Behre Dolbear will be attending 121 Mining Investment in Cape Town, 5-6 February 2024.
Behre Dolbear will be attending Mining Indaba in Cape Town, 5-8 February 2024.
HEADLINES
China’s JCHX Plans to Pay USD2 for 80% of Zambia's Lubambe Copper Mine
Thailand aims for lithium output in two years, boosting EV ambitions
Doubling The Critical Mineral Potential Of Saudi Arabia
Youth Center and Vale in Oman partner to launch mining and mineral exploration program for young professionals
Chinese companies to invest up to $7bn in Congo mining infrastructure
Guatemalan Ministry of Mines to review all mining licenses
Alphamin’s tin output rises again in 2023, new mine to begin production April
China’s JCHX Plans to Pay USD2 for 80% of Zambia's Lubambe Copper Mine
(Yicai) Jan. 22 -- JCHX Mining Management said the Chinese contractor plans to acquire an 80 percent stake in Zambia’s Lubambe Copper Mine, which is technically insolvent, for just USD2, with the aim of turning around its namesake mine.
JCHX will set up a project company to buy the stake for USD1 from a unit of private equity firm EMR Capital, the Beijing-based company announced late yesterday. The other USD1 will buy the target firm’s USD857 million debt from the seller.
The Zambian government's investment company owns the other 20 percent of Lubambe Copper Mine, JCHX noted.
JCHX said it may need to invest about USD305 million in Lubambe Copper Mine to fund a technological upgrade and daily operations at the mine.
At full capacity, the mine should achieve an average after-tax profit of USD12.7 million a year based on USD8,300 per ton of copper and a 14-year scheduling period, resulting in an after-tax payback period of nearly seven and a half years, it said.
Thailand aims for lithium output in two years, boosting EV ambitions
THAILAND hopes to start producing lithium from a mine in its southwest in about two years, boosting its ambitions to become a regional electric vehicle (EV) production hub, according to government and company officials involved in the project.
The silvery-white element is a key metal for EV batteries and establishing lithium mines would put Thailand in a unique position compared to other major producers because it is also developing an EV production industry, including US$1.44 billion in investment commitments from Chinese carmakers.
Miner Pan Asia Metals is preparing to submit mining licences in March for the Reung Kiet project in Thailand’s Phang-Nga province that consists of the prospective Reung Kiet and Bang I Tum sites.
Pan Asia’s chairman and managing director Paul Lock told Reuters the company is “optimistic” about starting lithium chemical production from Reung Kiet by early 2026.
Thailand’s Department of Primary Industries and Mines (DPIM) forecasts that the Reung Kiet site could produce about 164,500 tonnes of lithium carbonate, used in lithium iron phosphate batteries for EVs.
The Reung Kiet resource could translate into enough lithium for at least one million EV batteries of 50 kilowatt-hour capacity, the DPIM’s director general Aditad Vasinonta said, adding that mining could begin there in about two years.
Doubling The Critical Mineral Potential Of Saudi Arabia
A Saudi miner handles a freshly made 17kg brick of gold during a press tour at the Al-Amar Gold Mine.
In Saudi Arabia, a land endowed with rich natural resources, but especially renowned for its oil reserves, our ambition is to make our minerals industry the third pillar of the economy. That aim has come a step closer following the near doubling of our assessment of how much mineral wealth lies beneath the Kingdom in the Arabian Shield.
Five years ago, our journey to uncover the untapped mineral wealth in the Kingdom's began.
At that time, our mineral potential assessment promised $1.3 trillion of minerals such as copper, phosphate, gold and zinc awaiting exploration. However, we knew there were even more abundant resources waiting to be discovered – many of which are the minerals the world is counting on to deliver the cleaner energy technologies needed to meet the goals of the Paris Agreement.
We began this journey by comprehensively revamping our Mining Investment Law. No less than the U.S Department of Commerce has lauded for “[Facilitating] investor access to financing and supports exploration and geological survey activities.”
Youth Center and Vale in Oman partner to launch mining and mineral exploration program for young professionals
Muscat – Aiming to build national capabilities that will propel Oman towards further economic prosperity, Vale in Oman has partnered with the Youth Center to launch a specialized training program in mining and mineral exploration. The initiative, running from March to May 2024, will target 80 young individuals between the ages of 18 to 34, including students, job seekers, and professionals from various sectors.
The extensive two months program will encompass critical subjects such as geology, exploration techniques, mining equipment, safety protocols, and environmental sustainability. It aims to equip participants with the skills necessary to lead a thriving career within the Sultanate’s burgeoning mining and mineral industries, while contributing to the diversification of Oman’s economy.
Nasser Al Azri, CEO of Vale in Oman, said, "By focusing on youth empowerment and skill development in mining and mineral sectors, we are investing in the future of Oman. Our commitment to offering training programs like these aligns with national goals to inspire youths and build a skilled workforce that will significantly contribute to the country’s ongoing growth.”
Chinese companies to invest up to $7bn in Congo mining infrastructure
Chinese construction companies will invest up to $7 billion in infrastructure projects as part of an agreement over their Sicomines copper and cobalt joint venture in the Democratic Republic of Congo, they said on Saturday.
Both parties agreed to maintain the current structure of the shareholding, while the Chinese partners, Sinohydro Corp and China Railway Group Limited, will pay 1.2% of royalties annually to Congo, according to a statement.
President Felix Tshisekedi’s government had been revisiting the deal struck by his predecessor Joseph Kabila under which the Chinese partners agreed to build roads and hospitals in exchange for a 68% stake in the joint venture with Congo’s state mining company Gecamines.
Under the deal, the Chinese investors committed to spending $3 billion on infrastructure projects, but the state auditor – Inspection Generale des Finances (IGF) – last year demanded that commitment be increased to $20 billion.
Tshisekedi instructed his government to hold talks with the investors ahead of a visit to China in May 2023. He had aimed to boost Congo’s stake in the joint venture to 70% from 32%.
Guatemalan Ministry of Mines to review all mining licenses
The Guatemalan Ministry of Energy and Mines (MEM) will revise all decisions made in the recent past related to mining exploration, exploitation and export licenses.
According to local media, the new head of the MEM, Víctor Hugo Ventura, announced the measure in response to multiple complaints regarding bribes, corruption and other illegal activities taking place within the country’s mining sector.
Talking to journalists, Ventura noted that mining started in Guatemala 70 years ago and that all decisions that are made regarding the sector will balance out the social, economic, environmental and financial costs and benefits.
To deal with bribery and corruption accusations, the minister requested the support of the Comptroller General of Accounts, as well as information from interested parties, including countries such as the United States of America.
Ventura recalled that back in 2022, the US applied sanctions to the export licenses of Compañía Guatemalteca de Níquel (CGN), Compañía Procesadora de Níquel de Izabal (ProNiCo) and Mayaníquel, which are subsidiaries of the Swiss-based Solway Investment Group. These sanctions were lifted on the third week of January 2024 and Guatemalan authorities are asking for further information to re-authorize their operations.
Alphamin’s tin output rises again in 2023, new mine to begin production April
Canadian tin producer Alphamin Resources (TSXV: AFM) produced a record 12,568 tonnes of the metal in 2023, up 1% from the prior year, the company said on Friday. Production during the fourth quarter reached 3,126 tonnes, also a 1% year-on-year improvement.
Alphamin currently produces about 4% of the world’s tin from its high-grade Mpama North mine in the Democratic Republic of Congo. It is also developing the nearby Mpama South expansion project, which is expected to increase annual tin production by 60% once its up and running.
In its results release, Alphamin said the initial development of Mpama South has already been completed on time. The underground development should ensure sufficient developed mineral resources to ensure adequate stockpiles ahead of the processing plant’s commissioning, which will then allow for a rapid ramp-up of tin production.
The processing plant mechanical erection and installation is essentially complete with the main outstanding work relating to completion of the installation of electrical cabling, the installation of instrumentation and the commissioning of the plant, the company said.
