Running discussion on SP, page-48106

*To Remind, In case anyone missed it,

The electric vehicle revolution: Where does Africa fit in?

Commodities earmarked for the green transition – like cobalt, lithium, copper, tin, and manganese – will likely benefit from intensified demand in the medium-to long term.

That’s well established.

Africa, with its rich mineral reserves, will be pivotal to meeting demand in this shift towards greener energy, says Oxford Economics’ Leeuwner Esterhuysen in a research note.

“Various countries across the African continent are poised to participate in the green drive as commodities such as copper, lithium, cobalt, tin, and manganese are bountiful,” he says.

Although the continent’s participation in the drive towards a greener future is all but certain, “adequate investment and effective regulation are required to ensure that Africa shares in the spoils over the next 30 years”.

(The research note doesn’t mention fellow battery metals nickel, graphite and rare earths , which are also well represented in Africa.)



COBALT

The Democratic Republic of Congo (DRC) is a global giant when it comes to production of the battery metal cobalt.

According to the United States Geological Survey, the DRC produced 95,000 tonnes of cobalt in 2020, accounting for 68% of global output.

Other producers on the continent include Morocco, South Africa, and Madagascar.

“In May 2021, Reuters reported that Glencore intends to restart operations at its Mutanda mine in the Katanga Province of the DRC as early as 2022,” Esterhuysen says.

“The mine, which has been on care and maintenance since 2019, is the world’s largest cobalt mine that also produces significant amounts of copper.

“The decision to suspend operations in 2019 was based on soft cobalt prices, rising costs and high taxes.

However, the recent recovery in cobalt (and copper) prices has revived the mine’s economic viability.”

COPPER

Copper is a key input in everything from electric vehicles (EVs) to solar panels and power grids.

The DRC is also the largest copper producer in Africa, accounting for 6.5% of global output last year. Zambia followed with 4.2%.

“Invanhoe Energy’s Kamoa-Kakula project recently started mining copper in the DRC with the initial aim of producing 200,000 tonnes a year,” Esterhuysen says.

“However, Robert Friedland believes that continued exploration could potentially lead to output increasing tenfold as much of the country’s mineral wealth remains undiscovered.”

LITHIUM

In March, Fitch Solutions said it expects to see an increase in lithium development projects in Africa, amid a bullish outlook for a sustained recovery in prices.

“We estimate there are eight lithium mining projects currently in development in Africa – in Zimbabwe, Namibia, Mali, Ghana and the DRC – which is still small relative to the number of projects being developed in the Americas, Australia and Europe, for example,” it says.

“Efforts to diversify lithium sources will attract foreign investment into Africa in the coming years as major economies look to secure lithium for their battery supply chains.”

ASX Lithium Stocks in Africa:

AVZ Minerals (DRC)

Prospect Resources (Zimbabwe), Lepidico (Namibia), Firefinch (Mali) and Arcadia Minerals (Namibia).

TIN

While tin has long been used in the production of electronic goods, more recent research has found that the metal serves as a cost-effective way to increase the amount of energy that lithium-ion batteries can hold, Esterhuysen says.

This means tin can significantly increase the driving range of EVs and allow more efficient renewable energy storage.

In 2020, the DRC produced 17,000 tonnes of tin (6.3% of global output), while Nigeria and Rwanda produced 6,000 and 1,200 tonnes (2.2% and 0.4% of global output), respectively.

ASX Tin Stocks in Africa:

AVZ Minerals (DRC)


*To other News, If we want to compare the difference in Size & Quality of other "Apples v Oranges" prices / grades debate,

As,

Lithium Wrap: Vulcan signs key offtake, Infinity tumbles on permitting issues

Vulcan Energy

Vulcan today announced the signing of a binding lithium offtake with LG Energy Solution – the largest producer of lithium-ion batteries for electric vehicles in the world.

LGES will purchase 5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000 metric tonnes per year during the second and subsequent years from Vulcan’s geothermal lithium brine project in the Upper Rhine Valley, Germany.

“This is the first binding lithium offtake term sheet for the zero carbon lithium project, so it is fitting that it is with the largest EV battery producer in the world,” managing director Dr. Francis Wedin said.

“LGES’s operations are of course global, but it is already producing batteries in Europe.

“The agreement is in line with our strategy to work with tier one battery and automotive companies in the European market.”

The five-year agreement can be extended by a further five years, with the start of commercial delivery set for 2025 and pricing based on market prices for lithium hydroxide.

Infinity Lithium

But it’s not all good news in the lithium sphere.

Infinity’s chances of developing its 75% owned San José lithium project in Spain is looking grim after the General Directorate of Industry, Energy and Mines of the Regional Government of Extremadura (Junta) rejected an appeal against the recent denial of the project’s all important research permit Investigation Permit Valdeflórez (PIV).

The company says the decision is in direct breach of the law and in contradiction of previous rulings by the Junta.

“The administrative and legal resolution in the face of the same facts cannot change its criteria to suit political endeavours and the company is confident of a positive resolution under the rule of Spanish law,” Infinity CEO and managing director Ryan Parkin said.

Lithium Power

The company is gearing up to start an extensive exploration and drilling program across its WA lithium tenements — particularly those immediately adjacent to the large Greenbushes lithium mine.

A detailed magnetic survey is planned for September 2021 over the ‘Blackwood’ prospect, which mapping has shown contains pegmatites.

A detailed fauna survey and assessment will commence at East Kirup in August 2021 with an initial 1600m RC Drilling program to follow at the East Kirup lithium anomaly in December.

A further 1600m RC program is currently pending approval at East Kirup.

“We are excited about the upcoming planned exploration and drilling campaigns at the Greenbushes project, where we have several interesting targets that justify drilling to establish characteristics of the pegmatite mineralisation,” LPI’s chief executive officer Cristobal Garcia-Huidobro said.

“We consider the Greenbushes properties to be highly attractive for lithium pegmatite discoveries and we’re looking forward to updating the market with the results as they come to hand.”

Essential Metals

The explorer is starting 5,000m air-core/hammer drilling program this week to test for new lithium-bearing pegmatites near ‘Dome North’ lithium deposit at its Pioneer Dome lithium project in WA.

The aim is to explore for further spodumene-bearing pegmatites and expand the existing 11 million tonne mineral resource base to a sufficient size to support a standalone mining operation.

“This drill program is based on a new interpretation of the basement geology in the Dome North area which shows strong potential for LCT pegmatites in previously untested areas,” managing director Tim Spencer said.

“The existing mineral resource of 11.2Mt at 1.21% lithium (Li2O) at Dome North currently centres on three NNE-SSW striking, outcropping pegmatites which are spaced at approximately one-kilometre intervals.

“This next phase of drilling will test a number of highly promising locations between and along strike of these pegmatites.”

Assay results are expected towards the end of September.


*To Europe and Serbia - A landlocked country situated at the crossroads between Central and Southern Europe, Serbia is located in the Balkan peninsula and the Pannonian Plain.


Lithium and borate explorer Balkan Mining and Minerals rockets on ASX debut

Balkan Mining and Minerals has exploded on debut, rocketing 80% to 36c on its first day as an ASX-listed company.

Balkan Mining and Minerals, which was spun out of Jadar Resources, a 22% holder) and backed to the tune of a $2m cornerstone investment from Sandfire Resources, raised $6.5m at 20c in its IPO.

Other noteworthy inclusions to the register include John Langley Hancock, the son of billionaire Gina Rinehart and grandson of the mining magnate Lang Hancock.

It is now trading way above that, giving the lithium and borate explorer the ideal start to exploration activities on its Rekovac lithium and borate project in the Tier 1 Vardar Zone of Serbia.

Around 2.6 million shares in the hot stock changed hands on its first day of trade, or around $884,000 worth.

Rekovac project ready to be explored

Rekovac has similar geological settings to Rio Tinto’s world-class Jadar discovery, which contains a mammoth ore reserve of 16.6Mt at 1.81% lithium oxide and 13.4% boron trioxide.

Rekovac contains three contiguous exploration licences in the Pomoravlje district of Sumadija and Western Serbia over 273km2 around 20km from Jagodina, the region’s administrative centre.

Balkan Mining already has a leg up from Jadar’s recent work on the project.

Drilling by Jadar identified a number of broad zones of borate-bearing sediments and an upper zone characterised by irregular crystalline aggregates, patches and veinlets of searlesite and a lower zone by disseminated searlesite grains.

Jadar completed two deep drill holes of around 600m in depth, with one striking a pair of intervals including 0.6m at 16,454ppm B2O3 and 474ppm Li2O from 515.9m and 1.9m at 12,349ppm B2O3 and 484ppm L2O from 578.5m.

These confirmed the potential for the site to host a significant mineralised system.

Exploration by Balkan over the next two years will include planning, acquiring and interpretating new gravity and magnetic data; detailed geological mapping and relogging of drill core; and drilling to test targets developed by the previous work.

Dobrinja and Pranjani

Balkan also holds the Dobrinja and Pranjani licences around 90km southwest of Belgrade, the Serbian capital.

Earlier studies carried out by the Yugoslavian Geological Survey identified favourable lacustrine strata for hosting lithium and boron within the licenced areas, which was followed up by Jadar´s desktop studies that identified the basin’s potential.

No exploration has been undertaken yet on either Dobrinja or Pranjani, with Balkan planning to focus on target generation using regional geophysics, geological mapping and surface sampling followed by drill testing of the targets if early findings warrant it.










Food for thought on the Road to Mining Manono ( Again )

Frank