Canada to scrap new thermal coal mining projects on environmental concerns

14 june | technology

The Canadian Government has decided not to approve new thermal coal mining projects or existing mine project expansions, citing their adverse impact on the environment.


The decision was announced by Canadian Environment Minister Jonathan Wilkinson as G7 leaders gather in the UK for their summit to combat global challenges.


Wilkinson said that the thermal coal mining projects could cause "unacceptable environmental effects" within federal jurisdiction.


Additionally, these projects do not comply with Canada’s domestic and international climate change commitments.


The new policy marks another critical step in the country’s shared path to a cleaner and more prosperous future. It also makes Canada among the first to adopt such a policy among the G7 countries.


The new policy affects several planned projects including the Coalspur Mines’ proposed coal mine expansion in Alberta to extract and export thermal coal to international markets.


Coalspur Mines intends to expand the existing Vista Coal Mine Phase I, a surface coal mine located approximately 10km east of Hinton, Alberta.


The proposed plan includes two expansions, comprising an underground coal mine (Vista Test Underground Mine) and a westward expansion of the Phase I mine pits (Vista Mine Phase II Expansion).


Wilkinson said: “New thermal coal mining projects or expansions are not in line with the ambition Canadians want to see on climate, or with Canada’s domestic and international climate commitments.


“Eliminating coal-fired power and replacing it with cleaner sources is an essential part of the transition to a low carbon economy, and as a result, building new thermal coal mines for energy production is not sustainable.”


In 2018 the federal government unveiled regulations to eliminate conventional coal-fired electricity across Canada by 2030.


In 2019, Canada produced 57 tonnes of coal, 47% of which constitutes thermal coal utilised for generating electricity and the rest is metallurgical coal used for steel-making.

8 june | research

New paper details profitable lithium extraction from seawater


A new scientific paper has outlined a potentially inexpensive way to extract lithium from seawater.


The paper, published in the Energy & Environmental Science Journal, included an economic analysis suggesting that the process would prove profitable at current resource prices.


Researchers from the King Abdullah University of Science and Technology in Saudi Arabia produced lithium phosphate with a purity of 99.94% by enriching water from the Red Sea.


Current seawater extraction techniques find it difficult to separate lithium from competing ions of sodium, magnesium, and potassium. Moreover, the low lithium concentration of approximately 0.2 parts per million (ppm) makes separation expensive.


However, almost all of the world’s lithium lies in the world’s oceans. Lithium reserves on land are expected to be fully depleted by the year 2080. As global electrification continues, battery manufacturers have warned that lithium demand may soon outgrow production.


The process detailed in the paper used an electrolyte membrane to ‘sieve’ lithium ions from the water. After 2,000 hours of use, the lithium lanthanum titanium oxide membrane showed ‘negligible’ decay. Using electricity, the membrane concentrate lithium ions in a separate solution up to over 9,000 parts per molecule (ppm).


Researchers then electrolysed this solution to create 1kg of lithium phosphate using approximately 76.3kWh of energy. This process also created byproducts of hydrogen and chlorine, each with their own resale value.


The paper’s economic analysis used an electricity price of $65 per MWh to calculate its profitability. Using $5 of power, the process created $6.9-$11.7 of hydrogen and chlorine as byproducts.


Lithium prices have varied significantly over the past year, and different concentrations demand greatly different prices. However, a conservative estimate would give a return of at least as much as the byproducts.


After the process, the used seawater contained less than 500ppm of salts, allowing it to be treated into freshwater. This could provide further profit if treated appropriately.

8 june | litigation

Avima starts arbitration against Congo for mining permit revocation


Avima Iron Ore has initiated an arbitration process against the Congo Republic and is seeking $27bn in damages for cancelling its mining permit last year.


The arbitration has been filed by the company’s subsidiary Avima Fer Congo and its affiliates before the International Court of Arbitration of the International Chamber of Commerce.


Avima Iron Ore claims that the Congolese Government had wrongly expropriated its Avima iron ore deposit, which is situated in the North West Republic of Congo.


The Avima project, which the Republic of Congo Government owns a 25% interest in, was slated to begin production and ship high-grade iron ore to customers in January this year.


Avima Iron Ore said that it had invested hundreds of millions of dollars to convert the project into a high-quality iron ore deposit from an obscure grassroots area, over a 14-year period.


The company is now seeking either damages from the government or the return of its mining licence to undertake the planned production programme.


Avima Iron Ore official Socrates Vasiliades said: “The Republic of Congo's actions disregard the rights of the investors and the economic and social development of a country in which millions of people live in extreme poverty.


“We are taking all necessary action and pre-emptive measures to protect our investment against these unlawful attempts to expropriate our assets, to safeguard the future of the project and the thousands of jobs that depend on it.”


UK-based law firm Clifford Chance is representing the company’s arbitration. It has nominated Laurent Jaeger of King & Spalding International as arbitrator.


Clifford Chance lead counsel Simon Greenberg said: “The mine was almost ready to start selling ultra-high-grade iron ore to the world market.”


The Avima mining permit was among the three licences that were withdrawn by the government last year.

7 june | operatoins

Vale closes two mines in Brazil after evacuation order in Xingu dam area


Vale has suspended production at its Timbopeba mine and part of its Alegria mine in Brazil following orders by prosecutors to evacuate an area around the nearby Xingu dam.


The closure is in compliance with the Regional Labor Superintendence’s notification for the prohibition of activities in areas close to the Xingu dam.


Vale said that the measures will halt material flow from the Timbopeba Plant. This would subsequently lead to a temporary production halt at the unit.


As a result, production is expected to be reduced by 33,000 iron ore fines a day at the Timbopeba mine.


The company also closed some of the internal accesses at the Alegria mine. This partially impacts the production of the plant, which is estimated at 7,500tpd of iron ore fines.


In a press statement, Vale said: “Vale emphasises that the Xingu Dam remains at level 2 of the Emergency Action Plan for Mining Dams (PAEBM), in which there is no imminent risk of rupture, and that the structure’s safety conditions remain unchanged.


“The Xingu dam is monitored and inspected daily by a specialised technical team and is included in the company’s dam decharacterisation plan. The Self-Rescue Zone (ZAS) of the Xingu Dam remains evacuated, with no permanent presence of people in the area.”


The Alegria iron ore mine is located in Iron Quadrangle, within the districts of Mariana and Ouro Preto in Minas Gerais.


It is owned by Samarco Mineracão, which is a joint venture of BHP Billiton and Vale with each holding a 50% stake.


In 2015, the Samarco-operated dam in the town of Mariana burst. In 2019, another accident at Samarco’s asset in Brumadinho killed nearly 300 people.

7 june | incident

Four miners killed and six trapped in coal mine accidents in China


A total of four miners have been reportedly killed following two separate accidents at coal mines in China.


According to state-run CGTN TV, one of the accidents took place on 4 June 2021 at an underground coal mine operated by Henan Hebi Coal and Electricity.


The accident was reportedly caused due to a gas outburst and resulted in the deaths of two miners while six miners are missing.


Search and rescue efforts have been launched to trace the missing miners. Of the 355 people working at the mine, 347 have been rescued.


Following the accident, an emergency response plan has been launched by the authorities in the central province of Henan.


Last month, Henan’s provincial government reportedly approved the reopening of Hebi’s other coal mine, which was closed on the grounds of breaching regulations.


The second accident took place at a coal mine in Jixi, northeast Heilongjiang, on 5 June 2021, according to CGTN TV.


All eight miners who went missing following the accident were rescued on 6 June.


Earlier this year, an explosion at the Hushan gold mine in northeast China left 22 miners trapped underground.

3 june | investment

Tesla to invest $1bn on Australian-mined battery raw materials


US carmaker Tesla has announced plans to annually invest more than $1bn on lithium, nickel, and other metals mined in Australia for its batteries and vehicles.


Tesla chairman Robyn Denholm said that three-quarters of its lithium feedstock and more than a third of its nickel is already sourced from the country.


Denholm further added that Australia was missing out on a valuable role in the supply chain across the globe.


The country is rich in minerals that are used for batteries such as lithium and nickel.


Due to the lack of a strong refining sector locally, large amounts ofraw materials for batteries are typically shipped abroad for further processing and converted into products, such as battery cells in China and other countries in Asia, The Sydney Morning Herald reported.


Reuters quoted Denholm at a Minerals Council of Australia event: “Australian mining companies do have a good reputation, great expertise, professionalism, and are preferred by manufacturers increasingly concerned about meeting both today’s and the future’s ESG requirements.”


Government figures have revealed that the country’s exports of hard rock lithium are expected to hit $773m (A$1bn) in 2021 while its nickel exports could be valued at $3bn (A$4bn).


In October 2020, Tesla said it was in talks with BHP Group regarding a nickel supply deal as part of its efforts to increase nickel production and avoid a supply crunch, Bloomberg reported, citing people familiar with the matter.


Prior to this, Tesla has carried out discussions with Canadian firm Giga Metals regarding the development of a large mine to get access to low-carbon nickel for its batteries.

In brief

Asante Gold to acquire eight Ghanaian prospective concessions from Goknet


Canada’s Asante Gold has secured the recommendation notice to acquire eight highly prospective gold concessions located on Ashanti and Asankrangwa Gold Belts in Ghana.

Sokoman and Benton alliance acquires Canada’s Grey River gold project


Sokoman Minerals and Benton Resources have jointly acquired the Grey River Gold Project located in southern Newfoundland, Canada.

Rio Tinto starts drilling at Madison copper-gold project in US


Rio Tinto has started drilling work at American Pacific Mining’s Madison copper-gold project in Montana, US, with the first diamond core drill having arrived on-site this week.

Bravus loses court challenge for Carmichael coal mine water permit


Adani Group’s Australian division Bravus Mining & Resources has lost a case related to the North Galilee water scheme at the Carmichael coal mine in Queensland, Australia.

Wyloo Metals plans takeover bid for Noront Resources


Australia-based Wyloo Metals is planning to make an offer to acquire the outstanding common shares of Noront Resources that it currently does not own, valuing the Canadian firm at $110.3m (C$133m).

2 june | power

Macarthur Minerals to trial Lavo’s hydrogen energy batteries


Macarthur Minerals has signed a collaboration agreement to trial Lavo Hydrogen Technology’s energy batteries to power its Lake Giles Iron Project in Western Australia.


Under the strategic partnership, the companies will investigate the facilitation of the staged technology solution to deliver a clear carbon reduction strategy for the project in the Yilgarn region.


Lavo produces hydrogen energy batteries using an innovative metal hydride.


Acting as a solar sponge, the battery system integrates with solar arrays to capture and store renewable energy that can be used when required.


The unit uses water to create hydrogen that would be stored in Lavo’s patented metal hydride. It then converts hydrogen into power to generate electricity.


In the first phase of collaboration, Macarthur is expected to be assigned between three to five Lavo 40kWh hydrogen storage units, which will be integrated into the remote worker accommodation facilities.


These facilities are planned to be constructed to support Macarthur’s intended early hematite direct shipment ore (DSO) mining operations at Ularring near Lake Giles.


The Lavo hydrogen storage units are subject to successful project definition and satisfactory supporting economics being assessed and are expected to be installed on site at Ularring by the fourth quarter of this year.


Macarthur Minerals CEO Andrew Bruton said: “The first stage of the agreement will allow Macarthur to work with Lavo in the early stages of project planning at Ularring for DSO, so that we can examine opportunities for the scale-up of an integrated hydrogen energy technology solution on-site at Moonshine for the magnetite.


“By adopting this staged approach and becoming an ‘early follower’, rather than a ‘first adopter’, Macarthur will have the opportunity to contain technology, capital and pricing risk so as to ensure that it achieves the lowest possible levelised cost of energy delivery for its magnetite processing.”


The successful trial programme at Ularring will enable Macarthur and Lavo to examine opportunities for developing a fully localised micro-grid engineering solution.


The solution includes a solar PV array, a centralised hydrogen hydride containerised storage system and a fuel cell to support the energy requirements for Macarthur’s iron ore mine at Lake Giles.


This could involve the integration of containerised 13MWh ‘HEOS’ hydrogen energy batteries, potentially delivering energy to the company’s magnetite operations at a commercial scale.


The batteries are currently being developed by Lavo.

24 may | pricing

China urges metals industry to curb price inflation


Following an industry meeting on Sunday, the Chinese Government has urged its mining sector to work together and step away from speculation and price inflation, with global metal demand left in flux by the Covid-19 pandemic.


The meeting, chaired by China’s National Development and Reform Commission (NDRC) and five other state bodies, included a number of private steel, iron, and aluminium producers, who were urged to not further drive up metals prices, which have risen sharply this year.


Between 4 January and 10 May, the price of aluminium on the London Metals Exchange (LME) jumped from $2,014 per tonne to $2,565. Meanwhile, the LME price of copper cracked $10,000 per tonne in May, with the metals industry’s leaders eager to benefit from uncertainty in the global mining supply chain.


This steady increase is not exclusively linked to the work of Chinese companies, with stalemates such as the China-Australia trade freeze helping to inflate prices. However, the Chinese Government is keen to see Chinese companies work to limit price inflation.


Following the meeting, the NDRC published a statement on the commission’s website highlighting the need for strong legal compliance and mutually-beneficial cooperation.


“The meeting requested that relevant key enterprises should improve their positions, establish awareness of the overall situation, actively fulfil their social responsibilities, promote the coordinated development of upstream and downstream industries, and maintain a good industry ecology” said the NDRC in the statement.


“Key industry associates must not collude with each other to manipulate market prices, fabricate and spread information about price increases, and must not hoard commodities and drive up prices.”


The commission also highlighted that authorities will be empowered to investigate and punish activities such as building monopolies and spreading false information, as part of the government’s “zero tolerance” approach to illegal industrial work.


The announcement appears to have had the desired effect, with the BBC reporting that the LME price of both copper and aluminium fell by 1.6% and 1% this morning, respectively. The statement and its impacts highlight the influence of China on the global metals industry, as one of few countries to have weathered the storm of Covid-19 unscathed, at least in terms of sheer production.

In brief

Asante Gold to acquire eight Ghanaian prospective concessions from Goknet


Canada’s Asante Gold has secured the recommendation notice to acquire eight highly prospective gold concessions located on Ashanti and Asankrangwa Gold Belts in Ghana.

Sokoman and Benton alliance acquires Canada’s Grey River gold project


Sokoman Minerals and Benton Resources have jointly acquired the Grey River Gold Project located in southern Newfoundland, Canada.

Rio Tinto starts drilling at Madison copper-gold project in US


Rio Tinto has started drilling work at American Pacific Mining’s Madison copper-gold project in Montana, US, with the first diamond core drill having arrived on-site this week.

Bravus loses court challenge for Carmichael coal mine water permit


Adani Group’s Australian division Bravus Mining & Resources has lost a case related to the North Galilee water scheme at the Carmichael coal mine in Queensland, Australia.

Wyloo Metals plans takeover bid for Noront Resources


Australia-based Wyloo Metals is planning to make an offer to acquire the outstanding common shares of Noront Resources it currently does not own, valuing the Canadian firm at $110.3m (C$133m).