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The Star
7 days ago
- Business
- The Star
Peru seizes 4 tons of black market mercury bound for illegal gold mines
LIMA (Reuters) -Peruvian authorities have halted a shipment of about four metric tons of mercury headed to Bolivia for presumed use in illegal gold mining, they said on Thursday, the latest sign of rising black market activity to fulfill soaring demand for the precious metal. The mercury had been passed off as a container of crushed rock, but Peru's customs agency SUNAT said an analysis revealed that the material had been laced with mercury, a toxic metal that is subject to strict environmental controls. "We could determine that mercury was being transported in its natural state, camouflaged in shipments of gravel," SUNAT said in a statement. The cargo was detected at the Callao port and came from Mexico, it added. The seizure appears to be the largest on record in the Amazon region of South America where illegal gold mining is widespread, according to a review of past seizures by the Environmental Investigation Agency (EIA), a Washington-based advocacy nonprofit. Until now, the biggest known shipment in the region, about a decade ago, was only half the size, according to the EIA. The latest discovery comes as gold prices have soared in recent months, as global trade uncertainty has made gold particularly attractive for investors. Gold prices are up 28.5% so far this year and hit a record high of $3,500 per troy ounce in April. The frenzy for gold has led to deadly encounters from West Africa to Peru. The EIA said it alerted Peruvian authorities to the shipment during its research into illicit mercury shipments from Mexico to Bolivia, Colombia and Peru, where miners use mercury to leach gold from sediment of the Amazon riverbanks. It said higher mercury prices were driving illegal mercury production in Mexico, with a particular spike since the start of this year as traffickers paid a record $330 per kilogram. "According to traffickers, gold miners' demand for mercury has driven the sophisticated operation and made it profitable," the EIA said in a report released on Thursday. It said its investigation showed that 200 tons of mercury were smuggled from Mexico to Bolivia, Colombia and Peru between April 2019 and June 2025, accounting for a conservative estimate of $8 billion in illegal gold. Peruvian officials did not address the role of the EIA in the discovery of the mercury-laced gravel from Mexico. (Reporting by Marco Aquino in Lima and Daina Beth Solomon in Santiago; Additional reporting by Polina Devitt; Editing by Leslie Adler)
Yahoo
22-05-2025
- Business
- Yahoo
Chile taps Rio Tinto for second major lithium project
By Daina Beth Solomon SANTIAGO (Reuters) - Global miner Rio Tinto has been selected by Chile for the second time this week for a major new lithium project, with state-run mining body ENAMI naming it a partner for its Altoandinos lithium project in a statement on Thursday. Rio Tinto will initially contribute $425 million to the project, which in total will represent an investment of $3 billion, ENAMI said. ENAMI will hold an initial stake of 49% and two board seats, with three board seats going to Rio. For Altoandinos, ENAMI said Rio's investment will cover a pre-feasibility study, use of its pilot plant at its Rincon project in Argentina, and the use of its direct lithium extraction technology. "Rio Tinto provides a financing option that ensures the necessary resources for the project until it reaches commercial operation," ENAMI said in a statement. In a separate statement, Rio Tinto said it would focus on "advancing towards binding agreements as quickly as possible" and that feasibility studies would enable a final investment decision. ENAMI had also considered French miner Eramet, Chinese carmaker BYD and Korean steel group Posco as developers for the project. "After a thorough analysis, we concluded that the proposal offering the greatest value for ENAMI was Rio Tinto's," said ENAMI head Ivan was also selected by state-run copper miner Codelco on Monday for the Maricunga lithium project. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Rio Tinto's Chile deal is a bet on unproven tech and lithium price bounce
By Daina Beth Solomon and Clara Denina SANTIAGO (Reuters) - Global miner Rio Tinto will tackle one of the biggest technological challenges in the lithium industry as it takes the lead in Chile's first major project involving the battery metal in years, alongside state-run copper producer Codelco. Maricunga marks a new pivot in Rio's lithium ambitions and a turning point for Chile, which will add a third project extracting the metal used in electric vehicles after decades of stagnation in the sector. Rio will own just under half of the project, but will spearhead design, construction, operation and sales, Codelco announced on Monday. A major challenge is deploying new technology, called direct lithium extraction, to separate lithium from salty brine liquid that is meant to be more environmentally friendly and efficient than conventional methods, industry experts say. The method has yet to be proven widely in the industry and has never been used in Chile at commercial scale. The technical challenge at Maricunga, one of the world's most lithium-rich salt flats, comes against a backdrop of uncertainty for lithium prices, which have fallen nearly 90% since late 2022 due to oversupply and weak demand for EVs. "Scaling it in line with global demand timelines remains uncertain," said Nicole Porcile, a partner at mining consulting firm Anagea. "The ability to deliver at scale, efficiently and reliably will be a decisive factor in the project's competitiveness and investor confidence." Rio has a DLE pilot plant at its Rincon project in Argentina, and recently acquired U.S.-based Arcadium, which employs a mix of DLE and traditional extraction methods. That DLE know-how gave Rio an edge over three final competitors to partner with Codelco, said a person familiar with the deal. Still, Rio and Codelco must now hammer out which kind of DLE will work sustainably and effectively at Maricunga. "That's certainly the goal: to develop and operate this in the most environmentally friendly manner possible because Codelco is well aware that they'll be under the microscope," the person said. Codelco's search for a Maricunga investor attracted Middle Eastern, Chinese and Western companies, the person added. Construction is expected to start in three to five years, once environmental permits are updated. Codelco has proposed a gradual transition to DLE, but Rio Tinto is aiming to use DLE from the start, with lower costs relative to other DLE projects, said a second person familiar with the matter. ARGENTINA EXPERIENCE Rio Tinto told Reuters its Argentina experience provided strong footing for future projects. "We are therefore confident in the application of our technology to Maricunga and potentially to other lithium salt flats in Chile," a spokesperson said. Rio will spend up to $900 million on the project. It is the only major mining company to bet heavily on lithium, accelerating its push with a second deal in six months at a time of low market prices. "We have not heard from investors that they want to see further investment in lithium," said analysts at RBC Capital Markets in a note. Rio is also in the running for Chile's Altoandinos lithium project controlled by state mining body ENAMI, which expects to announce a partner by the end of May. The process is independent from Maricunga, in which Codelco hired investment bank Rothschild to scout for candidates. Codelco, meanwhile, is set to soon close a deal to partner with Chile's SQM at the Atacama salt flat. Benchmark Minerals analyst Federico Gay noted that Rio and Codelco will have to carefully prioritize. "Too many fronts (are) open for both companies, in a moment when justifying large investments for lithium is challenging." Rio Tinto, which could be granted an intellectual property permit if its DLE technology is used for the project, will hold a majority of seats on a technical committee with Codelco, and move to a 50-50 split once production begins, according to a filing with Chile's financial regulator.
Yahoo
19-05-2025
- Business
- Yahoo
Mining giants Codelco, Rio Tinto to develop major Chile lithium project
By Daina Beth Solomon and Fabian Cambero SANTIAGO (Reuters) -Chile's Codelco will partner with global mining giant Rio Tinto for its new Maricunga lithium project, the state miner said on Monday, bringing a major new player into the sector in the world's second-largest producer of the EV battery metal. The partnership, after a selection process, means Rio Tinto will become just the third private firm in Chile's lithium sector, alongside Chile's SQM and U.S. firm Albemarle that have dominated production there for years. Global mining firms, car makers and battery companies are racing to secure supply of lithium, an ultra-light metal needed to power the shift toward electric vehicles. South America's "lithium triangle" has the world's largest trove of the metal. Rio Tinto will contribute up to $900 million to the project, Codelco said in a statement, taking a 49.99% share. Codelco, the world's top copper producer now tasked with spearheading the Chilean state's push into lithium, will control the remainder. Rio Tinto CEO Jakob Stausholm in a statement said the company aimed to "bring significant investment" to the region. He noted there could be opportunities to share infrastructure and minimize water use in tandem with a copper exploration project, Nuevo Cobre, that it shares with Codelco in the same region. The financing is slated to include $350 million when the deal closes, $500 million when a final investment decision is made, and $50 million if commercial production is reached by the end of 2030. The board for the partnership will consist of three members appointed by Codelco, and two appointed by Rio Tinto, Codelco said. Codelco, while a major player in copper, has little of its own experience mining lithium. Rio Tinto is meanwhile a major lithium player in neighboring Argentina, the world's fourth-largest producer of the metal, following its acquisition of lithium miner Arcadium. Rio Tinto is developing the Rincon project in Argentina as well, which will use direct lithium extraction (DLE), an innovative, mostly unproven method that Codelco and Rio Tinto aim to use at Maricunga too. Codelco Chairman Maximo Pacheco said the deal would be beneficial for its "lithium diversification strategy". The world's biggest copper producer is also teaming up with SQM for a controlling share of its operations in the Atacama salt flat.
Yahoo
19-05-2025
- Business
- Yahoo
Chile's Codelco taps Rio Tinto for major new lithium tie-up
By Daina Beth Solomon and Fabian Cambero SANTIAGO (Reuters) - Chile's Codelco will partner with global mining giant Rio Tinto for its new Maricunga lithium project, the state miner said on Monday, bringing a major new player into the sector in the world's second largest producer of the EV battery metal. The partnership, after a selection process, means Rio Tinto will become just the third major private firm in Chile's lithium sector, joining Chile's SQM and U.S. firm Albemarle, who have dominated production of the metal there for years. Rio Tinto will contribute up to $900 million to the project, Codelco said in a statement, taking a 49.99% share. State miner Codelco, tasked with spearheading the Chilean state's recent push into the sector, will control the remainder. The financing is slated to include $350 million when the deal closes, $500 million when a final investment decision is made, and $50 million if commercial production is reached by the end of 2030. The board for the partnership will consist of three members appointed by Codelco, and two appointed by Rio Tinto, Codelco said. Sign in to access your portfolio
