Unfair Gaps🇩🇪 Germany

Metal Ore Mining Business Guide

7Documented Cases
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All 7 Documented Cases

Stilllegung von Schmelzanlagen durch Energiekostenexplosion

€2.5B (ArcelorMittal project write-off) + €30M-€80M annual (typical smelter energy cost delta per 100,000 tpy capacity)

AMG closed its 30,000-mtpy silicon metal smelter in Pocking, Germany at end of 2025 due to unsustainable German power prices. ArcelorMittal halted €2.5B green steel investment (Bremen + Eisenhüttenstadt) citing 'energy framework conditions' deterioration. Both represent capacity loss and stranded capital.

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TC/RC Verhandlungsverluste durch Marktinformation asymmetrie

€15M-€40M per major smelter annually (2-5% margin on €300M-€800M annual refining revenue for 200,000-500,000 tpy smelter)

Search result [5] confirms: 'Tumble in 2025's annual TC/RCs terms and wide bid-offer gap' forces smelters into 'more diversified and flexible' contract signing, a euphemism for margin capitulation. Result [4]: Aurubis set 2026 copper premium at $315/tonne (+38% vs prior year), signaling pricing power shift TO miners, FROM smelters. Manual annual negotiations cannot absorb this volatility.

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Nicht quantifizierbare Overhead-Kosten für manuelle TC/RC-Vertragsadministration

€200k-€600k annually per large smelter (combined FTE + external audit + remediation for failed audits)

No direct evidence in search results, but regulatory context: German tax audits (Betriebsprüfung) increasingly scrutinize commodity contract pricing against spot indices to detect transfer pricing abuse (BEPS, OECD Pillar 2). Manual contract administration increases audit risk and requires extensive documentation trails. GoBD compliance (Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern, Aufzeichnungen und Unterlagen in elektronischer Form) mandates 30-year digital archiving with immutable timestamps.

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Fehlerhafte Abbauabgaben-Berechnung durch manuelle Prozesse

€5,000-€50,000 per audit finding (typical metal ore mine); 0.5-2% revenue drift on royalty base (€100M+ annual ore value = €500K-€2M exposure); 30-60 hours/month manual reconciliation labor

Mining companies must pay extraction royalties on free-to-mine natural resources at 10% of market value per § 31(2) BBergG. Without integrated systems linking production data, quality assays, and commodity price feeds, finance teams manually reconcile extraction quantities with LME/DTCC price data—creating lag, formula errors, and audit exposure. State mining authorities conduct inspections; underpayment triggers interest + penalties.

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