EU adds 13 critical mineral projects outside the bloc to boost supply
The European Commission has added 13 strategic projects located outside the bloc to its list of priority initiatives under the Critical Raw Materials Act (CRMA), aiming to secure long-term supply of raw materials.
The newly announced project list, spanning Africa, the Americas, Europe and overseas territories, complements the 47 strategic projects within the EU announced in March, bringing the total number of designated projects to 60.
The newly designated projects are located in Canada, Greenland, the UK, Norway, Kazakhstan, Serbia, Ukraine, Brazil, Zambia, Madagascar, Malawi, South Africa and New Caledonia.
Ten of the projects focus on critical battery materials such as lithium, nickel, cobalt, manganese and graphite. Two are centred on rare earth elements, including Frontier Rare Earths’ Zandkopsdrift project in South Africa and Mkango Resources’ Songwe Hill project in Malawi.
“Combined with the three strategic projects in the EU that cover the processing of rare earths, these additional strategic projects will be able to increase the EU's security of supply of rare earths,” the Commission stated.
Mkango CEO William Dawes welcomed the strategic designation, noting that the Songwe Hill project would play a key role in diversifying and securing rare earth supply chains for Europe and other international markets.
The project has an 18-year mine life, with the production of a mixed rare earth carbonate (MREC) containing about 1 953 t/y of neodymium/praseodymium oxides and 56 t/y of dysprosium/terbium oxides over the first five years of full production.
Mkango’s Pulawy separation plant in Poland, which will process MREC from Songwe, was similarly designated a strategic project by the EU in March.
Together, the Songwe and Pulawy projects provide an integrated mined and refined rare earth supply chain, with both now benefitting from coordinated support from EU member States and financial institutions.
Mkango is also progressing a proposed merger of its subsidiary Lancaster Exploration with Crown PropTech Acquisitions, a transaction that would see Lancaster – holder of both Songwe and Pulawy – listed on Nasdaq as a vertically integrated rare earths company.
In Zambia, Kobaloni Energy received backing for its cobalt refinery. "Our project is well advanced, and we look forward to working with the Commission and our commercial partners to accelerate its development to provide customers in Europe and around the world with a secure and traceable supply of battery grade cobalt to diversify global supply chains," said Kobaloni CEO Johnny Velloza.
“Being selected by the European Commission as a critical raw material project is an important endorsement of Kobaloni and the work we have already done to develop Africa’s first cobalt refinery in Zambia."
Further, the EU designated Aim-listed GreenRoc Strategic Materials’ Amitsoq graphite project, in Greenland, as strategic. CEO Stefan Bernstein said the designation was a recognition of the merit of the Amitsoq project’s importance to the European industry.
“Amitsoq is the first and to date the only minerals project in Greenland to achieve strategic project status. From the EU press conference today we understand that Stéphane Séjourné, EU Commissioner (executive VP) for Prosperity and Industrial Strategy, anticipates a visit to our Amitsoq project this year.”
Meanwhile, the Commission estimates that the 13 international strategic projects will require a total capital investment of €5.5-billion to bring into operation. Efforts will also be made to deepen cooperation with host nations, especially where strategic partnerships already exist for raw materials value chains.
The CRMA, which came into force in May 2024, establishes a framework to identify, support and accelerate projects critical to the EU’s strategic autonomy in raw materials.
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