MINEX Forum

Website: Europe.com

  • Boliden CEO Confirms Dividend Resumption Following Strong Cash Flow and Mine Acquisitions

    Boliden CEO Confirms Dividend Resumption Following Strong Cash Flow and Mine Acquisitions

    Swedish mining giant Boliden will resume shareholder dividends after pausing payouts in 2024 due to its recent acquisitions, CEO Mikael Staffas confirmed in an interview on Friday. The company remains committed to its dividend policy of distributing one-third of its net profit to shareholders.

    The copper and zinc producer had halted dividends earlier this year following its purchase of the Somincor and Zinkgruvan mines from Lundin Mining. Despite the temporary suspension, Staffas emphasized that the company’s financial position remains robust.

    “Even though we had a good cash flow in this quarter, the balance sheet is much stronger than I think most people thought it would be after the acquisition,” Staffas said. He did not rule out the possibility of special dividends if Boliden ends up holding excess capital.

    In Q2, Boliden posted a free cash flow (excluding acquisitions) of 2,035 million Swedish crowns ($210.19 million), with both RBC and JP Morgan noting that the figure surpassed expectations—largely due to a significant release of working capital.

    While Staffas refrained from commenting on the size of future dividend payments, the strong quarterly performance indicates the company is on stable financial ground, positioning it well for renewed shareholder returns.

  • World’s Deepest Marathon to Take Place 1,120 Metres Underground in Swedish Zinc Mine

    World’s Deepest Marathon to Take Place 1,120 Metres Underground in Swedish Zinc Mine

    This October, 60 runners from across the globe will descend to a depth of 1,120 metres below the Earth’s surface to compete in what’s being hailed as the world’s deepest marathon. Hosted inside Boliden’s Garpenberg zinc mine in Sweden — one of the deepest in Europe — the event promises to push the boundaries of physical and mental endurance, while raising over £1 million ($1.34 million) for charity.

    Organized by Boliden, BecomingX, and the International Council on Mining and Metals (ICMM), the marathon is set not only to challenge human limits but also to highlight the evolution of mining into a safer, more technologically advanced industry.

    The Garpenberg mine, reaching a depth of 1,302 metres — more than four times the height of the Eiffel Tower — will serve as the unusual and extreme racecourse. Participants will run in complete silence and darkness, equipped with helmets and guided by 3D route mapping systems.

    “This will be a true test,” said Bear Grylls, co-founder of BecomingX. “Running a marathon is tough, but doing it 1,120 metres below sea level will push participants to their limits.”

    ICMM CEO Rohitesh Dhawan emphasized that modern mines like Garpenberg represent a stark contrast to the dangerous tunnels of the past, making such an event not only possible but safe. Boliden CEO Mikael Staffas called the event “historic,” noting the mine’s advanced safety and sustainability practices.

    With two world records in sight and an ambitious fundraising goal, the World’s Deepest Marathon is shaping up to be a landmark event blending human grit with technological progress.

  • Zijin Plans New High-Tech Investments in Serbia Amid Environmental Scrutiny

    Zijin Plans New High-Tech Investments in Serbia Amid Environmental Scrutiny

    Chinese mining giant Zijin Mining has announced plans for new investments in Serbia, pledging to employ advanced technologies and uphold high environmental standards. The news came following a meeting on July 15 between Zijin representatives and Serbian Prime Minister Đuro Macut in Belgrade, as reported by the Serbian News Agency.

    According to the government, Zijin reiterated its commitment to “green development,” the company’s guiding principle, and discussed future expansion in Serbia’s mining sector. Prime Minister Macut urged the company to enhance environmental protection efforts, particularly in the Bor region and across eastern Serbia.

    Zijin’s activities in the region have sparked controversy due to allegations of environmental degradation and pollution. While environmental groups have raised concerns about the company’s impact on local ecosystems, Zijin maintains it operates within environmental standards.

    Zijin entered Serbia in December 2018 through a strategic partnership with the government, acquiring a majority stake in the Bor Mining and Smelting Basin—now known as Serbia Zijin Copper. The company has since invested heavily in Serbian mining, notably launching the Čukaru Peki copper-gold mine in October 2021, following acquisitions from U.S.-based Freeport McMoRan and Canadian firm Nevsun Resources.

    With full ownership of the upper and majority control of the lower Čukaru Peki deposit, Zijin has significantly expanded its global resources, reporting total copper reserves of 57.24 million tons and gold reserves of 1,889 tons.

  • Cerrado Gold’s Lagoa Salgada Project Clears Key Regulatory Hurdle in Portugal’s Environmental Permitting Process

    Cerrado Gold’s Lagoa Salgada Project Clears Key Regulatory Hurdle in Portugal’s Environmental Permitting Process

    Cerrado Gold Inc. has achieved a major step forward for its Lagoa Salgada project in Portugal as its subsidiary, Redcorp – Empreendimentos Mineiros, received approval from the Portuguese Environment Agency (APA) to proceed under Article 16 of the country’s Environmental Impact Assessment (EIA) legal framework. This permits the company to revise and resubmit project documentation to address environmental concerns without restarting the full permitting process.

    Article 16 allows for technical and environmental improvements to be submitted within 180 days, providing developers with an opportunity to respond to feedback without project rejection or significant delays. APA’s approval follows Redcorp’s formal request made during the public hearing stage of the EIA review.

    Cerrado Gold is integrating these revisions into its Optimized Feasibility Study (OFS), expected in September 2025. Planned enhancements include the complete removal of cyanide from processing operations in favor of flotation-only circuits, upgraded groundwater protections, emergency water supply planning, a real-time environmental monitoring network, and implementation of Best Available Techniques (BAT) across mine infrastructure.

    CEO Mark Brennan stated that this step demonstrates APA’s constructive and transparent approach to permitting, noting that many requested modifications are already being addressed. He added that Cerrado, in partnership with Portugal’s state-owned EDM, remains committed to developing the Lagoa Salgada Project as a benchmark for environmentally responsible mining in Europe.

    If the revised submission is accepted, a final EIA decision is expected in Q1 2026. The project is viewed as strategically important to Portugal’s mining sector and Europe’s critical raw materials supply chain.

  • Avrupa Minerals Submits Mining License Application for Copper-Zinc Project in Portugal’s Iberian Pyrite Belt

    Avrupa Minerals Submits Mining License Application for Copper-Zinc Project in Portugal’s Iberian Pyrite Belt

    Avrupa Minerals Ltd. (TSXV: AVU) has officially submitted a Mining License Application (MLA) for its 100%-owned Sesmarias copper-zinc volcanogenic massive sulfide (VMS) project, located in the northern sector of Portugal’s renowned Iberian Pyrite Belt (IPB). The application was filed with the Portuguese Mining Bureau (DGEG), which will now review the documentation and may request additional information before reaching a decision.

    This milestone follows nearly 15 years of exploration work by Avrupa in the Portuguese portion of the IPB and 11 years specifically dedicated to the Sesmarias site. CEO Paul W. Kuhn emphasized the significance of the submission, calling it the product of “persistence and continued upgrade of the 3D geo-structural model” developed through both joint ventures and Avrupa-funded drilling campaigns.

    Kuhn highlighted that Sesmarias still holds significant potential, with several accessible targets across its Central, Northern, and Southern zones. Avrupa believes the Central Zone could be further expanded and that other areas may soon be incorporated into a broader mineral resource estimate.

    As the project moves into its next phase, Avrupa is actively seeking a mining partner to support development. The company continues to use its hybrid prospect generator model to pursue mineral opportunities across Europe, with active projects also in Finland and Kosovo.

  • European Coal Prices Rise on Stronger Generation Margins and Low Gas Inventories

    European Coal Prices Rise on Stronger Generation Margins and Low Gas Inventories

    European coal prices are climbing steadily, with Q4 deliveries to the Amsterdam-Rotterdam-Antwerp (ARA) hub estimated at $125.00 per tonne, according to Kpler’s latest monthly coal report. This figure is $20.50 higher than the most recent front-month API 2 trade of $104.50/t on Ice Futures.

    The Q3 average has also edged higher, reaching $107.50/t, driven by improved profitability for coal-fired power generation in Germany and lingering concerns over low gas storage levels across the continent.

    According to Montel calculations, the Q4 German clean dark spread — a key measure of profitability for coal-fired electricity — stands at €5/MWh for a plant operating at 42% efficiency. This positive margin is prompting renewed interest in coal as a viable generation source despite the broader energy transition efforts.

    “The recent surge in gas prices has improved the economics of coal-fired power generation,” Kpler noted, with August margins now in the black. Nevertheless, the analytics firm cautioned that a spike in coal burning is unlikely in the short term due to strong renewable generation expected to dampen spot market coal demand.

    While coal is unlikely to see runaway demand increases, the supportive fundamentals — including gas volatility and improved spreads — are underpinning stronger prices through the second half of the year.

  • German Industry Warns High Energy Costs Could Trigger Deindustrialisation

    German Industry Warns High Energy Costs Could Trigger Deindustrialisation

    German manufacturers are warning that persistently high energy costs are forcing them to consider shifting operations abroad, putting the country’s industrial future at risk. “Decarbonisation must not lead to deindustrialisation,” said Martin Oetjen, COO of engine maker Everllence, as he criticised the lack of concrete government support for energy-intensive industries.

    With benchmark electricity prices hovering around €86/MWh, the government’s proposed cut to €50/MWh has failed to convince industry leaders. Many say they’ve heard such promises before — with previous pledges stalling amid EU regulations and tight budgets.

    While recent proposals hint at energy price controls, tax cuts, and transmission fee exemptions, analysts argue they won’t go far enough. According to Matthias Belitz of the German Chemical Industry Association (VCI), even with current plans, only 9–13% of a company’s energy costs would be offset. “It’s not an unconditional power price,” he noted.

    Energy expert Niclas Wenz added that slashing transmission fees would deliver quick relief, but the government has yet to confirm specific measures.

    Industry leaders stress that German energy prices must align more closely with global competitors such as the U.S. and China to remain viable. If no action is taken, Germany could face a potential €90 billion economic hit due to the loss of its energy-intensive sectors, Belitz warned.

  • Kazatomprom Signs MoU with Slovakia’s SEAS to Strengthen Nuclear Energy Ties

    Kazatomprom Signs MoU with Slovakia’s SEAS to Strengthen Nuclear Energy Ties

    Kazakhstan’s national uranium producer Kazatomprom has entered into a Memorandum of Understanding (MoU) with Slovenské elektrárne a.s. (SEAS), Slovakia’s largest electricity provider, to foster long-term cooperation in the nuclear energy sector.

    The agreement marks the beginning of official collaboration between the two companies and outlines plans to supply natural uranium concentrate and potentially uranium dioxide (UO₂) for SEAS’s nuclear power plants. SEAS operates five VVER-440 reactors across two nuclear facilities—Bohunice and Mochovce—which collectively generate over 70% of Slovakia’s electricity.

    Meirzhan Yussupov, CEO of Kazatomprom, said the MoU is a significant step toward building strong relationships with European energy partners. “Nuclear energy is vital for Slovakia’s sustainable energy future. This memorandum paves the way for mutually beneficial collaboration,” he noted.

    Branislav Strycek, CEO and Chairman of SEAS, underscored the importance of diversifying nuclear fuel supply sources and welcomed the opportunity to work with the world’s leading uranium producer.

    The MoU also opens the door for further cooperation beyond fuel supply, potentially expanding Kazatomprom’s footprint in the European energy market. It aligns with the company’s broader strategy to engage with top European utilities and support the continent’s transition toward cleaner and more secure energy systems.

  • Alcoa Delays San Ciprian Smelter Restart to Mid-2026, Forecasts Up to $110M in Losses

    Alcoa Delays San Ciprian Smelter Restart to Mid-2026, Forecasts Up to $110M in Losses

    Alcoa Corporation announced on Monday that the full restart of its San Ciprian aluminium smelter in Spain will be pushed to mid-2026, citing disruptions from a nationwide power blackout in April. The delay is expected to result in losses of up to $110 million.

    Production at the smelter had been halted in 2021 due to soaring electricity costs. Restart efforts were underway but were interrupted when a countrywide outage on April 28 affected both the smelter and its neighbouring alumina refinery. Since March, the smelter has been operated through a joint venture between Alcoa and Ignis Equity Holdings.

    The company said the outage has prompted a reassessment of the smelter’s power stability. Restart activities will remain on hold pending further assurances from the Spanish government about the grid’s reliability and the root cause of the blackout.

    Alcoa now expects to incur a net loss of between $90 million and $110 million in 2025 due to the delay. This includes impacts from pre-tax and non-controlling interest items, translating to a per-share loss of $0.35 to $0.42. Associated cash used in operations is forecasted to reach $110 million to $130 million next year.

    The San Ciprian facility houses both an alumina refinery and an aluminium smelter. The refinery has a capacity of 1.5 million tonnes annually and serves both internal Alcoa needs and external clients in industries such as ceramics, water purification, and chemicals. The smelter, which has a capacity of 228,000 tonnes per year, remains critical to Alcoa’s European operations.

  • Strickland Metals Reports Further High-Grade Gold Hits at Serbia’s Rogozna Project

    Strickland Metals Reports Further High-Grade Gold Hits at Serbia’s Rogozna Project

    Australian miner Strickland Metals has announced a fresh series of high-grade gold intercepts at the Gradina prospect, part of its expansive Rogozna gold and base metals project in southern Serbia. The latest drill results confirm strong mineralisation at depth and bolster the company’s confidence in the site’s potential.

    Among the standout results were 34.4 metres grading 2.6 grams per tonne (g/t) of gold from a depth of 329.5 metres, including a higher-grade interval of 14.5 metres at 4.4 g/t from 332.1 metres, and another 4.0 metres at 4.0 g/t from 359.9 metres.

    “These latest results continue to demonstrate the continuity of the gold-dominant system towards the northern end of the deposit,” said Strickland Managing Director Paul L’Herpiniere. He added that further assay results are expected in the coming weeks, with a maiden Mineral Resource Estimate for Gradina targeted by late 2025.

    This marks the third set of high-grade gold intercepts from Gradina since May, reinforcing the site’s reputation as a key asset in the Rogozna portfolio. The broader Rogozna project spans 184 square kilometres and contains an estimated 7.4 million ounces of gold equivalent across four exploration licences. Strickland has said Rogozna has the potential to become one of the world’s largest undeveloped gold deposits.

    The company currently has eight drill rigs active on the project, with five focused on Gradina’s southern zone following the completion of drilling in the north.

    In April, Strickland secured a AU$5 million ($3.2 million) strategic investment from Chinese mining giant Zijin Mining Group to help accelerate development at Rogozna. That same month, Strickland completed a $37 million deal to acquire Betoota Holdings, which owns 100% of Zlatna Reka Resources — the Serbian entity holding the Rogozna project.