UK to collaborate with Saudi Arabia on diversifying critical minerals 

The UK’s business, energy and industrial strategy secretary Grant Shapps said that the country would deepen its collaboration with Saudi Arabia in diversifying its critical mineral supply. The partnership would see Saudi investment in UK manufacturing and mining finance sectors, with “new possibilities” for UK mining companies to conduct business in Saudi Arabia.  

According to a statement published by the two countries, the partnership will emphasise the significance of transparency and environmental standards to reduce business risks and attract investment. The official statement said the UK Government seeks to diversify its critical material supply chains, “with supplies currently dominated by China.” 

“The two countries will work collectively on specific actions we can take, to bring our respective strengths together. We will be formalising this relationship in the coming months,” the statement reads. 

Shapps added: “The impact of Putin’s illegal war in Ukraine on energy prices has shown us all how important international supply chains are to our economy and why we can never be too reliant on any nation. That’s why it’s so key that we work with partners like Saudi Arabia to [ensure] our supply chains are diverse and robust.” 

Ma’aden to launch mining joint venture with Saudi PIF 

Saudi state-owned mining giant Ma’aden has signed an agreement to form a joint venture with the kingdom’s Public Investment Fund (PIF) to secure strategic minerals by investing in global mining assets. 

To be incorporated upon securing approvals from the relevant authorities, and satisfying certain joint venture agreement conditions, the new company will be 51% owned by Ma’aden while PIF will own the remaining 49%. 

The new company will initially focus on investing in iron ore, nickel, copper and lithium assets as a non-operating partner. 

The companies will create a 50/50 joint venture for the exploration of these metals for an initial term of five years. The period could be extended up to ten years.

Under the exploration deal, Ma’aden will invest $126.4m to acquire a 9.9% stake in Ivanhoe Electric. 

In a press statement, PIF said: “This will provide physical offtake of critical minerals to ensure supply security for domestic mineral downstream sectors, and position Saudi Arabia as a key partner in achieving global supply-chain resilience.” 

Fluor wins EPCM contract for Skouries gold-copper project in Greece 

The Fluor Corporation has received a contract to provide engineering, procurement and construction management services for the Skouries gold-copper mining project in Greece. 

The contract has been awarded by Hellas Gold Single Member, a wholly-owned unit of Eldorado Gold. 

Located within the Halkidiki Peninsula of Greece, the Skouries high-grade gold-copper porphyry deposit is expected to have an average annual production capacity of 140,000oz of gold and 67 million pounds of copper over its initial mine life of 20 years. 

This project is expected to create up to 800 construction jobs and 1,400 long-term jobs once operational. Construction on the mine is planned to start this year, with first production anticipated in the second half of 2025. 

Fluor mining and metals business president Tony Morgan said: “The execution of this project will build on Fluor’s technical expertise in large-scale gold and copper projects."

AngloGold Ashanti plans sale of Brazilian gold complex 

South Africa-listed gold miner AngloGold Ashanti has put up its Córrego do Sítio gold complex in Brazil for sale, reported BNamericas via Mining.com. 

Located in the mining state of Minas Gerais, the gold complex is operated by AngloGold’s subsidiary AGA Mineração. It comprises one open pit mine and one underground mine that were commissioned in 1989. 

AGA Mineração also operates the nearby Cuiabá complex, which comprises Cuiabá and Lamego underground mines and the Cuiabá and Queiroz plants. Production from the Cuiabá and Córrego do Sítio is refined at the Queiroz plant, which is located 14km from the Cuiabá gold plant. 

The Córrego do Sítio gold complex could be possibly divested to gold junior Jaguar Mining, according to local media. Jaguar Mining’s main assets are the Turmalina and Caeté gold complexes, which have a combined production of more than 95,000oz of gold annually. 

The source said: “At the moment, there are only discussions of proposals and possibilities for the site."

MLK Gold acquires second lithium asset in Newfoundland 

Canada-based precious and critical metal exploration company MLK Gold has expanded its critical metals portfolio in Newfoundland with the acquisition of a second lithium asset from an undisclosed party. 

The acquired property is located around 18km due east of the high-grade Kraken lithium and caesium discoveries. The financial terms of the deal were undisclosed. The new mineral licence comprises 100 mineral claims, which are said to have a highly prospective potential for critical metal mineralisation. 

MLK Gold plans to complete a full assessment of these claims from the second quarter of the year. MLK Gold president and CEO Paul Smith said the area was subject to historical work by only three previous exploration companies, apparently for uranium. However, no reports were filed with the government. 

Based on an initial examination of the Burgeo granite located to the south, the firm believes the region will have significant potential for critical metal-bearing pegmatite development. 

The firm plans to undertake exploration work at its Caledonia Brook property in central Newfoundland between June and the end of August.

Upon securing financing, the company aims to complete an initial 1,200m drill programme in 12 proposed holes at the Mustang66, Maverick and Charlie Zones. 

Pan American Energy to spin out US lithium property 

Pan American Energy intends to spin out its Green Energy Lithium Project in Utah, US into a wholly owned subsidiary, dubbed Subco, following a careful review. 

The move is expected to allow Pan American to focus on advancing its other projects, including the Horizon Lithium Project and the Big Mack Lithium Project.

Upon the transfer of the property to Subco, Pan American intends to distribute the majority or all of the common shares of Subco to its existing shareholders on a pro-rata basis. 

It will also pursue a listing of common shares of Subco on a Canadian stock exchange. Pan American said the transaction would proceed via a plan of arrangement under the Business Corporations Act. 

Planned to be completed on or about 15 March 2023, the arrangement will be subject to signing a definitive arrangement agreement, and regulatory and shareholder clearances, among others. Pan American, however, said there is no assurance it will proceed with the arrangement. 

In a press statement, Pan American said: “Pan American believes that its current share price does not fully recognise the value of the property, and that by completing the proposed arrangement, the shareholders of the company will benefit from unlocking the value of the property.”