The U.S.-backed Verde company will invest $1 billion in a disused Romanian magnesium mine and start production in 2027, reports . Europe will resume mining this raw material for the first time in over 10 years. In this way, the European Union is trying to reduce dependence on Chinese imports of critical raw materials. Magnesium is crucial in the production of light aluminum alloys used, for example, in cars and packaging. Over 90 percent this raw material is currently imported from China.
An inactive magnesium mine will be opened in Romania. For a billion dollars
A few days ago, Romania granted a mining concession to Verde Magnesium from Bucharest, which is supported by the American private equity investor Amerocap. Verde intends to invest $1 billion in a disused magnesium mine near the city of Oradea and build magnesium processing plants as well as recycle aluminum. Renewable energy will be used. “The European industrial sector urgently needs a reliable supply of critical and strategic metals, especially those with a lower carbon footprint,” says Bernd Martens, CEO of Verde Magnesium and former Audi executive. Verde will use the area of the magnesium mine closed in 2014 – the last one operating in Europe at that time.
Europe does not want to be dependent on China
The target for the Romanian mine is PLN 90,000. tons of magnesium per year. This will constitute half of the supply of this raw material in the European Union and at the same time 9%. world production. The EU wants to increase the extraction of critical raw materials and minerals by 2030 to meet 10%. demand, and also process 40 percent of them and 15 percent recycle.
China is currently a leader in magnesium production. They are responsible for 87 percent. global supplies, and the European Union imports as much as 95 percent from there. necessary raw material. “FT” reminds that Beijing has drastically reduced production in the face of rising energy prices. It was temporarily halted two years ago and European industry has suffered major disruption as a result.
Source: Gazeta
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