MINEX Forum

Website: Europe.com

  • Zinnwald Lithium’s Share Prices Surge Following Resource Estimate Update

    Zinnwald Lithium’s Share Prices Surge Following Resource Estimate Update

    Germany-focused Zinnwald Lithium (LON: ZNWD) experienced a significant increase in its shares on Friday after announcing a 50% boost in the mineral resource estimate for its flagship project in Saxony. The lithium producer, which had initially forecasted an annual production of 12,000 tonnes, now expects to produce 16,000 to 18,000 tonnes of battery-grade lithium per annum.

    This update positions Zinnwald as the second largest hard rock lithium project in the European Union and the third largest in Europe by resource size and contained lithium. Europe’s largest hard rock lithium deposit is the Cinovec lithium project in the Czech Republic, owned by European Metals (ASX, LON: EMH) and state-controlled utility CEZ.

    In response to the updated assessment, Zinnwald announced plans to conduct a pre-feasibility study (PFS) to enhance the expanded project and explore potential for a second production phase. This study will also focus on minimizing environmental and community impact while evaluating technical test work and trade-offs. Chief executive officer Anton du Plessis stated that the PFS is expected to be completed in the first quarter of 2025. “We have already completed many workstreams, with several more underway or nearing completion,” du Plessis said. “Key upcoming milestones include ongoing metallurgical testwork, detailed mine planning, permitting, and commercial activities.”

    While Zinnwald is in a secure financial position, it is seeking support from the German federal and state governmentsafter receiving an invitation in June to apply for grant funding. If successful, 70% of the funding will come from the federal government, with the remaining 30% from the State of Saxony, which has already shown support for the battery-chain project.

    Located approximately 35km from Dresden, in the heart of Europe’s chemical and car industries, the project is expected to produce battery-grade lithium carbonate, lithium hydroxide, and lithium fluoride (Li2CO3, LiOH, LiF) or a combination of these products.

    Despite a dramatic drop in lithium prices over the past 18 months due to slowing growth in electric vehicle sales and market oversupply, Zinnwald Lithium’s stock rose nearly 5% following the announcement, trading at 8.2p near closing time. This increase leaves the company with a market capitalization of £38.84 million ($50.4m).

  • Chromium’s Vital Role and Growing Demand in Global Industries

    Chromium’s Vital Role and Growing Demand in Global Industries

    Since its discovery by French chemist Nicolas-Louis Vauquelin, chromium has become one of the world’s top five most extensively mined metals, with production reaching 41 million tons in 2023. Chromium is essential for producing stainless steel and is used across a variety of industries, including military, aerospace, transportation, and medical equipment.

    With over 30 years of experience in the chrome ore mining industry, I have witnessed a significant rise in the demand for chromium and ferrochrome. The top chromium-producing countries are South Africa, Turkey, Kazakhstan, India, and Finland, with Albania emerging as a notable producer of high-grade chrome ore and holding Europe’s largest reserves.

    Chromium’s properties, such as corrosion resistance and high-temperature resistance, make it irreplaceable with no viable substitutes. It is becoming increasingly important in the green energy sector, particularly in the manufacturing of solar panels, electrochemical cells, and electrolyzers for hydrogen production. Chromium is also used in rechargeable batteries, catalytic converters, and water treatment processes.

    However, extensive mining of high-grade chrome bodies has increased the cost of extraction, leading to a surge in chrome ore prices due to a projected decline in production. Informal surveys with global mining companies confirm this scarcity, suggesting potential challenges for industries reliant on this metal.

    The demand for stainless steel continues to grow, driven by economic growth, urbanization, and advancements in production processes. The chemical industry also plays a crucial role in chromium demand, particularly in specialty chemicals and eco-friendly practices.

    Investing in chromium involves both risks and opportunities. Supply chain disruptions, geopolitical tensions, and emerging environmental regulations are significant factors to consider. Technological advancements in AI and automation are transforming the mining industry, enhancing sustainability, efficiency, and productivity.

  • Conflict in Ukraine Drives Surge in Copper Demand

    Conflict in Ukraine Drives Surge in Copper Demand

    The ongoing conflict in Ukraine has led to a significant increase in demand for copper, according to sources cited by Fastmarkets. Copper is a critical component in munitions, with bullet cartridge casings made from brass, an alloy of copper and zinc.

    In the latest development of the conflict, which has persisted since 2022, a series of Russian missile strikes targeted cities across Ukraine on Monday, including a children’s hospital in Kyiv, resulting in at least 22 deaths and 68 injuries.

    “Every day, the war consumes many tonnes of copper. At the end of the war, there will be a new mine in Ukraine with all that copper scrap,” a producer told Fastmarkets, noting the increasing demand for brass.

    A NATO 155-millimeter artillery shell contains 0.5 kg of copper, with Ukrainian forces reportedly firing up to 7,000 such shells daily, according to the European Defence Agency (EDA). The Royal United Services Institute (RUSI), a UK defense think tank, stated that Russia’s equivalent is the 152 mm shell, with Russia producing 4.5 million shells annually—a 150% increase in output over the past year, as noted by consultancy Bain & Company.

    Bloomberg estimates that before the war, the US produced an average of 14,400 shells per month. However, DefenceOne, a specialist defense industry publication, reported that the country aims to ramp up production to 100,000 monthly shells by the end of 2025.

    “War is good for the metals business,” said Fastmarkets analyst Andy Farida, suggesting that the ongoing conflict in Ukraine is partly responsible for the resilience of copper prices compared to other base metals.

    The military’s demand for copper has garnered significant attention in recent years. Mining magnate Robert Friedland recently told Bloomberg that despite China’s weak real estate market, military demand in the country remains high. “Europe is rearming; Japan is rearming. The United States military is worried about a shortage of 155 mm howitzer shells. Where do you think the world’s army is made out of when all the shooting goes on?” Friedland commented. “If someone is pointing a gun at you, you need that copper to shoot back.”

  • EBRD Provides €30 Million Loan to Serbia for Renewable Heat Generation

    EBRD Provides €30 Million Loan to Serbia for Renewable Heat Generation

    The European Bank for Reconstruction and Development (EBRD) is providing a €30 million ($32.5 million) loan to Serbia for investments in renewable heat generation, the lender announced. These investments aim to modernize district heating companies in 10 Serbian cities. The project includes the refurbishment of heat substations and district heating networks, along with other energy-efficiency measures, the EBRD stated on Tuesday.

    “Currently, Serbia’s district heating systems rely heavily on fossil fuels and are notably energy inefficient. This project, the first of its kind in south-eastern Europe, aims to address these challenges by providing significant environmental benefits and boosting energy security,” the EBRD said.

    The project will benefit from up to €12 million of donor funds mobilized by the EBRD from the Swiss State Secretariat for Economic Affairs, the European Union, and Austria’s government.

    The implementation will be carried out by Serbia’s mining and energy ministry in cooperation with the participating municipalities and district heating companies.

    The total value of the project, “Renewable energy sources in district heating systems in Serbia – Phase 1,” amounts to €40.5 million, including €10.5 million in grants, according to the government.

  • Gabriel Resources Seeks Annulment of ICSID Decision on Rosia Montana Project

    Gabriel Resources Seeks Annulment of ICSID Decision on Rosia Montana Project

    Canadian mining company Gabriel Resources has filed a claim seeking the annulment of a decision by the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) in March, which dismissed the company’s claims against Romania for compensation regarding its unsuccessful Rosia Montana gold mining project. Gabriel Resources has also requested a stay of enforcement for the court costs awarded to Romania, amounting to approximately $10 million (9.23 million euros), the mining company announced on Monday.

    “The Arbitral Decision must be annulled due to fatal defects in the constitution of the ICSID tribunal given that two of the arbitrators who rendered the majority decision […] lacked the qualities of independence and impartiality that the ICSID Convention requires, and failed to adequately disclose relationships between themselves and with the parties involved in the case, including Romania’s counsel,” the company stated.

    Gabriel Resources argues that the arbitrators’ decision is flawed due to excesses of power during the litigation, including disregard for applicable law, departure from procedural rules, and failure to state reasons for several decisions made during the arbitration. The litigation was initiated in 2015 by Toronto Stock Exchange-listed Gabriel Resources, whose main business has been the exploration and development of the Rosia Montana project in Romania, a major undeveloped gold deposit.

    Gabriel Resources claimed around $6.7 billion in damages from Romania, including interest, as noted by Leaua Damcali Deaconu Paunescu, the Romanian legal team representing Romania in the case, in a March press release.

    Gabriel Resources has held a license for the Rosia Montana gold and silver mine in Romania’s Alba county since 2000. The project was blocked by the Romanian state in 2014, following nationwide protests against its development that began in the fall of 2013 and lasted several months. The project faced significant opposition from environmentalists, local residents, and various civil groups, primarily due to concerns over the use of cyanide in the mining process and the displacement of local communities.

  • Gabriel Resources Appeals ICSID Decision on Roșia Montană Gold Mining Project

    Gabriel Resources Appeals ICSID Decision on Roșia Montană Gold Mining Project

    Gabriel Resources, a Canadian company, has filed an appeal against a recent decision by the Washington Arbitration Court (ICSID), challenging Romania’s victory in the dispute over the Roșia Montană gold mining project. The ICSID, part of the World Bank’s settlement center, had dismissed all claims brought by Gabriel Resources, which alleged expropriation of investments and breaches of bilateral agreements by the Romanian government. The appeal cites “fatal flaws” in the tribunal’s composition, alleging lack of impartiality and inadequate disclosure of relationships among arbitrators and involved parties. Gabriel Resources seeks annulment of the decision and suspension of a USD 10 million court cost award to Romania, pending the outcome.

  • Vestas and LEAG Collaborate on 105 MW Wind Energy Project in Germany

    Vestas and LEAG Collaborate on 105 MW Wind Energy Project in Germany

    In a significant step towards Germany’s renewable energy goals, Vestas and LEAG have announced a 105 MW order for the wind energy project “Forst-Briesnig II” in the Lausitz region. The project will feature 17 V162-6.2 MW wind turbines from Vestas, encompassing the supply, delivery, and commissioning of the turbines. Upon completion, Vestas will maintain the turbines under a 20-year Active Output Management 5000 (AOM 5000) service agreement, ensuring optimal performance and longevity.

    Located on a former brown coal mining site, this project marks a pivotal moment for LEAG, representing their first foray into wind energy through their subsidiary, LEAG Renewables GmbH. This initiative is part of a broader transformation of the Lausitz region into a renewable energy hub under the GigawattFactory project. “Securing the second-largest building permit for an onshore wind farm in Germany and finalizing this contract are key milestones for the successful realization of the Forst-Briesnig II wind farm,” said Dominique Guillou, CEO of LEAG Renewables GmbH.

    Jens Kück, Senior Vice President Sales Onshore of Vestas Northern and Central Europe, highlighted the project’s significance, describing it as a “lighthouse onshore wind project” that exemplifies the transition from fossil fuels to renewables. Thorsten Kramer, CEO of LEAG, emphasized the strategic importance of partnering with Vestas to advance the GigawattFactory, aiming to establish one of Germany’s largest onshore renewable energy networks.

    Tomáš David, senior executive at EP Corporate Group, the controlling shareholder of LEAG, remarked on the investment’s transformative nature, positioning it as a crucial component of their strategy to shift from conventional to sustainable power generation. Turbine delivery is expected to begin in the fourth quarter of 2025, with commissioning slated for completion by the third quarter of 2026.

  • High-purity lithium from Germany for future battery production

    High-purity lithium from Germany for future battery production

    Hamburg, Karlsruhe. LevertonHELM and EnBW have successfully produced lithium carbonate with a purity of >99.5 per cent. In the joint demonstration project, EnBW initially extracted a lithium chloride solution from the thermal water of the geothermal power plant in Bruchsal, Baden-Württemberg, using direct lithium extraction (DLE). LevertonHELM, a fully owned subsidiary of German HELM AG, converted and refined this solution at its facilities in Basingstoke, UK. Thanks to its high quality, the lithium salt obtained in this way can be used directly in the production of cathode materials for batteries.

    Based on this success, EnBW and LevertonHELM have agreed now to continue their collaboration in close co-operation. The common goal is to further advance the sustainable production of battery-grade lithium carbonate and lithium hydroxide and to develop local resources for use in electromobility and energy storage.

    Dr Thomas Kölbel, expert for research and development at the EnBW Group, says: “We need energy storage technologies for the energy transition to succeed. Lithium plays a decisive role in the expansion of electromobility and renewable energies. Together with LevertonHELM, we want to tap into this resource and create a sustainable source of lithium to meet the growing demand in Germany and Europe.”

    “Projects like this are essential for the development of European resources and establishing a local production footprint of critical raw materials that will support the European Union’s energy transition. The combination of EnBW’s experience in DLE and geothermal power generation and LevertonHELM’s lithium processing expertise is a strong asset to accelerate progress in this field”, says Bart Vanden Bossche, Commercial Director at LevertonHELM.

    “This project is a great opportunity for HELM to further strengthen its presence and participation in the European lithium-ion battery supply chain. We are making significant efforts to further develop our lithium processing capabilities in order to actively contribute to decreasing Europe’s dependence on lithium import”, comments Stephen Elgueta Wallis, Vice President Energy Materials at HELM.

    “The water that we extract at the Bruchsal geothermal power plant has a remarkably high lithium content. This opens up a great opportunity for us to extract lithium as a valuable by-product of these plants regionally using environmentally friendly methods,” comments Laura Herrmann, Project Manager of Research and Development at EnBW.

  • Deutsche Balaton Increases Stake in Skeena Resources Amid Strong Market Performance

    Deutsche Balaton Increases Stake in Skeena Resources Amid Strong Market Performance

    German investment firm Deutsche Balaton (DB) announced on Tuesday that it has slightly increased its equity stake in Skeena Resources (TSX: SKE) by acquiring 10,500 shares at an average price of C$7.049143 per share. The newly acquired shares represent 0.1% of Skeena’s outstanding shares, raising DB’s total holdings to approximately 10.9 million shares, which equates to 10.25% of the Canadian miner’s share capital.

    Shares of Skeena Resources reached a 52-week high of C$7.67 late in the afternoon, closing 4.2% higher at C$7.65 per share, giving the company a market capitalization of C$694.6 million.

    This development comes on the heels of Skeena’s recent announcement of a $750 million financing package for the Eskay Creek mine project in British Columbia’s Golden Triangle. This funding is set to provide the financial flexibility needed to restart what was once the highest-grade gold mine in the world. The restart is planned for 2027, with an anticipated annual production of 320,000 oz. gold over a 12-year mine life. According to a definitive feasibility study, the open-pit mine has an after-tax net present value (at a 5% discount rate) of C$2 billion and an after-tax internal rate of return of 43%.

  • Coal Mine Pays €2.37 Million Debt to Pljevlja Municipality Amid Dispute

    Coal Mine Pays €2.37 Million Debt to Pljevlja Municipality Amid Dispute

    The coal mine in Pljevlja has unexpectedly paid €2.37 million to the Municipality of Pljevlja, settling the total debt as per a Court of Appeal ruling from March. The debt, stemming from a 2004 contract on compensation for the development of construction land, was paid without prior notice, contrary to ongoing negotiations for an installment plan. The coal company expressed surprise and concern, stating that this abrupt decision will impact planned investments and operational stability during a challenging period.

    Despite previous public assurances from both Municipality President Dario Vraneš and Rudnik Uglja Pljevlja (RUP)Board President Milan Lekić about negotiating a feasible payment plan, the company received no advance warning of the decision. The local government emphasized that the company initiated the payment voluntarily, while legal opinions held that the proposed installment model was unlawful without assembly consent.

    The repayment coincides with the completion of a two-month overhaul at the Pljevlja Thermal Power Plant (TPP), which relies heavily on coal from RUP. Further operational difficulties are anticipated in 2025 when the TPP undergoes an eight-month ecological overhaul. Lekić highlighted that the TPP’s downtime would severely affect RUP’s primary income source, stressing the need for municipal support during this period.

    The court’s judgment mandated RUP to pay within eight days of receiving the ruling, including default interest. The debt covers various infrastructure projects, including a wastewater treatment plant in Židovici and water treatment facilities in Pliješa. Vraneš assured that the municipality’s intent was to facilitate debt repayment lawfully, rejecting any model contrary to legal provisions.