MINEX Forum

Website: Europe.com

  • Leag Secures €1.75 Billion for Early Coal Phase-Out in Eastern Germany

    Leag Secures €1.75 Billion for Early Coal Phase-Out in Eastern Germany

    Eastern German lignite mining and power plant company Leag has received approval for up to 1.75 billion euros in state support to facilitate the “early” phase-out of coal-fired power production in eastern Germany. This follows an agreement between the European Commission and the German government, confirming that the compensation payment aligns with EU subsidy regulations. The funds will help Leag transition from fossil fuels and create new jobs in the Lusatia region ahead of the coal exit’s final deadline in 2038.

    The Commission’s decision came after a review that started in 2021, prompted by local policymakers and the German government. “This is an important step for the people in this region,” said Germany’s economy minister Robert Habeck. The compensation will fund social support programs for coal workers and the restoration of former mining areas.

    Habeck emphasized that the payments to Leag are part of broader government measures to support the region’s shift to climate-neutral energy generation and industrial production. With targeted support for innovative transformation technologies, the government aims to foster a thriving economy in Lusatia. Leag CEO Thorsten Kramer welcomed the agreement, calling it “an essential element for our further successful transformation to being a green powerhouse.”

    The deal with the Commission and the initial plan from Germany’s previous government includes a gradual release of the funds. The estimated cost of phasing out coal is around 1.2 billion euros, which Leag will receive as a minimum. Additional funds of up to 550 million euros depend on the potential profitability of closed coal plants and the foregone profits due to the phase-out. The economy ministry stated that this process ensures Leag is not “overcompensated” for its role in the coal phase-out.

    Assessing Leag’s compensation was more complex than for its western counterpart RWE, which agreed to close its plants well before the 2038 deadline. The Commission will continue to review the scheme and release a formal decision in the coming months.

    Christian Ehler, from the conservative Christian Democrats (CDU) representing the region in the European Parliament, said the agreement brings clarity after three years of negotiations. “Leag can continue on its path of renewable power, hydrogen-ready power plants, and energy storage,” Ehler said. He added that the decision shows “the EU isn’t abandoning East Germany,” marking a milestone in Lusatia’s ambition to become Europe’s first Net Zero Valley.

    The agreement did not specify an end date for coal before 2038. However, Bernhard Herrmann, a member of the government committee for climate and energy from the Green Party, noted that the expansion of renewables will naturally phase out coal plants as they become less profitable. He argued that the deal would reduce taxpayers’ costs for the phase-out, with coal companies likely to take their plants offline voluntarily due to decreasing profitability.

  • Mining Permits in Albania Remain Stable in 2023

    Mining Permits in Albania Remain Stable in 2023

    The number of mining permits in Albania remained almost unchanged during 2023 compared to the previous year. According to data from the National Agency of Natural Resources, there were 552 active mining permits in 2023, a slight decrease from 554 in the previous year.

    Mining activity in 2023 was predominantly focused on the extraction of chrome ore, which accounted for about 43% of active permits. The latest data shows there are 236 permits for chrome extraction, unchanged from 2022. However, despite the steady number of permits, the production of chrome ore saw a decline. In 2023, about 921,000 tons of chrome were produced, approximately 12,000 tons less than the 933,000 tons produced in 2022.

    Limestone extraction was the second most significant mining activity, with 137 permits representing 25% of the total. Marbled limestone followed with 34 permits, accounting for 6.2% of the total. Combined, these three minerals constituted 75% of Albania’s mining activity. Additionally, there are 31 permits for nickel iron, 17 for copper ore, 16 for sandstone, 16 for slate limestone, and 11 for clay.

    The remaining mining activities include permits for decorative limestone, alabaster gypsum, bituminous gravel sand, and other materials, highlighting the diverse range of mineral resources being extracted in the country.

  • Aurubis Launches Modernized Tankhouse to Boost Copper Production in Lünen

    Aurubis Launches Modernized Tankhouse to Boost Copper Production in Lünen

    Aurubis officially celebrated the launch of the refurbished tankhouse for copper production at its recycling plant in Lünen, Germany. The modernized facility is set to increase production capacity by around 10%, enabling the production of up to 210,000 tons of copper cathodes annually. A €60 million investment was made to future-proof the tankhouse, ensuring the long-term success of the recycling site. This upgrade also allows for the processing of other metals, such as gold, tin, and nickel, alongside copper.

    “Global demand for raw materials is on the rise. As the largest multimetal recycling site in Europe, Lünen is a cornerstone of the circular economy. We’re delivering more responsibly produced metals to the market with our modernized tankhouse — for a successful energy transition, while strengthening and securing our core business at the same time,” said Inge Hofkens, COO of Multimetal Recycling at Aurubis AG.

    Construction on the tankhouse began in October 2020 and was completed on schedule. The upgrades included a complete refurbishment of the tankhouse basins, infrastructure improvements like a renovated roof, and investments in further automation, including state-of-the-art robot technology.

    “I am particularly proud of the fact that we were able to keep the facility running reliably at 80% while construction was ongoing. A great achievement by the whole team! Aurubis is advancing its pioneering role in recycling by investing in renovating the tankhouse,” said Verena von Weiss, Lünen Plant Manager.

    “This significant investment of €60 million is a clear signal of Aurubis’ commitment to the Lünen recycling site, to strong and efficient industry, to protecting the climate, and to safeguarding jobs and apprenticeships. Modern and responsible industrial companies like Aurubis are the foundation of our region’s prosperity,” said Lünen Mayor Jürgen Kleine-Frauns.

    The tankhouse represents the final step in the copper refining process. Copper anodes, weighing about 400 kg with a copper content of up to 98%, are electrochemically dissolved. The copper ions are deposited on stainless steel plates, resulting in 99.99% pure copper for optimal conductivity in downstream applications. Other substances in the anode, such as precious metals, precipitate out during electrolysis and are separated and refined in the Aurubis Group network.

  • SMR Industrial Alliance Sets 2024 Work Plan and Forms Eight Working Groups

    SMR Industrial Alliance Sets 2024 Work Plan and Forms Eight Working Groups

    The SMR Industrial Alliance used their General Assembly last week to define a work plan for the rest of 2024, establishing eight working groups to deliver on their objectives. The SMR alliance, a collection of public and private actors with European Commission backing, aims to develop a European ecosystem for small nuclear modular reactors (SMRs) and advanced atomic modular reactors (AMRs).

    These next-generation reactors have a power output of between 200 and 300 megawatts. They can be used for various applications, from generating electricity or heat for industrial or community applications to replacing coal-fired power plants. The alliance hopes the first projects will operate in the first half of the 2030s – maybe earlier – allowing the technology to contribute towards reducing Europe’s greenhouse gas emissions. These deployments would also contribute to the 50 gigawatts (GW) target of additional nuclear capacity by 2050, set by pro-nuclear EU Member States.

    The alliance has 277 members, all based in Europe, divided into various working groups, according to the conclusions of the general assembly, which met on 29 – 30 May. Since the gathering, eight technical working groups (TWG) have now been chaired by European companies. These focus on a range of areas, from supply chains, to research and development (R&D), public commitments, skills, and waste management. The R&D, supply chain, skills, and financing working groups will start working in June. The others will begin their work in October.

    “The next important step is to define a technological roadmap ready for the end of the year,” Andrei Goicea, policy director at Nuclear Europe, European nuclear association and member of the alliance’s steering committee, told Euractiv. Currently, 24 different SMR designs are listed: 14 of which are AMRs and 14 of which are not.

    The main objective is to produce a general action plan for the first quarter of 2025, structured around ten tasks; including objectives to be achieved, activities to be carried out, and products to be delivered. “For the moment, the work to be carried out is not yet completely defined,” NuclearEurope Director General Yves Desbazeille explained.

    At the same time, the chairman of the Sustainable Nuclear Energy Technology Platform (SNETP), Bernard Salha, also a member of the alliance’s steering committee, announced that each project selected for support will potentially be able to participate in an important project of common European interest. This mechanism allows participants to bypass some EU State Aid rules. In the meantime, the first meeting of the governing board, made up of EU member states and the European Nuclear Safety Regulators Group, will take place in early July, concludes Yves Desbazeille.

  • Polish Parliament Speaker Szymon Holownia Visits Budryk Mine

    Polish Parliament Speaker Szymon Holownia Visits Budryk Mine

    The Speaker of the lower house of the Polish Parliament, Szymon Holownia, recently met with miners working at the Budryk mine – part of Jastrzebska Spólka Weglowa (JSW). During his visit, Speaker Holownia learned about the operations of the mine and the entire JSW, which produces coking coal – a raw material on the EU’s list of critical raw materials necessary for steel smelting.

    Before visiting the mine, the Speaker underwent the necessary training to authorize him to go underground. He was then accompanied by Ryszard Janta, President of the JSW Management Board, Adam Rozmus, Vice-President of the JSW Management Board for Technical and Operational Matters, Krzysztof Baranowski, Director of the Budryk mine, and Wieslaw Chylek, Technical Director of the mine. Together, they descended to the 1290 m level via shaft VI, the deepest level in coal mines in Poland, where the temperature of the rock mass reaches almost 50°C.

    From the shaft, the group proceeded by suspended cable cars to the area of the Bw-3 longwall, the main purpose of the visit. After a 300 m walk from the passenger station, the Speaker of the Sejm and his attendants stood at the entrance of the Bw-3 longwall. It took several minutes to walk along the 200 m longwall, where mining was underway, followed by a march to the 1000 level and a trip to the surface.

    “What I saw today made a huge impression on me and will definitely stay with me. Visits such as this one teach respect and humility towards people who do a difficult and responsible job, who go down and up five days a week for 25 years. I hope that you will always be accompanied by luck and God’s protection,” said Szymon Holownia immediately after leaving the mine.

    “I did not come here to present plans or to spin a vision. I came to listen, to see the mining reality. What I learned from you today will be helpful in my work. Thank you for allowing me to spend this time with you. I hope this is not our last meeting. I have already heard tentative invitations related to Miners’ Day. If they are upheld, we will of course see each other again,” the Speaker added.

  • EU Requests Profit-Based Backstop for Germany’s €1.75 Billion Coal Shutdown Payout

    EU Requests Profit-Based Backstop for Germany’s €1.75 Billion Coal Shutdown Payout

    The EU is urging Germany to include a profit-based backstop in its €1.75 billion ($1.9017 billion) payout for the early shutdown of the operations of its second-largest coal miner. A state payment of up to €1.2 billion to an entity of Czech billionaire Daniel Kretinsky’s EPH Group AG has been preliminarily approved by the European Commission, according to Germany’s economy ministry. The remainder of the payout will depend on the future profitability of the assets.

    The approved sum, as reported by Bloomberg on May 31, is intended to cover costs for mine rehabilitations, closures, and the impact on jobs. To prevent overcompensation, Lausitz Energie Bergbau AG (LEAG) will be required to provide proof of future costs and will be compensated from the remaining sum of €550 million, according to a letter from the EU’s Competition Commissioner Margrethe Vestager.

    Germany is working to accelerate the phaseout of coal in its power generation mix after failing to meet its emissions reduction targets. In 2020, the government agreed to pay billions of euros in compensation to LEAG and RWE AG to shut down coal-fired power plants by 2038. Now, to cut carbon emissions faster, the state is negotiating to advance the coal exit by eight years.

    In 2022, RWE agreed to a 2030 phaseout and will receive €2.6 billion in state payments. LEAG is still negotiating, aiming to continue burning coal beyond the end of the decade. Fossil fuel plants have to pay for carbon permits, and rising costs could squeeze coal profits. The backstop measure is designed to address this—if LEAG shuts down plants early due to unprofitability, the subsidy would be reduced. LEAG maintains that coal will remain profitable until 2038, the current legal exit date.

    “This is a bet on the future,” economy minister Robert Habeck said at a press conference in Berlin, noting the difficulty in calculating foregone profits for 2038. The European Commission still needs to give its final decision on the payment.

  • Vulcan Energy Resources Secures €40m for Zero Carbon Lithium Project

    Vulcan Energy Resources Secures €40m for Zero Carbon Lithium Project

    Vulcan Energy Resources has successfully secured a total of €40m ($43m) through a private placement to support the construction work for its phase one integrated Zero Carbon Lithium Project in Germany. Under the terms of the private placement, Vulcan issued ten million shares to CIMIC Group for €25m, five million shares to Hancock Prospecting for €12.5m, and one million shares to Victor Smorgon Group for €2.5m.

    The new shares, priced at €2.50 each, were offered at a 9% discount to Vulcan’s 30-day volume-weighted average price and will rank equally with existing ordinary shares.

    These strategic investments are crucial for funding pre-execution activities during the final stage of project financing and for maintaining the deterministic execution schedule of the project. CIMIC’s €25m investment will establish the company as a substantial shareholder in Vulcan, holding a 6% stake in the outstanding share capital.

  • Chromium Leads Albania’s Mining Sector in Production and Permits

    Chromium Leads Albania’s Mining Sector in Production and Permits

    Chromium continues to be the mineral with the greatest weight in Albania in terms of the number of permits granted for exploitation, as well as the quantity produced. The annual publication by the National Agency of Natural Resourcesreveals that a total of 920 thousand tons of chrome were produced in 2023, primarily for export.

    “Albania is known for its significant potential in chrome ore compared to other Mediterranean and Balkan countries,” the report states. As of December 31, 2023, there were 236 active exploitation licenses in the chrome mining sector. Production activities are concentrated in the Bulqiza district, with around 120 active permits, followed by Kukës, Tropoja, and Hasi.

    By the end of 2023, 920,769.98 tons of chrome ore were produced, mainly for export. The main chromium deposits are located in the Ophiolites of the Eastern Belt area, stretching from Tropoja and Kukës to Bulqizë, Shebenik, and Pogradec. Lesser development has been identified in the ophiolites of the western belt.

    Geologically, chrome ore in Albania is found in three main regions:

    • Northeast Region (Ultrabasic Massif of Tropoja and Kukës);
    • Central Region (Ultrabasic Massif of Bulqiza and Lura, which is the most important);
    • Southeast Region (Shebenik-Pogradec Ultrabasic Massif).

    The publication also notes that in 2023, there were 552 active usage permits, mainly in Bulqiza, Krujë, Berat, Tirana, or Librazhd. Besides chrome, which holds the majority of active permits, limestone ranks second with 137 permits, according to the National Agency of Natural Resources.

  • Germany’s Climate Change Targets at Risk, Urgent Action Needed

    Germany’s Climate Change Targets at Risk, Urgent Action Needed

    Germany’s climate advisory body has issued a call for immediate policy measures to address the country’s escalating greenhouse gas emissions, cautioning that it is on track to miss its 2030 climate change targets. In a report released on Monday, the Council of Experts on Climate Change, an independent body appointed by the government, emphasized that Germany is unlikely to achieve its goal of reducing emissions by 65% by the end of the decade compared to 1990 levels.

    The council highlighted sectors such as transport and construction as particularly problematic in terms of decarbonization efforts. These sectors are facing significant challenges in transitioning to cleaner energy sources and reducing their carbon footprint. The findings directly contradict statements made by German Climate Protection Minister and Vice Chancellor Robert Habeck, who had previously claimed that emissions were decreasing and the country would meet its targets based on projections from the Federal Environment Agency (UBA).

    According to the Council of Experts on Climate Change, the UBA’s estimates were overly optimistic, and the emissions from the energy, building, and transport sectors had been underestimated. This indicates a pressing need for additional action and stronger measures to be taken to curb emissions effectively.

    Under the Climate Protection Act, if the council’s findings are confirmed in its next annual report in 2025, the government will be required to implement further measures to meet its 2030 targets. However, the council’s chairman, Hans-Martin Henning, advised against waiting for the targets to be missed again and instead recommended prompt examination and implementation of additional measures.

    The council also warned that Germany may face challenges in meeting future targets, including its aim to reduce emissions by 88% by 2040 compared to 1990 levels and achieve climate neutrality by 2045. The transition away from burning fossil fuels is considered crucial in addressing the global warming threat and reducing emissions.

    The release of the council’s report coincides with ongoing government negotiations in Bonn, Germany, where officials are laying the groundwork for the upcoming COP29 climate summit in Baku, Azerbaijan, scheduled for the end of the year. The discussions are expected to focus on the contentious issue of funding the escalating costs associated with climate change.

  • Record Numbers of Retrainees in Project Supporting Nitra Region’s Transition from Coal Mining

    Record Numbers of Retrainees in Project Supporting Nitra Region’s Transition from Coal Mining

    The national project connected to the Trenčín self-governing region, aimed at assisting the people of the Nitra region affected by the planned termination of coal mining, has achieved remarkable success with a record number of individuals participating in retraining programs. This initiative has provided a lifeline to employees of the Nováky power plant, who are now actively seeking new employment opportunities.

    Towards the end of last year, the miners of Horní Nitra extracted the final tonne of brown coal in Slovakia. Simultaneously, the Nováky power plant ceased all coal-based electricity and heat production. This abrupt shift resulted in the loss of hundreds of jobs. However, many affected individuals seized the opportunity to explore new career paths through retraining programs.

    The increasing enrollment in the Employability Support in the Horní Nitra Region project can be attributed to the efforts of experienced tutors operating from the newly established premises of the Business Academy in Prievidza. Previously stationed at their field office in Nováky, the tutors now have access to additional office and conference spaces. These facilities can accommodate up to four competence balance groups simultaneously, along with smaller groups and individual meetings.

    Jaroslav Baška, the president of the Trenčín self-governing region, expressed satisfaction with the project’s progress, stating, “We currently have 722 participants in the project, including 45 employees from the Nováky power plant. We aim to further increase the number of participants based on the Horná Nitra Prievidza mining company’s request for an additional 180 spots. The project, valued at 12 million euros, will continue until the end of this year.” Baška emphasized that the region secures funding for the project from the Just Transformation Fund.