MINEX Forum

Website: Europe.com

  • Aurubis Shares Drop as Third-Quarter Earnings Miss Expectations

    Aurubis Shares Drop as Third-Quarter Earnings Miss Expectations

    Shares in Aurubis plummeted by as much as 8.8% on Monday after the company, Europe’s largest copper producer, reported third-quarter earnings that fell short of market expectations. Despite a five-fold increase in earnings before tax (EBT) to €90 million ($98 million) from the same period last year, which had been marred by a significant metals theft, the results were below analysts’ forecast of €99 million.

    Comparing with two years ago, earnings were down by 13%. The custom smelting and products segment also saw a 13%decline in EBT, registering €82 million, while revenue for the smelting business decreased by 7% compared to the same period in 2021-22.

    One trader expressed concerns that the current full-year EBT expectation of €467 million may be “rather optimistic” given the results. He noted that robust metal prices should have mitigated the impact of a major maintenance shutdown in Hamburg, which concluded in July.

    While copper prices have dropped by about 18% from their peak in May, they remain relatively high. However, weak economic indicators from the US and China have pressured prices. Metzler analyst Thomas Schulte-Vorwick attributed the earnings miss to higher-than-anticipated costs from the Hamburg shutdown and the launch of a new plant in the United States.

    Aurubis reiterated its full-year EBT guidance of €380-480 million and highlighted that this was their best-ever quarterly result during a major plant shutdown. However, the company’s future performance could heavily depend on copper prices, with weak production in the US and China posing significant risks.

  • Deutsche Bank Sells Portion of $600 Million Loan for Australian Coal Mine to Private Credit Funds

    Deutsche Bank Sells Portion of $600 Million Loan for Australian Coal Mine to Private Credit Funds

    Deutsche Bank AG has sold a portion of a $600 million loan intended to finance the acquisition of an Australian coal mine to private credit funds, according to sources familiar with the transaction. In recent weeks, the German lender offloaded about $120 million, or half of its exposure, to Australian and Asian credit funds including Income Asset Management Group Ltd., Regal Funds Management, and Keyview Financial Group, said the sources, who requested anonymity due to the private nature of the matter.

    The bank plans to retain the remaining portion of the loan, which supports a Golden Energy and Resources-led consortium’s acquisition of the Illawarra coking coal mine in Australia. Initially, Deutsche Bank held about 40% of the loan, the sources revealed.

    This transaction highlights the increasing role of private credit funds as an alternative funding source for coal and other fossil fuel-related projects, as traditional banks are increasingly avoiding these sectors due to environmental, social, and governance (ESG) concerns.

    Deutsche Bank, Income Asset, and Regal declined to comment when contacted by Bloomberg. Keyview did not respond to emails requesting comment.

    The Golden Energy-led consortium signed the $600 million loan in July with Deutsche Bank and private credit funds including Davidson Kempner Capital Management LP, Farallon Capital Management LLC, King Street Capital Management LP, Washington H. Soul Pattinson & Co., and Broad Peak Investment Advisers Pte. The consortium also raised a separate $150 million working capital loan and a A$150 million ($100 million) guarantee facility.

    GEAR M Illawarra Met Coal, the entity acquiring the mine from Australia-based South32 Ltd. for $1.65 billion, engaged Grant Samuel as an adviser in its fund-raising efforts, Bloomberg reported in March. Singapore-based Golden Energy, controlled by Indonesia’s Widjaja family, owns a 70% stake in GEAR M Illawarra Met Coal, with M Resources Pty. holding the rest.

  • UK Royal Mint Launches Facility to Extract Gold from E-Waste in South Wales

    UK Royal Mint Launches Facility to Extract Gold from E-Waste in South Wales

    The UK Royal Mint has unveiled a groundbreaking facility in South Wales aimed at extracting gold from e-waste, marking a significant step towards a more sustainable source of the precious metal and reducing reliance on traditional mining methods. The 3,700 square metre Precious Metals Recovery factory employs world-first patented chemistry from Canadian clean tech company Excir. Using this innovative technology, the Mint will recover gold from printed circuit boards (PCBs) found in everyday electronics such as TVs, laptops, and mobile phones. This method operates at room temperature and works in minutes, making it energy-efficient and cost-effective, according to the Mint.

    This facility represents the first industrial-scale application of Excir’s technology, with the capability to process up to 4,000 tonnes of e-waste PCBs annually. The Royal Mint, the UK’s oldest company and sole coin producer, stated that this method enables them to “mine” high-quality 999.9 purity gold, already used in their luxury jewellery collection 886.

    The launch of this facility addresses the escalating environmental issue of e-waste. The United Nations’ Global E-waste Monitor reports that electronic waste generation worldwide is rising by 2.6 million tonnes annually, hitting a record 62 million tonnes in 2022 — an 82% increase since 2010. The Royal Mint’s plant aims to mitigate this problem by recovering valuable finite resources and appropriately processing other materials for further treatment.

    “The opening of this factory marks a pivotal step in our journey,” said chief executive Anne Jessopp. “We are not only preserving finite precious metals for future generations, but we are also preserving the expert craftsmanship The Royal Mint is famous for by creating new jobs and re-skilling opportunities for our employees.”

    Committed to sustainability, the Royal Mint is collaborating with major industry bodies to develop the first International Organization for Standardization (ISO) standard for recycled gold. This initiative seeks to provide clarity to the industry, end consumers, and other stakeholders.

    “The factory underpins our commitment to using sustainable precious metals and providing a new source of high-quality, recovered gold,” said chief growth officer Sean Millard. “It allows us to reduce our reliance on mined materials and is another example of how we’re working to decarbonize our operations.”

    Amid a global decline in cash usage, the Royal Mint has been innovating and diversifying. Earlier this year, it announced the closure of its Overseas Currency division, with all 230 staff offered roles in new and expanding business areas, including the newly opened Precious Metals Recovery factory.

  • Strickland Metals Discovers High-Grade Gold at Rogozna Project in Serbia

    Strickland Metals Discovers High-Grade Gold at Rogozna Project in Serbia

    Australian mining company Strickland Metals announced on Monday a significant discovery at its Rogozna project in southern Serbia. The company reported an 89.7-metre drill intercept grading 4 grams per tonne of gold. This finding comes from a depth of 244.5 metres in the first hole drilled by Strickland at the project’s 4.6 million-ounce-gold-equivalent Shanac deposit. Included in this result is a remarkable 24.1 metres at 10.5 grams per tonne of gold from 296.2 metres, according to a company statement.

    “These results from the first hole drilled by Strickland at Shanac this year are phenomenal! Not only did we discover the highest gold grades ever encountered at the Rogozna Project, but we also encountered extensive copper-gold mineralisation further down the hole,” stated Paul L’Herpiniere, managing director of Strickland.

    The 89.7-metre intercept marks the first time high-grade gold has been intersected in drilling at Shanac, one of four skarn-hosted gold and base metals deposits at the Rogozna project, the company added.

    In July, Strickland reported uncovering a strong, near-surface anomaly at the Obradov Potok target area at the Rogozna site. The 5.44-million-ounce gold equivalent Rogozna site is poised to potentially become one of the largest undeveloped gold deposits globally, according to Strickland.

    Earlier in April, the mining company revealed it had entered into a binding agreement with Ibaera Capital Fund’s subsidiary ISIHC for the acquisition of Betoota Holdings for $37 million (33.8 million euro). Betoota Holdings is the owner of Serbia’s Zlatna Reka Resources, which holds 100% of the Rogozna project, comprising four exploration licences.

  • Serbian President Demands German Guarantee for Environmental Protection in Lithium Mining

    Serbian President Demands German Guarantee for Environmental Protection in Lithium Mining

    “We will not open a lithium mine until the Germans guarantee that we will have clean rivers and mountains,” said Serbian President Aleksandar Vučić, emphasizing the need for dialogue on utilizing this crucial strategic resource. The Serbian government suspended the regulation for the lithium mining area two years ago after massive protests against a mine in the Jadar Valley. At the time, Prime Minister Ana Brnabić stated, “We have ended the agreement with the Rio Tinto company in Serbia.”

    Four and a half years later, it appears that the agreement hasn’t completely ended. Brnabić now claims that “lithium opponents have slowed everything down,” adding that Serbia, by using lithium domestically for battery production instead of exporting it, could become a European leader for the next century. She criticized opponents, claiming their resistance aims to “destabilize Serbia.” Vučić argued that the ban on lithium mining was a “manipulative move by Western intelligence services to stop our development.”

    The Serbian lithium debate has become a geopolitical issue. The discussion reignited after the adoption of the European Critical Raw Materials Act (CRMA), which includes Serbian lithium. Vučić and European Commission Vice-President Maroš Šefčovič signed a pledge for strategic cooperation between Serbia and the EU regarding the CRMA act.

    Tilman Kuban, a German MP from the Christian Democratic Union Party (CDU/CSU), emphasized the importance of ensuring all project aspects are verified, viewing it as a significant opportunity for Serbia to support Europe. Vučić recently called on Germany to act as a judge in the case of lithium mining, despite numerous opinions from Serbian scientists and institutions like the Serbian Academy of Arts and Sciences (SANU) and the University of Belgrade.

    Germany’s role in the lithium issue in Serbia is not new. Petar Đurčić, a researcher at the Institute for European Studies, noted Germany’s interest in Serbian lithium since the topic first arose. During her farewell visit to Serbia in September 2021, former German Chancellor Angela Merkel acknowledged Germany’s interest in Serbian lithium, given its importance for battery development and future mobility, while also stressing the need for ecological standards.

    Despite the fluctuating relationship between the Serbian government and Germany, Kuban’s visit and statements could be significant, especially since the CDU has the highest approval ratings in Germany and may return to power in the next election. Đurčić explains that Kuban, supporting Bavarian Prime Minister Markus Söder as a chancellor candidate, represents a faction within the CDU.

  • French Government Declares Imerys Lithium Mine a Project of “Great National Importance”

    French Government Declares Imerys Lithium Mine a Project of “Great National Importance”

    The French Government has designated the planned lithium mine in the Allier department in central France as a project of “great national importance.” This project has been entrusted to the French company Imerys. The Échassièresproject in Allier, a €1 billion investment, would be the first mine opened in France in nearly 50 years. According to Imerys, the mine would enable lithium production starting in 2028, sufficient to fill 700,000 batteries annually for at least 25 years, as reported by Le Monde.

    The decision to declare the lithium mine in Allier a project of great national importance was announced by the government in Paris in the official gazette on July 7. This special status, introduced by the Green Industry Act passed in October 2023, allows industrial projects deemed significant for national sovereignty and ecological transition to benefit from acceleration measures or administrative exemptions to facilitate their development.

    As reported by the French newspaper, the Imerys “Emili” project for lithium extraction is part of France’s policy aimed at building a new national sector for strategic minerals and metals to reduce dependence on imports, primarily from China. According to the plan, lithium extraction and processing will be located in Échassières, in an underground mine within the Beauvoir quarry complex, where Imerys has been exploiting kaolinite for ceramics since 2005. Storage will be handled in Saint-Bonnet-de-Rochefort, approximately 15 kilometers away, and the processing plant will be in Montluçon, 49 kilometers away. Lithium transportation will be conducted underground or by train.

    Imerys plans to create 500-600 jobs and indirectly employ another thousand workers. The project, first announced in 2022, is supported by the French state and government, as well as the leading political parties in the country, including the opposition, with the exception of Unsubmissive France, which criticizes it mainly because the excavation work has been entrusted to a private company. The public debate on the lithium mine in France lasted from March to July 31, with its results to be published by the National Public Debate Commission in October, as reported by Tanjug.

  • Romania Plans to Phase Out Coal Power Plants by 2026

    Romania Plans to Phase Out Coal Power Plants by 2026

    Transelectrica reportedly doesn’t see coal power plants having any share in Romania’s transmission system in 2026and beyond. The official phaseout deadline is 2032.

    Romania’s electricity transmission system operator Transelectrica is working on a ten-year plan through 2033. According to media reports, the draft shows coal power gone already in 2026. A similar announcement has just emerged in Greece, while Bulgaria is struggling even to keep its sole state-owned facility online.

    Until a few years ago, the three countries were hesitating to determine coal phaseout dates or delaying them. Now even newer or reconstructed plants of the kind across Europe are reducing capacity utilization or abruptly shutting down. For instance, the ContourGlobal Maritsa East 3 coal-fired power plant in Bulgaria recently fired almost all its employees.

    Expenses are high because of the allowances that producers must buy via the European Union’s Emissions Trading System (EU ETS). They also face ever stricter environmental requirements, making coal power uncompetitive.

    On the other hand, an uncontrolled collapse of the sector could jeopardize the security of energy supply. The rapid cut in coal power capacities makes the region’s energy consumers vulnerable to cold spells in the winter.

    Romania leans on gas power to cover the 2026 coal exit. The market has decimated coal plant production. In Romania in particular, it is evident from the forced transformation of state-owned coal miner and power plant operator Complexul Energetic Oltenia (CE Oltenia).

    Active coal plants had an overall 1.9 GW in April, compared to 5.3 GW in 2012. CE Oltenia plans to replace them with gas power facilities in Ișalnița and Turceni by 2026. With projects of other Romanian energy companies like Electrocentrale Bucharest (ELCEN), the new capacity is seen at 4.5 GW.

    Romania is officially planning to complete its coal phaseout in 2032.

    Minister of Energy Sebastian Burduja recently said Transelectrica’s report would determine the parts of the national electricity system that are in deficit. The last heat wave disturbed the wholesale trade in the region and catapulted power prices.

    Burduja insisted that the situation would have been much worse without renewables. The authorities want to eliminate coal by 2026 because Romania will double its interconnection capacity with neighboring countries to 7 GW next year, according to Radu Miruță, a member of parliament from the opposition Save Romania Union (USR) and its head in Gorj county, a major coal hub. The country is upgrading the interconnections to buy, not to sell, in Miruță’s view.

    The fate of coal industry workers and entire communities hangs in the balance. The implications are serious for national economies as well. The European Union’s just transition programs seem to need a boost.

  • London Stock Exchange Loses Ground as Mining Companies Opt for Overseas Listings

    London Stock Exchange Loses Ground as Mining Companies Opt for Overseas Listings

    The London Stock Exchange (LSE) has seen a decline in its standing as a preferred venue for mining company listings, falling behind major exchanges in New York, Toronto, and Sydney. According to data from S&P Global Market Intelligence shared by the Financial Times, the market capitalization of mining stocks listed on the LSE has decreased to $272 billion in 2024, down from $322 billion in 2018. In comparison, mining sectors on exchanges in Australia, Canada, and the United States each surpassed $325 billion. Since 2020, miners listed on the LSE have raised only $8 billion, significantly less than the amounts raised in Sydney and Toronto.

    Robert Crayfourd, a portfolio manager at CQS, noted that the market’s focus has shifted towards the tech sector. He emphasized the importance of London maintaining its historic role as a hub for mining stocks and finance to prevent companies from seeking other markets. Currently, there are 171 metals and mining companies listed on the LSE, accounting for 17% of the global market capitalization for the sector. However, much of this value is concentrated in a few major firms such as Glencore, Rio Tinto, and Anglo American. Over 100 of these LSE-listed companies have market capitalizations of less than £100 million ($128 million).

    London’s mining sector has faced challenges, including the delisting of Russian gold producers in 2022 following the Ukraine invasion, and BHP‘s decision to move its primary listing to Australia. Activist investors are pressuring Rio Tinto to follow BHP’s lead, Glencore is considering spinning off its coal division for a New York listing, and Anglo American is selling assets after avoiding a takeover by BHP. With Rio Tinto currently being the ninth-largest company on the FTSE 100, losing Anglo American or Glencore would pose a significant risk to the London market, according to Hayden Bairstow, a Perth-based analyst at financial advisory firm Argonaut.

  • Solvay to Supply Europe with Rare Earth Metals for EVs and Wind Turbines from French Plant

    Solvay to Supply Europe with Rare Earth Metals for EVs and Wind Turbines from French Plant

    Belgian chemicals group Solvay has announced plans to supply Europe with rare earth metals for permanent magnetsused in electric vehicles (EVs) and wind turbines, as part of a strategy to reduce reliance on China. The company plans to commence regular production at its refurbished plant in La Rochelle, France, by early 2025, aiming to meet 30% of Europe’s needs for permanent magnets by 2030. This facility is unique in Europe for its ability to process both light and heavy rare earth materials at an industrial scale. Solvay’s CEO, Philippe Kehren, highlighted the strategic shift toward European production, anticipating a tripling in demand for these materials by 2035. Solvay is in discussions with major European car manufacturers and turbine makers, as well as the French government, to secure support across the entire value chain. This move aligns with new EU regulations that aim to bolster the continent’s self-sufficiency in critical materials, targeting a reduction in dependence on Chinese supplies, which currently cover about 95% of the EU’s rare earth needs. Solvay intends to source 30% of the materials for its La Rochelle plant locally, by recycling end-of-life rare earth metals from motors in Europe.

     

  • Thousands Protest in Serbia Against Rio Tinto’s Controversial Lithium Mining Project

    Thousands Protest in Serbia Against Rio Tinto’s Controversial Lithium Mining Project

    In a significant display of public dissent, thousands of protesters rallied on Monday in Sabac, Serbia, voicing strong opposition to the proposed Rio Tinto lithium project. The project, located in Serbia’s lush western region of Jadar, aims to extract lithium—a critical material essential for the batteries used in electric vehicles and mobile devices. Despite its importance, the project has sparked widespread concern among environmental activists and local residents, who fear it could cause irreparable environmental damage.

    The demonstrations in Sabac, a city situated about 50 kilometers northeast of the proposed mine site, were part of a broader wave of protests sweeping across the country. Activists, including Biljana Stepanovic from the Proglas (Proclamation) rights organization, addressed the crowd, emphasizing the importance of environmental preservation over technological advancement. “We cannot live without clean air and water, but we can live without lithium batteries and electric cars,” Stepanovic proclaimed, echoing the sentiments of many who attended the rally.

    The opposition to the Jadar project is not new. Last week, similar protests were held in several towns across Serbia, and the movement is expected to continue growing. On the same day as the Sabac rally, protests were also organized in three other towns in central Serbia. Demonstrators are demanding the cancellation of the project, citing concerns over air and water quality and the broader ecological impact.

    Earlier this month, the Serbian government reinstated Rio Tinto’s license to develop what could become Europe’s largest lithium mine, reversing a decision made over two years ago following intense protests by environmental groups. This decision has reignited public outcry, with many questioning the motives behind the government’s reversal. On July 19, a significant development occurred when Serbian President Aleksandar Vucic, German Chancellor Olaf Scholz, and EU energy chief Maros Sefcovic signed an agreement regarding access to raw materials mined in Serbia. Despite reassurances from Scholz that the project would proceed only if it meets EU environmental standards, skepticism remains high among the public.

    In response to growing concerns, President Vucic announced that a referendum on the project’s future would be organized by the end of 2025. However, at the Sabac rally, protesters expressed deep distrust in these assurances, with one protester, Sinisa Todorovic, a 52-year-old salesman, stating, “With this project, there will be no future… This means death for the people.” Various green groups have issued a stern warning that they will escalate their actions, potentially blocking major railroads and junctions in August if the government does not halt the project.

    The controversy surrounding the Rio Tinto lithium project highlights the tension between economic development and environmental preservation, a debate that is increasingly coming to the forefront in global discussions about sustainable practices and climate change.