Weekly Metals News Digest – June 17-21
Norway's Potential Entry into the Rare Earths Market
Fen Deposit Development by Rare Earths Norway (REN)
Norway could become a significant producer of rare earth metals through a project led by Rare Earths Norway (REN) to develop the large Fen deposit. Fen, an ancient volcano with magma rich in carbonates, contains substantial rare earth elements. Historically, iron ore was mined there from 1657 to 1927, and niobium from 1953 to 1965.
Exploration and Resource Estimates
REN has conducted detailed exploration over the past three years, estimating a rare earth resource of 8.8 million tons at an average grade of 1.57%. This makes Fen potentially the largest rare earth deposit in Europe, with reserves extending to a depth of 468 meters and potentially deeper.
Strategic Importance for Europe
Europe heavily depends on rare earth imports from China for producing permanent magnets used in electric cars and wind turbines. REN plans to conduct further drilling to better estimate the reserves and decide on starting mining operations.
Rio Tinto's Possible Revival of Serbian Lithium Project
Jadar Project Resumption
Serbian President Aleksandar Vucic plans to authorize Rio Tinto to resume its Jadar project, which involves developing the lithium-rich Jadar deposit. Discovered in 2004, this deposit contains the unique mineral jadarite, a compound of boron, silicon, lithium, and sodium.
Initial Suspension and Current Developments
Initially scheduled to start mining in 2026, the project faced public protests over environmental concerns, leading to its suspension in 2021 and the revocation of its permit in 2022. This year, Rio Tinto has provided environmental safety guarantees, and authorities now expect the mine to start operations by 2028.
BHP Group's Expansion Plans in Australia
Copper Production Goals
BHP Group aims to significantly increase its copper production in Australia, targeting 700 thousand tons in the long term. Currently, the company plans to reach 310-340 thousand tons.
Development Projects
BHP Group operates three copper mines—Carrapateena, Prominent Hill, and Olympic Dam—along with the Oak Dam deposit. The company plans to develop a mine at Oak Dam and expand the processing plant at Olympic Dam. A new metallurgical plant to smelt pure copper is also under consideration.
Market Demand and Strategic Goals
BHP's ambitious goals are driven by the growing demand for copper from electric car manufacturers and renewable energy projects. This trend is expected to continue, increasing the demand for copper.
Elemental Strategic Metals' Recycling Initiative in Poland
New Recycling Plant Launch
Elemental Strategic Metals has opened a recycling plant in Poland to process non-ferrous and precious metals, including lithium-ion batteries from electric vehicles and various catalysts. The plant will extract metals like platinum, palladium, rhodium, lithium, cobalt, and nickel, with copper and nickel as by-products.
Investment and Future Plans
The project involved a capital investment of 138.6 million euros, funded by the Polish Development Fund, International Finance Corporation, and the European Bank for Reconstruction. Elemental Strategic Metals plans to establish similar facilities in Europe, with a new plant in Germany set to open in 2025 in partnership with Ascend Elements.
Global Copper Smelting Trends
Increased Production
Global copper production has shown positive momentum. From January to April this year, copper ore production increased by 4.9% to 7.329 million tons, according to the International Copper Study Group. This rise is attributed to improved utilization of mines in Chile, Indonesia, Peru, and the U.S., and the expansion of the Kamoa mine in the Congo.
Refined Copper Output
Refined copper output rose by 5.5% to 9.155 million tons, driven by higher production in Asia, particularly in China (6%), Japan (3%), and the U.S. (2.9%). However, production decreased in the European Union (6.3%) and Chile (4%) due to high electricity costs.
Utilization Rates and Future Demand
The utilization rate of refined copper smelters was 8.48% for the first four months, up from 82.7% in the same period last year. The International Copper Study Group forecasts global copper consumption to reach 27.118 million tons in 2024 and 27.793 million tons in 2025.
Demand for Copper on the Rise
Market Dynamics and Forecast
Global copper consumption grew by 4% to 8.856 million tons from January to April 2024, driven by a 6.5% increase in demand in China, where imports surged by 28%. However, consumption remained weak in the European Union, Japan, and the U.S., resulting in a market surplus of nearly 300 thousand tons.
Influencing Trends
The ongoing growth in electric vehicle production and the construction of solar and wind power plants, especially in the European Union, are key drivers of copper demand. These trends are expected to continue, potentially leading to a copper shortage, despite the development of new mines and smelters.
These insights highlight the strategic initiatives and market dynamics shaping the metals industry, with significant investments in production capabilities, technological advancements, and sustainability efforts driving the future of global metal markets.
