Saturday, June 22, 2024


Vietnam and Russia discuss nuclear energy collaboration

21 June 2024


A memorandum has been signed relating to the construction project for a Centre for Nuclear Science and Technology in Vietnam - with discussions also held over the future options of large-scale and small modular reactors in the country.

(Image: www.kremlin.ru)

Rosatom Director General Alexei Likhachev met with Vietnamese Prime Minister Pham Minh Chinh to discuss the proposed centre - which was the subject of an intergovernmental agreement in 2011 - as well as potential cooperation in the field of nuclear energy. The meeting happened ahead of the bilateral summit during President Vladimir Putin's visit to the country.

Likhachev also met Vietnam's Science and Technology Minister Huynh Thanh Dat, with the two signing an interdepartmental memorandum about the plans for the centre, with Likhachev describing the agreement as "a programme document that contains a clear schedule of activities for the development of the project for the period until 2027".

Later, on Friday, Russia's Tass news agency quoted Likhachev as saying he had outlined nuclear energy options to the Vietnamese prime minister - "the entire range of our export supplies, large units, small and medium-capacity plants, and small modular reactors both in onshore and floating versions". All would be accompanied by localisation of suppliers and workforce he said, adding that "we will wait for their decision".

In the leaders' statements to the media after the summit, President Putin said that "a promising area for expanding bilateral cooperation is nuclear energy", while Vietnamese President To Lam said "we also agreed to explore opportunities for stepping up our cooperation on new energy sources and clean energy, as well as facilitate the green transition and sustainable development".

Earlier in the week President Putin visited North Korea, where the two countries agreed a comprehensive strategic partnership which, among other things, included agreeing "to develop cooperation in the area of space exploration, peaceful use of nuclear energy, AI, and IT".

Niger revokes mining permit for Imouraren project

21 June 2024


France's Orano has announced that Nigerien authorities have withdrawn the operating permit for the Imouraren uranium mine, which was issued to its subsidiary Imouraren SA in 2009.

Imouraren (Image: Orano/Maurice Ascani)

Imouraren is about 80 kilometres south of Arlit and about 160 km north of Agadez. First discovered in 1966, it has mineral reserves of over 200,000 tU and is described by Orano as containing one of the largest uranium reserves in the world. Operating company Imouraren SA - owned 66.65% by Orano Expansion and 33.35% by Sopamin and the State of Niger - began excavations in 2012, but development was suspended in 2015 pending more favourable market conditions.

According to recent media reports, Niger's Ministry of Mines did not consider Orano's plans for development of the deposit to meet with the authorities' expectations. It issued a letter to Orano on 11 June saying a notice period will end on 19 June "after which date the company's operating permit will be revoked".

Orano said: "Current market conditions, with a favourable rise in the price of uranium, make it once again possible to consider bringing Imouraren into production. This being the case, and at the authorities' request, Orano had submitted a concrete technical proposal to the State of Niger, enabling this development to take place as quickly as possible. To this end, the infrastructures have already been reopened since 4 June, 2024, to accommodate the construction teams and move the work forward."

However, the ministry has now decided to withdraw the operating permit for Imouraren.

Orano said the decision to withdraw the mining permit could have "a negative impact on the economic, social and societal development of the region".

The company said it "remains willing to keep all channels of communication open with the Niger authorities on this subject, while reserving the right to challenge the decision to withdraw the mining permit before the competent national or international jurisdictions".

Orano currently produces uranium in Niger - which saw a coup take place in July last year - from open-pit operations at SOMAÏR (Société des Mines de l'Aïr), near the town of Arlit. SOMAÏR is 63.4% owned by Orano and 36.66% owned by Sopamin (Sopamin manages Niger's state participation in mining ventures). It is also carrying out remediation of the former COMINAK underground uranium mine, where over 40 years of production came to an end in 2021.

"Engaged in Niger for more than 50 years, Orano together with its partners, through its subsidiaries, contributes to the development of the country's uranium potential and to the development of the regions of Northern Niger," Orano said. "Orano has always been committed to a responsible approach based on partnership and transparency, acting in continuous consultation with the State of Niger and local stakeholders, notably under the ambitious, long-term roadmap defined in the global partnership agreement signed in May 2023."

EU funding Framatome VVER-440 fuel development

21 June 2024

The EUR10 million (USD10.7 million) contribution from the European Union under the Euratom Research and Training Programme targets the "swift and secure development and deployment of a European fuel solution" for VVER reactors.

How a Framatome VVER-440 fuel assembly might look (Image: Framatome)

The SAVE project for VVER0-440 fuel led by France's Framatome brings together 17 stakeholders, including utilities which operate VVER reactors in the European Union (EU) - the Czech Republic's ČEZ, Finland's Fortum, Hungary's MVM Paks and Slovakia's Slovenské Electrárne. The aim is to boost energy security and mitigate fuel supply chain risks.

Nineteen VVER reactors - developed during the time of the Soviet Union and historically reliant on Russian fuel supplies - are currently in operation in the EU, including four VVER-1000 reactors in Bulgaria and the Czech Republic, and 15 VVER-440 reactors in the Czech Republic, Finland, Hungary and Slovakia.

Lionel Gaiffe, senior executive vice president of the Fuel Business Unit at Framatome, said: "Framatome welcomes this EU funding, recognising our efforts and supporting the acceleration of our development to contribute to the diversification and security of fuel supply for VVER reactors. Framatome is the only fuel supplier able to guarantee a 100% sovereign European technology, with a fully European design & product, and manufacturing facilities and a fuel component supply chain located and operated in the EU."

EU Commissioner for Innovation, Research, Culture, Education and Youth, Iliana Ivanova, said: "Research and innovation are essential for the strategic autonomy of the EU. Nuclear fuel is a case in point. The Euratom Research and Training Programme is providing crucial support to our industry in the quest for reliable alternative fuel for reactors in EU Member States and Ukraine that until now needed fuel from Russia to operate."

The new SAVE (Safe and Alternative VVER European) project follows the Westinghouse-led Accelerated Program for Implementation of Secure VVER Fuel Supply (APIS) project launched in July 2023 to develop safe fuel designs for VVER-440 and next generation fuel designs for VVER-1000 reactors. Many of the EU's VVER reactors - and Ukraine's 15 reactors - have been switching from Russian nuclear fuel to the US/Canadian company's VVER fuels and the aim is to have more diversification of supply.

 

Construction of Pallas foundation pit progresses

21 June 2024


The installation of 380 foundation piles - each 33 metres in length - has been completed in the construction pit for the Pallas research reactor in Petten, the Netherlands. Pallas is planned to replace the existing High Flux Reactor.

The construction pit for Pallas (Image: Pallas)

The Foundation Preparation Pallas-reactor applied in June 2022 to the Authority for Nuclear Safety and Radiation Protection (ANVS) for a permit to construct and operate the Pallas reactor. ANVS granted a construction licence in mid-February last year. Preparatory work on the foundation began in May 2023. This work is being carried out by Belgian construction firm BESIX, which was awarded a contract in November 2022.

To create the construction pit, a hole of about 50 metres by 50 metres and 21 metres deep is being dug in several phases. To do this, 30 trenches measuring one-and-a-half metres wide have been dug, into which concrete has been poured to create the so-called "diaphragm walls". The diaphragm walls are anchored with 380 bored piles placed within them. A ring beam has been placed around the top part of the walls to connect the walls together.

Activities have started in the construction pit itself, such as reinforcing the diaphragm walls with 162 drilled steel pipes with 15 anchor cords. The anchors are between 48 and 64 meters long and are attached to the ground using a grout mixture.

The construction pit has been filled with water up to groundwater level to balance groundwater pressure.

In the next step, a layer of gravel will be applied at the bottom of the excavated pit to allow for a good quality concrete pour for the foundation of the reactor.

In a final step, 48,000 cubic metres of water will be pumped out of the construction pit.

"So far, the works have progressed smoothly thanks to the successful collaboration of NRG-Pallas, ICHOS (the main designer) and BESIX (the contractor for Pit & Foundation phase)," the Foundation Preparation Pallas-reactor said.

The work is expected to be completed by the end of 2024 and the cofferdam will be ready for the next phase, the actual construction of the reactor.

Although funding has been allocated in the coming years for the construction of the Pallas reactor, the Dutch government has yet to make a final decision on its construction. Construction will be able to go ahead if the Dutch parliament does not object to the creation of a new state-owned company and if the European Commission approves the public investment.

Former Minister of Health, Welfare and Sport Ernst Kuipers instructed the Pallas foundation not to take any irreversible steps, but to continue with the preparations for the project in the meantime to avoid unnecessary delays.

In January 2023, Pallas launched a tender procedure for the construction of the Pallas reactor and surrounding buildings under EU public procurement rules. Three pre-qualified candidates were selected to submit offers. In December, Spanish construction firm FCC Construcción was contracted to build Pallas.

The Pallas research reactor is to be built at Petten to replace the existing High Flux Reactor (HFR). The 45 MW HFR started operating in September 1960, since when its use has largely been shifted from nuclear materials testing to fundamental research and the production of medical radioisotopes. The reactor - operated by NRG on behalf of the European Union's Joint Research Centre - has for a long time supplied about 60% of Europe's and 30% of the world's use of medical radioactive sources.

Pallas will be of the "tank-in-pool" type, with a thermal power of around 55 MW, and able to deploy its neutron flux more efficiently and effectively than the HFR.

Chinese industrial nuclear steam project commissioned

20 June 2024


China's first industrial-use nuclear energy steam supply project, at the Tianwan nuclear power plant in China's Jiangsu province, has entered operation following commissioning tests. The project will supply steam to a nearby petrochemical plant.

(Image: CNNC)

The project - known as Heqi-1 - was jointly developed by China National Nuclear Corporation (CNNC) subsidiary Jiangsu Nuclear Power Company and the Lianyungang Petrochemical Industry Base in the Xuwei New District of Lianyungang City.

In the project, steam will be extracted from the secondary circuits of units 3 and 4 of the Tianwan plant, two Russian-supplied VVER-1000 units. After passing through multi-stage heat exchange, the steam will be transported via an insulated above-ground pipeline to the Lianyungang Petrochemical Industrial Base for industrial production and utilisation.

The construction of the pile foundation for the project began in February 2022, with the pouring of first concrete for the industrial steam facility taking place in May 2022.

The Tianwan plant is equipped with four steam conversion devices. The industrial superheated steam transmitted out of the nuclear power plant has a pressure of 1.8 MPa and a rated flow rate of 600 tonnes per hour.


The industrial steam facility at Tianwan (Image: CNNC)

The total length of the long-distance steam supply main line of the Tianwan nuclear power steam energy supply project is about 23 kilometres. The pipeline network extends from the Tianwan nuclear power plant to the Xuwei Petrochemical Industrial Park.

The facility is expected to supply 4.8 million tonnes of steam annually, which will reduce the burning of standard coal by 400,000 tonnes per year, and the equivalent emission reduction of 1.07 million tonnes of carbon dioxide, 184 tonnes of sulphur dioxide and 263 tonnes of nitrogen oxides.

CNNC said the start of operation of the steam project "marks that China's comprehensive utilisation of nuclear energy has expanded from single power generation and meeting urban residents' heating needs to the field of industrial steam supply". It added that the Heqi-1 project "is a model of clean steam supply for the national petrochemical industry".

South Korea plans SMR industrial complex

20 June 2024


President Yoon Suk Yeol has announced plans to create a small modular reactor (SMR) industrial hub in the city of Gyeongju in the southeastern corner of South Korea's North Gyeongsang Province. The government also aims to establish a hub for the hydrogen industry in the province.

Yoon addressing the people's livelihood debate forum (Image: Presidential Office)

Speaking at the 26th people's livelihood debate meeting, held at Yeungnam University's Gyeongsan Campus, Yoon described the city as "the high-tech manufacturing innovation hub of Northeast Asia". He added: "Based on the potential that led to the country's modernisation, the central government will provide active support so that Gyeongbuk can take a greater leap forward and open a successful regional era.

"For Gyeongbuk to take a leap forward, innovation in industrial structure is more important than anything else. Gyeongbuk previously led South Korea's exports through its steel and textile industries. Currently, we are discovering and promoting new growth engines, such as hydrogen and bio. The government will firmly support Gyeongbuk’s industrial innovation."

Yoon announced the government will support the creation of an SMR national industrial complex worth KRW300 billion (USD216 million) in Gyeongju "so that we can preemptively secure the small module reactor and SMR manufacturing technology that is being competitively developed around the world".

He said the Ministry of Trade, Industry and Energy will create a fund worth KRW80 billion by next year to support the growth of the country's nuclear power sector.

"We will actively support the construction of infrastructure, including technology development and prototype production, so that Gyeongbuk can clearly grow its SMR manufacturing capabilities and grow into a global SMR manufacturing hub," Yoon stated.

He also confirmed that construction of units 3 and 4 of the Shin Hanul nuclear power plant in North Gyeongsang Province will "proceed without a hitch so that Gyeongbuk can play a leading role in restoring the nuclear power industry ecosystem and new industrialisation". Design work for the two APR1400 reactors was suspended in 2017 due to uncertainties about government policy on the construction of new reactors.

In addition, the president announced plans to "grow Gyeongbuk into a hub for the hydrogen industry by supporting the creation of an east coast hydrogen economy industrial belt worth approximately KRW800 billion, connecting Pohang and Uljin". He noted that a hydrogen fuel cell cluster is currently being built in the Pohang Blue Valley National Industrial Complex, where about 30 fuel cell companies are gathering to promote the local production of hydrogen fuel cells.

Yoon also noted that construction of the KRW400 billion (USD300 million) Uljin Nuclear Hydrogen National Industrial Complex in Ulchin began in 2022 as part of South Korea's efforts to promote hydrogen as a future energy source and achieve carbon neutrality by 2050. He said the government had decided to exempt the project from preliminary tariffs to "further accelerate the pace of progress in the future".

Australian opposition outlines its nuclear plans

19 June 2024


Leaders of the Australian opposition have confirmed that a future Australian Federal Coalition Government would introduce nuclear energy in the country, and announced seven locations where plants could be built.

Dutton (left) and Littlechild annonce the coalition's energy policy (Image: David Littleproud/Facebook)

Each of the locations announced by Peter Dutton, leader of the Liberal-National Coalition, its deputy leader David Littleproud and Shadow Minister for Climate Change and Energy Ted O'Brien is the site of a power station that has closed or is scheduled to close.

"The Coalition believes Australia must have a balanced energy mix to deliver cheaper, cleaner and consistent 24/7 electricity," they said. "Ninety per cent of baseload electricity, predominantly coal-fired power stations, is coming to the end of life over the next decade. Nuclear energy for Australia is an idea whose time has come. Today, we are announcing that a future Federal Coalition Government will introduce zero-emissions nuclear energy in Australia, which has proven to get electricity prices and emissions down all over the world, to work in partnership with renewable energy and gas as part of a balanced energy mix."

Their government would initially develop two projects using either small modular reactors (SMRs) or larger plants such as the AP1000 or APR1400, to be in operation by 2035 if SMR plants are built or 2037 for larger plants if these "are found to be the best option". These assets would be owned by the Australian government, but would be built and operated in partnership with "experienced nuclear companies".

The sites identified by the coalition are:

  • Liddell Power Station (New South Wales)
  • Mount Piper Power Station (New South Wales)
  • Loy Yang Power Stations (Victoria)
  • Tarong Power Station (Queensland)
  • Callide Power Station (Queensland)
  • Northern Power Station (South Australia)
  • Muja Power Station (Western Australia)

The sites in South Australia and Western Australia are earmarked for SMRs only.

"Each of these locations offer important technical attributes needed for a zero-emissions nuclear plant, including cooling water capacity and transmission infrastructure, that is, we can use the existing poles and wires, along with a local community which has a skilled workforce," the leaders said. Replacing retired or retiring coal plants would avoid much of the spending that would be needed for a 'renewables-only' system, including new transmission poles and wires, and host communities would also benefit from high paying, multi-generational jobs and other regional economic benefits.

Australian national science agency CSIRO, in its annual GenCost report, recently estimated the capital cost for Australian deployment of a large-scale nuclear plant to be AUD8665 (USD5775) per kilowatt, and says it is not economically competitive with renewables. Dutton told journalists that the Coalition's plan would come in cheaper than what he said was the AUD1.2-1.5 trillion price of the current Labor Party-led government's renewable-based proposals. "Our proposal will cost a fraction of that cost. We’ll have more to say in relation to the cost in due course," he said.

Australia's Minister for Climate Change and Energy Chris Bowen described the opposition's plan as "risky", with no detail, costs or modelling. "It's too slow, too expensive and too risky for Australia," he said on X.

Referring to earlier comments by Bowen, Dutton told journalists he would be happy for the next Australian election - which must take place before 27 September 2025 - to be "a referendum on energy, on nuclear, on power prices, on lights going out, on who has a sustainable pathway for our country going forward".

The Liberal-National Coalition, also known as the LNP, is a long-running alliance of the Liberal Party of Australia, led by Dutton, and the National Party, led by Littleproud.

Local benefits


Colin Boyce is the member of parliament for the electorate of Flynn in Queensland, where one of those sites - the Callide Power Station - is situated. He welcomed the announcement, saying such a project would provide jobs and opportunities to the local community while also providing 24/7 reliable baseload power for Central Queensland.

"Without transitioning to nuclear, the Callide Power Station is set to close in the future and some 250 jobs will leave that economy," he said.

"The Callide Power Station site offers important technical attributes needed for a zero-emissions nuclear plant, including cooling water capacity and transmission infrastructure, that is, we can use the existing poles and wires, along with a local community which has a skilled and experienced workforce," he added.

Uranium recovery starts at Finnish mine

19 June 2024


Finnish mining company Terrafame has begun recovering natural uranium as a by-product of zinc and nickel production at its Sotkamo mine in Talvivaara in the north-east of the country.

Terrafame's uranium recovery plant (Image: Terrafame)

Following inspections at the uranium recovery plant and a review of written materials submitted by Terrafame, Finland's Radiation and Nuclear Safety Authority (STUK) issued a decision on 17 June stating that the safety requirements set for the use of the facility will be met if the documented procedures are followed. That decision cleared the way for Terrafame to commission the facility.

"With the start of operations, Finland is the only European Union member state that produces uranium," Terrafame noted.

The Sotkamo mine's previous owner, Talvivaara Mining Company, had planned to produce uranium at the site and constructed a uranium extraction plant before being declared bankrupt in 2014. The company was subsequently purchased by Terrafame, which is 70%-owned by Finnish Minerals Group, a special-purpose company wholly owned by the State of Finland.

Terrafame submitted its application for large-scale recovery of uranium to the Ministry of Employment and Economic Affairs in October 2017, already having the necessary chemicals permit and environmental permit. The government granted this permit in February 2020. The decision was deemed legally valid under a ruling made by the Supreme Administrative Court of Finland in June 2021.

In December 2017, STUK granted the company permission to recover a small quantity of uranium while experimenting with chemical processes it will use in an actual uranium recovery plant. Under that permit, the company could produce up to 600 litres of process solution containing a maximum of 6 kg of uranium.

Terrafame said its production process enables the low concentration of natural uranium found in the ore to be used as a by-product. The uranium recovered will be transported abroad for further processing, after which it will be used in nuclear fuel.

After the start-up phase, the recovery plant is estimated to operate at full capacity by 2026, when it is expected to produce about 200 tonnes of uranium per year. Terrafame noted that this production capacity corresponds to about nine months of consumption at Finland's Olkiluoto 3 EPR in Finland. It said the plan is to continue uranium production alongside the production of other metals throughout the operating period, which covers at least the next 30 years.

After the ramp-up phase, the recovery of uranium will increase Terrafame's annual net sales by approximately EUR30–40 million (USD32-43 million), based on the current market price of uranium, accounting for a few percent of the company's estimated net sales in the coming years.

"The utilisation of natural uranium in energy production helps in achieving climate goals and building Europe's energy self-sufficiency," said Terrafame CEO Seppo Voutilainen. "Thanks to our modern production process, we can recover even more metals cost-effectively."


Researched and written by World Nuclear News

Omnigen Energy bags USD 46m in debt for solar installs in Brazil
Omnigen Energy bags USD 46m in debt for solar installs in Brazil Solar plant construction in Minas Gerais, Brazil. Source: Omnigen Energy.

Omnigen Energy, a Brazilian solar energy supplier and a portfolio company of Appian Capital Advisory LLP, has raised BRL 250 million (USD 45.9m/EUR 42.7m) of debt financing to finalise the development of a project portfolio in the state of Minas Gerais.

The company said in a statement on Wednesday that it secured beneficial terms on a debt facility of the above-mentioned size from Itau BBA. It will use the money to conclude work on 20 small-scale solar plants with a total capacity of 62.4 MWp, the development of which is currently 50% complete.

Once up and running, the solar parks will eliminate the emission of more than 14,000 tonnes of CO2 per year, which is the equivalent of planting 20,000 trees.

Omnigen noted that Minas Gerais is the largest distributed generation (DG) market in the country, having 2.5 GWp of capacity already installed.

US backs Angola plan to process critical minerals, export power

Bloomberg News | June 19, 2024 |

Lobito railway runs from Lobito port, on Angola’s Atlantic coast, to the DRC and Zambia. Credit: Ministry of Transport, Angola

The US is backing Angola’s efforts to diversify from being an oil-dependent economy to becoming a critical-minerals processor and exporter of clean power, according to a top official.


“Angola and the United States are aligned on all the major points related to energy access, energy security, decarbonization, and critical minerals,” US Assistant Secretary of State for Energy Resources Geoffrey Pyatt said at an online media briefing Tuesday.

The southern African nation, one of the top crude producers on the continent, has become a focus for the US in its campaign to secure critical minerals such as copper as it competes against China. The US Export-Import Bank has earmarked billions of dollars in clean-energy projects to bolster capacity in the country that plans to sell excess electricity across the region.

Pyatt last week visited the capital, Luanda, and met with the nation’s oil and energy ministers. The officials discussed the construction of transmission and grid interconnection infrastructure needed for Angola to become “a larger energy exporter to the rest of sub-Saharan Africa,” he said, according to a transcript of the remarks.


Ex-Im closed a $900 million loan for solar farms in Angola built by US developer Sun Africa, “which is committed to using non-Chinese components,” according to Pyatt. The bank’s board referred to Congress for notification a $1.6 billion project with the same developer to construct mini-grids and clean water projects across the country.

Angola is also interested in developing downstream processing infrastructure for critical minerals, he said, adding that the US-backed Minerals Security Partnership Forum brings producers and customers to find potential financing opportunities from the US, European Union and others, to realize such projects.

(By Paul Burkhardt)


Source: Rosa Luxemburg and Nikolai Bukharin Imperialism and the Accumulation of capital. Edited with an Introduction by Kenneth J. Tarbuck. (Allen Lane The ...

Oct 22, 2009 ... ... PDF etc.). See also the What is the directory structure for the texts? FAQ for information about file content and naming conventions ...


Copper: China About to Secure a New Mine in Africa

Thursday, 20 June 2024


(Ecofin Agency) - China is one of the main foreign investors active in Africa's mining sector. With a presence in several copper mines in the Democratic Republic of Congo and Zambia, Chinese companies constantly seek new assets, as competition mounts.

Chinese firm JCHX Mining is on the verge of closing the purchase of the Lubambe copper mine in Zambia. This was reported by Reuters which noted that the Emirati International Resources Holding (IRH) exited the race to buy the project.

In March 2023, the Emirati revealed it wanted to acquire the asset. At the time, EMR Capital, the owner, and JCHX already had a deal. If successful, Chinese investors would record a new win.

Zambia is Africa's second-largest copper producer, with around 700,000 tonnes of copper produced by its mines in 2023. The government, which holds a 20% stake in the Lubambe project, aims to increase the country's annual production to 3 million tonnes by 2030 and is seeking investments to achieve this goal.

Competition to grow further

China should face greater competition in coming years as more and more companies are eager to secure Africa’s minerals, especially those essential to the energy transition; a dynamic spurred by a growing demand for these minerals. Last year, IRH outbid Chinese company Zijin Mining, acquiring Mopani Copper Mines' assets in Zambia. The Emirati acquired a majority stake in Mopani Copper Mines through a $1.1 billion investment and plans to dedicate $1 billion to other mining asset acquisitions in Africa this year.

Africa hosts approximately 30% of the world's strategic mineral reserves, including copper, cobalt, and lithium.


Source: Rosa Luxemburg and Nikolai Bukharin Imperialism and the Accumulation of capital. Edited with an Introduction by Kenneth J. Tarbuck. (Allen Lane The ...

Oct 22, 2009 ... ... PDF etc.). See also the What is the directory structure for the texts? FAQ for information about file content and naming conventions ...



Incredible mine with 2,700 miles of tunnels at an altitude double the height of Ben Nevis

Story by Richard Ashmore • June 21,2024


El Teniente© Getty

Agigantic feat of human endeavour gouged out of the magnificent peaks of the Andes in South America is where you'll find the world's largest copper mine with more than 2,700 miles of tunnels.

Despite being a giant hole into the Earth's surface, the El Teniente mine, in Chile, actually starts more than 7,500 feet above sea level, at an altitude almost double the height of the UK's tallest peak, Ben Nevis.

According to owners Codelco, the huge project employs more than 3,800 people and produced 400,000 tonnes of copper in 2022 alone.

The enormous network of tunnels stretch to a deepest point at present of 1,800 feet above sea level, which means workers have dug over a mile down so far.

Despite the success of the mine, bosses at Codelco recently addressed a slump in production which saw the smallest amount of copper produced for 25 years.



El Teniente© Getty

Speaking to the Financial Times, chief executive Rubén Alvarado said he believed last year production had "bottomed out", adding: "In 2024 we will be slightly higher than in 2023 and by 2030 we will reach 1.7 million metric tonnes."

The mine is currently undergoing a £600million expansion to section which reportedly will unlock 157 million tonnes of copper reserves.

According to Mining.com, an over £2.6billion project is aiming to extend the life of the entire mine by 50 years, by opening new seams and overhauling older equipment.



El Teniente© Getty

Chile is one of the world's biggest producers of copper and the massive deposit at El Teniente has been mined since it was discovered in the early 1800s.

The main mining operation has been in full swing since 1905 when a US-based company started production.

A two-mile-long tunnel conects the inside of the mine with the exterior and copper ore is taken to the surface via an extensive railroad system.

As well as employing nearly 4,000 people on site, the working of the mine also supports around 11,000 contractors.

 

Ecuador to approve Mirador copper mine expansion by August

Ecuador to approve Mirador copper mine expansion by AugustThe Mirador copper mine is located in the Amazonian province of Zamora-Chinchipe, southern Ecuador. (Image courtesy of EcuaCorriente.)

Ecuador is in the final steps of approving an expansion for the Mirador copper mine, run by the local unit of Chinese consortium CRCC-Tongguan, EcuaCorriente, BNamericas has reported.

Diego Ocampo, vice minister of mines, told BNamericas his office was finishing reviewing the project’s documentation, adding he hoped to be signing off on the expansion in about for weeks or by August at the latest. 

The authority noted the finance ministry’s fiscal sustainability opinion is pending, but no issues were expected. “The importance of the Mirador expansion is very clear,” Ocampo said.

Mirador, in the southeastern Zamora-Chinchipe province, has estimated proven and probable reserves totalling 3.2 million tonnes of copper and is one of the only two operating mines in Ecuador. The other one is Lundin Gold’s (TSX: LUG) Fruta del Norte gold mine.

The extension (also dubbed Phase II), seeks to boost ore production at the Mirador I (South) deposit from 60,000 tonnes per day (20 million tonnes per year) to 80,000 tonnes per day (26.2 million tonnes annually). The Mirador North deposit will also be developed at a cost of $653 million, and expected output of 60,000 tonnes per day. 

After the extension, the company anticipates the total production scale of the Mirador Phase II project would be 140,000 tonnes per day (46.2 million tonnes annually). 

Ecuador to approve Mirador copper mine expansion by August
Mirador is run by the local unit of Chinese consortium CRCC-Tongguan, EcuaCorriente. (Image courtesy of EcuaCorriente.)

Last year, EcuaCorriente completed designs for the pit, waste dump, plant, access routes, water collection dams for the pit and waste dump, sedimentation pools, and the conveyor belt.

Mining was one of Ecuador’s top sources of income last year, behind sales of oil, bananas and shrimp, bringing $3.3 billion to the state’s coffers, data from the Chamber of Mines show. The sector also accounted for 51% of foreign investment in the country in 2023.

Companies hoping to explore and mine in the Andean country used to face fierce local opposition. A new process, which include public consultation, has mitigated that risk.

Popular referendums are now a necessary step for any company to obtain a mining license in Ecuador. Without them, firms would have to wait longer than expected to have all permits in place before starting construction of a mine.

 

The ambitious objectives of Ecuador's state mining company

Bnamericas
The ambitious objectives of Ecuador's state mining company

Since last September, Ecuador's state mining company Enami EP has signed three exploration agreements with private sector players.

The deals were signed with one of the largest gold producers in the world, Canada’s Barrick, Australia’s Hancock and Vancouver-based Solaris Resources. They involve total combined investments of around US$173mn in exploration on more than 100,000ha in the northern (Hancock), southern (Barrick) and eastern (Solaris) zones, over a period of eight years each.

Emmanuel Delaune, who became CEO of Enami in February, signed the agreements with Hancock and Solaris in April and May, respectively.

In this interview, BNamericas talks with Delaune about the exploration agreements as well as the medium and long-term plans he has for Enami.

BNamericas: How are the commercial agreements signed by Enami with three private companies progressing?

The agreement with [Hancock subsidiary] Hanrine is the only one that already has the areas mapped, and it's the one we’re making progress on.

The initial exploration phase is four years and four more years of advanced exploration.

The agreements with Barrick and Solaris are framework agreements, that is, they give us the basis from which specific agreements will emerge for each of the concessions.

BNamericas: If companies find significant deposits, what happens to them?

Delaune: The regulations establish that in the event that deposits of interest are found, companies can request the assignment and transfer, exclusively within the advanced exploration period, but there must be an assessment of the deposit. That is, if they comply with the regulations, the concessions could pass into their hands.

BNamericas: Around US$173mn of investment committed by the three companies in eight years isn't a significant amount.

Delaune: In the case of Barrick and Solaris they're new, free areas, so there isn't much information. Committing to a higher investment just because you have some evidence would be very risky.

In the case of Hanrine, the areas are around Llurimagua, where there is already historical information and strong indications of the presence of minerals, basically copper.

The planned investments are minimal amounts, but if large deposits are found they will be higher. Everything will depend on what they find.

It may be the case that a company wants to do an intense drilling phase and if it finds something worthwhile it will make the necessary investment.

BNamericas: In the past there have been cases of companies that haven't complied with the committed investment. How is compliance now guaranteed?

Delaune: The contracts establish that if, after exploration, it is determined that the committed investment was not met, the company will have to pay the difference to Enami.

BNamericas: What are the main actions planned to strengthen Enami?

Delaune: Our big objective is to return to the role of being the executing arm of public mining policy, developing mining because we're aware that it brings development and progress to the areas of influence, which we can see around the Fruta del Norte and Mirador mines [the only large-scale mines in the country].

The economic factor is a great limitation to carry out exploration or mining, which is why we seek to strengthen commercial agreements so that companies that have financial muscle and technical experience work with us to carry out exploration in certain areas, in which Enami retains its ownership.

We also want to strengthen other types of associated projects, especially focused on small mining. Additionally, we’re seeking to reorganize the portfolio of projects we have and the construction of a processing plant.

BNamericas: How many projects are there in the portfolio?

Delaune: We have 13 projects and 24 concessions. Three projects are limestone: Unacota in Cotopaxi, La Tronera in Chimborazo and Isimanchi in Zamora Chinchipe.

Additionally, we have the Tola Norte iron ore project in Esmeraldas. The other projects are polymetallic, gold, silver and copper, the main ones being in the provinces of Imbabura, Zamora Chinchipe and Azuay.

We also have three projects in the north: Río Magdalena, Playa Rica and Espejo, for which we have an agreement with Cornerstone, which was acquired by SolGold.

We’re holding working groups with SolGold to resolve some legal issues.

BNamericas: Have any of the projects been affected by illegal mining in the provinces of Imbabura, Zamora and Azuay?

Delaune: No. In Imbabura, for example, we have the Llurimagua project, and the areas around it were the subject of the commercial agreement that we signed with Hanrine and in those areas no illegal mining has been detected.

In the case of Zamora Chinchipe, as a result of the increase in the price of gold, illegal activity reached the Cumbarantza industrial estate. Illegal activity has also been detected in Azuay. We've filed the appropriate complaints with the regulation and control agency and with the prosecutor's office.

BNamericas: The mining cadastre is still closed. Why in recent days did the energy minister authorize Enami to request new concessions?

Delaune: Under regulations, Enami has a preferential right. Minister Roberto Luque ordered the regulation and control agency to make this preferential right viable with respect to the mapping, processing, granting and subsequent registration of new mining concessions in its favor.

The criticisms that have been raised are unfounded since the constitution establishes that non-renewable natural resources are the property of the State and can, in exceptional cases, be delegated to the private sector. We're a public company, there is no exceptional delegation. Being a public company, we're part of the State and, therefore, we're also owners of those resources.

The temporary closure of the mining cadastre was never going to affect Enami, since it has the preferential and first option rights to request areas in free zones.

BNamericas: Why is a gold processing plant owned by Enami justified?

Delaune: There are two fundamental reasons for having one's own processing plant: for the processing of minerals seized from illegal activities, and to cover the production of small-scale and artisanal mining.

At the moment, Enami has to choose, through a public tender, a private company to provide us with the processing service, which is difficult for the State, so it would be ideal to have its own plant that generates greater recovery, greater resources for the State and a tailings deposit service could also be provided.

At the moment, most of the small mining processing plants don't have a tailings deposit and everything is put in a communal deposit, located in El Oro province, which is why environmental problems are being seen.

Just like Enami in Chile does, we seek to treat the production from small-scale mining and also market it, so in addition to generating resources for the State, we fight illegal mining, which implies not only illicit extraction but also illicit processing and commercialization.

The idea is to break this vicious circle, with a processing plant, formalizing and training artisanal and small-scale miners, and working hand in hand with organizations such as the United Nations Development Programme, through its Gold+ program [an initiative to prevent the release of mercury from mining operations].

BNamericas: If Enami has practically no resources, where will the funds come from to build the plant and what is the estimated cost?

Delaune: This is a medium-term project. The best option would be a strategic partnership, to launch a tender and have a private party finance the construction, operate it and, after a certain time, return it to the State.

We're very conservative in projections. We're thinking of a plant that processes 100t/d, whose cost would be around US$3mn, to which we must add US$25-30mn for the tailings deposit, because being a public company not only are we seeking economic profitability, but also environmental and social profitability.