Republic of Mining

Cheap Chinese EVs come at a high cost – by Flavio Volpe (Financial Post – June 21, 2024)

June 25, 2024

Opinion: Ottawa has yet to respond to the threat posed by Beijing and the clock is ticking

Ask yourself this: “Why are they so cheap? Does it make sense?” That is what I have said to everyone who has asked me about Chinese electric cars lately and the questions usually stump my audience. A lot of ink has been spilled over the promise of good quality, cheap Chinese cars, with most of the opinions being of the “bring ’em on” variety.

At a time when the cost of money is still high and inflationary pressures are just coming off a generational peak, every penny counts. The idea that you could get a car like the electric BYD Seagull for less than the cost of a Honda Civic seems compelling on the surface.

Australia’s Paladin Energy to buy Canada’s Fission Uranium for $1.14-billion – by Niall McGee (Globe and Mail – June 25, 2024)

June 25, 2024

https://www.theglobeandmail.com/

Australia’s Paladin Energy Ltd. has reached an agreement to buy Canadian mining development company Fission Uranium Corp. in a friendly transaction worth $1.14-billion, as Fission lays down a big bet on a uranium project in Saskatchewan. Kelowna, B.C.-based Fission is developing the Patterson Lake South (PLS) project in the Athabasca Basin region of Saskatchewan, and hopes to be in production by the end of the decade.

Paladin is offering 0.1076 of its shares for each Fission unit, or $1.30 a share, a premium of just under 26 per cent compared to Friday’s closing price on the Toronto Stock Exchange.

Top 20 Copper Producing Countries in The World – by Faheem Tahir (Yahoo Finance/Insider Monkey – April 29, 2024)

June 25, 2024

https://finance.yahoo.com/

Copper; the first metal manipulated by humans, still stands as one of the most important metals. From its use in mobile phones, laptops, homes, and automobiles, copper is the third most used metal in the world. According to USGS, an average US resident requires 12 pounds of copper each year to sustain their lifestyle. Furthermore, it is believed that this demand is going to continue to grow in years to come.

Research presented in Yahoo Finance shows that the global market for copper was $308.67 billion in 2023 and it is forecasted to grow to $504.93 billion by 2033, projecting a Compound Annual Growth Rate (CAGR) of 5.04% during the forecasted period.

Equinox welcomes First Nations, Ontario Premier for gold pour at new Greenstone mine – by Staff (Canadian Mining Journal – June 20, 2024)

June 21, 2024

https://www.canadianminingjournal.com/

Equinox Gold (TSX: EQX; NYSE American: EQX hosted First Nation and Ontario government dignitaries at its Greenstone mine for a gold pour on June 18, 2024, at the mine site near Geraldton, Ont.

The Hon. Doug Ford, Premier of Ontario; the Hon. Greg Rickford, Minister of Northern Development and Minister of Indigenous Affairs and First Nation Economic Reconciliation; Yvette Metansinine, Chief of Animbiigoo Zaagi’igan Anishinaabek; Sonny Gagnon, Chief of Aroland First Nation; Sheri Taylor, Chief of Ginoogaming First Nation; and Judy Desmoulin, Chief of Long Lake #58 First Nation, were in attendance.

The Dirty, Deadly Price We Pay for Clean Cars – by Janet Paskin, Yang Yang, Naomi Ng and Jessica Beck (Bloomberg News – June 17, 2024)

June 21, 2024

https://www.bnnbloomberg.ca/

(Bloomberg) — Never miss an episode. Follow The Big Take Asia podcast today.

Indonesia’s nickel business is booming. The metal is a key component in electric car batteries, but its success has a dark side. The country’s nickel mines and processing plants have a history of fatal accidents, with workers being run over by forklifts and burnt to death in smelter fires.

Today on The Big Take Asia, host Janet Paskin speaks with Bloomberg Businessweek editor Matt Campbell about his investigation into the mines. He found that nickel sourced from these plants are present in the supply chain that feeds virtually every major seller of EVs, and is an indispensable part of the car industry’s green revolution.

China’s EV drive accelerates in Latin America – by Margaret Myers (East Asia Forum – June 2024)

June 21, 2024

https://eastasiaforum.org/

Margaret Myers is director of the Asia and Latin America Program at the Inter-American Dialogue.

As the United States slaps tariffs on Chinese electronic vehicles (EV) and the EU increases its own protective measures, the Latin American market remains relatively open to imports of Chinese cars and investment in local EV production and critical minerals. Efforts in Washington and Brussels to level the EV playing field will likely result in trade diversion to Latin America and other regions, encouraging a process already well underway.

China has been active in expanding its capacity in overseas EV sales and manufacturing, with a growing focus on developing markets. Even amid protectionist measures in the Global North, China’s total exports of low-cost EVs jumped 102 per cent year-on-year from 2021 to 2022, with Chinese companies exporting nearly 630,000 fully electric vehicles in 2022.

US lithium clay projects secure backing despite extraction hurdles – by Henry Lazenby (Northern Miner – June 20, 2024)

June 21, 2024

Global mining news

The United States’ great hope for domestic lithium supply could lie in the massive-scale, long-life sediment-hosted deposits in its southwestern region. And even with tricky metallurgy to overcome and higher price tags than brine or hard rock deposits, experts say that with federal backing, these operations could become the continent’s energy transition backbone.

Most of the country’s sediment-hosted lithium projects are in Nevada. Projects like Lithium Americas’ (TSX: LAC; NYSE: LAC) Thacker Pass, Ioneer’s (NASDAQ: IONR; ASX: INR) Rhyolite Ridge, and Century Lithium’s (TSXV: LCE) Clayton Valley have big potential that’s drawing strategic investment.

Striking a Balance: The Philippines’ Path to Sustainable Critical Minerals Development – by Rocco Cartusciello (The Diplomat – June 21, 2024)

June 21, 2024

https://thediplomat.com/

Manila is under pressure to begin exploiting its rich mineral deposits, but it needs to carefully consider the likely social and environmental costs.

The demand for critical minerals, such as nickel, cobalt, and rare earth elements, has surged in recent years due to their role as essential components for modern technologies and green energy solutions. Under the Paris Agreement, meeting the world’s climate stabilization goal requires quadrupling mineral requirements for renewable energy technologies by 2040.

The Philippines, with largely untapped reserves of copper, gold, nickel, zinc, and silver, stands to economically benefit from this global surge in demand, necessitating greater investment in its mining sector. Currently, only 5 percent of these reserves have been explored, and just 3 percent are covered by mining contracts.

EV transition drives Indonesia’s ‘dirty’ nickel boom – by A. Anantha Lakshmi (Financial Times – June 20, 2024)

June 21, 2024

https://www.ft.com/

Environmentalists accuse Jakarta of prioritising mining of key commodity over nation’s biodiverse rainforests

In just four years, Indonesia’s nickel industry has undergone a transformation — becoming a pivotal supplier of the commodity critical to electric vehicle batteries. But, as its importance grows, so has the south-east Asian nation’s reputation as a producer of “dirty” nickel.

Indonesia is now the world’s dominant supplier of the metal, following a boom triggered by President Joko Widodo’s ban on exports of raw nickel ore, in a bid to force foreign businesses to invest in the country and set up domestic processing plants.

Investing in Africa’s Copperbelt – The Race for EV Metals (Gulf Africa Review – June 21, 2024)

June 21, 2024

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U.S., Japanese, and European companies are investing in Africa’s Copperbelt, employing cutting-edge technology to extract essential electric vehicle metals like copper and cobalt.

The global demand for electric vehicle (EV) metals has spurred a surge in investments in Africa’s Copperbelt, a region straddling Zambia and the Democratic Republic of the Congo (DRC). Companies from the U.S., Japan, and Europe are increasingly leveraging advanced technologies to identify and extract critical minerals such as copper and cobalt, challenging China’s dominance in the region.

Niger revokes French nuclear group’s licence at major uranium mine (Al Jazeera – June 21, 2024)

June 21, 2024

https://www.aljazeera.com/

Removal of Orano licence highlights tensions with France, with Russia said to be eyeing the major site.

Niger’s military government has revoked the operating licence of French nuclear fuel producer Orano at one of the world’s biggest uranium mines, as it continues to cut ties with former colonial power France.

State-owned Orano said on Thursday that it had been ordered out of the Imouraren mine in northern Niger which sits on an estimated 200,000 tonnes of the metal, used for nuclear power and weapons.

Cobalt Conundrum: India’s Deep-Sea Mining Push Challenges China’s Dominance, Sparks Tensions With Sri Lanka – Analysis – by Girish Linganna (Eurasia Review – June 21, 2024)

June 21, 2024

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India is rushing to get permission to explore a cobalt-rich underwater mountain located in the middle of the Indian Ocean. However, there are other countries interested in the same area. Sri Lanka is also looking to mine precious minerals there, adding to the competition.

Cobalt is a critical mineral used in rechargeable batteries for smartphones, laptops and electric vehicles. It also plays a key role in making alloys for jet engines, gas turbines and cutting tools. Additionally, cobalt is used in medical implants and as a catalyst in the chemical industry.

Copper Frenzy Draws Mining Giants to Argentina After Milei’s Reforms – by Jonathan Gilbert and James Attwood (Bloomberg News – May 22, 2024)

June 21, 2024

https://www.bnnbloomberg.ca/

(Bloomberg) — Global mining heavyweights including Lundin Mining Corp., Glencore Plc and First Quantum Minerals Ltd. are piling into Argentina as a new government intent on luring foreign investment propels the companies closer than ever to opening up vast copper deposits in the red-hued Andes.

It’s part of a colossal wave of spending needed worldwide to prevent a supply crunch for the metal, a critical component of the electrification push to slow climate change.

Mining M&A stokes coal race against cleaner power – by Antony Currie (Reuters – June 20, 2024)

June 21, 2024

https://www.reuters.com/

MELBOURNE, June 20 (Reuters Breakingviews) – Coal is doomed, or so the energy thesis goes. Many banks, insurers and investors have backpedalled from or abandoned the carbon-belching fossil fuel, prompting companies that excavate it to complain they cannot get mainstream or affordable financing.

One corner of the industry, however, is burning strongly: the coking, or metallurgical, variety used to make steel. For sellers, it’s a diamond underneath the growing pile of mining M&A. Buyers, however, are in a race against low-emissions alternatives to justify their strategies.

Agnico Eagle looks underground at Detour Lake pit – by Ian Ross (Northern Ontario Business – June 20, 2024)

June 20, 2024

https://www.northernontariobusiness.com/

Agnico Eagle sizes up $1-billion investment to construct underground exploration ramp, expand mill production

Agnico Eagle is on a path to upsize its Detour Lake mine, near the Quebec border, into a one-million-ounce per year gold producer.

The Toronto gold company has posted a preliminary economic assessment and a new mine plan that involves digging beneath its current open-pit operation to tap into a “high-grade core of mineralization” and follow a gold system that tracks west on its property.