Greenland Strips Chinese Mining Firm of License for Iron Ore Deposit

The license was withdrawn because of inactivity at the site and a failure to make the agreed guarantee payments, the government said.

According to Reuters, Greenland has stripped a Chinese mining company of its license to an iron ore deposit near the capital Nuuk. General Nice, a Chinese coal and iron ore importer, took control of the Isua mine project in 2015, replacing previous owner London Mining, which went bankrupt. It was the first Chinese firm to have the right to exploit minerals in Greenland.

The license was withdrawn because of inactivity at the site, the government said in a statement. The license be offered to new interested companies once it has formally been handed back. The company also failed to make the agreed guarantee payments, the statement said.

The government requested that all geological data is returned, remaining payments of 1.5 million Danish crowns are deposited, and the mining area is cleaned up. London Mining, which obtained the exploitation license in 2013, had initially planned to hire some 2,000 Chinese workers to construct the project and aimed to supply China with around 15 million metric tonnes of iron ore a year. However, it failed to secure sufficient financing.

Greenland’s government has said it supports environmentally responsible mining. This year it banned uranium mining, effectively halting development of the Kuannersuit mine, one of the world’s biggest rare earth deposits, which is partly-owned by a Chinese company.

General Nice also attempted in 2016 to buy an abandoned naval station in Greenland from Denmark, but Copenhagen vetoed the offer because of security concerns, sources told Reuters at the time. In 2018, Greenland rejected an offer from a Chinese state bank and a state-owned construction company to finance and build two airports in Greenland.


Black Iron selected Ukraine’s Cargill for offtake rights production from iron ore project

Cargill has operated in Ukraine since 1991 with offices in several cities to support its more than 500 in-country employees. Cargill’s main Ukraine businesses are in the agricultural sector and include a deep-sea vessel terminal at Port Yuzhny close to the terminal Black Iron plans to use to ship its iron ore.

Black Iron Inc. announced that it has selected Cargill Incorporated for offtake rights on the initial four million tonnes per year of production from its Shymanivske iron ore project and a US$75 million finance facility to be used for Project construction.

Subject to completion of due diligence and successful conclusion of negotiations, Cargill will offtake the production and extend financing of US$75 million for the construction of the Project through a finance facility. Drawdown on this funding will be subject to certain conditions being met, as is customary for this type of transaction, mainly related to the Project being fully permitted and financed for construction. Black Iron and Cargill will now start work on definitive binding offtake and financing agreements which reflect the Proposal. Based on the proposal agreed between Black Iron and Cargill (the “Proposal”), the offtake agreement will be for an initial term of ten years and will include a profit-sharing component which will align the interests of both parties and thereby generate a strong interdependent relationship of benefit to both parties. On the profit share, Black Iron will receive 100% of the 65% iron content fines benchmark price, currently ~$230 per tonne, and share with Cargill a portion of the incremental sale price of its 3% higher (68%) iron content and low impurity magnetite product.

Cargill’s metals business focuses on iron ore and steel trading. Connecting iron ore miners around the world with steel mills and steel end users in key markets, Cargill Metals trades over ~50 million tonnes of iron ore per year and is also a strategic investor of a number of mining operations in North America and Northern Europe.

Black Iron and Cargill Metals agree that, as the world is becoming more environmentally conscious it will naturally turn to ores with a higher iron content and in forms such as pellets/pellet feed that reduce emissions in the production of steel.

Black Iron’s planned 68% iron content magnetite pellet feed is in the top 4% of global production by iron content and is anticipated to reduce emissions generated in the production of steel by an estimated 30% as compared to the more commonly consumed 62% iron content hematite fines. It is envisaged that the high-quality product from the Shymanivske iron ore project will attract a premium price in a variety of markets.

Black Iron’s CEO Matt Simpson stated: “Black Iron received several offtake and investment proposals and chose Cargill based on its proposal striking the optimal balance of investment quantum, structure and shared vision on the increasing demand for high- grade ore as the global ferrous industry is shifting to become greener. Cargill brings tremendous value not only in strengthening the project funding with a US$75 million financing facility but, more importantly, its global network and local footprints, unique industry insight and successful experience in the technical marketing of high-grade ore to customers around the world.”

“We are very pleased to help finance Black Iron’s Shymanivske Project,” Lee Kirk, Managing Director, Cargill Metals said. “A relationship with Black Iron would be an excellent fit with Cargill Metals’ growth strategy to develop a high-grade and CO2 reducing iron ore portfolio, to help customers navigate the environmental and carbon challenges and opportunities ahead, and to support the sustainability efforts and low carbon ambitions of the ferrous industry.”

The selection of Cargill as Black Iron’s preferred offtake purchaser has triggered the following activities to bring the Project to a fully financed state for construction:

–  Update of the Project’s feasibility study will commence upon receipt and review of proposals already requested.

–  Selection and negotiation of binding terms with the preferred engineering, procurement and construction contractor who proposes to invest ~US$65 million in the Project.

–  Commencement of third-party due diligence with a consortium of major international financial institutions on binding agreements for senior debt, US$100 million royalty investment and political risk insurance.

The above activities will be supported by the outputs from the environmental impact assessment and Ukraine land transfer work currently ongoing which were previously announced.




Mineworx has been granted approval for Cehegin iron ore concessions program in Spain

All departments within the Mining Office of Mineworx Technologies Ltd have formally approved the environmental impact evaluation and all required permits have been granted to allow the project to proceed. Since Mineworx has now received the required approvals, it is planning to start an exploration drilling program in April 2021, with the focus of both validating historical exploration data and offering more information about other anomalies determined by earlier surveys.

The drilling program and the subsequent analysis will offer information to enable Mineworx to develop a NI 43-101-compliant reserve report. Mineworx will be drilling 21 holes in total for a total of 2,200 m over a four-month period.

The Spanish government, in November 2020, categorized the property as a strategic initiative, thereby opening additional development opportunities like reductions in local and national bureaucratic timelines, fast track opportunities, subsidies and grants, as well as economic verification of large-scale commercial production. This classification would include a small-scale treatment plant that generates up to 60,000 tonnes of concentrate annually per year.

A major part of this is because of the historical importance of the property that was first owned by Altos Hornos de Vizcaya—the largest mining company in Spain—until it was closed in 1989 because of a huge plunge in iron ore prices. In March 2021, CRS INGENIERÍA—a Spanish geology firm—provided Mineworx with a report that offered an interpretation of the data acquired from an aeromagnetic survey of the property performed in 2015. The conclusion of the report is that—based on this data and presuming a density of 3.2 t/m3, the prospective reserve could be 101.27 million tonnes at a 60% average grade.