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Tiny But Vital Metal Markets Rush to Adjust to Chinese Clampdown (Bloomberg News – December 21, 2024)

https://www.bnnbloomberg.ca/

Chinese curbs on exports of three niche metals to the US have already rattled the market. Now, a bigger clampdown looks set to have far-reaching ramifications for supply chains feeding American defense and chip-making industries.

Beijing this month slapped a ban on US-bound exports of gallium, germanium and antimony in a tit-for-tat move in a technology trade war. The metals are important because they have crucial uses in many Western industries from military tech to semiconductors to satellites.

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Column: Critical metals will be a key battleground in US-China trade war – by Andy Home (Reuters – December 17, 2024)

https://www.reuters.com/

It’s clear that critical minerals will be China’s weapon of choice in its escalating trade war with the United States. Every time Washington imposes new restrictions on exports of advanced semiconductor chips to China, Beijing responds by tightening controls on exports of the critical inputs for chip manufacturers.

A third clamp-down on China’s semiconductor industry has drawn a swift response in the form of a full ban on exports of Chinese gallium and germanium to the United States. Exports of antimony, used in photovoltaic glass, are now also banned in what looks like a riposte to US tariffs on Chinese solar panels.

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China has ‘weaponized’ global critical mineral supply chain, US miners group says – by Henry Lazenby (Northern Miner – December 4, 2024)

https://www.northernminer.com/

China’s ban on U.S.-bound critical mineral exports is “mineral extortion,” Washington D.C.-based National Mining Association (NMA) president Rich Nolan said on Wednesday. The export ban announced a day earlier targets gallium, germanium, antimony and graphite. These minerals are needed for semiconductors, 5G phone tech, defence systems and electric vehicle batteries. Antimony is found in bullets. Nolan described the export ban as a calculated bid for geopolitical leverage.

“China has weaponized the world’s mineral supply chains,” he said in an emailed statement. “We must confront Chinese mineral extortion and recognize that U.S. mining policy is the foundation of our nation’s economic, energy and national security.”

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Rattled by China, West scrambles to rejig critical minerals supply chains – by Amy Lv, Divya Rajagopal and Ernest Scheyder (Reuters – December 6, 2024)

https://www.reuters.com/

BEIJING/TORONTO/LONDON (Reuters) – China’s trade restrictions on strategic minerals are starting to hit Western companies where it hurts.

Blaming Beijing’s curbs on antimony exports announced in August, German chemicals and consumer goods heavyweight Henkel told customers last month it had declared force majeure and suspended deliveries of four types of adhesives and lubricants widely used by automakers, according to a Nov. 8 letter to clients reviewed by Reuters.

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China bans exports to US of gallium, germanium, antimony in response to chip sanctions – by Elaine Kurtenbach (Associated Press – December 3, 2024)

https://apnews.com/

BANGKOK (AP) — China announced Tuesday it is banning exports to the United States of gallium, germanium, antimony and other key high-tech materials with potential military applications, as a general principle, lashing back at U.S. limits on semiconductor-related exports.

The Chinese Commerce Ministry announced the move after the Washington expanded its list of Chinese companies subject to export controls on computer chip-making equipment, software and high-bandwidth memory chips. Such chips are needed for advanced applications.

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Indonesia Curbing Nickel Supply to Support Locals, Eramet Says – by Eddie Spence (Bloomberg News – November 21, 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — Indonesia is squeezing supplies of nickel ore to protect smaller local miners as the market for the battery metal endures a prolonged slump, according to Eramet SA.

The French miner, which operates the world’s largest nickel mine in Indonesia’s North Maluku province, was this year given a sales quota by the Asian nation that was 29% less than it expected, causing its share price to plunge in October.

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Gold Prices Rise After $82 Billion Discovery In China—New Record High Ahead? – by Giuseppe Ciccomascolo (CCN.com – November 22, 2024)

https://www.ccn.com/

China’s recent discovery of massive gold reserves in Hunan province has sent shockwaves through the global market, propelling gold prices to new heights. However, the long-term trajectory of gold prices remains uncertain, influenced by a complex interplay of factors such as interest rates, inflation, and geopolitical risks.

While some analysts predict a bullish future for gold, others caution against overly optimistic forecasts due to the inherent volatility of commodity markets. China has discovered gold reserves valued at 600 billion yuan – equal to $82.9 billion – in central Hunan province. As the world’s largest gold producer, China accounts for approximately 10% of global output in 2023, based on data from the World Gold Council.

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Indonesia’s Small Islands Pay the Price for Nickel Mining – by Firdaus Cahyadi (China Global South Project – November 11, 2024)

https://chinaglobalsouth.com/

The push for electric vehicles (EVs) promises a cleaner future, but the production of their batteries comes at a steep cost to Indonesia’s small islands. Nickel, a critical component in many EV batteries, has spurred mining activities that devastate local ecosystems and communities.

Nickel batteries—particularly Nickel Cobalt Manganese (NCM)—dominate the EV market, accounting for 60% of market share, according to the Global EV Outlook 2023. While alternatives like Lithium Ferro Phosphate (LFP) are gaining traction, the demand for nickel remains robust. In July 2024, global EV sales increased by 21% compared to the previous year, with Chinese-made vehicles leading at 800,000 units sold.

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US judge narrows investor lawsuit against Rio Tinto over Mongolian mine – by Jonathan Stempel (Reuters – November 7, 2024)

https://www.reuters.com/

NEW YORK, Nov 7 (Reuters) – A U.S. judge on Thursday dismissed some claims in a lawsuit accusing Rio Tinto and its former CEO Jean-Sebastien Jacques of defrauding investors by concealing problems developing the $5.3 billion Oyu Tolgoi copper and gold mine in Mongolia.

U.S. District Judge Lewis Liman in Manhattan addressed recently added claims that Rio Tinto knowingly concealed how it would miss a deadline for “draw bell” blasting, a key milestone, while Jacques hid delays and associated cost overruns.

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World’s biggest cobalt miner is gloomy on the EV metal’s future – by Annie Lee (Bloomberg News – November 6, 2024)

https://www.bnnbloomberg.ca/

The world’s No. 1 cobalt miner is sounding the alarm over the shrinking role of the metal in electric vehicle batteries. Chinese company CMOC Group Ltd., which has been churning out cobalt much faster than rivals like Glencore Plc, said the importance of the raw material in the energy transition is declining rapidly.

The adoption of cobalt-free lithium iron phosphate, or LFP, batteries has gained momentum in recent years, due to them being cheaper to manufacture. The proportion of EV batteries in China containing cobalt will drop to 31% in 2024, from 44% two years ago, according to consultancy CRU Group.

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Eastern DR Congo grapples with Chinese gold mining firms (RFI – October 27, 2024)

https://www.rfi.fr/en/

Kamituga (AFP) – Italian priest Davide Marcheselli has been fighting for years against Chinese companies illegally mining gold in the town of Kitutu in eastern Democratic Republic of Congo.

He says mining has spoilt the town which lies in South Kivu province, polluting rivers and destroying fields. Hundreds of foreign companies, most of them Chinese-owned, mine gold in the mineral-rich province often without permits and without declaring profits, according to local authorities.

For a long time, civil society groups and members of the church in Kitutu, have been the only people taking a stand against the powerful mining businesses, who often have friends in high places. “From the deputies, to the village chief, everyone receives something (from the companies), money or shares (in businesses),” Marcheselli told AFP.

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China Tries to Blot out Tibetan Criticism of Mining Firm’s Damage to the Environment – by Duncan Bartlett (The Diplomat – October 28, 2024)

https://thediplomat.com/

Chinese censors are trying to prevent people from viewing posts that allege severe environmental damage in Tibet caused by sand mining. A young Tibetan man named Tsowo Tsering initiated the online discussion with a video post, delivered in Mandarin. In it, he says he is speaking from Ngawa Tibetan Autonomous Prefecture, in southwest China’s Sichuan Province.

He shares video footage that he says proves the severe impact of activities by a Chinese mining company on his community. Tsowo Tsering claims that “large amounts of sand have been recklessly mined, leading to serious soil erosion in the surrounding areas. This endangers the foundations of residents’ homes.”

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How Beijing Tamed a Lawless Industry and Gained Global Influence – by Keith Bradsher (New York Times – October 28, 2024)

https://www.nytimes.com/

State-controlled companies now run an industry once known for its acid pits, radioactive waste and smugglers.

As recently as 2010, few industries were as lawless, and yet as central to the global economy, as China’s production of rare earth metals.

Consignments of rare earths frequently changed hands for sacks of Chinese currency: The rule of thumb was that a cubic foot of tightly packed 100-renminbi bills was worth $350,000. At a warehouse in Guangzhou, near Hong Kong, acid was used illegally to extract rare earths, and the residue, faintly radioactive, was dumped into the municipal sewage. The gang operating the warehouse brought in foreign buyers in the trunks of cars to keep its location a secret.

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China Tightens Its Hold on Minerals Needed to Make Computer Chips – by Keith Bradsher (New York Times – October 26, 2024)

https://www.nytimes.com/

Already the dominant producer of rare minerals, Beijing is using export restrictions and its power over state-owned companies to further control access.

The vise-tight grip that China wields over the mining and refining of rare minerals, crucial ingredients of today’s most advanced technologies, is about to become even stronger.

In a series of steps made in recent weeks, the Chinese government has made it considerably harder for foreign companies, particularly semiconductor manufacturers, to purchase the many rare earth metals and other minerals mined and refined mainly in China.

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Miners are razing forests to meet surging demand for metals and minerals, report says – by Victoria Milko (Associated Press – October 23, 2024)

https://apnews.com/

JAKARTA, Indonesia (AP) — Whether it’s digging for metals and minerals for cellphones and electric vehicles or coal for power generation, mining around the world has skyrocketed since 2000, causing widespread destruction of tropical forests, degrading the environment and displacing Indigenous and local communities, the World Resources Institute says in a report released Wednesday.

The analysis highlighted that from 2001 to 2020, the world lost nearly 1.4 million hectares (3,459,475 acres) of trees due to mining — an area roughly the size the country of Montenegro. Nearly a third were in tropical primary rainforests. Protected areas were also damaged.

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