ISA's deep-sea mining talks resume| EU's final green light to Critical Raw Materials Act
Weekly mining & batteries updates (Mar 18 - 24)
What's big this week?
Minerals/Mining: Deep-sea mining talks resume; EU's final green light for its Critical Raw Materials Act; Biden's $6B for hard-to-abate industries (incl. metal smelters); lithium prices picking up
Environment: Glencore sees CO2 emissions rise; Vale's £3bn lawsuit; Anson Resources' DLE project's water concerns.
Minerals/ Mining
Deep-sea mining is all over the headlines again…
What happened?
The International Seabed Authority (ISA) Council began its 29th session on March 18, 2024, initiating two weeks of discussions on draft exploitation regulations for mineral resources in the international seabed area.
Negotiations resumed on an international deep-sea extraction code to permit commercial extraction in international waters. The ISA aims to finalize the code by 2025.
You may recall from last week’s update: Two republicans representatives urged funding for deep-sea mining in a new bill, pushing for federal agencies to ‘provide financial, diplomatic, or other forms of support for seafloor nodule collection, processing and refining where upstream sourcing is compliant with regulations.’
Why it matters?
(It is believed that) continental extraction is unable to meet the growing demand for minerals to fuel the energy transition.
National security concerns, i.e., a new pathway for the US to counter China's mineral dominance.
More context:
There are currently a total of 30 valid exploration contracts granted by the ISA.
Some amazing graphics from Benchmark:
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The EU Council has given final approval to its Critical Raw Materials Act (CRMA) which aims to diversify its mineral supply chain. The act, officially adopted last Monday, identifies 34 critical and 17 strategic materials crucial for green and digital transitions, defense, and space industries.
It establishes three benchmarks: 10% of supply from local extraction, 40% processed in the EU, and 25% from recycled materials.
New mining projects should receive permits within 27 months, recycling and processing projects within 15 months, with "limited exceptions" for complex projects to ensure engagement with local communities and environmental assessments.
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The Biden administration is granting $6 billion to reduce emissions from hard-to-decarbonize industries, including funding for the first new US aluminum smelter in 45 years. Century Aluminum Co. could receive up to $500 million for this facility, doubling domestic production while cutting emissions by 75%.
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Zijin Mining Group, one of China's largest listed miners, cautions that US-led efforts to contain Beijing's control of minerals could hinder its global expansion. Zijin's Chairman notes that the company is anticipated to be targeted amid increasing geopolitical tensions, owing to its prominent industry position and acquisition plans.
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Chinese lithium prices recovered further in early March and reached their highest level in three months due to rising demand from cathode makers. Lithium hydroxide prices rose substantially, driven by increased production plans for high-nickel NCM cell cathodes. Electric vehicle manufacturers are focusing on capturing market share, especially in the premium segment where these chemistries are popular.
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Rio Tinto allocated $350 million for its Rincon lithium project in Argentina, showing its commitment to commence production by the end of the year. Rio Tinto acquired the Rincon project from Rincon Mining for $825 million in 2022 and aims to establish a battery-grade lithium carbonate plant capable of producing 3,000 tonnes annually.
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Management of radioactive waste in Western rare earths development would be essential, as highlighted by Benchmark’s new Rare Earths ESG report. Processing one kilogram of rare earth oxide generates nearly 1-kilo becquerel uranium-235 equivalent of ionizing radiation. Storage is the only way to prevent this and its potential health risks such as cancer, leukemia, and birth defects. However, only 17% of active rare earth miners adhere to the Global Industry Standard on Tailings Management.
Environments
Glencore sees CO2 emission rise in 2023 due to expanded coal production and restarting an oil refinery in South Africa. Glencore claims it is on track to reduce emissions by 15% from 2019 levels by 2026, and it has surpassed its initial target, achieving nearly a 22% reduction in total emissions.
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Vale faces a £3bn lawsuit in the Netherlands from 77,000 claimants over the 2015 Mariana dam collapse, adding to ongoing legal action against its partner BHP in the UK courts for the same disaster.
Mariana Dam is jointly owned by Samarco (a Vale and BHP joint venture) and the federal government. In 2015, the collapse of the dam released around 50 million cubic meters of toxic waste, leading to one of Brazil's worst environmental disasters, claiming 19 lives, while the toxic sludge traveled 700km, damaging infrastructure, wildlife, and lives along its path to the Atlantic Ocean.
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Anson Resources' direct lithium extraction project's recent water spill in southeastern Utah has raised concerns among environmentalists about potential risks to groundwater and surface water supplies. An exploratory well at the Green River Lithium Project overflowed with "mildly brackish" water on March 8, totaling nearly 10,000 barrels from an aquifer 1,500 feet underground, according to A1 Lithium, a subsidiary of Australian company Anson Resources.
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