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Potential of Greece in the EV Battery Industry
Greece has the potential to play a significant role in the European and global electric vehicle (EV) battery industry, as indicated by experts from the mining sector. In light of recent developments surrounding the troubled company LARCO, these experts have emphasized the importance of leveraging lost time and resources to position Greece as a valuable contributor in this field.
Hydrometallurgy as a Game Changer
One of the critical factors that could facilitate Greece’s involvement in the EV battery market is the adoption of hydrometallurgy techniques, particularly concerning LARCO. However, a thorough analysis of capital costs, product types, raw material quality, and the potential utilization of underdeveloped ores and waste by-products is essential. It’s noteworthy that the long-term prospects for metals remain robust despite current challenges.
Currently, LARCO has reserves suitable for its pyrometallurgical operations, with a nickel content of 0.9%, expected to last for the next two decades. The company also owns a port in Larymna and conducts mining operations in several regions, including Evia, Boeotia, Phthiotis, and Kastoria. Furthermore, it holds mining rights in Karditsa and has a lignite mine in Servia, Kozani.
Expert Insights on Mining in Greece
According to Petros Jeferis, the General Director of Mineral Raw Materials at the Ministry of Environment and Energy (YPEN), “Greece is potentially a country that could contribute to the European and global EV battery industry by utilizing its extensive, albeit low-grade, nickeliferous deposits, as well as those in neighboring Balkan countries.” In his recent publication, “Mining a Green Future,” Jeferis points out that “the adoption of nickel and cobalt production through hydrometallurgical techniques can be economically competitive, requiring significantly less energy and being more environmentally friendly.”
Moreover, this approach would allow for the exploitation of low-grade lateritic deposits. Implementing this technology could substantially increase the exploitable reserves in Greece, thereby extending the lifespan of mining operations for many more years. This would involve activating the scattered low-grade lateritic deposits across the country, which are hydro-metallurgically viable.
Regional Collaboration and Future Prospects
If these advancements occur swiftly, it would be possible to process both domestic and the more abundant Balkan lateritic deposits concurrently, which remain underutilized due to their low-grade status. Jeferis adds that “lateritic nickel deposits constitute 70%-80% of global nickel reserves and are crucial for the future supply of raw materials for nickel and cobalt production. Greece holds 90% of the European Union’s reserves, positioning it strategically within this critical industry.”
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Finland’s Resource Landscape and the Balkans
Finland holds a mere 10% of the global reserves, while significant deposits can also be found in the Balkans, particularly in Albania, Serbia, Kosovo, Bosnia, and North Macedonia. The current momentum favors exploration and extraction activities, especially for Greece, which possesses valuable raw materials from domestic sources, even if these resources have a lower concentration of sought-after metals.
Closure of LARCO’s Operations
LARCO, a key player in the mining sector, ceased its production activities in the summer of 2022. According to data from the Mining Enterprises Association, the company extracted 600,000 tons of raw materials in 2021, but this figure plummeted to just 268,000 tons during the seven-month operational period in 2022. Export figures for 2022 reached €73.6 million, with €45.6 million generated in the first seven months alone.
New Tender Announcement
In light of the recent developments, the Ministry of National Economy and Finance announced that a new tender will be launched following the collapse of the initial bidding process for LARCO’s assets and mining rights. The previously preferred investor, GEK Terna and AD Holdings, formally withdrew their interest, citing unfavorable changes in the global energy and metal markets, particularly concerning nickel products, as well as ongoing legal entanglements. The Hellenic Republic Asset Development Fund (HRADF) has been informed and will proceed to cancel the existing tender while reviewing and potentially redesigning the transaction structure for a new bidding process.
Employee Initiatives
Currently, employees at the LARCO factory have scheduled a General Assembly to evaluate their situation and determine their stance on securing their income and survival, as well as ensuring the safety of the factory and the surrounding area. Since August 2, a selection process for beneficiaries of a special employment program for LARCO has begun. Former employees can visit the local employment offices and choose from 1,132 positions offered by 26 organizations. They will be referred to these organizations through a recommendation letter and are expected to report to the receiving organization within five working days. The organization will then conduct hiring within 20 calendar days.
Employment Program Goals
According to the ministerial decision and the relevant government gazette, the receiving organizations include regional authorities, municipalities, hospitals, health centers, universities, and other public law entities. However, the Ministry of Environment and Energy does not appear on the list of receiving organizations, whereas the Geological and Mineral Exploration Company is present with 18 positions available. The aim of this action, with a budget of €60 million, is to create 856 new full-time jobs in the public sector. The subsidized employment period will last up to 24 months for beneficiaries up to 54 years old, and up to 7 years for those aged 55 and above. The gross monthly salary is set at €1,210.
LARCO: New Bidding Process Ahead
Despite the lack of results from previous tenders, preparations are underway for a new bidding process, reflecting the ongoing efforts to revitalize employment and economic stability in the region.
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