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Mine developer signs new deal for potential refinery

  • Market: Battery materials, Metals
  • 22/08/24

Canada-based mine developer Fortune Minerals entered into a new option agreement with JFSL Field Services to purchase a brownfield industrial site to build a refinery that would turn out cobalt, bismuth and copper products.

Fortune can acquire the property in Alberta's Lamont County by paying C$6mn ($4.4mn) before November 2025, the company said this week. It must make monthly payments of C$100,000 that will go toward the purchase price, as a condition of the deal.

Fortune has paid JFSL a little more than C$1.4mn for the site so far, and that total will be deducted from the overall purchase price as well. The two had entered into a previous option agreement that expired in July after being extended more than once.

JFSL will be allowed to market the site to other prospective buyers during the option period, but Fortune will have a 90-day right of first refusal to match any offer. Additionally, JFSL has the right to continue using the property and its existing facilities for 18 months following a sale to Fortune.

Fortune touts that the 77-acre property, which previously contained a steel fabrication plant, is near rail lines, reagents key to the potential refinery's function and skilled labor from the existing petrochemicals industry in the area.

Fortune expects to refine concentrates from its NICO critical minerals project in the Northwest Territories into 8,780 metric tonnes/yr of cobalt sulphate, 1,700 t/yr of bismuth ingots and 300 t/yr of copper in cement precipitate.

Fortune also has a collaboration in place to potentially extract cobalt and bismuth from waste streams from mining conglomerate Rio Tinto's smelter in Utah that pulls ore from its Kennecott copper mine.

Development of the mine, which is anticipated to utilize open-pit and underground mining methods, has yet to begin with Fortune awaiting a final project construction decision. Fortune received federal funding from both the Canadian and US governments to complete a new feasibility study and other work that is needed before that determination can be made. That process is expected to take 20 months.

Fortune also still needs to line up construction financing for the mine and refinery, which are estimated to cost C$770mn. It predicts establishing the mine would take two years, while the refinery would take 18 months.


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14/10/24

India industries confident of 2030 renewable energy aim

India industries confident of 2030 renewable energy aim

Mumbai, 14 October (Argus) — Indian industries are confident about reaching the country's renewable energy target of 500GW by 2030, senior executives said at the Financial Times' Energy Transition Summit in New Delhi last week. This is especially given strong capacity installation of solar and wind projects in the coming years, delegates heard. India's renewable energy capacity stands at 199.5GW as of August, a rise of 12pc on the year, data from the Central Electricity Authority show. "India's [renewable] power sector has already grown at a [compound annual growth rate] of nearly 20pc in the last 10 years … The pace at which some of the bids are coming, we should reach 500GW by 2030," said domestic utility Tata Power's chief executive officer Praveer Sinha. A record 69GW of renewable energy tenders were issued during the April 2023-March 2024 fiscal year, surpassing the government-mandated target of 50GW. Tata Power is operating 4.5GW installed capacity of renewable energy that produced 64.6Th of electricity in the April 2023-March 2024 fiscal year. It aims to add another 5GW of installed capacity in the coming years, underscoring its commitment to providing round-the-clock renewable energy through solar, wind, and pumped hydro storage projects, Sinha added. Indian steel manufacturer ArcelorMittal Nippon Steel (AMNS) also plans to add 1GW/yr of renewable energy capacity for its captive power consumption, managing director Dilip Oommen said. AMNS has developed a 975MW hybrid renewable energy project at Alamuru village in India's southern state of Andhra Pradesh. The project will generate 661MW of solar and 314MW of wind power capacity, which will be integrated with a pumped hydro storage facility owned by renewables developer Greenko to overcome the intermittent nature of wind and solar power generation, ensuring round-the-clock power. Power generated from the solar and wind sites will be connected from Andhra Pradesh's Kurnool district via a 400kV interstate transmission system up to AMNS' Hazria facility. The firm is also considering using hydrogen in its electric arc furnace, but remains skeptical about the cost economics. "At present, the cost of hydrogen is $3.50/kg," Oommen said, adding that if this falls below $2/kg, it would be feasible for commercial use at its facilities. The reduction in the cost of renewable power generation over the last few years has also raised interest in the sector, incentivising the coal-dominated eastern regions of India to adopt renewables, said Indian independent power provider Ampin Energy's chief executive officer Pinaki Bhattacharya. The domestic steel sector, one of the country's largest carbon emitters, is looking at ways to reduce emissions in light of the policies under the EU's carbon border adjustment mechanism (CBAM), which will take effect on 1 January 2026. This was echoed during a session on 9 October when India's finance minister Nirmala Sitharaman noted that India has been consistent in promoting domestic investment in renewables and establishing transmission lines. But she described CBAM as "a trade barrier" that could hurt investment in India's heavy industries and hinderthe country's transition away from fossil fuels. CBAM is a "unilateral" and "arbitrary" measure, which would "not be helpful" for India, she said, adding that India's concerns "would definitely be voiced" with the EU. Her sentiments were in line with that of commerce minister Piyush Goyal, who said last year that India will not accept any unfair taxes on steel that the EU imposes under the CBAM. Coal to renewables switch "We are not on track yet to displace coal," said Indian not-for-profit thinktank Centre for Science and Environment's director general Sunita Narain, when asked about India's transition from coal to renewables, considering that coal still dominates the country's electricity mix. Renewable energy generation capacity has currently increased to 13pc of the total electricity mix, but the country needs to hit the 35pc target by 2030, she added. India's power generation continues to rely on coal because of an abundant supply of the fuel as well as its cheaper price over other alternatives. Out of India's total installed capacity of 451GW, coal comprises 48.27pc, followed by solar at 19.84pc and wind at 10.47pc, as of August, data from government think tank Niti Aayog show. By Ankit Rathore Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Korea's Posco starts output at new NCA cathode plant


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14/10/24

Korea's Posco starts output at new NCA cathode plant

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11/10/24
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11/10/24

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Malaysia starts AD investigation on wire rod imports


11/10/24
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11/10/24

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Mexico’s Sep inflation slows with energy prices


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10/10/24

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