May 17, 2020

Mongolia to sell stakes in Tavan Tolgoi coal mine

Mongolia
Tavan Tolgoi coal mine
Coal
mine sites
Admin
2 min
Mongolia to sell stakes in Tavan Tolgoi coal mine
Mongolia is looking to sell stakes in 10 state-owned enterprises this year, including stakes in the $4 billion Tavan Tolgoi coal mine, as the country se...

Mongolia is looking to sell stakes in 10 state-owned enterprises this year, including stakes in the $4 billion Tavan Tolgoi coal mine, as the country seeks to revive growth and boost investment, according to Bloomberg.

The Mongolian government is looking to entice overseas investment for its natural resources, which is estimated to be worth $1.3 trillion. Selling stakes in the mine is crucial for Mongolia to concert is mineral wealth into economic gains following two years of slowing growth in gross domestic product, plummeting foreign direct investment and rating agency downgrades.

"We are seeing the next year with much more optimism” after growth slows to 5.3 percent in 2015, Prime Minister Chimed Saikhanbileg said in an interview in London.

• Related content: [SLIDESHOW] Gold Rush: The 'Ninja' Miners of Mongolia

As one of the world’s largest untapped coking and thermal coal deposits, Tavan Tolgoi is estimated to contain 7.4 billon tons of reserves. Efforts to secure a deal for the project, however, have remained mostly deadlocked.

In April, Mongolia’s parliament canceled a deal with a consortium of foreign firms to develop the giant coal mine and in 2011 the country’s National Security Council rejected a deal with US-based Peabody Energy, China’s Shenhua and a Russian-Mongolian consortium.

Byambasaikhan Bayanjargal, the chief executive of Erdenes Mongol LLC which controls the massive coal deposit, said in May a deal to develop the Tavan Tolgoi mine is expected to be reached within the next two months. According to Bayanjargal, about 20 to 30 percent of the mine could be offered to international investors in London or Hong Kong in the next two to three years.

The Tavan Tologi coal deposit is divided into six sections: Ukhaa Khudag, Tsankhi, Bor tolgoi, Bortee and southwest and eastern coalfields. 

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Jul 20, 2021

British Lithium Pressured Due To Calls for Electric Cars

BritishLithium
mining
Lithium
Sustainability
3 min
The ever-increasing need for electric vehicles is mounting pressure on British Lithium as the 2035 deadline inches closer

The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change. 

It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.

British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad. 

Competition For Lithium Rises In Europe 

After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company. 

“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”

Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector. 

Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial. 

Cornish Mining Revival For Lithium Production

“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”

The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction. 

Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably. 

“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.

“Europe from a strategic point of view should be looking at securing its own supply of lithium.”

Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK. 

“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”

Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.

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