MINEX Forum

Website: Europe.com

  • ArcelorMittal Hikes Long Product Prices in Europe Amidst Energy Cost Surge

    ArcelorMittal Hikes Long Product Prices in Europe Amidst Energy Cost Surge

    Global steel giant ArcelorMittal has announced a €25/t ($25.6/t) price hike for long products across all European regions. This increase applies to a range of products, including rebar, welded mesh, sectional products, and both low-carbon and high-carbon wire. The new pricing is effective immediately for all new orders, as reported by Kallanish.

    The primary reason behind this price adjustment is a sharp rise in energy costs, which has made current prices for long products unsustainable. In particular, electricity prices in Germany have surged by 41% compared to October 2024, while gas prices across Europe have seen a 22% rise. Gas prices, according to the TTF index, jumped from €40/MWh in October 2024 to €48.2/MWh in January 2025.

    Despite the ongoing market weakness, other European steelmakers have supported the price increase. Rebar, sectional products, and wire prices are climbing in various EU markets, although overall market activity remains subdued. Transaction volumes have been limited, especially with the slowdown of the construction sector in France and Germany.

    However, some positive signs have emerged, particularly from northern Europe, where demand for certain long products, such as sections, has shown unexpected improvement. There has also been a rise in rebar inquiries, signaling potential activity within the construction industry.

    This is the second price hike for long products from ArcelorMittal in recent months. The last increase occurred in early October 2024, when prices were raised by €40/t due to global market volatility and rising raw material costs.

    Steel industry watchers will continue to monitor whether these price adjustments can help stabilize the market or if further challenges will arise in the coming months.

  • Ukraine Must Ensure Stable Tax and Tariff Policies to Attract Foreign Investment, Urges Metinvest

    Ukraine Must Ensure Stable Tax and Tariff Policies to Attract Foreign Investment, Urges Metinvest

    Without a predictable tax and tariff policy, it is impossible to attract foreign investment to Ukraine. This opinion was expressed by Oleksandr Vodoviz, Head of the Office of the CEO of Metinvest Group, at the conference “Strategic Resources of Ukraine: Development Scenarios for the Subsoil Use Industry”.

    Vodoviz emphasized that the mining and processing business is capital-intensive and requires significant initial investments. Stability and predictability of government policy are crucial for attracting large international players. For instance, developing a mine similar to the one in Pokrovsk would require around US$10 billion.

    Projects in the mining industry have a long payback period, taking an average of 18 years to go from obtaining a license to launching an enrichment facility. Currently, there are some projects at the feasibility stage, but none are ready.

    Ukrainian businesses are mostly investing independently in the development and maintenance of enterprises and the mining industry. They invest an average of US$1 billion annually.

    Vodoviz highlighted the challenges of operating businesses during the ongoing war and the need for the government to consider this factor when integrating European legislation. The process of rapprochement with the EU will involve 550 regulations in the extractive industry and will take 4-5 years.

    In January 2025, Metinvest announced the temporary suspension of Pokrovske Coal Group’s operations due to the security situation on the frontline and electricity shortages. The company is replacing Ukrainian coal with supplies from the United States.

  • Adriatic Metals CEO Highlights Successful Q4 Transition to Producer, Eyes 2025 Growth

    Adriatic Metals CEO Highlights Successful Q4 Transition to Producer, Eyes 2025 Growth

    Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) CEO Laura Tyler spoke with Proactive’s Stephen Gunnioni about the company’s milestone transition from a development-stage company to a metals producer in the final quarter of 2024.

    Tyler highlighted the impressive ramp-up in production, with silver equivalent output increasing 2.5 times from the previous quarter. The company achieved sales receipts of $27 million, nearly matching its expenditures. Despite challenges from severe weather conditions, Adriatic Metals has maintained continuous operations, running its processing plant 24/7 and aiming for full commercial production in Q1 2025.

    Construction at the Veovaca tailings storage facility is progressing well, with plans to receive tailings by mid-February. A recent study on the Vares processing plant expansion revealed that for a relatively modest investment of $25 million, production capacity could be increased to 1.3 million tonnes per year.

    The company concluded 2024 with a strong financial position, holding a $21 million cash balance and securing a $25 million prepayment arrangement with Trafigura, bringing total liquidity to $46 million. Looking ahead, Tyler expects the company to achieve full throughput rates by Q4 2025, setting the stage for steady growth into 2026.

  • Kingsrose-BHP Alliance Uncovers High-Grade Copper and Precious Metals in European Exploration

    Kingsrose-BHP Alliance Uncovers High-Grade Copper and Precious Metals in European Exploration

    Kingsrose Mining Limited (ASX: KRM) has announced significant progress in its exploration alliances with global mining giant BHP, targeting critical minerals in Norway and Finland. The joint efforts, part of one of Europe’s largest generative exploration programs, have yielded high-grade copper, gold, silver, and platinum group elements (PGEs), signaling potential for major discoveries.

    In Norway’s Finnmark region, rockchip sampling revealed exceptional results, including 29.7% copper, 1.1 g/t gold, and 0.54 g/t palladium at the Porsanger target, and 4.4% copper with 1.8 g/t gold at Virdnechokka. These findings, hosted in sulphide veins, suggest proximity to deeper magmatic systems, akin to Anglo American’s Sakatti deposit in Finland. A 5,067-line km airborne gravity survey and 208 rockchip samples underpin the 2024 campaign, with helicopter-borne electromagnetic surveys slated for February 2025 to identify conductive bodies indicative of massive sulphides.

    In Central Finland, the alliance focused on the Kotalahti Nickel Belt, historically rich in nickel-copper deposits. Drone and ground magnetic surveys covering 4,980-line km identified new mineralized zones at the Rehula target, including a 0.46% copper and 110 ppm cobalt sample. The program aligns with Kingsrose’s strategy to discover new polymetallic “camps” through systematic geophysical and geochemical analysis.

    Managing Director Fabian Baker emphasized the success of advanced exploration techniques and stakeholder collaboration, stating, “These results underscore the prospective nature of these underexplored regions. Our commitment to environmental and social values ensures sustainable progress.” The company has engaged Indigenous communities and conducted biodiversity surveys to secure social licenses, particularly in Sami-inhabited areas of Norway.

    With 2.7millionofa5 million Year 1 budget spent, Kingsrose plans further fieldwork in 2025, leveraging BHP’s expertise to prioritize drill targets. The alliances highlight Europe’s growing role in supplying critical minerals amid global decarbonization efforts.

    Kingsrose, a ASX-listed explorer, holds 100% interests in the Finnmark and Central Finland projects, backed by BHP’s Xplor accelerator program. Forward-looking statements caution inherent risks, but the findings position the company as a key player in Europe’s mineral exploration frontier.

    For more details, visit www.kingsrose.com.

  • London Gold Market Faces Tight Supply Amid Surge in U.S. Shipments

    London Gold Market Faces Tight Supply Amid Surge in U.S. Shipments

    Gold market participants in London are scrambling to borrow bullion from central banks as deliveries to the United States increase amid concerns over potential tariffs. The Bank of England, which holds gold reserves for various central banks, now has a minimum four-week waiting period for withdrawals—up from just a few days.

    Although U.S. President Donald Trump has not explicitly targeted precious metals in his trade policies, speculation has driven demand for gold in New York. This has resulted in a 70% increase in COMEX warehouse stocks over the past two months, reaching their highest levels since 2022. London, the world’s largest over-the-counter gold trading hub, has seen reduced liquidity as a consequence.

    Industry experts highlight that the Bank of England, not being a commercial vault, is ill-equipped to handle the surge in borrowing requests. The British Parliament’s Treasury Committee has taken notice, with Bank of England Governor Andrew Bailey downplaying systemic risks, emphasizing that gold no longer underpins monetary policy. However, he acknowledged London’s continued dominance in gold trading.

    As liquidity tightens in London, gold leasing activity has increased to compensate for the shortfall. The impact is also being felt in other major markets like Singapore and Hong Kong, with logistical challenges amplifying supply stresses worldwide.

  • Aluminum Prices Rise Amid EU’s Planned Ban on Russian Imports

    Aluminum Prices Rise Amid EU’s Planned Ban on Russian Imports

    Aluminum prices in London surged as the European Union prepared to introduce a phased ban on Russian imports. The proposed measure, part of a broader sanctions package, would initially allow a quota of 275,000 metric tons for one year before imposing a full ban, according to sources.

    Since Russia’s invasion of Ukraine in 2022, calls for an aluminum ban have grown, and EU imports from Russia have already declined as manufacturers seek alternative suppliers. However, some European buyers and member states have resisted a total ban, citing challenges in replacing certain products.

    The EU imported approximately 320,000 tons of unwrought aluminum from Russia in the first 11 months of 2024, making up 6% of total imports. Meanwhile, Russia has significantly increased sales to China.

    Following news of the EU’s proposal, aluminum prices on the London Metal Exchange rose 2% to $2,624.50 per ton, while copper and lead also gained. Traders are closely watching the impact of global trade tensions, particularly upcoming US tariffs on China, Canada, and Mexico. The White House reaffirmed that these levies will take effect on February 1, with President Donald Trump hinting at even broader trade restrictions in the future.

     

  • LKAB Commences Construction of Critical Minerals Facility – a First for Europe

    LKAB Commences Construction of Critical Minerals Facility – a First for Europe

    LKAB has officially begun construction of its new Demonstration plant for processing phosphorus and rare earth elements in Luleå, Sweden. This facility will be the first of its kind in Europe and serves as a crucial building block in LKAB’s strategy to diversify its business with new minerals and improve resource utilisation.

    The construction of the demonstration plant is a major step forward for Europe’s critical minerals industry, as the continent currently relies heavily on imports for these essential materials. By extracting these minerals domestically, LKAB aims to strengthen Europe’s future competitiveness, improve security of supply, and enhance preparedness.

    Importance of Critical Minerals

    Phosphorus is a vital element for food security, as it is used in the production of mineral fertilisers. Rare earth elements are essential for the electrification and digitalisation of society, playing a crucial role in the production of permanent magnets for electric vehicles and wind turbines.

    LKAB’s demonstration plant is expected to meet approximately seven times Sweden’s needs and six percent of the EU’s demand for phosphorus in agriculture. The company also plans to extract rare earth elements from the facility, which are currently not mined in Europe.

    Government Support and Collaboration

    The Swedish government has recognized the importance of this project and has expressed its support for LKAB’s efforts. Minister for Energy, Business and Industry, Ebba Busch, emphasised the significance of the facility in reducing Europe’s import dependency and ensuring access to critical minerals for the future.  Several local and regional authorities have also welcomed the project, highlighting its potential benefits for the region’s economy and development.

    LKAB’s Investment and Future Plans

    LKAB has invested approximately 800 million SEK (approx 70 mln Euro) in establishing the demonstration plant, which is expected to be operational in 2026. The company plans to further develop and verify the process for utilising material flows from iron ore production in Gällivare, where apatite concentrate is produced for further refinement and production of critical minerals in Luleå.  The demonstration plant will also serve as a research and development center, providing an opportunity to explore and develop future potential sources for further refinement. LKAB has identified significant potential for extracting phosphorus and rare earth elements from other mineralizations, and the results from the plant will form the basis for future decisions on scaling up production.

    About LKAB

    LKAB is a leading international mining and minerals group that offers sustainable iron ore, minerals, and special products. The company is committed to developing carbon-free processes and products by 2045 and is driven by its vision of a sustainable future. With a workforce of over 5,200 employees in 12 countries, LKAB generated sales of about SEK 43 billion in 2023.

  • Romanian Government Extends Mining Licenses and Regulates Mineral Deposits

    Romanian Government Extends Mining Licenses and Regulates Mineral Deposits

    The Romanian government has approved key legislative measures to regulate mineral exploitation across various regions, including Alba and Bistrița-Năsăud counties. Among the decisions is the registration of the Dealul Jgheabului and Pârâul Româneasa deposits as state public property, aligning with the country’s Mining Law.

    Additionally, the government extended the exploitation license for the Roșia Poieni mining perimeter by five years, until January 31, 2030. This move allows SC CUPRU MIN SA Abrud to continue extracting copper ore, limestone, and andesite under updated technical and economic conditions.

    Similarly, the mining licenses for dacite exploitation in the Tunel I – Măgura Ilvei and Poiana Ilvei – Măgura Sturzii perimeters have been extended for five years, with the possibility of successive renewals. These licenses, held by Romcim SA, ensure continued extraction activities within their respective areas.

    The license extensions include adjustments to mining royalties in accordance with recent legislative updates. These decisions reflect the government’s strategy to regulate and support mining operations while maintaining state control over critical mineral resources.

  • Newmont Expands Stake in Ariana Resources to Strengthen European Exploration

    Newmont Expands Stake in Ariana Resources to Strengthen European Exploration

    Newmont (TSX: NGT) (NYSE, ASX: NEM), the world’s largest gold miner, has increased its stake in UK-based Ariana Resources (AIM: AAU) by acquiring an additional 28.88 million shares for $871,000. This follows a $2.5 million investment in 2022, forming an alliance to advance copper and gold exploration in southeastern Europe.

    The alliance, now in its third year, is managed by Western Tethyan Resources (WTR), a Kosovo-based company in which Ariana holds a 76% interest, with technical support from Newmont. WTR has secured multiple exploration licenses across Kosovo, North Macedonia, Bosnia and Herzegovina, Bulgaria, Greece, and Serbia.

    Ariana’s managing director, Kerim Sener, stated that Newmont’s increased investment demonstrates a firm commitment to advancing projects in the region. The alliance has already conducted geological, geochemical, and geophysical surveys, leading to new exploration license applications and the identification of promising targets. Initial drill testing at the Hertica project has confirmed a copper-gold-molybdenum mineralized system.

    Under the alliance agreement, Newmont has the option to further invest $1 million over the next two years to acquire a 60% stake in any new WTR project. An additional $15 million investment in a pre-feasibility study could raise its stake to 75%. If Newmont proceeds with full-scale development, it can secure up to 85% ownership, with WTR retaining a 2% net smelter return if its interest falls below 10%.

    Beyond its interest in WTR, Ariana also holds gold assets in Zimbabwe, including the 1.83-million-ounce Dokwe project, and a 23.5% stake in a Turkish joint venture with the Kiziltepe mine and Tavsan and Salinbas projects. Additionally, it owns 61% of Venus Minerals, which operates copper exploration projects in Cyprus.

  • EU’s Pro-Business Roadmap Emphasises Mining Amid Economic Shift

    EU’s Pro-Business Roadmap Emphasises Mining Amid Economic Shift

    On Wednesday  29 January 2025, the European Union introduced a pivotal roadmap aimed at making Europe more business-friendly after years of prioritising green goals. With US President Trump’s aggressive trade policies and China’s technological advancements, the EU seeks to bolster growth by alleviating corporate burdens.

    “We need to reignite Europe’s innovation engine,” EU chief Ursula von der Leyen told a news conference to present the “competitiveness compass” — the first major initiative of her second mandate.

    Specific measures proposed:

      • Creating a new legal regime for innovative companies across the EU
      • Facilitating long-term energy agreements and grid investments
      • Providing targeted aid for industrial decarbonisation
      • Revising competition rules to allow creation of European tech giants
      • Promoting more mining in Europe for critical raw materials
      • Removing barriers in the EU single market for key sectors
      • Creating a “European savings and investments union” to boost startup funding

    The plan aims to streamline regulations, reduce energy costs for businesses, and support the development of green technologies. To achieve this, the EU will revise numerous laws, including those related to environmental standards and supply chains, to reduce the burden on companies.

    A key element of the strategy is to increase the EU’s self-sufficiency in critical raw materials, such as rare earths, which are essential for many advanced technologies. The EU currently relies heavily on imports from China and other countries for these materials.

    To address this dependency, the EU plans to encourage more mining within its borders. The European Commission has already received 170 mining projects and aims to facilitate the permitting process. The plan also includes provisions for joint purchases of critical raw materials and international partnerships to secure supply lines.

    This initiative has sparked concerns from environmental groups, who worry that it could lead to the weakening of environmental protections. However, the EU maintains that it remains committed to its climate goals, including achieving carbon neutrality by 2050.

    The EU’s new plan reflects the growing global competition for resources and technological dominance. By focusing on mining and streamlining regulations, the EU aims to strengthen its industrial base and secure its position in the global economy.