Arc Minerals and Anglo American form joint venture for Zambia copper exploration 

Base-metals focused exploration firm Arc Minerals and Anglo American have signed a joint venture (JV) deal to explore for copper and cobalt in Zambia. 

With the deal, Anglo American will have the right to retain a stake of 70% in the JV for an aggregate investment of up to $88.5m, including a cash consideration of up to $14.5m. The deal marks Anglo’s first new investment in Zambia in 20 years.

Anglo American will make a $3.5m payment to Arc upon signing of the JV documents that would result in Anglo American and Arc holding 70% and 30% stakes, respectively, in the JV. Furthermore, Anglo American will be able to retain a stake in the JV by spending $74m on exploration within seven years of signing, according to Reuters. 

Already Africa’s second-largest producer of copper, Zambia has set a target to more than triple its annual copper production to three million tonnes a year within the next decade. 

Arc Minerals executive chairman Nick von Schirnding said: “I am delighted to be signing this agreement with Anglo American which will, upon execution and completion of the definitive agreements, result in the potential for significant investment by a reputable major mining company in the tenements in north-west Zambia and a very exciting time ahead for us.” 

Vale, BHP and Rio Tinto select projects in global innovation challenge 

Mining firms BHP, Rio Tinto and Vale have chosen eight winning projects under the Charge On Innovation Challenge, a cross-industry initiative aimed at decarbonising mining operations. 

Launched in 2021, the project aims to help accelerate commercialisation of effective solutions for charging large electric haul trucks to support mining operations. 

The selected firms include ABB, BluVeinXL, Ampcontrol and Tritium, DB Engineering & Consulting, Echion Technologies, Shell Consortium, Hitachi, Siemens and 3ME Technology. 

A total of 21 companies were then shortlisted and invited to present their project details, following which eight were selected as finalists. 

The selected technologies include ABB’s dual charging system solution for stationary and in-motion charging, which is designed to optimise electric mine hauling operation, and Ampcontrol and Tritium’s battery swap solution. 

More than 80 companies submitted expressions of interest for the challenge, which received interest from over 350 companies. By collaborating with interested mining companies, equipment manufacturers and investors, the winning firms will accelerate their technology development to launch zero-emissions fleets. 

First Quantum board clears $1.2bn Zambian copper mine expansion 

The board of First Quantum Minerals has approved two expansion projects in Zambia, a total investment of more than $1.3bn. 

The Canadian firm plans to begin work on both projects with immediate effect: an expansion of the Kansanshi copper-gold mine, which will receive $1.25bn in investment; and an expansion of the Enterprise nickel project, which will receive $100m. 

The expansion project aims to transition the Kansanshi mine’s existing high-grade, medium-scale operation to a medium-grade, larger-scale mining operation to produce a proportion of primary, lower-grade sulphide ores at depth. 

The project will comprise a processing plant with a capacity of 25 million tonnes per annum (Mtpa) and a new larger mining fleet. First Quantum expects the expansion project to boost the Kansanshi mine’s total annual throughput to 53Mtpa. 

As part of the expansion, the company plans to invest $900m in the processing plant and mine fleet. The remaining $350m will be used for pre-stripping of the South-East Dome pit. 

While the Enterprise mine has not yet started production, it is expected to comprise a single, main open pit and an extension to the south-west, and is estimated to have an average production capacity of 30ktpa of nickel in high-grade concentrate.

First Quantum Minerals CEO Tristan Pascall said: “The S3 expansion and the Enterprise nickel project are a key part of our brownfield growth strategy. 

“The Kansanshi mine has been a cornerstone asset for First Quantum for 15 years and the S3 Expansion will expand production and extend the mine life for another two decades.” 

UK imposes sanctions on major Russian steelmaker Evraz 

The UK Government has imposed sanctions on the assets of UK-based steel and mining firm Evraz owing to its strategic significance for Russia’s military offensive against Ukraine.  

Russian oligarch Roman Abramovich, who is already facing sanctions, is the main shareholder of the steel manufacturing and mining company, holding a 29% stake. With main operations in Russia, Evraz is engaged in the production of 97% of all railway tracks used in Russia and 28% of all Russian railway wheels. 

The new sanction bans business by UK citizens or companies with the steel manufacturing and mining company. Together with existing sanctions, the latest move by the UK Government would further deter companies operating in Russia’s strategic sectors. 

The news signifies a change in UK policy towards Evraz. In March 2022, the company said it would not face sanctions as Abramovich did not have “effective control”. 

Under a five-year deal signed in 2012, Evraz supplied railway wheels and “metal” to Russian company UralVagonZavod, a Russia-based firm engaged in manufacturing military tanks. The firm also said that its steel was used only for the “infrastructure and construction sectors”, and not for building military tanks in Russia. 

A person with knowledge of the contracts was cited by the Guardian as saying that provisions limited the two firms to use the steel for civilian use only. 

The UK Government said in a statement: “This is of vital significance as Russia uses rail to move key military supplies and troops to the frontline in Ukraine. These sanctions will further chip away at Putin’s financial reserves and siege economy, and support Ukraine’s continued resistance.” 

Saudi Arabia plans $32bn investment in mining and minerals sector 

The Saudi Arabian Ministry of Industry and Mineral Resources has announced plans to invest $32bn into the mining and minerals sector. 

As part of the plan, the country intends to support the development of nine mining projects for midstream minerals and metals that aim to support the exportation of mineral products. 

According to Saudi Arabia Industry and Mineral Resources Minister Bandar bin al-Khorayef, the government, as part of this project, is currently investing more than $4bn into a steel plate factory, alongside a $2bn factory for electric car batteries. 

The steel plate factory will supply a shipbuilding factory in the King Salman International Complex for Maritime Industries and Services in Ras al-Khair. It will be equipped to serve the shipbuilding, oil and gas, construction and defence sectors. 

Furthermore, the country is implementing other projects for metals production, including aluminium and steel sheets, as well as a copper and zinc refinery. 

According to al-Khorayef, the investments form part of the country’s Vision 2030 plan, which aims to make the mining sector the third pillar of the national industry, in compliance with the objectives of the National Industrial Development and Logistics Programme. 

A total of 145 applications from foreign companies are being assessed by the ministry for exploration licences. The proposed investment is also aimed at helping the country diversify its economy away from oil. 

Al-Khorayef was cited by Reuters as saying in a statement: “These targeted investments represent an important ‘down payment’ in our efforts to move beyond exploration and extraction and into the creation of integrated value chains, a central focus of our overall mining strategy.” 

Glencore to invest $200m in Canadian battery recycler Li-Cycle 

Miner and commodity trader Glencore has made a $200m investment in Canada-based lithium-ion battery recycler Li-Cycle The investment by the mining firm will be made by subscribing to convertible debt in Li-Cycle. 

As part of the deal, Glencore will collaborate with the battery recycler to advance circularity in battery supply chains for the electric vehicle industry. Li-Cycle will become a preferred partner for Glencore in the lithium-ion battery recycling sector. 

The two firms also signed a global feedstock supply agreement, whereby the mining company will supply all forms of manufacturing scrap and end-of-life lithium-ion batteries to Li-Cycle. 

Upon closing of the subscription, Glencore will be responsible for procuring feedstock for Li-Cycle’s Spoke facilities, as well as black mass for the Hub facilities. 

Li-Cycle co-founder and CEO Ajay Kochhar said: “We are thrilled to have Glencore as a long-term strategic investor and global commercial partner. Bringing our complementary capabilities together will accelerate the path to a circular economy for critical materials in the lithium-ion battery supply chain. 

“These agreements further secure and diversify our lithium-ion battery supply and feedstock sources, competitively positioning our network expansion in North America and Europe.”