Energy and Industrial Minerals - Thermal and Metallurgical Coal, Ash, Uranium, Lithium, Rare Earths, Gypsum, Cobalt and Nickel

Energy and industrial minerals span vital resources that underpin electricity generation, industrial processes, raw materials for manufacturing and the clean energy transition.

Traditional energy minerals such as thermal coal (for power generation) and metallurgical (or “met”) coal (for steelmaking) remain integral to large portions of the world’s energy and steel systems. At the same time, critical minerals – such as uranium (for nuclear power), lithium, nickel and cobalt (for batteries and green technologies) and rare earth elements (for magnets and electronics) - are now central to the shift toward renewable energy, Electric Vehicles (EVs) and digital infrastructure. Industrial materials like gypsum (used in construction, plasterboard and fertilizer) and ash (by-products of energy generation that must be managed) also play often under-appreciated roles in sustainable development, infrastructure and waste-minimization.

No matter the commodity, we can assist with various equipment, leveraging our two leading global product brands, TAKRAF and DELKOR. We provide solutions across each of the generic value chain steps below.

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Across these diverse minerals, several themes emerge:

• Supply Chain Security and Diversification: Many of these minerals are produced in only a few geographies, making global supply vulnerable to trade or geostrategic disruption.
• Environmental, Social and Governance (ESG): Relevant across the global mining industry, operations must now meet higher standards for water use, tailings and waste-rock disposal, land rehabilitation, emissions and community benefits and rights.
• Energy and/or Capital Intensity: Several such operations require a significant input of energy and/or large initial capital investments that need to be catered to and managed.
• Technological Innovation and Recycling: Meeting future demand (in a sustainable manner) will rely on new methods of extraction, remote/automated mining, improved recovery and circularity – this might range from the recycling of batteries to the reuse of ash and gypsum and the beneficiation of low-grade ores.
• Regulatory and Infrastructure Readiness: Many projects depend on permitting, infrastructure, water/energy access and long-lead development timelines. Failure to address these factors can delay supply.
• Economic Viability in a Changing World: With a global focus shifting towards decarbonization, minerals that support the energy transition (lithium, uranium, rare earths, cobalt, nickel) have strong demand tails; whilst traditional minerals (thermal coal) face a declining outlook (this is especially true in countries well-advanced in transitioning their energy supply).

Thermal coal is the world’s most widely used fossil fuel for electricity and, according to the International Energy Agency (IEA), remains the largest single source of global electricity generation (over one-third of the world’s power comes from coal-fired plants). 

Metallurgical coal on the other hand is a grade of coal that is used to produce coke, which is essential in blast-furnace steelmaking. Met coal is heated in airless furnaces to create coke. The coke is then used as a fuel and reactant in the blast furnace process to smelt iron ore. The resulting iron is the primary component used to make steel, which is essential to our modern-day life.

Direct Reduced Iron (DRI) is increasingly viewed as a cleaner alternative to traditional steelmaking that relies on metallurgical coal in the blast and basic oxygen furnace route. While met coal is currently essential for producing high-quality steel at scale, it is also a major source of CO₂ emissions. DRI production, especially when using natural gas or - ideally - green hydrogen as the reducing agent, significantly reduces the carbon footprint by avoiding coke ovens and blast furnaces altogether. However, widespread adoption of DRI depends on the availability of affordable low-carbon hydrogen and high-grade iron ore suitable for the process, meaning the steel industry will likely continue using both pathways during a transitional period toward greener steel production.

Coal, particularly thermal coal, faces strong pressure from decarbonization efforts, emissions regulations and competition from renewables.

Uranium is a strategic fuel for nuclear power, which provides low-carbon baseload electricity in many countries and is considered part of the low-emissions energy portfolio. Key producers include Kazakhstan, Canada and Namibia. 

These three minerals are central to the battery supply chain for Electric Vehicles (EVs), grid storage and other clean-energy technologies. Supply is concentrated in a few countries with a need for diversification; in fact, at the moment, processing and refining remains highly concentrated in a single country.

Rare earths (includes a set of around 17 elements) are essential for high-performance magnets, wind turbines, EV motors, electronics and military technologies. The current demand for these minerals is significant as the global economy expands its low-carbon infrastructure. However, supply, including processing and refining (which can be quite complex), of these elements is concentrated and thus quite volatile. 

Gypsum is widely used in construction (plasterboard, drywall), cement and soil amendments. It is typically extracted either from natural deposits or as a by-product of other industrial processes such as Flue-Gas Desulfurization (FGD). FGD is an important process that removes sulfur dioxide from the exhaust gases of fossil-fuel power plants and other industrial processes.

Ash is a by-product that must be managed and is the result of burning coal (fly ash, bottom ash) or inorganic matter (biomass ash). Previously ash was primarily disposed in landfills or wet storage ponds, but of late, a number of opportunities have opened for the reuse of ash in cement or aggregates.

While both gypsum and ash and are less visible than high-tech minerals, they play a critical role in infrastructure and circular-economy efforts.

The coming decade will test how effectively and efficiently industry, governments and investors can scale the mining, processing and recycling of these essential minerals - while managing environmental and social impacts. The growth of EVs, renewable energy, electronics and infrastructure means demand for lithium, nickel, cobalt, rare earths and uranium is set to remain strong. Meanwhile, the challenge for thermal and metallurgical coal will increasingly be about transition - either adapting to lower-carbon steelmaking or managing phased reduction. Industrial minerals such as gypsum and ash will play meaningful roles in sustainable infrastructure and circular-economy models.

Ensuring supply resilience, investment in new capacity and sustainable operations will be key to enabling the global economy’s shift toward a lower-carbon and high-tech future. As TAKRAF Group, we look forward to supporting all stakeholders and driving meaningful value and change.

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