MINEX Forum

Website: Eurasia.com

  • China’s Rare Earth Export Curbs Threaten to Disrupt Europe’s Auto Industry, Italian Lobby Warns

    China’s Rare Earth Export Curbs Threaten to Disrupt Europe’s Auto Industry, Italian Lobby Warns

    New Chinese restrictions on rare earth metal exports could severely impact Europe’s automotive industry, warned Roberto Vavassori, chairman of Italy’s auto parts association ANFIA, during the ForumAutoMotive conference in Milan on Tuesday.

    Despite a July agreement intended to streamline shipments to Europe, China has continued to maintain tight control over rare earth exports, recently expanding its export curbs even further. The country currently refines and processes the majority of the world’s rare earths, materials essential to key sectors including automotive manufacturing, semiconductors, and defence.

    Vavassori noted that while European manufacturers had so far managed to sustain production despite previous supply cuts, reserves of rare earth metals are now nearly exhausted.

    “That reserves’ buffer is not there anymore,” he said, warning that further disruptions could quickly ripple through Europe’s automotive supply chain.

    Rare earth elements are critical for producing electric motors and other advanced vehicle components, making them indispensable to Europe’s electric vehicle ambitions.

    Although the global rare earth industry is relatively small — valued at less than $5 billion — Vavassori emphasized that its strategic importance far outweighs its market size.

    “This small industry is capable of slowing down the entire global auto sector,” he cautioned.

  • Qarmet Launches Construction of Major Zinc Coating and Polymer Complex in Kazakhstan

    Qarmet Launches Construction of Major Zinc Coating and Polymer Complex in Kazakhstan

    Kazakh mining and metallurgical company Qarmet has officially begun construction of a state-of-the-art continuous galvanizing and polymer coating complex, marking a key step in the modernization of Kazakhstan’s mining and metals industry. The foundation stone was laid on October 10, with the facility expected to become operational by 2027.

    The project is being implemented in partnership with Belgium’s John Cockerill, one of the world’s leading steel and engineering companies founded in 1817. The Belgian firm will supply the core equipment for the new lines.

    Once completed, the modernization will expand Qarmet’s production capacity significantly. The hot-dip galvanizing line will increase annual output to 844,000 tonnes, up by 252,000 tonnes, while the polymer coating line will grow from 115,000 tonnes to 254,000 tonnes per year. The new complex will also create around 350 new jobs.

    The expansion aligns with President Kassym-Jomart Tokayev’s directive to modernize Kazakhstan’s mining and metallurgical sector and strengthen industrial competitiveness. Total investment in the project amounts to 84 billion tenge (approximately $180 million).

  • Vulcan Energy Signs Eight-Year Lithium Supply Deal with Glencore

    Vulcan Energy Signs Eight-Year Lithium Supply Deal with Glencore

    Vulcan Energy Resources has announced a major supply agreement with mining and commodities giant Glencore, under which it will deliver 36,000 to 44,000 tonnes of lithium hydroxide monohydrate from its Lionheart Project over an initial eight-year period.

    The deal represents roughly 20% of Vulcan’s planned output from the Lionheart Project during that timeframe and marks a key milestone for the company’s Phase One project financing.

    The agreement with Glencore adds to Vulcan’s growing roster of high-profile partners, which already includes Stellantis, Umicore, and LG Energy Solution. Vulcan said the Glencore deal will be the final offtake contract needed for its first project phase, while negotiations with additional European automakers are ongoing.

    “Vulcan has now achieved a good mix of offtake partners for Phase One lithium production: an automaker, a battery maker, a cathode manufacturer, and a commodities trader, all with a strong European focus,” said Cris Moreno, CEO and managing director of Vulcan Energy.

    Located on the French-German border, the Lionheart Project is regarded as Europe’s largest lithium resource. Vulcan’s development strategy focuses on producing climate-neutral lithium to support the region’s fast-growing electric vehicle and battery industries.

  • European Lithium Nets $50 Million from Partial Sale of Critical Metals Stake

    European Lithium Nets $50 Million from Partial Sale of Critical Metals Stake

    European Lithium (ASX: EUR) has generated an additional $50 million (A$76 million) through the sale of 3.85 million shares in Nasdaq-listed Critical Metals Corp (CRML) to a single U.S. institutional investor.

    The off-market transaction was executed at $13 per share, representing a 12% discount to CRML’s Friday closing price of $14.98. The sale follows a notable surge in CRML’s share price and trading activity on the Nasdaq, reflecting strong investor confidence in the company’s strategic position within the global critical minerals market.

    Executive chairperson Tony Sage said the deal underscored the robust demand for CRML stock.

    “The recent price increase and the large trading volumes on the Nasdaq show the demand for CRML shares is huge,” Sage commented.

    Following the sale, European Lithium retains 56 million CRML shares, valued at approximately $854 million (A$1.29 billion) based on the latest closing price.

    “The company’s holding in CRML equates to A$0.89 per EUR share,” Sage added. “EUR also holds a direct 7.5% interest in the Tanbreez project, and given CRML’s current market valuation of A$2.3 billion, this equity interest is very strategic.”

    European Lithium continues to advance its exploration and development portfolio across Austria, Ireland, Ukraine, and Australia, focusing on lithium and rare earth elements critical to the clean energy transition.

    Meanwhile, Critical Metals Corp (CRML) is strengthening its position as a major supplier of critical minerals to Western markets. Its flagship Tanbreez rare earth project in Greenland ranks among the world’s largest deposits, while its Wolfsberg lithium project in Austria—the first fully permitted lithium mine in Europe—is expected to play a key role in supporting the region’s battery and electric vehicle industries.

    CRML also holds a 20% interest in several Austrian mineral projects previously owned by European Lithium, building what it describes as a “strategic asset portfolio” supporting next-generation technologies and the global energy transition.

  • President Tokayev Outlines Kazakhstan’s Energy Strategy at Turkic States Summit

    President Tokayev Outlines Kazakhstan’s Energy Strategy at Turkic States Summit

    Kazakhstan’s President Kassym-Jomart Tokayev outlined the foundations of his country’s energy strategy during his address at the 12th Summit of the Organization of Turkic States (OTS), emphasizing the central role of the energy sector in Kazakhstan’s economic and strategic development.

    Tokayev highlighted that energy remains “the backbone of the economy and a vital element of our strategic partnerships,” stressing the need for greater regional cooperation on infrastructure and transport routes for energy resources.

    “We are implementing joint infrastructure projects and forming secure and efficient routes for the transportation of energy resources,” he said. “A great example of fruitful cooperation in this area is the Green Energy Corridor project, being developed by Kazakhstan, Azerbaijan, and Uzbekistan.”

    The president called for a stronger focus on renewable energy, particularly solar power, proposing the establishment of a Council of Best Practices on Energy Efficiency under the framework of the OTS.

    At the same time, Tokayev reaffirmed that the development and efficient use of oil, gas, uranium, coal, and rare earth minerals remain the cornerstone of Kazakhstan’s long-term energy policy.

    The initiative reflects Kazakhstan’s broader efforts to balance traditional resource extraction with a gradual transition to clean energy.

    Earlier, President Tokayev arrived in Gabala to take part in the OTS summit, where he was welcomed by Azerbaijani President Ilham Aliyev.

  • Standard Chartered Arranges €132.5 Million Loan to Boost Uzbekistan’s Steel Production

    Standard Chartered Arranges €132.5 Million Loan to Boost Uzbekistan’s Steel Production

    Standard Chartered Bank has arranged a €132.5 million financing package for Joint-Stock Company “O’zbekiston Metallurgiya Kombinat” (Uzmetkombinat), Uzbekistan’s largest steel producer, to support the completion of its new Casting and Rolling Complex in Bekabad, southern Uzbekistan.

    The transaction is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which is providing insurance coverage to mitigate investment risks. Standard Chartered acted as Global Coordinator, Facility Agent, and Mandated Lead Arranger.

    The proceeds will finance the construction of Uzbekistan’s first facility for producing hot-rolled coils (HRCs) — a major step toward import substitution in the country’s steel industry. The new plant will supply HRCs for pipe manufacturing and construction companies, reducing costs and improving supply chain efficiency for domestic consumers.

    Uzmetkombinat employs over 8,000 people and is one of the largest industrial employers in Bekabad, a town of 100,000 residents. The company accounts for more than one-third of Uzbekistan’s ferrous metal consumption, playing a vital role in national infrastructure and industrial development.

    Desislava Radeva, Executive Director, Development and Agency Finance at Standard Chartered, said the deal demonstrates the bank’s commitment to driving sustainable industrial growth in emerging markets.

    “Steel production is a key strategic industry for Uzbekistan, and the domestic sourcing of HRCs represents a huge leap forward for the country,” she said. “This project is a strong example of Standard Chartered’s expertise in driving prosperity in some of the world’s most dynamic markets.”

    Dr. Khalid Khalafalla, CEO of ICIEC, emphasized that the project will enhance Uzbekistan’s self-sufficiency and supply chain resilience:

    “By providing insurance coverage for this facility, we are enabling Uzbekistan to expand its domestic steel capacity, reduce import dependency, and strengthen its industrial base while creating jobs and uplifting local communities.”

    Bakhodir Abdullaev, CEO of Uzmetkombinat, said the project marks a “new chapter” for the company and the country’s industrial sector.

    “The launch of the first domestic hot-rolled coil production will reinforce local supply chains and inject new momentum into Uzbekistan’s economy,” Abdullaev stated.

    This marks Standard Chartered’s second project with ICIEC in Uzbekistan, following a €160.4 million Islamic financing facility extended to Agrobank to support small and medium-sized enterprise (SME) growth.

  • Rio Tinto’s Oyu Tolgoi Mine Exposes the Gap Between Ethical Investment and Reality

    Rio Tinto’s Oyu Tolgoi Mine Exposes the Gap Between Ethical Investment and Reality

    The controversy surrounding Rio Tinto’s Oyu Tolgoi (OT) copper and gold mine in Mongolia has once again drawn global attention to the disconnect between ethical investment claims and corporate accountability. While the mining giant recently paid US$139 million (AU$211 million) to settle a lawsuit with U.S. investors over cost overruns, local Mongolian herders continue to suffer from the project’s long-standing environmental impacts.

    For over a decade, herding families in southern Mongolia have raised alarms over water contamination and soil degradation linked to the mine’s tailings seepage, which Rio Tinto has acknowledged since 2013. According to environmental audits, the leak migrated off-site into a nearby riverbed, threatening groundwater resources critical to local communities and livestock.

    Despite the severity of the issue, Rio Tinto only met with affected herders a year after admitting the leak, and no effective measures have been taken to halt the seepage. Experts say the company’s response has focused on monitoring and containment rather than preventive measures, such as improving tailings storage design or reducing water content in waste materials.

    Auditors and independent assessors have flagged multiple safety and environmental failures, including inadequate seepage collection systems, missing cutoff trenches, and a lack of reliable indicators to monitor contamination. Meanwhile, Rio Tinto has not disclosed the full list of chemicals present in the seepage, nor provided medical screening or compensation for affected herders.

    Critics argue that the cost of these design flaws has been externalised onto local communities and ecosystems, while investors have received swift settlements. “Rio Tinto’s willingness to pay investors but ignore local harm highlights a troubling double standard,” wrote Caitlin Daniel and Julio Castor Achmadi of Accountability Counsel, who have worked with affected communities.

    The Oyu Tolgoi mine, expected to operate for another 30 years, is one of the largest copper projects in the world and a key asset for Rio Tinto’s global portfolio. However, the company’s handling of the project has raised reputational concerns for investors and financiers, including the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), which helped arrange new funding for OT last year despite ongoing environmental disputes.

    The authors argue that ethical investors must demand greater transparency and accountability from Rio Tinto, warning that the company’s pattern of delayed responses and unfulfilled promises could pose both financial and moral risks.

    “If Rio Tinto won’t uphold its environmental and social standards,” they conclude, “investors must ask whether this is a company worth backing — or a liability in the making.”

  • Germany Expects EU Approval for €1.75 Billion Coal Exit Compensation to LEAG

    Germany Expects EU Approval for €1.75 Billion Coal Exit Compensation to LEAG

    The German government expects the European Commission to give the green light “within weeks” for €1.75 billion in compensation payments to LEAG, the lignite mining and power company operating in eastern Germany. The payments form part of Germany’s broader coal phase-out plan, which aims to end coal-fired power generation by 2038 at the latest, according to the Ministry for Economic Affairs and Climate Action (BMWK).

    The legislative changes needed to unlock the funds were recently approved by Germany’s coalition government. The compensation package, first agreed in 2020, had faced delays in Brussels due to differences over the timeline for the eastern German coal exit, which lags behind the 2030 phase-out already underway in western Germany.

    Under the revised plan, LEAG, owned by Czech energy group EPH, will receive €377 million to reimburse earlier payments into funds for recultivation of mining areas. From 2025 to 2029, the company is set to receive €91.5 million per year in additional payments from the federal budget to support environmental restoration and social transition measures.

    The compensation is part of Germany’s Coal Exit Law, which seeks to cushion the social and economic consequences of the energy transition for affected regions and workers. The government has said these payments will ensure “a fair and orderly exit from lignite power.”

    LEAG may also qualify for further compensation for so-called social costs — losses related to early plant closures or infrastructure decommissioning. These payments could extend until 2042, depending on determinations by the Federal Network Agency (BNetzA) regarding lost profits or system reliability needs.

    Critics have questioned the scale of the compensation, arguing that it may cover profits companies would not have earned under normal market conditions. Environmental groups have also expressed frustration that the eastern coal phase-out remains slower than in western Germany.

    LEAG, which operates in Lusatia, continues to be a key regional employer and economic anchor in eastern Germany, where the coal exit is closely linked to the rollout of new gas-fired capacity to maintain energy security. Germany plans to tender up to 20 gigawatts of gas plants to support grid stability — a process delayed nearly two years and still pending EU approval.

  • Uzbekistan Plans to Double Copper Production to 500,000 Tonnes by 2030

    Uzbekistan Plans to Double Copper Production to 500,000 Tonnes by 2030

    Uzbekistan aims to double its copper output to 500,000 tonnes annually by 2030, according to a statement from the press service of President Shavkat Mirziyoyev. The country is strengthening its raw material base to support the development of high-tech sectors such as electrical engineering, electronics, and the semiconductor industry.

    Currently, products with high added value make up about 60% of Uzbekistan’s copper exports, reflecting steady progress toward deeper industrial processing. The government reports that the sector’s investment portfolio includes 157 projects worth $2.1 billion, covering new mining, processing, and manufacturing initiatives.

    Plans are also underway to increase domestic copper refining capacity to 300,000 tonnes, with new enterprises and industrial clusters being established to produce finished copper products.

    One of the key projects is the Ahangaran Copper Cluster in Tashkent Region, where facilities will be set up to manufacture semiconductors, microelectronic components, and other high-tech copper-based products in cooperation with the Almalyk Mining and Metallurgical Complex (AMMC).

    The initiative is part of Uzbekistan’s broader industrial policy to expand value-added production, reduce dependence on raw material exports, and position the country as a regional hub for advanced manufacturing in Central Asia.

  • EU Grants Poland Derogation to Keep Coal Plants Running Until 2028

    EU Grants Poland Derogation to Keep Coal Plants Running Until 2028

    The European Commission has granted Poland a derogation allowing the country to keep its coal-fired power plants operating within the EU’s capacity market until the end of 2028, providing a temporary reprieve for Europe’s last remaining coal producer.

    The decision enables the Polish government to extend financial support to coal units that exceed the EU’s emission cap of 550 grams of CO₂ per kilowatt-hour (kWh), a limit set under the EU Regulation 2019/943. The approval applies from 1 July 2025 through 31 December 2028 and covers both hard coal and lignite power plants.

    The move offers a lifeline to Poland’s coal sector, which still underpins much of the country’s power generation. While the EU is accelerating efforts to phase out fossil fuels in line with the Paris Agreement, Poland remains heavily reliant on coal for electricity and heating — a stance that has increasingly set it apart from other member states.

    Under the derogation, supplementary capacity auctions will be permitted if Poland’s main auctions fail to secure adequate generation capacity to meet the national reliability standard. These short-term contracts, limited to a maximum of one year (or six months for 2025), will be available to coal-fired units that exceed the CO₂ threshold.

    However, the European Commission’s approval comes with strict conditions. Poland must:

    • Update its National Resource Adequacy Assessment (NRAA) with a 10-year projection plan, analyzing plant closures, new constructions, and temporary shutdowns.

    • Conduct detailed modeling to accurately estimate future electricity exports and imports based on sound economic assumptions.

    • Demonstrate that maintenance and refurbishment schedules reflect actual operational plans and national conditions.

    The Commission emphasized that the derogation should not undermine the EU’s long-term decarbonization objectives and is intended as a transitional measure to maintain grid reliability during Poland’s energy transition.

    Poland’s dependence on coal remains significant, accounting for the vast majority of its power generation. Industry experts estimate the Polish state spends about €235,000 per hour subsidizing coal operations.

    Elsewhere in Europe, countries including Germany, the Czech Republic, and Slovenia have accelerated coal phase-outs, selling or shutting down key plants to meet EU divestment and climate targets.

    While global efforts continue to shift toward renewable energy, the Energy Information Agency recently reported that coal consumption could rise in several nations over the next decade due to slow renewable deployment and energy security concerns.

    For now, Poland stands as the EU’s last coal stronghold, facing growing pressure to align its energy system with Europe’s green transition.