by the Ministry of Energy and the Ministry of Science and Higher Education, amendments were introduced to the rules governing the funding of scientific research, scientific and technical work, and experimental development (R&D) during the production phase.

    The key change concerns the mechanism for transferring funds. In line with the President’s instructions to centralise mandatory contributions and to align procedures with the Budget Code of Kazakhstan (Article 9, Paragraph 2), subsoil users extracting hydrocarbons and uranium will now be required to transfer R&D contributions directly to the republican budget.

    To implement this change, a dedicated budget classification code has been approved:
    KBC 401103 — “Contributions by subsoil users for scientific research, scientific and technical, and (or) experimental development works on the territory of the Republic of Kazakhstan.”

    Previously, the mandatory 1% R&D contribution paid by producing companies was administered and allocated by the Ministry of Energy.

    The amendments were officially published in the Reference Control Bank of Regulatory Legal Acts of Kazakhstan on 20 November 2025 and will enter into force after a 60-calendar-day transition period, on 19 January 2026.

  • Why Junior Exploration Companies Remain the Weakest Link in Kazakhstan’s Mining Investment Cycle

    Why Junior Exploration Companies Remain the Weakest Link in Kazakhstan’s Mining Investment Cycle

    Kazakhstan’s Subsoil and Subsoil Use Code, introduced in 2018, significantly liberalised access to geological exploration and opened the market to junior mining companies. Since then, exploration investment has tripled to more than $1 billion, attracting international players such as Barrick Gold, Fortescue, Teck, Ivanhoe and First Quantum. However, despite this progress, junior explorers continue to face severe financing constraints that threaten the long-term sustainability of the country’s resource base.

    Junior companies typically operate at the highest-risk stage of the mining cycle, conducting early-stage exploration years before reserves can be confirmed under international standards such as JORC or KAZRC. This risk profile makes them unattractive to banks and cautious investors, while major mining companies usually only engage once resources are already proven. As a result, juniors struggle to raise capital despite being responsible for up to 80–90% of primary mineral discoveries globally.

    Industry experts note that Kazakhstan has the geological potential for world-class discoveries, similar to Mongolia’s Oyu Tolgoi deposit, which was initially discovered by a junior company before attracting a major multinational partner. In Kazakhstan, some successful partnerships have emerged, including foreign majors entering joint ventures with juniors, but these remain the exception rather than the norm.

    Analysts also warn that the rapid increase in exploration licences does not necessarily reflect genuine growth of the junior sector. A portion of licence holders conduct minimal fieldwork and focus on speculative resale of licences, undermining confidence in the junior market and creating unfair competition for companies carrying out real exploration.

    Another major challenge is regulatory uncertainty. Frequent changes in subsoil, environmental and tax legislation increase project risk, particularly at the transition from exploration to mining. Juniors preparing assets for sale or partnership with major companies can see project value eroded if regulatory conditions change materially at later stages.

    Experts argue that state involvement is essential to unlock junior financing. International practice shows that governments often share early-stage exploration risk through grants, co-investment funds, tax incentives or specialised venture exchanges. Canada, Australia, Saudi Arabia and Chile all provide structured public support for early exploration, recognising it as critical infrastructure for future mining development.

    Without targeted financial instruments such as exploration funds, risk-sharing mechanisms or state-backed venture vehicles, Kazakhstan risks underinvesting in early-stage geology. Industry specialists warn that without sustained junior exploration, the country’s mining sector could face a shrinking resource base in the decades ahead, undermining future production, processing and export potential.

  • Ferrexpo Suspends Ukrainian Operations Again After Renewed Power Disruptions

    Ferrexpo Suspends Ukrainian Operations Again After Renewed Power Disruptions

    Ukrainian operations of Ferrexpo have been temporarily suspended after fresh disruptions to electricity supplies caused by renewed attacks on the country’s energy infrastructure.

    According to a statement cited by Ukrinform, further damage to power generation and transmission facilities has once again limited electricity availability at the company’s sites. Management has therefore decided to halt production and place part of the workforce on temporary leave until a stable and sufficient power supply can be secured.

    The suspension follows an earlier production stoppage announced on 8 November 2025, when Ferrexpo paused operations at the Yeristove and Poltava mining and processing plants in the Poltava region after similar power outages.

    The company confirmed that no employees were injured during the attacks and that its production assets were not physically damaged.

    Ferrexpo previously reported that iron ore output in 2025 declined by 9% year-on-year to 6.14 million tonnes.

  • Kazakhstan Embassy in Czech Republic deepens industrial cooperation with leading Czech companies

    Kazakhstan Embassy in Czech Republic deepens industrial cooperation with leading Czech companies

    Kazakhstan is stepping up efforts to strengthen industrial cooperation with the Czech Republic as part of its broader economic diplomacy agenda aimed at attracting foreign investment and advanced technologies.

    According to DKNews.kz, Kazakhstan’s Ambassador to the Czech Republic, Kairat Abdrakhmanov, has held a series of meetings with representatives of leading Czech industrial companies during his first official engagements with the country’s business community. The discussions involved major manufacturers including vehicle and machinery producers TATRA and ZETOR, mining equipment supplier FERRIT, industrial engineering firm ZVVZ Engineering, and glass industry equipment producer SKLOSTROJ.

    Czech business leaders expressed satisfaction with their existing partnerships in Kazakhstan and confirmed their interest in expanding cooperation. They were briefed on recent reforms aimed at improving Kazakhstan’s investment climate, introduced under the country’s ongoing modernization program led by President Kassym-Jomart Tokayev.

    The Czech side highlighted Kazakhstan’s continued attractiveness as a long-term industrial market, particularly for projects involving manufacturing, engineering, and technology transfer.

    Talks also focused on opportunities to localize production and establish joint manufacturing facilities in various regions of Kazakhstan. Kazakh diplomats were presented with updates on current projects and potential areas for deeper collaboration, with particular emphasis on advanced industrial and mining technologies designed to improve efficiency, operational reliability, and workplace safety.

    Following the meetings, the parties agreed to organize site visits to Czech production facilities, begin preparations for joint business forums, and maintain regular information exchanges on prospective investment and cooperation opportunities.

    Observers note that these engagements reinforce Kazakhstan–Czech industrial relations and lay the groundwork for new joint initiatives across manufacturing, technology, and investment sectors.

  • Poland’s central bank plans to boost gold reserves by 150 tonnes amid geopolitical risks

    Poland’s central bank plans to boost gold reserves by 150 tonnes amid geopolitical risks

    National Bank of Poland (NBP), the world’s largest reported buyer of gold, plans to increase its bullion holdings by a further 150 tonnes, lifting total reserves to 700 tonnes as it prepares for prolonged geopolitical instability.

    Management board member Artur Sobon told Bloomberg that the central bank recently approved the higher target, stressing that record-high gold prices would not deter purchases. Gold has surged to historic highs as investors seek safe havens amid rising tensions between the United States and Europe, including disputes over Greenland.

    “Our primary goal is to build an appropriate portfolio for these unstable geopolitical times, one that will guarantee Poland stability, security, and credibility,” Sobon said, adding that price considerations are secondary.

    At current market prices, acquiring 150 tonnes of gold would cost more than $23 billion. Central bank demand has been a major driver of gold’s rally, with prices doubling over the past 18 months. Buying accelerated globally after Russia’s reserves were frozen following its invasion of Ukraine, highlighting gold’s appeal as an asset that cannot be easily sanctioned.

    NBP purchased 100 tonnes of gold last year, the largest amount officially reported by any central bank. Analysts note that some countries, particularly China, may also be buying gold without fully disclosing their activity.

    Poland’s push to expand gold holdings has been led by central bank governor Adam Glapinski, with reserves standing at about 550 tonnes at the end of 2025. Until now, gold allocations were capped at 30% of total reserves, a threshold that soaring prices have brought close to being reached.

    Sobon said the timing and pace of future purchases would be determined by NBP traders and could vary month to month. Poland’s growing foreign-exchange reserves, bolstered by inflows of EU funds, give the country room to finance the expanded gold strategy. Total official reserves now stand at roughly $271 billion, compared with $36 billion when Poland joined the EU in 2004.

  • USA Rare Earth plans French metal and alloy plant alongside Carester oxide facility

    USA Rare Earth plans French metal and alloy plant alongside Carester oxide facility

    USA Rare Earth (Nasdaq: USAR), through its Less Common Metals (LCM) subsidiary, plans to build a rare earth metal and alloy production facility in France next to an oxide processing plant being developed by Carester.

    Carester is currently constructing a 1,600-tonne-per-year oxide processing facility in Lacq, with commissioning scheduled for late 2026. USA Rare Earth’s proposed plant, with a capacity of 3,750 tonnes per annum, will be co-located at the Caremag site, creating an integrated European platform for rare earth processing, metal and alloy production.

    The French government has committed to partially funding the project, including credits covering up to 45% of eligible equipment costs and support of up to €130 million for real estate, according to the company.

    Shares of USA Rare Earth jumped by double digits following the announcement, amid broader gains across the rare earth sector driven by rising geopolitical tensions between the United States and Europe over Greenland. By midday trading in New York, the company’s shares were around $20, valuing it at more than $2.7 billion.

    USAR CEO Barbara Humpton said the French development would strengthen the company’s integrated rare earth value chain and benefit the United States and its allies. In parallel, USA Rare Earth is advancing a domestic mine-to-magnet strategy in the US anchored by its Round Top project in Texas, alongside a magnet manufacturing plant in Oklahoma and processing facilities in Colorado.

  • Portugal awards €180m grant to Lifthium Energy for northern lithium refinery

    Portugal awards €180m grant to Lifthium Energy for northern lithium refinery

    Portuguese company Lifthium Energy has secured a €180 million ($210 million) non-refundable government grant to build a lithium refinery in northern Portugal, strengthening Europe’s push to localise electric vehicle battery supply chains.

    The funding was awarded under the European Union’s Temporary Crisis and Transition Framework, which allows member states to provide state aid to accelerate green and industrial transformation. Portugal, which holds around 60,000 metric tonnes of lithium reserves, is currently Europe’s largest lithium producer, though output has historically been directed mainly to the ceramics industry rather than battery applications.

    Lifthium, which is 85% owned by Portuguese conglomerate Jose de Mello with the remainder held by its subsidiary Bondalti, plans to construct the refinery in Estarreja, about 50 km south of Porto. Bondalti already operates chemical facilities in the area, providing existing industrial infrastructure for the project.

    The refinery is expected to begin operations by 2030 and is designed to produce up to 50,000 tonnes of lithium hydroxide per year, enough to supply batteries for around two million electric vehicles. Lifthium said the plant will use proprietary technology aligned with European environmental and industrial standards.

    Lifthium CEO Duarte Braga said the project was advancing cautiously amid a more challenging lithium market and tougher industrial conditions in Europe. He noted that while the public grant is significant, the company’s next priorities are securing a strategic partner and finalising market and financing arrangements before making a final investment decision.

    In addition to the Estarreja facility, Lifthium is also considering the construction of a second lithium refinery in Spain.

    The announcement comes as Portugal’s government prepares to launch a long-delayed tender for lithium prospecting licences, a move seen as critical to developing a domestic lithium value chain and reducing Europe’s reliance on imports, particularly from China.

  • Laramide Resources exits uranium exploration project in Kazakhstan’s Chu-Sarysu basin

    Laramide Resources exits uranium exploration project in Kazakhstan’s Chu-Sarysu basin

    Canada-listed uranium developer Laramide Resources has terminated its option agreement to explore for uranium in Kazakhstan’s Chu-Sarysu basin, citing regulatory changes that have reduced the project’s economic attractiveness.

    In a company statement reported by inbusiness.kz, Laramide said it had decided to immediately withdraw from its agreement with Aral Resources, which granted access to more than 5,500 sq km of prospective ground near major uranium deposits and operating mines controlled by national producer Kazatomprom.

    Laramide explained that amendments made late last year to Kazakhstan’s Subsoil and Subsoil Use Code significantly altered the investment framework for uranium exploration. The changes increased Kazatomprom’s mandatory participation in new uranium mining ventures from 50% to 75% and granted the national company priority rights to uranium exploration, effectively limiting opportunities for foreign juniors.

    The option agreement, signed in 2024, envisaged securing up to 22 licenses in the Chu-Sarysu basin, an area considered prospective not only for uranium but also for copper and other minerals. Aral Resources had previously planned to invest tens of billions of tenge in exploration across the licensed areas.

    Laramide said it will now refocus on uranium projects in Australia and the United States, which it described as more competitive and stable mining jurisdictions.

    Commenting on the decision, Laramide CEO Mark Henderson said Kazakhstan’s policy amounted to a de facto nationalisation of future uranium exploration, increasing political, country and potential expropriation risks for new entrants. He warned that while Kazakhstan is seeking to secure long-term control over new discoveries, Kazatomprom itself faces a looming decline in its resource base, according to its own investor disclosures.

    Henderson added that underinvestment in global uranium exploration is likely to deepen future supply deficits, potentially driving uranium prices significantly higher to incentivise new discoveries and development.