MINEX Forum

Website: Europe.com

  • Europe’s EV Battery Dreams Dim as China Takes the Lead

    Europe’s EV Battery Dreams Dim as China Takes the Lead

    Europe’s ambition to develop a robust homegrown EV battery industry to reduce dependence on China is faltering, with Chinese and Asian manufacturers stepping in to fill the void.

    The most notable setback has been the collapse of Northvolt, a Swedish startup once celebrated as a cornerstone of Europe’s green energy vision. Despite securing the EU’s largest-ever green loan and support from Volkswagen and BMW, Northvolt filed for bankruptcy protection in the US, with its cofounder and CEO, a former Tesla executive, stepping down.

    Across Europe, 12 out of 16 planned European-led battery factories have been delayed or canceled. In contrast, 10 of 13 projects in Europe led by Asian manufacturers, such as China’s Contemporary Amperex Technology Co. (CATL) and South Korea’s Samsung SDI, are moving forward, underscoring a widening gap in the race for EV battery dominance.

    Europe’s original vision, driven by massive government subsidies, included factories in Sweden, Poland, Germany, and Canada, designed to produce greener batteries using 100% recycled materials like nickel, manganese, and cobalt. However, this ambition is now unraveling. Industry experts warn of severe repercussions. Andy Palmer, former CEO of Aston Martin, stated that the failure to establish domestic battery production jeopardizes Europe’s automotive industry, risking factory closures and job losses as automakers consider relocating to regions with stronger supply chains.

    Other projects are also faltering, with Mercedes-Benz and Stellantis delaying plants in Germany and Italy, while Volkswagen has pushed back capacity targets for its European facilities. The UK’s Britishvolt collapsed last year, further compounding the region’s struggles.

    China, supplying 80% of the world’s lithium-ion batteries, has outpaced Europe with massive investments in its domestic EV sector. Companies like CATL and BYD have become global leaders, while European automakers are now scaling back their electrification strategies and canceling battery orders, leaving the continent’s dreams dimming.

  • Boliden Acquires Lundin Mining Assets for $1.3 Billion in Strategic Expansion

    Boliden Acquires Lundin Mining Assets for $1.3 Billion in Strategic Expansion

    Swedish mining giant Boliden is set to acquire the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden from Lundin Mining in a deal valued at $1.3 billion upfront, with potential contingent payments of up to $150 million.

    This acquisition is expected to nearly double Boliden’s zinc concentrate output and increase its copper concentrate production by 43%, significantly bolstering its resource portfolio. The move aligns with Boliden’s strategic goal to enhance its smelting capacity and secure a stable supply of mined ores amidst intensifying global competition.

    According to Boliden CEO Mikael Staffas, the deal represents both “industrial logic and strategic fit,” with the acquired mines projected to contribute between $300 million and $350 million annually in earnings over the next five years. Boliden plans to finance the upfront payment through a bridge loan, half of which will be refinanced via a share issue and the remainder through medium- and long-term debt instruments.

    For Lundin Mining, the sale reflects a pivot in focus toward South America. Earlier this year, the company announced a joint venture with BHP to acquire Filo Corp, which owns the Filo del Sol project in Chile. This deposit boasts estimated resources of 2.2 billion pounds of copper, 2.86 million ounces of gold, and 133.33 million ounces of silver. The joint venture also acquired the Josemaría copper-gold-silver project in Argentina.

    The Neves-Corvo mine, located in Portugal’s Iberian Pyrite Belt, produced 108,812 tonnes of zinc, 33,823 tonnes of copper, 6,500 tonnes of lead, and 1.9 million ounces of silver in 2023. Meanwhile, the Zinkgruvan mine in Sweden yielded 76,349 tonnes of zinc, 4,434 tonnes of copper, 26,284 tonnes of lead, and 2.3 million ounces of silver last year.

    The transaction, which is subject to regulatory approvals, is expected to be finalized by mid-2025.

  • Germany Supports Savannah Resources’ Barroso Lithium Project with $270 Million Loan Guarantee

    Germany Supports Savannah Resources’ Barroso Lithium Project with $270 Million Loan Guarantee

    Germany’s export credit agency, Euler Hermes, has signed a non-binding letter of interest for a loan guarantee of up to $270 million to support Savannah Resources in developing the Barroso lithium project in northern Portugal. The guarantee covers 80% of a loan, making it an attractive proposition for Germany’s KfW IPEX-Bank and other financial institutions. KfW IPEX-Bank, a key development partner, has played a pivotal role in facilitating this process.

    This initiative reflects Germany’s and the European Union’s urgency to establish a domestic lithium supply chain and reduce dependence on imports, primarily from China, which currently supplies 97% of Europe’s lithium. Emanuel Proença, CEO of Savannah Resources, highlighted the importance of the move, linking it to the recently enacted European Critical Raw Materials Act. The legislation mandates that 10% of the EU’s critical raw materials must be sourced domestically and 40% processed within Europe by 2030.

    Savannah’s Barroso project, situated about 145 km from the deep-water port of Leixões near Porto, is a cornerstone of Europe’s efforts to bolster its lithium supply. A 2023 scoping study revealed the project’s potential to produce 26,000 tonnes of lithium carbonate equivalent annually over a 14-year lifespan, with an after-tax net present value of $953 million and a robust internal rate of return of 77.3%.

    Despite current lithium market oversupply and plummeting prices, Proença predicts a market rebound by the time Barroso begins production in 2027. He noted a likely deficit in lithium supply from 2027 onwards, supported by strategic developments such as the opening of AMG Critical Materials Group’s lithium hydroxide refinery near Berlin.

    The loan guarantee follows Savannah’s strategic partnership with AMG, which secured a 15.8% stake in the company and an annual offtake of 45,000 tonnes of spodumene concentrate for five years, with potential extensions.

    The Barroso project aligns with Europe’s broader commitment to building a sustainable battery value chain, as evidenced by similar initiatives across Serbia and the U.S., including significant funding for Lithium Americas’ Thacker Pass-project in Nevada.

  • Montenegro and Germany Discuss Green Transition and Sustainable Resource Management

    Montenegro and Germany Discuss Green Transition and Sustainable Resource Management

    Montenegro’s Minister of Mining, Oil, and Gas, Admir Šahmanović, and Germany’s Ambassador, Peter Felten, held a meeting to strengthen bilateral relations and focus on Montenegro’s green transition and resource sustainability. The two officials emphasized the importance of learning from Germany’s experience in environmental policies while addressing the challenges Montenegro faces on this path.

    Discussions revolved around the sustainable exploitation of mineral resources and the valorization of natural assetsin line with green economy principles. Šahmanović highlighted key development projects in the mining, oil, and gas sectors, stressing the urgency of creating strategic documents to guide these industries amid shifting geopolitical dynamics.

    The Minister also underscored the importance of ensuring a stable supply of oil derivatives, which he described as a critical priority for Montenegro. He further noted the country’s significant potential in mineral resources, emphasizing that development must adhere to European environmental standards and prioritize public health.

    Šahmanović identified job creation as a key benefit of advancing economic activities in the region, particularly in Montenegro’s north, which has long struggled with population outflow. He called for policies to retain young people through sustainable economic opportunities.

    The meeting concluded with a shared commitment to deeper cooperation and the exchange of experiences, aiming to create a sustainable and prosperous future for both countries.

  • Serbia’s Environmental Ministry Sets Terms for Rio Tinto’s Jadar Mining Project Amid Criticism

    Serbia’s Environmental Ministry Sets Terms for Rio Tinto’s Jadar Mining Project Amid Criticism

    The Ministry of Environmental Protection of Serbia has defined the scope and content of the required environmental impact assessment (EIA) for the mining section of the controversial Jadar project, spearheaded by Rio Tinto. The multinational mining company is now obligated to address cumulative environmental impacts and propose mitigation measures as part of its EIA study.

    The decision has sparked backlash from environmentalist groups, including Marš sa Drine, which claim it violates public participation rules, neglects key safeguards, and prioritizes corporate interests. The group alleges that the Ministry’s approval bypassed crucial regulations, calling for a public lawsuit to challenge the legality of the move.

    Rio Tinto’s Serbian subsidiary, Rio Sava Exploration, submitted its request on September 17 to outline the EIA scope for an underground lithium and boron mining operation in western Serbia. The project encompasses several municipalities in Loznica and is part of a broader initiative to exploit the Jadarite mineral, a rare source of lithium and boron.

    Environmental watchdog RERI has criticized the fragmented approach, accusing Rio Tinto of “salami slicing” the project to sidestep a comprehensive assessment. RERI argues that dividing the project undermines transparency and diminishes adherence to European Union environmental standards.

    Following an analysis of 149 public comments, the Ministry has required Rio Tinto to explicitly list mitigation measures and adopt best available technologies in the EIA. The company has one year to submit the finalized study, which must detail all cumulative impacts, proposed solutions, and monitoring mechanisms.

    Critics remain unconvinced, warning that the decision favors Rio Tinto at the expense of public and environmental well-being. Marš sa Drine has urged citizens to mobilize against what it calls a breach of Serbian and international laws.

  • Activist Investor Urges Rio Tinto to Scrap London Listing and Focus on Australia

    Activist Investor Urges Rio Tinto to Scrap London Listing and Focus on Australia

    Rio Tinto is under pressure from Palliser Capital, an activist investor, to abandon its primary London listing and adopt a sole focus on Australia, according to reports. The UK-based hedge fund, holding an estimated $250 million (£197 million) stake in the mining giant, criticized the firm’s dual listing structure across the London and Sydney markets as “outdated.”

    Palliser’s proposal mirrors the move by BHP, which shifted its primary listing to Sydney in 2022, citing strategic advantages. Australian investment firm Blackwattle Investment Partners has expressed support for Palliser’s call, suggesting alignment around a central listing in Sydney. However, under the proposal, Rio Tinto shares would remain traded in London under a secondary listing.

    This push comes as London’s financial markets face growing challenges, with several high-profile firms, including Tuiand Flutter, recently relocating their main listings overseas.

    Meanwhile, at its investment day in London, Rio Tinto outlined an ambitious plan for “a decade of profitable growth,” including projections for significant increases in copper production. The company aims to produce 780,000-850,000 tonnes of copper by 2025, up from this year’s estimated range of 660,000-720,000 tonnes, driven by strong performance at its Oyu Tolgoi mine in Mongolia. By 2030, the company targets annual production of 1 million tonnes of copper, a critical material for the global energy transition.

    Jakob Stausholm, Rio Tinto’s CEO, emphasized the company’s long-term strategy: “We are committed to becoming a global leader in energy transition materials. Our improved performance enables us to pursue growth, meet our decarbonization targets, and maintain our dividend policy while preserving a strong balance sheet.”

  • Greenpeace Protests in Poland: “Coal Is Finished, Stop Deceiving!”

    Greenpeace Protests in Poland: “Coal Is Finished, Stop Deceiving!”

    On Wednesday, December 4, Greenpeace activists staged a bold protest at the Ministry of Industry in Katowice, unfurling a large banner reading, “Coal is finished, stop deceiving!” The protest, coinciding with Barbórka, a traditional miners’ celebration, calls on Prime Minister Donald Tusk’s government to adopt a more realistic timeline for mine closures and prioritize a fair transition for the mining sector.

    Greenpeace demands the government redirect billions of zlotys in subsidies for mining companies toward renewable energy investments, job re-skilling programs, and energy-efficient housing projects. The NGO highlights that coal-fired power stations are set to shut down by 2035, based on updated analyses, and calls for urgent action to prepare miners for new opportunities.

    “Poland’s energy policy is based on the lie that coal has a future,” stated Marek Józefiak, Greenpeace Poland’s spokesman. He criticized the government for propping up unprofitable mines with PLN 18 billion (EUR 4.5 billion) in state aid this year and PLN 137 billion (EUR 34 billion) over the coming decades, as outlined in the 2021 social agreement on mining.

    The Polish Industrial Development Agency reported a PLN 9.2 billion (EUR 2.1 billion) loss in the coal mining sector in the first three quarters of 2024. Meanwhile, the share of hard coal in power generation is rapidly declining, with exports becoming unfeasible due to high prices. A Greenpeace report, The Last Decade of Coal, predicts that most coal-fired plants in Poland will close before 2030, with the last closures by 2035.

    Greenpeace’s Anna Meres, a climate campaign coordinator, warned that failing to invest in renewables like onshore wind could result in Poland relying on expensive, imported natural gas, jeopardizing the country’s energy security. She emphasized the need for a strategy that provides clean electricity and creates new employment opportunities for miners, citing potential job growth of 50,000 to 100,000 roles in renewables by 2030.

  • Norway Halts Controversial Arctic Seabed Mining Plans Amid Political Deal

    Norway Halts Controversial Arctic Seabed Mining Plans Amid Political Deal

    Norway has temporarily paused its plans to mine the Arctic seabed, following an agreement with the Socialist Left Party (SV). This small environmentalist party negotiated the delay in exchange for supporting the national budget.

    The Norwegian government had planned to issue its first deep-sea mining licenses in early 2025 but will now focus on conducting further environmental impact assessments and refining regulatory frameworks. “This is a postponement, not an end to the process,” stated Prime Minister Jonas Gahr Støre of the Labour Party.

    The decision led to a sharp market reaction, with shares of Green Minerals, a Norwegian seabed mining startup, plummeting 40% to €0.32 on Monday. Despite the setback, the company expects to begin ore extraction by the late 2020s.

    Norway made headlines in January by becoming the first country to open its waters to commercial deep-sea mining, approving exploration across 280,000 square km of Arctic seabed. However, environmentalists, including the World Wildlife Fund (WWF), celebrated the pause as a victory, arguing that Norway failed to adequately study the ecological consequences.

    While proponents of deep-sea mining highlight its potential to secure essential rare earth minerals like nickel, manganese, and copper for the green energy transition, critics warn of the unexplored risks to fragile marine ecosystems. The International Energy Agency (IEA) projects that demand for these metals will rise sharply by 2040, driven by clean energy technologies.

    Globally, the International Seabed Authority (ISA) has issued 32 contracts for seabed exploration, including projects by Canada’s The Metals Company (TMC), which plans to mine the Pacific Ocean’s Clarion-Clipperton Zone by 2025. Incoming ISA leader Leticia Carvalho, the first scientist and woman to head the body, has cautioned that more time is needed to establish robust protections for deep-sea ecosystems.

  • Critical Metals Achieves Key Milestone for Wolfsberg Lithium Project in Austria

    Critical Metals Achieves Key Milestone for Wolfsberg Lithium Project in Austria

    Critical Metals  has announced a major advancement for its Wolfsberg lithium project in Austria. The Carinthian state has issued a decree waiving the requirement for an Environmental Impact Assessment (EIA), streamlining the approval process for the proposed lithium mine, located 270 km southwest of Vienna.

    This decision marks a significant milestone for the company, making Wolfsberg the first fully permitted spodumene mine in Europe and setting a precedent for fast-track approvals in the EU’s critical minerals sector. Production is targeted to begin in 2026/2027.

    Tony Sage, CEO of Critical Metals, stated, “This decree accelerates our mission to establish a sustainable European battery supply chain for electromobility. It represents a crucial step towards integrated lithium production in the heart of Europe.”

    The project is supported by BMW, which entered into a long-term offtake agreement in December 2022 and advanced a $15 million prepayment earlier this year.

    The EIA waiver follows a detailed audit by experts in various fields, including forestry, geology, water management, and process engineering. Since the required above-ground facilities cover less than 10 hectares, the decree confirms that an EIA is not mandated by law.

    CRML is now focused on securing financing for the mine’s start-up and obtaining approval for the plant and mining operations plan. The company plans to release a new definitive feasibility study in early 2025, potentially doubling the current resource of 12.9 million tonnes with a lithium oxide grade of 1%, ensuring a 20-year mine life.

    Despite the positive development, CRML’s stock fell 9.2% to $6.18 on the Nasdaq, reflecting a market capitalization of $552.4 million.

  • Blue Moon Metals Diversifies with Copper Assets in Norway

    Blue Moon Metals Diversifies with Copper Assets in Norway

    Blue Moon Metals is expanding its portfolio with the acquisition of two former copper-producing properties in Norway to diversify beyond its U.S.-based zinc project and focus on near-term production opportunities. The company, headquartered in Vancouver, announced two deals to acquire the Nussir and NSG properties for $55.3 million and $12 million, respectively, funded through the issuance of common shares priced at C$0.30 each.

    Shares of Blue Moon traded at C$0.355 on Thursday, giving the company a market capitalization of C$18.9 million. The acquisitions are part of a broader plan to raise C$30 million to C$50 million in equity, with the majority allocated to advancing the Nussir project.

    Newly appointed CEO Christian Kargl-Simard described the move as an opportunity to establish a copper-zinc development company in Tier 1 jurisdictions. The Nussir property, with existing infrastructure like roads, power, and port access, hosted mining operations until 1979. The project is supported by an updated feasibility study from SRK Consulting, estimating an initial capital cost of $101 million.

    The NSG property, located in northern Norway, is notable as it could become the first new copper mine in the country in over 50 years. This site, rich in historic copper deposits, holds a historical estimate of 29.4 million tonnes at 0.9% copper and 0.17% zinc. Blue Moon plans to expand on the project’s resource base with regional exploration.

    Meanwhile, the company continues to advance its Blue Moon polymetallic project in California, which has a resource estimate of 3.5 million indicated tonnes at a zinc-equivalent grade of 11.07%. A preliminary economic assessment is expected in early 2025.

    These initiatives aim to balance the company’s historic copper assets in Norway with its zinc-silver resource in the U.S., marking a new phase in its growth trajectory.