URANIUM

Cameco looks to increase production as net earnings double

08 February 2024

The Canadian company said it is strategically positioned to increase tier-one production and plans to begin work to extend the life of the Cigar Lake mine to 2036 as well as looking into expanding production capacity at McArthur River/Key Lake.

Jetboring operations underground at Cigar Lake (Image: Cameco)

Net earnings, adjusted net earnings, and cash from operations all more than doubled compared with 2022, the company said in its announcement of results for the fourth quarter and year ended 31 December 2023.

Cameco's 2023 financial performance benefited from higher sales volumes and realised prices in the company's uranium and fuel services segments, President and CEO Tim Gitzel said, and the company expects "strong financial performance" in 2024 as it begins to "realise the benefits" from its 2023 acquisition, with Brookfield Asset Management, of Westinghouse.

"With ongoing improvements in the market, the new long-term contracts we have put in place and our pipeline of contracting discussions, we are planning to produce 18 million pounds (100% basis) at each of McArthur River/Key Lake and Cigar Lake in 2024," Gitzel said. "We have also converted 73.4 million pounds (100% basis) (40 million pounds our share) of resources to reserves at Cigar Lake, and plan to begin the work necessary to extend the estimated mine life to 2036. At McArthur River/Key Lake, we will undertake an evaluation of the work and investment necessary to expand production up to its annual licensed capacity of 25 million pounds (100% basis), which we expect will allow us to take advantage of this opportunity when the time is right."

Cameco's attributed 2023 production from McArthur River/Key Lake was 9.4 million pounds U3O8 (3616 tU; 13.5 million pounds on 100% basis), with 8.2 million pounds from Cigar Lake (15.1 million pounds on 100% basis). The company's total 2023 attributed uranium production of 17.6 million pounds U3O8 from its Canadian operations was 69% up on 2022 production but 1.1 million pounds below the revised production plans announced by the company in September.

Kazakhstan operations

Production from JV Inkai in Kazakhstan, in which Cameco owns 40% and Kazatomprom owns 60%, continued to be impacted by a 20% supply reduction enacted by the Kazakh atomic company across all its uranium mines in Kazakhstan and continued supply chain challenges, Cameco said. It expects production to remain at similar levels to 2023 following Kazatomprom's recent announcement of the anticipated effects of shortages of sulphuric acid, an essential reagent for its in-situ leach uranium operations.

The geopolitical situation continues to cause transportation risks in the region, Cameco noted, but said it has inventory, long-term purchase agreements and loan arrangements it can draw on to mitigate these risks.

The two shipments containing Cameco's share of Inkai's 2023 production arrived in Canada. "We continue to work closely with JV Inkai and our joint venture partner, KAP, to receive our share of production via the Trans-Caspian International Transport Route, which does not rely on Russian rail lines or ports," Cameco said.

Researched and written by World Nuclear News

Aboriginal group to inspect rock shelters for potential Rio Tinto damage

Reuters | February 7, 2024 | 

Rio Tinto’s Robe Valley operations. Credit: Rio Tinto via Facebook

An Aboriginal group from Western Australia’s iron ore producing region will inspect an important cultural site in the coming days after it received a notice from Rio Tinto of possible damage, the group’s chief executive said.


Rio’s destruction of rock shelters at Juukan Gorge in 2020 prompted a global outcry, the departure of top executives and a parliamentary enquiry that recommended an overhaul of Australia’s Aboriginal heritage protection laws.

“The Robe River Kuruma Aboriginal Corporation was advised by Rio Tinto in late December of the potential impact on a rock shelter at the Mesa C Robe Valley operations,” Anthony Galante, chief executive officer of Robe River Kuruma Aboriginal Corporation (RRKAC) told Reuters.

“This related to potential vibration exceedances from blasting in the area and is of serious and ongoing concern to us,” he said in an emailed statement late on Wednesday.

Rio Tinto has advised the group that a preliminary investigation found no damage to the shelter but it has not performed an on-ground inspection due to cultural restrictions, RRKAC said. Rio Tinto did not immediately respond to requests for comment.

Last August, Rio Tinto said a blast impact had led to the fall of a Pilbara scrub tree and one square metre of rock from the overhang of a separate rock shelter estimated to have been inhabited for over 40,000 years.

Muntulgura Guruma elders walked off a heritage survey at the Nammuldi site over concerns the global miner had played down the harm it caused them.

Given that history, the RRKAC has “grave concerns” about Rio Tinto’s ability to protect Aboriginal cultural heritage, Galante said.

“Members of the RRKAC will therefore be travelling to the area in coming days to carry out their own investigation.”

Rio said last August it had reformed its practices since Juukan Gorge, adding the detection of the potential blast impact at the Nammuldi site was the first time in 1,800 blasts that it had detected such a disturbance.

(By Melanie Burton; Editing by Lincoln Feast)

Congo artisanal cobalt monopoly can launch in months, CEO says

Bloomberg News | February 8, 2024 | 

Artisanal miners in DRC. (Image by Enough Project, Flickr)

The state-owned company created to buy all of Democratic Republic of Congo’s hand-dug cobalt could start operating within three months after years of delays, according to its chief executive officer.


Entreprise Generale du Cobalt will soon launch pilot sites around the town of Kolwezi on parts of five mining permits belonging to its main shareholder, state-miner Gecamines, Eric Kalala said.


“The problem before was that we didn’t have any land, but that problem has been solved,” Kalala told Bloomberg News on the sidelines of the Mining Indaba conference in Cape Town on Wednesday. The company doesn’t yet have an offtake agreement for the electric-vehicle battery metal, which will be dug by small-scale, artisanal miners working with EGC-approved cooperatives.

Congo founded EGC in 2019 to formalize artisanal cobalt mining, which employs hundreds of thousands of people but is infamous for dangerous working conditions and child labor. The company has struggled to get off the ground amid disagreements about its structure and weak cobalt prices due to oversupply.

The low prices offer an “opportunity” to set up the company with less competition on the ground from other buyers, with the aim of being ready to capitalize when the market turns, Kalala said.

In theory, EGC could be a major player in global cobalt, 70% of which comes from Congo. The country’s artisanal miners can account for as much as 20% of national output, according to the company.

Congo exported 139,800 tons of cobalt last year, a 21% increase from 2022. Total world production was about 190,000 tons in 2022, according to US Geological Survey estimates.

Commodity trader Trafigura Group is still EGC’s “main partner” in the project, but “bilateral discussions” continue with other parties, Kalala said.

“Trafigura remains committed to its commercial agreement with EGC and delivering on the pressing need to kick-start the large-scale formalization” of the artisanal and small-scale cobalt sector, Trafigura said by email.

“At present Trafigura is the only company permitted to buy from EGC – we encourage others to follow our approach and contribute towards meaningful change,” the Singapore-based company said.

Incursions by artisanal miners pose risks for private miners across Congo, and EGC is “designing a legal solution” that could allow it to operate on parts of permits owned by companies like Glencore and Eurasian Resources Group, Kalala said.

ERG didn’t immediately respond to a request for comment. Glencore declined to comment.

(By William Clowes and Michael J. Kavanagh)

Congo’s Gecamines and Entreprise Generale du Cobalt sign mining deal

Reuters | February 7, 2024 |t

State mining company Gecamines headquarters. (Image courtesy of Gecamines).

Congo’s state mining company Gecamines and its subsidiary Entreprise Generale du Cobalt (EGC) have signed an agreement granting EGC exclusive mining rights to five mining areas, the firms said on Wednesday.


Created by government decree in December 2019, EGC was granted a monopoly on artisanal cobalt produced in the central African country, the world’s top producer of a critical metal key to the global energy transition.

“The provision of these 5 mining areas from Gécamines to EGC will mark the beginning of the standardization of artisanal cobalt mining and the structuring of local entrepreneurship,” Gino Buhendwa Ntale, EGC chairman, said in a statement.

Artisanal miners, who dig cobalt using rudimentary means, are the second largest source of cobalt worldwide after the Congo’s industrial mines.

Late on Tuesday, the Mineral Security Partnership (MSP), a multinational collaboration of more than a dozen countries and the European Union to invest in a global supply chain, also announced a deal with Gecamines and Japan’s JOGMEC.

“This is a MOU (memorandum of understanding) that will expedite European and Japanese investment in the mining sector in the DRC (Democratic Republic of Congo), and it’s also a powerful demonstration of the MSP’s efforts to secure and diversify critical mineral supply chains,” US Under Secretary of State for Energy Jose W. Fernandez told a media briefing.

(By Anait Miridzhanian and Wendell Roelf; Editing by Eileen Soreng and Mark Potter)

US to commit more funds to African rail link for metal exports

Reuters | February 8, 2024 | 

The railway runs from Lobito, on Angola’s Atlantic coast, 1300km westwards to Kolwezi in the Democratic Republic of Congo, with a connection to Zambia. 

Credit: Ministry of Transport, Angola

The United States will provide more funds for the construction of the Lobito Corridor, a rail link to export metals from Central Africa’s Copperbelt, including a link for Zambia, US energy envoy Amos Hochstein said.


Washington has been supporting the project linking mineral-rich Democratic Republic of Congo (DRC) and Zambia to Lobito port in Angola. The link seeks to bypass logistics bottlenecks in South Africa that have held up copper and cobalt exports – metals vital to the energy transition away from fossil fuels.

In 2022, a consortium led by global commodities giant Trafigura, Portugal’s Mota-Engil and Vecturis SA of Belgium was awarded a 30-year concession for railway services and support logistics on the Lobito Corridor. The consortium plans to spend $455 million in Angola and $100 million in the DRC on equipment, operations and infrastructure maintenance.

Ivanhoe, Trafigura to be first users of Lobito Atlantic Railway Corridor

Additional funding is required to extend the 1,700 km (1,060 miles) line into Zambia in the second phase.

“We have committed to finance $250 million for the Angola phase one. I expect that we will commit additional resources in the same range for the second phase,” Hochstein said late Wednesday in an interview ahead of an investment forum on the project in Zambia.

The first phase involved upgrading the rail line on the Angolan side, and the second phase will involve building a new multibillion-dollar rail through Zambia and beyond, he said.

“I expect that we will start seeing some significant volumes using the rail by June-July,” he said, without giving figures.

The US and its partners have also mobilized close to $1 billion to expand the Lobito Corridor by developing a new 800 km (500 mile) rail line to further connect Zambia to the network, he said during the opening of the investment forum on Thursday.

“With the Africa Finance Corporation (AFC) as the private-sector lead developing the project, we aim to break ground in 2026 and have an operational rail between eastern Angola across northwestern Zambia by 2028,” he said.

The AFC had financing commitments from the US, the European Union and African Development Bank (AfDB), which would bring in extra private sector financing, he said.

Hochstein welcomed the announcement on Wednesday by mining firm Ivanhoe Mines that it had signed up to use the rail line for its copper exports from the DRC.

“That’s critically important because it shows commitment by the private sector to this project. It will also make financing cheaper,” Hochstein said.

He also said the US was contemplating other similar projects in Africa and elsewhere.

“Within Africa, I expect to have at least one more in the next year,” Hochstein said, without specifying where.

(By Chris Mfula; Editing by Nelson Banya and Mark Potter)

China’s CMOC eyes further growth in Congo and beyond after taking cobalt crown

Reuters | February 7, 2024 | 

The Tenke Fungurume mine in DRC. Credit: CMOC

Chinese mining firm CMOC Group could buy more assets in copper and cobalt-rich Democratic Republic of Congo, and sees further potential for growth in South America and Indonesia, an executive told Reuters on Wednesday.


“If there are opportunities, if there are assets that meet our criteria, of course we do consider increasing our presence in the DRC. Why not? We already have investments,” Julie Liang, CMOC vice president for ESG, said in an interview on the sidelines of the Africa Mining Indaba.


Copper and cobalt are among the metals that are expected to see strong demand in the years to come due to their use in green technologies, such as electric vehicles, that are key to helping governments globally meet climate targets.

CMOC last year became the world’s No. 1 cobalt mining company with production of some 55,000 tons, and could further outpace rivals including Glencore after raising its output forecast this year to 60,000 tons-70,000 tons.

The group’s copper production is projected at 520,000 tons-570,000 tons from about 420,000 tons last year. In the long run there is potential to further increase production beyond 600,00 tonnes, Liang said.

“We do have ambitions to become one of the biggest copper producers in the world,” she said. CMOC’s current 2024 forecasts would put it seventh or eighth in the world this year.

Like other copper producers in DRC, CMOC is struggling with electricity shortages and issues shipping the metal to ports.

But Chinese cobalt producers have seemed unconcerned by oversupply that has knocked down cobalt prices, with some said to benefit from state support for a sector seen as vital to China’s electric vehicle industry.

The copper deposits held by CMOC’s Congolese business are lower cost than some, Liang said, which allows it to ramp up cobalt production as a by-product even as rivals are scaling down due to a price slump.

CMOC is likely to churn out even more cobalt as it ramps up copper output, she added.

Silvery-blue cobalt was once seen as an indispensable element of EV lithium-ion batteries, with prices soaring in May 2022 to four-year highs, but they have since slipped back nearly 70%.

EV sales have been slowing as inflation hits consumers and governments cut subsidies, while batteries without the mineral have been rising in popularity.

While the company sees lower cobalt prices remaining for longer, its production is aligned to longer-term demand fundamentals that could benefit from the future outlook for the energy transition sectors globally, Liang said.

Short-term weakness in cobalt prices does not represent a threat to its operations, she said, as it mines the metal as a by-product and can afford to keep producing at lower prices.

(By Felix Njini and Veronica Brown; Editing by Jan Harvey)

Pressure groups sue LME for allowing trade of ‘polluting’ Indonesian metal

Reuters | February 8, 2024 | 

Grasberg mine seen from space. (Image courtesy of NASA.)

Two pressure groups have filed a legal action against the London Metal Exchange (LME) for allowing the sale on its platform of metal produced in Indonesia that they allege is polluting local rivers used by indigenous communities, they said on Thursday.


The London Mining Network (LMN) and the Global Legal Action Network (GLAN) said in a statement papers have been filed in London’s High Court asking for a judicial review.


They say the LME is breaching British anti-money laundering and proceeds of crime legislation. Reuters confirmed that court documents were filed at the court on Tuesday.

“The LME believes that the claim filed by the London Mining Network and the Global Legal Action Network is misconceived and intends to resist that claim,” the exchange said in response to a request for comment.

The LME requires companies that trade on the exchange, the world’s largest and oldest forum for trading metals, to undergo audits for sustainability.

The 147-year-old LME is in the process of suspending or delisting 10% of its metals brands until their producers provide it with responsible sourcing information, which includes requirements for environmental management.

But the LMN and GLAN say the LME’s sustainability framework is not enough.

“If successful, this case will force the LME to revisit the rules under which it lists metal for trading on its exchange,” the two groups said in a statement.

“This in turn will force metal producers to adapt their mining practices if they want to keep being able to access this platform which is essential for them to reach customers and to sell their products.”

The court action will allege mining waste is being dumped from the giant Grasberg copper mine in West Papua Indonesia owned by Indonesia’s state mining company and US-listed Freeport McMoRan, opens new tab, which is also the operator of the mine. The legal action is not against Freeport.

“In West Papua, indigenous communities are suffering the effects of mining waste pollution from the Grasberg mine being dumped into the water sources that they rely on for basic needs like drinking, cooking and bathing,” the release said.

Freeport said in a sustainability report, opens new tab on its website that tailings disposal in Indonesia is reliable and safe.

“Nearly three decades of engineering analyses, extensive monitoring and data collection, and computer modelling confirm that the current tailings management system poses the lowest risk to people and the environment,” the Freeport report said.

GLAN and the LMN say copper derived from Grasberg and traded on the LME is “criminal property” as it is produced in circumstances that would breach British criminal law if they were to occur in Britain.

“The LME is a recognised investment exchange, which means it has specific legal obligations around identifying and mitigating the risk of financial crime on its platform,” said Leanna Burnard, a lawyer with GLAN.

The LME is owned by Hong Kong Exchanges and Clearing (HKEx).

(By Pratima Desai and Eric Onstad; Editing by Jan Harvey)

Nexa Resources halts Peru zinc mine due to blockade

Cecilia Jamasmie | February 8, 2024 | 

Latin America-focused Nexa Resources (NYSE: NEXA) has halted production at its Atacocha San Gerardo open pit zinc mine in Peru due to a road blockade by the Joraoniyoc community since earlier this week.


The zinc producer, controlled by Brazilian holding company Votorantim SA, said the obstruction of the road to access the mine has not had a material impact on Atacocha’s production to date.

Mine production has been suspended, and activities are limited to critical operations with a minimum workforce to ensure proper maintenance, Nexa said.

On a weekly basis, the Atacocha mine produces about 200 tonnes of zinc, which is less than 3% of the company’s total zinc production, it said.

Mining conflicts in Peru have risen over the past two years as empowered local communities increased demands under the administration of leftist ex-President Pedro Castillo, who was impeached in December 2022 and replaced by vice president Dina Boluarte.

Nexa itself has faced three recent road blockades at Atacocha. The first one, in March 2022, cost the miner 300 tonnes of lost zinc production. It was also affected by another blockage in August the same year, and in January 2023.

Nexa has nine operations distributed between Brazil and Peru – three of which are refineries and six mines. including the largest underground zinc mine in Peru, Cerro Lindo, and the largest zinc refinery in the Americas, Cajamarquilla.

Peru is the world’s no. 2 copper producer after Chile and an important producer of zinc.

The Atacocha mine is in the province of Pasco, Peru. (Image courtesy of Nexa Resources.)

Portuguese prosecutors seek to annul environment permit for Savannah lithium mine

Reuters | February 8, 2024 |

Mina do Barroso is set to be Europe’s first significant producer of spodumene.

 (Image courtesy of Savannah Resources.)

Portuguese prosecutors have asked a judge to annul an environment permit for a lithium mining project being developed by London-based Savannah Resources, alleging various legal infringements, a court document seen by Reuters showed.


The document, filed by the Prosecutor’s Office in December and seen by Reuters on Thursday, upheld a lawsuit filed by a municipality in northern Portugal that sought to block Savannah from developing what could become western Europe’s largest lithium mine.

Last year Portugal’s environmental agency APA gave environmental approval, conditional on some remedies, for Savannah Resources to develop a mine in Boticas, in the Barroso region of northern Portugal, a world heritage site for agriculture since 2018.

The Prosecutor’s Office requested that the Administrative Court of Mirandela in northern Portugal annul the environmental approval of the Boticas mine as it “suffers from the defect of violating the law”, citing risks “known” to APA that the mine could endanger the heritage site and Portugal’s international commitments.

It also said that APA had failed to correctly assess mining waste management needs or water contamination risks, and did not consider the real joint impact from the Savannah mine and another mine being developed by Portuguese mining company Lusorecursos to extract battery-grade lithium in Montalegre, northern Portugal, despite their proximity and large scale.

APA did not reply to a Reuters request for comment.

Savannah said it was “ready to address the concerns” of the prosecutors and cited advice from its lawyers “that the lawsuit is without foundation” and does not impact the project’s activities.

The Savannah mine was part of a wider probe last year by Portuguese prosecutors into alleged illegalities in lithium and “green” hydrogen deals.

The probe led to the resignation in November of then Prime Minister Antonio Costa after prosecutors detained his chief of staff and named APA head Nuno Lacasta as a formal suspect in alleged illegalities. Costa and Lacasta have denied any wrongdoing.

Savannah said in January that after a full legal assessment which included due diligence by independent experts of relevant accounts, facts and documents, “Savannah can confidently reaffirm its solid legal standing.”

With more than 60,000 tonnes of known lithium reserves, Portugal has been seen as central to Europe’s efforts to secure more of the battery value chain and cut reliance on imports.

Catarina Alves Scarrott, a campaigner against mining in Barroso, viewed the prosecutors’ move as a victory, but said there was no timing yet for a court decision.

(By Sergio Goncalves, Patricia Rua and Andrei Khalip; Editing by Susan Fenton)

Billionaire Adani secures ore for $1.2 billion copper smelter

Bloomberg News | February 9, 2024 | 

Gautam Adani. (Image: Headlines Today | YouTube.)

Indian billionaire Gautam Adani’s conglomerate has signed contracts to buy 1.6 million tons a year of copper concentrate for the world’s largest single-location smelter for the industrial metal.


The first 500,000 tons of capacity at the $1.2 billion facility in Mundra in the western state of Gujarat is set to start operations next month, according to Vinay Prakash, chief executive officer at Adani Natural Resources. This will be expanded to 1 million tons by March 2029 to cater for a forecast doubling of Indian copper demand by the end of the decade, he said in an interview.

Adani Enterprises Ltd., the port-to-power conglomerate’s flagship company, is seeking resource security in critical minerals and is resuming capital expenditure now that its shares have stabilized after a short-seller attack in January 2023. The smelter is starting up just as the global copper market experiences a collapse in the fees that processors charge miners because there’s not enough ore to go around.

A combination of high operating costs and the low fees means smelters and refiners globally may be forced to curtail production, Prakash said. “Our plant will be a low-cost producer with higher metal recovery and this will help us to remain competitive in the market.”

The concentrate deals are a mix of short- and long-term arrangements, Prakash said, without disclosing the suppliers. Concentrate supply is likely to increase in the medium- to long-term as more mining projects, including in Africa and Peru, come on stream, he said.

(By P R Sanjai and Swansy Afonso)

EU, US to align global minerals push against China’s supply grip

Bloomberg News | February 9, 2024 |

Credit: Minerals Security Partnership

The US and the European Union are in talks to merge a core area of their efforts to engage suppliers of critical minerals in resource-rich nations, seeking to streamline their push against China’s dominance in materials key for future technologies.


The aim is to combine the EU’s high-level policy approach with the US focus on specific projects, according to people familiar with the discussions.


Specifically, the move would merge the EU’s critical raw materials club concept with the Biden administration’s flagship Minerals Security Partnership. It comes after the EU delayed plans to launch its own program in Dubai last year at the COP 28 climate summit, said the people, who asked not to be identified describing internal policy discussions.

The new initiative, known broadly as a “minerals security partnership forum,” would align outreach efforts to buyers in developed countries and resource-rich nations to cooperate on projects and policies, said the people.

As part of their broader economic security strategies, Washington and Brussels are seeking to counter China’s domination of the supply chain for so-called critical minerals, a broad term that includes inputs for electrical vehicles and other green energy technologies.


Key to their combined efforts is working with resource-rich nations to develop standards on investment, trade, research and environmental issues that the US and EU see as an alternative to working with China.

The allies, who’ve identified more than a dozen potential projects, have taken on a daunting challenge. The lengthy and expensive process of developing mining or refining projects means Beijing’s dominance will likely continue for decades. And US officials have conceded it’s impossible to fully replace China.

US and EU officials aim to reach an agreement later this month and officially launch the project in March, according to one of the people. They will discuss the plan at the Munich Security Conference in Germany next week, said a separate person.

The EU and the US are discussing how to optimize their efforts in fostering international cooperation on critical raw materials, Olof Gill, a spokesperson for the European Commission, said in a response to questions, adding that an important aspect of these talks is to find “the best synergies” between the EU’s critical raw materials club and other international activities.

A US State Department official, who asked not to be identified discussing internal matters, said the two sides believe separate outreach plans to resource-rich nations duplicated efforts and risked creating confusion. They also want to ensure alignment on the broader goal of reducing the West’s dependence on China for the production and processing of many critical minerals like lithium, manganese and cobalt, and properly coordinate mobilizing state finances and private companies, the official said.

The EU was already a part of the US-led minerals security partnership alongside Australia, Canada, Finland, France, Germany, India, Italy, Japan, South Korea, the UK and others, which aims to funnel foreign investment into the green energy sector.

The EU has also signed its own minerals pacts with several countries, including the Democratic Republic of Congo, which supplies about 70% of the world’s supply of cobalt, and Zambia.

As well, Central Asian members of the C5+1 group — which includes Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan — have also expressed interest in the minerals security partnership, the US State Department official said.

Separate EU-US talks on a bilateral critical minerals agreement remain stalled over labor rights and concerns over the feasibility of adopting a trade pact in an election year.

US officials, who have already struck a bilateral deal with Japan, have wanted to kick-start new mining and processing projects by acting as a bridge between private companies seeking raw materials and developing nations that have relied in recent years mainly on China for resource investments.

(By Alberto Nardelli and Iain Marlow)

Syrah starts active anode material production in Louisiana

This makes the graphite miner the first commercial-scale vertically integrated natural graphite AAM supplier outside China

Staff Writer | February 9, 2024 | 

Syrah’s Vidalia facility in Louisiana. Credit: Syrah Resources

Syrah Resources announced on Friday the start of active anode material (AAM) production at its Vidalia facility in Louisiana.


This makes the graphite miner the first commercial-scale vertically integrated natural graphite AAM supplier outside China, said CEO Shaun Verner.

Vidalia processes natural graphite from Syrah’s Balama graphite operations in Mozambique.

Syrah is expected to supply 8 kilotonnes per annum (kpta) of AAM from Vidalia to Tesla under an existing offtake agreement, subject to production ramp-up and finalizing qualification.

The miner is progressing the expansion of Vidalia to 45 ktpa capacity, inclusive of 11.25 ktpa, to readiness for a final investment decision.

The company said it has produced unpurified spherical graphite from the front-end milling area since October 2023 to build inventory of precursor value-added material in preparation for the commissioning of the purification and furnace areas in January 2024.

The first purified spherical graphite material was produced in late January 2024.

The heating cycle for the first furnace line commenced in early January 2024, and carbonization of Syrah’s first pitch-coated purified spherical graphite is now complete.

Syrah has applied to the US Department of Energy (DOE) for an additional loan of $350 million under DOE’s Advanced Technology Vehicles Manufacturing loan program to support funding of the Vidalia expansion project, and DOE is progressing due diligence.

Shares of Syrah were down 3.3% by 12:10 p.m. EDT. The company has a market capitalization of $238 million.

Canada Nickel plans to raise $1 billion for processing plant

Reuters | February 8, 2024 | 

Crawford nickel-cobalt sulphide project. (Image courtesy of Canada Nickel Company.)

Canada Nickel Co on Thursday said it is looking to raise $1 billion to build a nickel processing plant, as it seeks to position itself as an alternative supplier of the metal used in car and electric battery vehicles.


The processing plant in Ontario is expected to begin production in 2027 and process 80,000 tonnes of nickel annually. Nickel production is currently concentrated in Asia, and the company hopes that the new plant will help increase supplies from cleaner sources.

The company is in discussions with the Canadian government, the United States Department of Defense and other partners in the battery manufacturing sector to raise the funding, CEO Mark Selby told Reuters.

The miner, which counts Samsung SDI and Agnico Eagle Mines as shareholders, is also building a nickel mine in Ontario and hopes to integrate the battery supply chain with the proposed processing plant, according to Selby.

The company’s stock rose 3.6% to C$1.42. The Toronto Stock Exchange Venture-listed miner has a market value of C$194 million.

The announcement by NetZero Metals, a unit of Canada Nickel, comes as large global nickel producers cut costs and reduce production after prices dropped 40% in the last year.

But Selby expects demand for the metal to grow.

“The car companies and battery supply chain know that the amount of nickel needed in North America is going to double and triple over the next decade,” Selby said, adding that what these buyers want is responsibly produced, clean, green nickel in North America.

(By Divya Rajagopal; Editing by Mark Porter)

Rio Tinto, BHP tie up in Australian ‘green iron’

Reuters | February 8, 2024 | 

Jimblebar, one of seven iron ore mines BHP operates in the Pilbara. 

(Image courtesy of AGC)

Mining rivals Rio Tinto and BHP Group joined with Australia’s largest steelmaker on Friday to announce a pilot “green iron” project to help cut emissions for steelmakers around the globe who rely on Australian iron ore.


Australia’s two largest iron ore producers and BlueScope Steel will study the feasibility of building a pilot ironmaking electric smelting furnace (ESF), the country’s first, with a potential start date of 2027, according to a joint statement on Friday.

If successful, it could help slash the emissions involved in preparing iron for steelmaking. This “green iron” could help cut the carbon footprint of steelmakers around the world who rely on Australian iron ore.

The production of steel, a key material for infrastructure and the net-zero energy transition, currently contributes around 8% of global carbon emissions.

“The carbon intensity of iron and steelmaking requires profound change to meet the needs of our planet and our climate objectives,” Rio Tinto Iron Ore chief executive Simon Trott said.

One potential ambition for the project could be to make commercial quantities of “green iron” that could then be shipped to steelmakers in Asia, said Tania Archibald, CEO of BlueScope.

However, the pilot would need to run for several years, so commercial production was unlikely before the 2030s, she added.

The announcement was made at BlueScope’s Port Kembla steelmaking operations, Australia’s largest steel plant, roughly 75 km (47 miles) south of Sydney.

If successful, this would be the first partnership between the two global miners on a downstream project.

“If we can crack it, it’s going to be a significant uptick for the mining industry … Australia in general and the globe,” Tim Day, BHP’s incoming Western Australia iron ore asset president, said at a news conference.

The project will incorporate work done since October 2021 between Rio and BlueScope on ways to cut emissions during an earlier stage of the iron ore processing process by replacing coal with green hydrogen, known as direct reduction.

Iron ore could then be converted to direct reduced iron (DRI) before it is fed into an ESF. Together, the DRI-ESF equipment could cut emissions by more than 80%, the companies said in the joint statement.

The companies said they would assess several locations in Australia, the world’s top exporter of iron ore, for the proposed pilot facility.

The pre-feasibility study work program is expected to conclude at year-end.

Costs for the project will be shared equally, although the companies declined to provide any estimates.

BHP is also working with global engineering firm Hatch to design a similar electric smelting furnace pilot plant in Australia.

(By Lewis Jackson, Melanie Burton and Praveen Menon; Editing by Stephen Coates)

Mexican president proposes ban on open-pit mining

Staff Writer | February 10, 2024 | 

Mexican President Andrés Manuel López Obrador presenting constitutional reforms in February 2024.

 (Image by the Presidential Office, Twitter/X.)

Mexican President Andrés Manuel López Obrador, known as AMLO, presented before parliament a series of constitutional reforms among which there’s a proposal to modify Article 27 so that it prohibits open-pit mining.


In detail, his proposal calls for banning the granting of open-pit mining concessions and activities related to the exploration, exploitation, benefit or use of minerals, metals or metalloids using the open-pit method.

To argue his case, López Obrador said that open-pit mining causes severe environmental damage and uses excessive water that could be supplied to water-scarce communities.

“It is clear that open-pit mining transgresses human rights by affecting the right to a healthy environment and good health,” his proposal states. “The most significant effects are evident in the communities and towns near project areas, placing them in a situation of vulnerability and inequality.”

The proposal, however, does not mention underground mining.

The motion is expected to revive hostilities between the Mexican government and big industry players, as the country’s oldest and largest mines are open-pit operations. In total, Mexico hosts 264 mines that extract surface minerals, most of them located in Chihuahua, Zacatecas, Sonora and San Luis Potosí.

Top producers such as Grupo Mexico’s Buenavista del Cobre, Newmont Goldcorp’s Peñasquito, two of Fresnillo’s gold-silver units, and several other mines owned by Industrias Peñoles are open-pit operations.

Since taking over in 2018, the AMLO administration has not granted any new concessions through de facto mechanisms but without the backing of any specific law.

The recent move adds to the uncertain investment atmosphere in the country, whose miners were shaken back in May 2023, when Mexican Senators approved a new mining law in an accelerated process without opposition legislators present.

The mining law reforms involve companies having to deal with an increased burden of pre-consultation, impact studies and water concessions, among other things. The new law also requires financial commitments (bonding) and shortens the tenure of mining concessions from 50 years to 30 years, with a one-time 15-year renewal possible.