Shares of the country’s biggest pure-play lithium miner rose 4.2% to A$2.97 touching its highest level since early October as of 2318 GMT, while the broader benchmark index was down 0.2%.

Pilbara will now solely operate the Pilgan plant in Pilgangoora, which, after full ramp up, is expected to produce about 850 thousand tonnes (kt) annually.

Its lower capacity and higher cost Ngungaju plant will be placed into care and maintenance by the beginning of December.

Placing Ngungaju plant on care and maintenance is a logical and required response to current lithium pricing dynamics and focuses production at the more efficient Pilgan plant, Jefferies analysts said.

The optimization plan will reduce costs and capital expenditure for the company, although it will take a 100 kt hit to its output for fiscal 2025.

The company now expects output between 700 kt to 740 kt for fiscal 2025, lower than its previous estimate of 800 to 840 kt.

The plan tries to effectively cap the impact from a subdued lithium market, with prices dwindling due to new supply of the battery metal — which is seen as critical for energy transition.

The Ngungaju plant will remain in care and maintenance and will be ready to be fully ramped up within four months, when lithium market conditions improve, to capture the rising price environment, the company said.

“The long-term growth outlook for the lithium market remains robust, driven by technological advancements in e-mobility and energy storage, increasing consumer demand, and supportive government policies,” Pilbara said in a statement.

The company posted revenue of A$210 million for the September quarter, 31% lower than the previous quarter, reflecting lower prices and sales volumes.

($1 = 1.5244 Australian dollars)

(By John Biju; Editing by Anil D’Silva and Alan Barona)

The study, published just a day after the United Nations warned the world is falling “miles short” of what’s needed to curb devastating global warming, indicates that an investment of $78 trillion will be needed to change this course and achieve net-zero emissions by 2050.

Under the 2015 Paris Agreement, nations committed to limiting global warming to “well below” two degrees Celsius above the average temperatures recorded between 1850 and 1900, aiming for a target of 1.5 degrees Celsius if feasible. Efforts to date have not succeeded in meeting this challenge, the annual “Energy Transition Outlook” from Wood Mackenzie shows.

Unlike the UN pessimistic outlook, the Scottish consultancy believes that while major obstacles hinder short-term targets, particularly for 2030, a 2050 net-zero goal remains feasible. Immediate and coordinated global action would be necessary, WoodMac warns.

Threats to climate progress

A series of global crises, including the Russia-Ukraine conflict, escalating Middle East violence, rising populism in Europe and global trade tensions with China, are undermining the pace of the energy transition, Wood Mackenzie’s vice president head of scenarios and technologies, Prakash Sharma, said. 

He explains that without urgent policy changes and enhanced investment, a warming trajectory of 2.5˚C to 3˚C could become inevitable.

“We are under no illusion as to how challenging the net zero transition will be, given the fact that fossil fuels are widely available, cost-competitive and deeply embedded in today’s complex energy system,” Sharma added. “A price on carbon maybe the most effective way to drive emissions reduction but it’s hard to see it coming together in a polarized environment.”

Key investment are needed across several critical areas, according to WoodMac. As renewable energy sources grow, substantial upgrades to power supply and grid infrastructure are essential to meet the growing demand. Additionally, the need for critical minerals, such as lithium, nickel and cobalt, is projected to increase five- to ten-fold by 2050, as demand for batteries and other technologies essential for the energy transition continues to grow. 

WoodMac sees the need to back the development of emerging technologies, including carbon capture, low-carbon hydrogen, and nuclear power, are vital for facilitating the shift towards cleaner energy sources.

Securing this funding won’t be easy, the consultants noted. “Doubling annual investments to $3.5 trillion by 2050 will be necessary in our net zero scenario,” Sharma said, adding that it will require unprecedented policy coordination globally.

The role of electrification

The electrification of energy systems will play a pivotal role in decarbonization. Transitioning from fossil fuels to electric power, Wood Mackenzie forecasts that electricity’s share of global energy demand will increase from 23% to 35% by 2050 in a base case, and could reach as high as 55% in a net-zero scenario.

Wood Mackenzie’s analysis reveals that global energy demand is set to rise by 14% by 2050. Emerging economies are projected to see even steeper growth at 45%, driven by rising populations and economic advancement. 

In parallel, data centres, electric vehicles, and AI are emerging as new drivers of electricity consumption, with AI-related energy use alone expected to increase from 500 TWh in 2023 to up to 4,500 TWh by 2050.

Including renewable energy source to meet electrifications demand could help reduce emissions, the report says.

According to Wood Mackenzie, solar and wind currently account for 17% of the global power supply, and renewables capacity is expected to double by 2030 in its base case. Yet, this increase still falls short of the COP28 commitment made in 2023 to triple renewables by 2030.

Transition or coexistence?

While nuclear energy holds promise for providing consistent, zero-carbon electricity, its high cost and frequent project delays pose significant challenges. WoodMac says that nuclear power could play a more significant role as it has attracted interest, particularly from tech companies looking to power data centres sustainably.

While fossil fuels is expected to plateau in the 2040s before beginning a gradual decline, Wood Mackenzie predicts that the high capital costs of low-carbon technologies coupled with strong demand for energy, will require the continued use of oil and gas in the near term.

Wood Mackenzie says to meet climate targets there will be necessary that nations gathered at the COP29 meeting in Azerbaijan next month finalize Article 6 of the Paris Agreement. This section focuses on carbon markets and aims to establish a new climate finance goal to replace the previous annual target of $100 billion, which experts consider insufficient.

The consultancy’s report echoes concerns included in a UN Environment Programme (UNEP) study released last week. The document says the next decade is crucial in the battle against climate change, adding that failing to act now will jeopardize any chance of limiting global warming to 1.5 degrees Celsius. According to the UN body, the current rate of climate action could lead to a catastrophic increase of 3.1 degrees Celsius this century. 

“Either leaders bridge the emissions gap, or we plunge headlong into climate disaster, with the poorest and most vulnerable suffering the most,” Secretary General Antonio Guterres warned.

Even if all existing commitments to reduce emissions are fulfilled, global temperatures would still rise by 2.6 degrees Celsius above pre-industrial levels, experts agree.

The loan, provisionally approved in March, is a key part of US President Joe Biden’s efforts to reduce dependence on lithium supplies from China, the world’s largest processor of the electric vehicle battery metal. Biden officials permitted a similar lithium project under development by ioneer last week.

The Thacker Pass project is slated to open later this decade and be a key supplier to General Motors, which earlier this month boosted its investment in the mine to nearly $1 billion.

“The Biden-Harris Administration recognizes mineral security is essential to winning the global clean energy race,” said Ali Zaidi, the White House national climate advisor.

Former President Donald Trump had permitted the mine just before leaving office. Initial construction at the site, just south of Nevada’s border with Oregon, started last year after the company won a long-running and complex court case brought by conservationists, ranchers and Indigenous communities.

With the loan now closed, Vancouver-based Lithium Americas plans to start major construction, a process that could take three years or longer. The mine’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 EVs.

The project is expected to employ about 1,800 people during construction, and provide 360 full-time jobs once the mine is operational. The loan will have a 24-year term, with interest rates based on the US Treasury rate as each tranche is drawn.

“This essential loan helps us reduce dependence on foreign suppliers and secure America’s energy future,” said Lithium Americas CEO Jon Evans.

The mine’s cost had been increased from a previous estimate of $2.27 billion to nearly $2.93 billion due to higher engineering costs, an agreement to use union labor, and the company’s decision to build a housing facility for workers and their families in the remote region.

(By Ernest Scheyder; Editing by Richard Chang)

Portuguese energy company Galp is in no rush to make a final investment decision (FID) to build a battery-grade lithium refinery in Portugal amid challenging market conditions, CEO Filipe Silva said on Monday.

A 50-50 joint venture between Galp – which earlier on Monday reported a 22% decline in third-quarter adjusted core profit – and Swedish battery maker Northvolt, dubbed Aurora and set up in November 2021, was previously expected to announce the FID by the end of 2024.

However, the refinery, which was scheduled to start commercial operations in early 2026, is facing delays due to the complexity of the project and uncertainty about grant funding, while lithium prices have been low due to oversupply from China.

“The market is very challenging as we speak. So, we are in no rush to take an FID until we see an appropriate return for the project. We don’t seem to be there,” Silva told an analysts call.

He said Galp is “also concerned that this project could become orphaned in case there is no mining of lithium in Portugal”.

With some 60,000 tonnes of known reserves, Portugal is already Europe’s biggest producer of lithium, traditionally mined for ceramics.

Portugal’s center-right government, which took over in April, is finalizing a strategic plan to explore for raw materials critical to the green transition, where copper could take on a more important role than lithium.

Portugal’s previous government planned to auction licenses for lithium prospecting in six areas in the north and center of the country, but concerns about the environmental and social impact have led to multiple delays to the auction, initially planned for 2018.

The refinery, with estimated investments of more than 1 billion euros ($1.1 billion), aims to have an initial annual production capacity of up to 35,000 metric tons of lithium hydroxide, a key material for lithium-ion batteries.

(By Sergio Goncalves; Editing by David Holmes)

This permit authorizes Atlas to assemble and operate its lithium processing plant, process mined ore from one of its deposits at the facility, and sell the lithium concentrate produced, Atlas said on Monday. Once operational, annual production at Neves is projected to reach 300,000 tonnes.

Shares of Atlas Lithium jumped 34% to $11.05 apiece in New York by early afternoon, bringing the company’s market capitalization to $168.5 million.

“Atlas Lithium’s permit reflects 14 months of our team’s meticulous work throughout the licensing process and showcases our unwavering commitment to developing an environmentally responsible and sustainable operation in Brazil’s Lithium Valley,” Atlas CEO Marc Fogassa said in a release.

The plan is to install a modular plant with components manufactured in South Africa. The dense media separation unit is designed to have a reduced height and physical footprint compared to others in the industry, Atlas said.

The company is aiming to be environmentally sustainable and minimize water usage with recycling. The project is to employ dry stacked tailings without using dams, it added.

Seven clusters

Atlas’ lithium project encompasses 85 mineral rights covering about 468 sq. km. It includes seven main clusters of prospective mineralization: Neves, Coronel Murta, Eastern Properties, Itinga, Salinas, Santa Clara and Tesouras.

This month, the company said exploration crews at Salinas, 100 km north of Neves, discovered additional spodumene-rich pegmatites. The team is now pursuing further geological and geophysical studies before launching a drilling campaign.

In May 2023, Atlas announced what is considered the largest lithium royalty deal in Brazil by selling a 3% gross overriding revenue royalty on the Neves project to Canada’s Lithium Royalty (TSX: LIRC) for an upfront cash consideration of $20 million.

In March this year, Japan’s Mitsui & Co. paid $30 million to acquire a 12% stake in the company.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022. And judging by the performance of the top tier in the final quarter (BHP down 8% QTD, Rio Tinto –5%, Vale –3%, Glencore –5%, Newmont –9%, Zijin –5%, Freeport –7%) the gap won’t be closing anytime soon.

In contrast, Nvidia — the maker of chips highly prized for artificial intelligence (AI) computing — is up nearly 200% so far this year (and 2,600% over five). When comparing the graphics card maker’s stock valuation to the mining industry’s collective worth, it’s difficult not to wonder if something is not awry with how global investors appraise the industrial economy.  

Should Nvidia (or Microsoft or Apple for that matter) be worth more than twice the top 50 miners? Outside the top 50 the average market cap quickly shrinks to the low teens so Nvidia is in fact worth more than the entire listed mining industry. 

Even when extending the top 50 into metals and energy –  steel, aluminium and electricity companies often operate their own mines – Nvidia can still throw shade. BHP does not even crack the top 100 most valuable companies in the world and is worth less than Booking.com, and Temu and Zara’s owners, none of which can exactly be called the building blocks of the global economy. 

Nvidia briefly surpassed Apple on Friday to become the world’s most valuable company. Its market capitalization is approximately $3.5 trillion, just below Apple’s, which remains the highest-valued firm globally.

The company’s Koch Technology Solutions unit agreed to license its so-called direct lithium extraction process to a joint venture of Standard Lithium Ltd. and Equinor ASA for use in a planned commercial plant in southwest Arkansas, the firms said Monday in a statement.

The technology strips out lithium directly from brine in a process that promises to be cheaper, faster and cleaner than the traditional lithium extraction methods used in South America, a region with about half of the world’s reserves. Dozens of firms have been working on improved extraction methods collectively known as DLE, though they’ve yet to be proven at a commercial scale.

The Koch agreement includes a performance guarantee — promising a lithium recovery rate that is about double the rate from the common practice of relying on recovering the metal from evaporation ponds. This is the first time a technology provider has stated in a binding agreement that its process is going to work, backing it with a specific number for how much lithium can be recouped from salty water.

(By Yvonne Yue Li)

For the period ended Sept. 30, the battery metal producer reported underlying EBITDA loss of A$2.9 million ($1.9 million), compared with a profit of A$76.8 million in the June quarter.

The bottom line was affected by a 45% drop in IGO’s share of net profit from its 49% stake in lithium joint venture – Tianqi Lithium Energy Australia (TLEA), to A$37.1 million along with lower sales from the nickel business.

“Cashflows from TLEA were impacted by prevailing soft lithium market conditions, despite stronger-than-expected Greenbushes production as the operation worked through elevated site inventories,” analysts at Jefferies said in a note.

Lithium, essential for the production of EV batteries, has suffered from slower-than-expected uptake of EVs and plentiful supply.

Hence, taking into consideration the market conditions, IGO did not declare any dividend from the joint venture.

The lower quarterly profit from TLEA primarily reflected lower spodumene sales and an average realized price of $872 FOB Australia per metric ton from Greenbushes, down from $1,020 per ton in the prior quarter, the company said.

Greenbushes spodumene production was 406,000 tons for the quarter, beating Jefferies’ estimate by 11%.

($1 = 1.5135 Australian dollars)

(By Sneha Kumar; Editing by Stephen Coates and Rashmi Aich)

Ellison, who is managing director and a major shareholder, said the payments pre-dated the company’s 2006 listing, and came from overseas entities he and his business partners operated, and which sold mining equipment and parts. He did not declare the income from the supply contracts.

“There has been considerable media coverage since Oct. 19 and the board’s investigation has evolved to respond to statements that do not accord with the company’s understanding of the facts,” Mineral Resources said in a corporate statement Monday.

The company’s shares slumped 26% last week after a report that Ellison had struck a deal with the Australian Taxation Office to repay owed money.

(By Paul-Alain Hunt)

The junior, which acquired the Yellowknife project in The Northwest Territories two years ago, is selling 2.7 million shares for C$5.6575 apiece in an unbrokered private placement that’s due to close by Nov. 12. The deal included an additional 1.6 million shares at $3.65 each to the same shareholder.

The capital raising is excellent news for Li-FT as it’s now likely fully funded with C$27 million for a Yellowknife preliminary economic assessment due by next June and environmental studies for permitting, Cormark Securities mining analyst Shannon Gill said in a note on Friday.

“The strategic investment is another positive indicator for the sector, and hard rock lithium assets in particular,” Gill said.

“Continued M&A in the lithium space supports a potential pricing floor — recalling SQM (NYSE: SQM) and Hancock Prospecting’s May takeover of pre-resource Azure Minerals for a more than 40% premium and Pilbara Minerals’ (ASX: PLS) 67% premium offer to acquire Brazilian developer Latin Resources in August.”

Secrecy trend?

The secret investment could be part of a mini-trend among juniors after undisclosed investors bought the same stakes in Asante Gold (CSE: ASE) in September to expand gold mines in Ghana, Collective Mining (TSX: CNL; NYSE: CNL) in March for its Colombian properties and Foran Mining (TSX: FOM) last December. There was also TDG Gold (TSXV: TDG) last October.

The C$200 million financing for Foran to advance its McIlvenna Bay copper-zinc-gold-silver project was a mixture of equity and debt. It included the Ontario Teachers’ Pension Fund and Fairfax Financial. Fairfax holds 23% of Foran after C$360 million in financing this year, which also saw Agnico Eagle Mines (TSX: AEM; NYSE: AEM) take a 9.9% stake.

The TDG Gold investment was part of a private placement aimed at raising C$2.75 million. The proceeds targeted exploration at TDG’s projects in British Columbia, including the former producing Shasta gold-silver mine in the Toodoggone district.

Securities rules allow a backer to buy less than 10% of a publicly traded company anonymously. However, companies with 5% who are intending to buy more must notify the market, and investments considered material to the company must usually be disclosed in quarterly financial statements.

Li-FT CEO Francis MacDonald may comment on the undisclosed investor when the financing closes, investor relations manager Daniel Gordon told The Northern Miner Group by email on Friday.

Shares in Li-FT Power closed C$0.02 higher at C$4.00 apiece on Wednesday in Toronto after the financing news. They were at C$3.92 by mid-afternoon Friday, valuing the company at C$154.6 million.

Yellowknife project

Li-FT said the financing would be used to advance the resource-stage Yellowknife project with more exploration as it plans the economic study by June.

Cormark’s Gill noted the project consists of clustered spodumene pegmatite dykes – similar to Sigma Lithium‘s (TSXV: SGML; NASDAQ: SGML) Grota do Cirilo project in Brazil – in a mining-friendly jurisdiction adjacent to the Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) and De Beers diamond operations. He said the project could potentially generate 112 million tonnes of ore and has a skilled technical team behind it.

“As first movers in lithium exploration in the area, Li-FT’s land package hosts high potential for additional regional success as it continues to explore,” Gill said.

“Along with a responsible approach to land use that involves all stakeholders and proximity to road and rail infrastructure, Li-FT’s potentially generational Yellowknife project should set it apart from its peers in attracting future development partners and offtake agreements — necessities for developing North America’s future lithium assets.”

The project comprises seven targets along the all-season Ingraham Trail highway. The site hosts 50.4 million inferred tonnes grading 1% lithium oxide (Li₂O) for 506,000 tonnes of Li₂O, or 1.25 million tonnes of lithium carbonate-equivalent, according to the resource issued this month.

CEO MacDonald said at the time the resource ranked among the 10 largest hard-rock projects in the Americas and had “excellent potential to significantly grow through further drill programs.”

An earlier version of this story said Li-FT Power has Canada’s third-largest hard rock lithium resource. It is instead the third-largest maiden hard rock lithium resource.

Ioneer can now access a $700 million loan from the US Department of Energy (DOE) and a $490 million equity investment from Sibanye Stillwater (JSE: SSW; NYSE: SBSW) for Rhyolite Ridge that has an estimated life of 22 years.

The Sydney, Australia-based Ioneer aims to finalize its financing agreements for the $785 million project before year-end. However, legal battles, regulatory adjustments, and political uncertainty remain obstacles as the company pushes toward construction, CEO Bernard Rowe said on a late Thursday webcast.

“Legal challenges are almost inevitable,” he told investors, referring to lawsuits that environmental groups are expected to file over the mine’s impact on Tiehm’s buckwheat, an endangered plant found only at the project site, located about 362 km north of Las Vegas.

The plant’s presence forced Ioneer to redesign parts of the mine, creating buffer zones and a greenhouse propagation program. Rowe remains confident that regulatory efforts will hold up under scrutiny. “We are well-prepared, and we’ve built a solid scientific case around our environmental work,” he said.

Following six years of regulatory scrutiny, Rhyolite Ridge is the first lithium mine approved under the Biden administration. It reflects Washington’s push to secure domestic sources of critical minerals. The project also marks the first new lithium production in the US in over 60 years and the first boron mine in over a century, Rowe said. The operation will produce lithium carbonate and boric acid on-site, with the large chemical processing plant just a few kilometres from the mine.

Ioneer shares briefly spiked 9% to A$0.305 on Friday, a fresh 12-month high for the company, giving it a market capitalization of A$651 million. Shares come off a period low at A$0.105.

With the US federal election approaching, investors pressed management for their take on the potentially shifting political landscape. Still, Rowe dismissed the idea that a new administration could derail the project.

“There is strong bipartisan support for developing critical minerals in the US,” he said. “We’ve worked with both Republican and Democratic administrations, and the project has broad backing at the state and federal levels.”

Once operational, the mine will rival Albemarle (NYSE: ALB) and Lithium Americas (TSX: LAC; NYSE: LAC) as a top domestic producer. Albemarle operates the only active domestic lithium mine in Silver Peak, Nevada, and Lithium Americas is developing the Thacker Pass project, like Rhyolite Ridge another lithium clay site in Nevada.

Liquidity questioned

The DOE loan and Sibanye-Stillwater’s equity investment hinge on completing updates to the mine plan, reserve estimates, and project economics. Rowe stressed the importance of staying on schedule to avoid setbacks. “Permitting was the biggest hurdle, but we’re on track to close financing in the next few weeks.”

BMO Capital Markets mining analyst Raj Ray noted liquidity risks for Sibanye-Stillwater. It is set to invest $490 million in five equal tranches over 12 months. While the federal permit approval marks a positive step, Ray cautioned that Sibanye’s ability to meet its financial commitments remains uncertain.

Sibanye has net debt of $1.01 billion. It faces rising costs at Rhyolite Ridge and potential legal issues from a dispute with Appian, which could further strain liquidity. Earlier this month, Appian Capital, a London-based investment firm, won a UK court ruling forcing Sibanye to pay for terminating a $1.2 billion deal to acquire two Brazilian mines. The damages have not yet been determined.

“The 2020 DFS capex estimate of $785 million is stale (we currently model capex of $1.1 billion) and capex escalation beyond this sum is likely,” Ray said Friday in a note to clients. “However, between the DOE conditional loan and Sibanye’s investment, the project could potentially be fully funded.”

Ray said it remained to be seen how Sibanye manages its liquidity position over the next 12 months.

Boron kicker

Construction, scheduled to start early next year, will take about 30 months, putting the project on course for production in 2028.

The Rhyolite Ridge mine will run for 22 years. It will produce 22,000 tonnes of lithium carbonate a year. That’s enough to power 370,000 electric vehicles. It will also produce 170,000 tonnes of boric acid, according to the company.

The boron contributes 30% to 40% of the mine’s revenue, providing a buffer against lithium market volatility.

An April 2020 definitive feasibility study on the project pegged the after-tax net present value (8% discount) at $1.3 billion and the internal rate of return at 20.8%.

Rowe said that boric acid has had stable prices for decades, which helps balance the fluctuations in lithium prices. “We designed the process around known technologies, borrowing methods from copper leaching. This project will be a cornerstone for the US critical minerals supply chain.”

While confident in the path forward, Rowe stressed the importance of timely execution. “We have to make the final investment decision early next year, finalize contracts, and place long-lead orders,” he said. “We’re already gearing up, but delays could jeopardize our momentum.”

Ioneer expects the project to generate $125 million in annual wages, create 500 construction jobs, and employ 350 workers during operations. Though environmental groups remain opposed, Rowe believes the project’s benefits outweigh the risks.

“We’ve been at this for eight years, and reaching this point’s a tremendous feeling,” Rowe said. “Now it’s time to move forward.”

Beijing has sought to develop its ties with the Taliban since they took control of Afghanistan in 2021, but like all governments has refrained from formally recognizing the Islamic fundamentalist group’s rule amid international concern over its human rights record and those of women and girls.

But the impoverished country could offer a wealth of mineral resources to boost Beijing’s supply chain security although it risks becoming a haven for militant groups threatening China’s Xinjiang region and huge investments in neighbouring Pakistan.

Selling Afghanistan’s lithium, copper and iron deposits to feed China’s enormous battery and construction industries would help the Taliban prop up their economy, which the UN says has “basically collapsed”, and provide a much needed revenue stream as the country’s overseas central bank reserves remain frozen.

“China will offer Afghanistan zero-tariff treatment for 100% tariff lines,” Zhao Xing, Chinese ambassador to Afghanistan, wrote on his official X account late on Thursday, above a photo of him meeting acting deputy prime minister Abdul Kabir.

Afghanistan exported $64 million worth of goods to China last year, according to Chinese customs data, close to 90% of which was shelled pine nuts, but the Taliban government has said it is determined to find foreign investors willing to help it diversify its economy and profit from its minerals wealth.

The country exported no commodities to China last year, the data shows, but Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, petroleum, trade and regional connectivity since his appointment last September.

“In the Horn of Africa, China’s Special Envoy Xue Bing said that the best way to resolve security and terrorism challenges is through economic development. I think they are bringing that same mindset to Afghanistan,” said Eric Orlander, co-founder of the China-Global South Project.

“I don’t buy the whole strategic minerals line that we hear in Washington about how China is eyeing Afghanistan’s vast lithium reserves,” Orlander added, citing the cost and security challenges involved in extracting them.

“(China’s) answer to everything is build a road, and from that economic development will lead to peace and harmony.”

Several Chinese companies operate in Afghanistan, including the Metallurgical Corp of China Ltd, which has held talks with the Taliban administration over plans for a potentially huge copper mine, and was highlighted in an August feature in Chinese state media on Chinese companies rebuilding Afghanistan.

Chinese President Xi Jinping at a Beijing summit for more than 50 African leaders in September announced that from Dec. 1 goods entering his country’s $19 trillion economy from “the least developed countries that have diplomatic relations with China” would not be subject to import duties, without giving details.

The policy was then repeated on Wednesday by vice commerce minister Tang Wenhong at a press conference in Beijing on the preparations for upcoming China’s annual flagship import expo.

Lin Jian, a Chinese foreign ministry spokesperson, confirmed on Friday the policy would apply to Afghanistan, adding it would promote mutually beneficial trade and economic cooperation.

The Afghanistan embassy in Beijing did not respond to a request for comment.

Last October, Afghanistan’s acting commerce minister told Reuters the Taliban wanted to formally join Xi’s flagship “Belt and Road” infrastructure initiative.

Kabul has also asked China to allow it to be a part of the China-Pakistan Economic Corridor, a $62 billion connectivity project connecting China’s resource-rich Xinjiang region to Pakistan’s Arabian Sea port of Gwadar.

(By Joe Cash and Mei Mei Chu; Editing by Raju Gopalakrishnan)

Read More: Taliban says it signed mining deals worth over $6.5 billion

Importers of lithium, graphite and cobalt for use in manufacturing in the UK will be granted access to UK Export Finance, a state body that usually helps British exporters and their buyers with financing and insurance, people familiar with the matter said. They will only be eligible for the support if they hold long-term contracts with UK exporters, a move that will benefit the defense, aerospace, electric vehicle and renewable energy industries, they said, asking not to be named discussing measures to be announced in the Oct. 30 budget.

Western countries in recent years have been stepping up efforts to secure supplies of critical minerals that are crucial to advanced manufacturing but are currently dominated by China. Reeves’s initiative next week will make it easier for UKEF to secure finance contracts for suppliers in Commonwealth countries who have large mineral deposits, such as Australia, the people said. Prime Minister Keir Starmer is holding a series of bilateral meetings on trade and economic growth at the Commonwealth heads of government meeting in Samoa this week.

Reeves is preparing to unveil a package of tax rises and further borrowing in Labour’s first budget in 14 years. She’s seeking to raise some £40 billion ($52 billion) to help fund party priorities like the National Health Service and to plug a fiscal void that she blames on her Conservative predecessors. Reeves has also been debating changing the measure of debt used to inform the country’s fiscal rules, freeing up as much as an extra £50 billion of government spending on infrastructure.

While the government didn’t specify which companies it expects the move on export finance to benefit, manufacturers such as jet engine maker Rolls Royce Holdings Plc are significant users of imported metals, and Indian firm Tata Motors Ltd. is building a battery plant in southwest England that will require lithium supplies.

Labour is also relying on attracting on an influx of private investment into the UK to get the economy firing and spur the growth needed to generate more tax income. The government said it drummed up £63 billion at its international investment summit earlier this month, though some of that had previously been committed.

On Friday in Samoa, Starmer unveiled an additional £1 billion investment in the UK property market by Aware Super, an Australian fund and Delancey Real Estate. AustralianSuper, the country’s biggest pension fund, is also preparing to bolster its international investment team in London, expecting to manage £250 billion from its London office by 2035, the UK government said in a statement.

Starmer hosted a business meeting with AustralianSuper chief executive Paul Schroder, Bank of America chair Brian Moynihan and Lloyd’s of London CEO John Neal in Samoa on Thursday.

(By Ellen Milligan)

Codelco, the world’s largest copper miner, has been tasked with leading a government plan championed by President Gabriel Boric to boost state control over the production of lithium, the key rechargeable battery metal.

(By Fabian Andres Cambero; Editing by Brendan O’Boyle)

Shares of the Australia-based critical minerals miner jumped more than 20% in New York trading on Thursday afternoon before easing down.

The approval ends a more-than six-year review process during which regulators, ioneer and conservationists tussled over the fate of a rare flower found at the mine site, a tension that exposed the sometimes competing priorities between climate change mitigation efforts and biodiversity protection.

The permit, which had been expected by the end of the year, comes amid a flurry of recent moves by Biden officials to support critical minerals production and offset China’s market dominance.

It also unlocks a $700 million loan from the US Department of Energy, as well as a $490 million equity investment from Sibanye Stillwater to fund the project.

“This is a science-based decision,” Laura Daniel-Davis, the Interior Department’s acting deputy secretary, told Reuters. “We’re trying to send a signal that there’s no topic with greater importance than addressing climate change.”

The US Bureau of Land Management, which is controlled by the Interior Department, on Thursday issued the Rhyolite Ridge project’s record of decision – essentially the mine’s permit – and said the project will “include significant protections for the local ecosystem” and help create hundreds of jobs in the rural region.

The project, roughly 225 miles (362 km) north of Las Vegas, contains enough lithium to power roughly 370,000 EVs each year. Construction is slated to begin next year, with production commencing by 2028, a timeline that would make Rhyolite Ridge one of the largest US lithium producers alongside Albemarle and Lithium Americas.

The US Geological Survey has labeled lithium a critical mineral vital for the US economy and national security.

“We’re proud to be the first US lithium mine permitted by the Biden administration,” James Calaway, ioneer’s chairman, told Reuters.

The project will extract lithium as well as boron – a chemical used to make ceramics and soaps – from a clay-like deposit. The lithium will be processed on site into two main derivatives used to make batteries, and the company said it plans to recycle half of all the water used at the site, higher than the industry average.

Ford and a joint venture between Toyota and Panasonic have agreed to buy lithium from the mine.

Endangered flower

In addition to the lithium and boron deposits, Rhyolite Ridge is home to the Tiehm’s buckwheat flower, which is found nowhere else on the planet and was declared an endangered species in 2022.

The Center for Biological Diversity (CBD) and some other conservation groups thus oppose ioneer’s project, saying it would push the flower to the brink of extinction.

After the permit was announced on Thursday, the CBD said it plans to sue the federal government to block the project.

“By greenlighting this mine, the Bureau of Land Management is abandoning its duty to protect endangered species like Tiehm’s buckwheat and it’s making a mockery of the Endangered Species Act,” said the CBD’s Patrick Donnelly.

The Interior Department’s Daniel-Davis declined to comment on the potential litigation, but noted the changes made to the mine’s operating plan as a result of the permit review process, including new design plans and propagation efforts that included construction of a greenhouse. Department officials also released an opinion stating their belief that the mine would not harm the flower.

“We have run a transparent process,” said Daniel-Davis. “The company was willing to reconfigure its entire project to take into account Tiehm’s buckwheat.”

The death of more than 17,000 flowers near the mine site in 2020 sparked allegations of a “premeditated” attack. Ioneer denied harming the flowers. The government later blamed thirsty squirrels.

(By Ernest Scheyder; Editing by Marguerita Choy)

The Arkansas Oil and Gas Commission on Nov. 4 is to hear an application filed by those companies and others to potentially set the royalty rate. They have proposed a 1.82% royalty, while landowners are seeking 12.5%, according to BMO Capital Markets mining analyst Greg Jones.

The landowners’ proposal is “a level that would strain project cash flows based on our modelling,” Jones said in a note on Thursday. “We assume a 2.5% royalty in our base case, within the range of royalties applied in other jurisdictions. We anticipate the commission will take a balanced approach to support development of Arkansas’s lithium industry.”

This week, the United States Geological Survey and the Arkansas government said they’d found enough lithium in brine in the Smackover Formation within the state to supply global demand. They estimated the amount in the formation’s porous limestone left from an ancient sea at 5 million tonnes to 19 million tonnes. Scientists used water testing and machine learning to calculate the resource. The formation stretches from Texas to Florida, suggesting there could be even more lithium.

Standard project

The discovery comes as Standard and partner Equinor (NYSE: EQNR), Norway’s state-owned petroleum company, develop their South West Arkansas project in the same geologic structure towards a definitive feasibility study and formal investment decision next year. Equinor paid $30 million in May for 45% of Standard’s lithium projects in southwest Arkansas and East Texas, plus a pledge to invest $130 million more in the projects if they go ahead.

The US Department of Energy said on Sept. 20 it’s considering funding the project with as much as $225 million, one of the largest ever US government grants for critical minerals.

It’s part of the Biden administration’s push to source domestically more of the critical minerals needed for the energy transition. The departments of energy and defence as well as the Export-Import Bank are potentially able to allocate billions of dollars in funding for projects from mining and processing to finished products like vehicles. Even projects in Canada are getting financed. But the industry faces significant challenges as the price of lithium has crashed over the past two years.

Royalty faceoff

The South Arkansas Minerals Association, which represents the landowners, says the companies haven’t provided enough financial information to justify their proposed rate, BMO reports.

An Oct. 11 pre-hearing referenced some of the measures in state law for calculating the rate, such as the brine has to be profitably extracted before a rate can be applied, BMO said. But even the hearing officer noted it was unclear what evidence the commission would require to ensure a fair and equitable rate.

The companies’ proposed 1.82% royalty is based on precedent from a 2007 commission order, BMO said. The ruling determined the additional compensation attributable was 5.65¢ per barrel of brine. That equalled 1.82% of the per-acre value of the bromine extracted.

Other jurisdictions have different rates, according to BMO. California charges per tonne of lithium carbonate-equivalent, from $400 to $800, depending on production totals. Nevada has a 5% tax on net lithium sales.

Western Australia levies a 5% royalty on revenue from sales of spodumene concentrate, which is from hard rock lithium ore, not brine. Argentinian provinces apply a 3% royalty to extracted minerals. Brazil charges a 2% royalty on gross income from lithium sales with deductions allowed for taxes paid on commercial sales.

Direct extraction

The projects in Arkansas, and in some other places where there is underground brine, such as Chile and Alberta, plan to use the emerging technology of direct lithium extraction (DLE). It’s somewhat like pumping crude oil, which would seem to be an opportunity for fossil fuel companies intent on expanding their energy focus. Miners can also benefit from vast petro-coffers. The combination is already tapping some Prairie former oil fields that have brine.

ExxonMobil is evaluating potential production costs after drilling exploratory wells at the 486-sq.-km Mobil Lithium project on the Smackover Formation this year. It plans initial production of the battery metal in 2027. By 2030 it wants to produce enough for 1 million vehicles.

In southern California, Occidental Petroleum and a unit of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) have begun feasibility testing to produce battery-grade lithium from the brine of 10 geothermal power plants.

In Alberta, E3 Lithium (TSXV: ETL) is advancing its $2.5 billion capex Clearwater project on one of Canada’s largest resources of the battery metal. It’s tapping former oil wells once pumped by ExxonMobil unit Imperial Oil (TSX: IMO), which is also helping fund the prefeasibility-stage project.

DLE advantages

DLE may cost more than using conventional brine evaporation ponds, but it can produce the battery metal in hours instead of months, can recover around double the metal, and occupies a much smaller footprint.

In Chile, where evaporation ponds dominate, heavyweight producer SQM (NYSE: SQM) has been testing various DLE technologies including a collaboration with French chemical company Adionics.

Their trials have shown recovery rates reaching up to 98% from brine at the Salar de Atacama. SQM aims to integrate DLE into its operations as part of Chile’s new public-private model for lithium production​.

In combined battery capacity deployed – a better indicator of battery materials demand than unit sales alone – the global electric car market expanded by 22% so far this year. 

In total, 505.6 GWh of fresh battery power hit the globe’s roads from January through August, according to data from Toronto-based EV supply chain research firm Adamas Intelligence.

The robust growth rate also comes despite a noticeable swing towards hybrid vehicles, which have inherently smaller batteries and therefore contained metal. 

The combined battery capacity of plug-in hybrid vehicles steered onto roads globally for the first time this year is up 70% versus a must more sedate pace for full electric passenger vehicles of 15%. At the same time the average battery capacity of plug-ins is also rising, up 14% this year to 23kWh, more than a third of the average full electric vehicle.

For miners supplying the EV battery industry, the news remain negative: when pairing metals demand with prices in the supply chain, declines this year are brutal. 

The latest data based on EV registrations in over 110 countries show the sales weighted average monthly dollar value of the lithium, nickel, cobalt, manganese and graphite contained in the batteries​​ of the average EV based on global end-user registrations, battery capacity and chemistries.

Put it all together and the raw materials bill for the average EV is now down to $537 compared to $1,342 in August 2023 and a monthly peak of more than $1,900 at the beginning of last year, according to Adamas Intelligence analysis.      

The downtrend is led by lithium where the sales weighted average value per EV is down 75% over the past year to $236 and cobalt, which at little over $46 is 42% below the value reached in August 2023. Manganese is the only battery raw material in positive territory this year, up 3% but the raw material is also down 8% compare to the same month last year. For anode material, graphite loadings and values have held mostly steady at just under $26 per average EV.

The value of nickel in the average EV battery is down 26% as LFP battery chemistries continue to take global markets. LFP batteries represented 42% of the global total in terms of capacity deployed in GWh in August.

That compares to a 32% share during the same month last year, more than offsetting the long-running trend towards high-nickel cathodes, and the growing popularity of NCM batteries for larger plug-in and range-extending hybrids, where the energy density of nickel-based cathodes makes more sense given the weight of these vehicles. 

For a fuller analysis of the battery metals market check out the latest Northern Miner print and digital editions. 

* Frik Els is Editor at Large for MINING.COM and Head of Adamas Inside, providing news and analysis based on Adamas Intelligence data.

The global lithium sector from Chile to Zimbabwe is struggling due to prices that have slumped over 80% since the start of last year on oversupply and weaker-than-expected EV demand. That’s gummed up financing and hit profit margins at miners both large and small.

Reuters interviews with nearly a dozen executives, officials and analysts show how severe the situation is in Argentina, and how that is likely to reduce lithium output in the years ahead.

Firms have cut staff, slashed spending and halted exploration projects, and the plunging value of lithium assets has left some firms vulnerable to takeover.

Globally, Argentina is the number four lithium producer. It has the second largest resources of the metal and has been a key spot for investors looking to lock up supply.

“We were prepared for a rainy day and we found a storm,” said Juan Pablo Vargas de la Vega, managing director of Australia-based Galan Lithium, which is developing a project in the Hombre Muerto basin in Argentina’s northern province of Catamarca.

Galan is aiming for first production in the second half of next year, but it has cut its phase one target by around a quarter from 5,400 tons to 4,000 tons of lithium a year.

The lithium price squeeze is shaking up the global market, putting pressure on miners to cut costs and spurring more merger and acquisition (M&A) interest as companies look for deeper-pocketed backers to ride out the downturn.

This month mining giant Rio Tinto agreed to buy US-based Arcadium Lithium for $6.7 billion, a deal that will make it the world’s third largest miner of the metal.

Five analysts consulted by Reuters expect more M&A, particularly for early-stage projects.

“For companies that aren’t producing and have resources in Argentina, it’s very probable that they’ll be receiving offers,” said Federico Gay, a lithium analyst at Benchmark Mineral Intelligence.

Arcadium operates two of the main projects in Argentina. The wider region, including Chile and Bolivia, holds more than half of the world’s deposits of the metal, which despite the price drop remains a critical mineral for governments and carmakers worldwide.

Western investors consider the region to be a geopolitical safe haven as the United States and Europe put tougher controls on auto parts from China, the world’s number three lithium producer.

‘Stop spending money’

To be sure, Argentina is still likely to see a slate of more advanced projects coming online in the near-term. The hit will come further down the road, denting output estimates by around 2026-2028, analysts said.

That could play into a supply shortfall that is expected to hit around the end of the decade as demand rises for lithium for EV batteries and energy storage.

“We had to make the call to sort of stop spending money,” said Jerko Zuvela, managing director of Australia-based Argosy Minerals, which took a pilot plant in Argentina offline and laid off the site’s workers.

Local media reported the plant closure cost 140 jobs.

Asked about the reports, Zuvela said the company reduced its workforce given the stoppage at the demonstration facility, and changed its focus to construction on the commercial plant.

“When the big guys are slowing down their expansion strategies and cutting back on staff and operations and so forth, it’s no different for us,” he said.

UK-based mining consultancy CRU Group told Reuters it had lowered its Argentina production forecast for 2027 by about 10% and no longer sees the potential for Argentina to overtake Chile, the world’s number two producer, by that year, as it previously expected.

Lake Resources is seeking permits for its Kachi project in Argentina, but meanwhile this year cut three-quarters of staff and put four Argentina lithium assets up for sale.

CEO David Dickson told Reuters the company is looking for funding via equity investment and supply deals, and expects lithium demand to exceed supply by the end of the decade.

Arcadium in August put some expansion plans in Canada and Argentina on hold, a move that it said would help save it $500 million in the next two years.

“We must adapt to the realities of the market we find ourselves in today and the pace at which we can responsibly invest capital,” Arcadium CEO Paul Graves told analysts when announcing the cuts.

Argentina stands out for its deep pipelines of projects driven by private capital – in contrast to neighbor Chile where two established players, SQM and Albemarle, dominate the sector.

Argentina had 30 companies in the prospecting, initial exploration and advanced exploration phases across its lithium region as of July, government records show. But that pipeline could be slowed in coming years as earlier-stage exploration takes the hardest hit from the downturn.

“Exploration is very impacted by the drop in lithium prices,” Flavia Royon, head of a government-sponsored lithium booster committee, told Reuters, adding the main hit to output would likely be from 2028.

In the key lithium province of Salta, advanced projects from companies including Rio Tinto, Eramet, Posco and Ganfeng, are moving forward, but earlier-stage projects are getting stuck, according to Salta Mining Minister Romina Sassarini.

“There are at least six others coming along that aren’t being developed today, that aren’t moving into construction and production because they don’t have the investment,” she told Reuters. She did not identify the projects she was referring to.

Argentina, looking to boost a flagging economy, has lured investment from global firms in recent years with market-friendly regulations. The current government is also pushing investment incentives including tax breaks and targeted easing of capital controls for large projects to access dollars.

“This in some ways counteracts the drop of lithium prices,” said Royon, citing Rio Tinto, Eramet, Posco and Ganfeng as projects that were advanced enough to potentially benefit from the incentives.

‘No better time to buy’

The shakeout may be painful, but it has made projects more attractive to potential suitors looking to pick up bargains: valuations for lithium companies globally have dropped about 60% to 70% in the last year and a half.

A half-dozen analysts and executives pointed to eight projects in Argentina that could potentially be targets, including Argosy Minerals, Galan Lithium and Lake Resources.

“There is no better time to buy assets than today,” said Jose Hofer, a lithium adviser at consultancy SC Insights, without himself specifying who might be the top targets.

In fact, Galan was approached by lithium technology startup EnergyX in August for a $150 million takeover, but rejected the offer. Galan declined to comment on potential M&A, as did Argosy.

Most executives were hopeful of prices rising again – even if not to peak levels – as EV demand picked up.

Although the exact timing is hard to pin down, the price turnaround is not expected to be any sooner than mid-2025.

The head of one early-stage lithium project in Argentina that has struggled with funding, who declined to be identified, said he expected prices to rise by the second or third quarter of next year, at least enough to start mobilizing the projects.

However some analysts expect low pricing to persist through the first half of 2026.

Argosy Minerals, which plans to build a 12,000-ton per year facility at the Rincon salt flat in Salta province expects its capital reserves to be enough to fund feasibility and engineering works, said Zuvela, the managing director.

Once that is done, in about nine to 12 months, it would return to the market to see if funding was available for construction, he said.

“That’s where higher lithium prices probably need to provide an incentive for financiers to come out and support companies like us to develop lithium projects,” Zuvela said.

(By Daina Beth Solomon; Editing by Adam Jourdan and Claudia Parsons)

The move reflects the growing realization in Washington that efforts to combat climate change will be moot unless the US boosts its production of lithium, cobalt, and other critical minerals and curbs reliance on China and other overseas rivals.

Washington last December issued proposed rules for manufacturers to access the so-called 45X tax credit, created by President Joe Biden’s 2022 climate change law, the Inflation Reduction Act, which offers a 10% production credit for US-made products. Those draft rules excluded raw materials from the production costs in favor of processing. For example, the mining of lithium would not have received the credit, but the processing of that lithium into a form usable to build a battery would.

The mining industry cried foul, noting that processing is impossible without first extracting a mineral.

Citing “feedback from stakeholders,” the Treasury Department on Thursday reversed itself, saying that the “material costs and extraction costs” would be eligible for the tax credit under the final 45X rules, “provided certain conditions are met.”

“The Biden-Harris administration understands how important onshoring the production of critical minerals is to developing secure, clean energy supply chains,” Wally Adeyemo, the deputy Treasury secretary, told reporters on a call. “This will not only help incentivize additional mining, but will mean that mining that already exists is more profitable and they can make greater investments in those mines,” he said.

The final rules stipulate that the credit can only be obtained once an “eligible component” is created, essentially favoring mining companies that own processing facilities. The mining would have to take place in the United States, officials said.

“The action of extraction alone does not produce an eligible component,” the Treasury Department said in the final rule, which ran to 177 pages.

That may help Sibanye Stillwater, which mines and processes palladium in Montana and had pushed for the 45X expansion to offset cutthroat Russian competition. But several proposed US nickel mines, for example, would not be eligible because the US does not yet have a nickel smelter.

Ali Zaidi, the White House national climate adviser, gave the hypothetical example of a lithium hydroxide processor that also runs a lithium mine. That company would be eligible for a 10% per metric ton credit for the mining and another 10% per metric ton credit for the processing, he said.

“This is absolutely a game changer for our ability to lean into mineral security,” said Zaidi.

The credits would begin phasing out in 2030 and end after 2032 for clean energy components. Critical mineral credits will not phase out.

The National Mining Association, whose members include Lithium Americas, ioneer Ltd and other mining companies that do not process metals, said it appreciated the updated rules but was disappointed they were linked to processing.

“Treasury’s decision to limit the credit to those producers who also refine materials will prevent many important projects from benefiting from the credit as Congress intended,” said Rich Nolan, the trade group’s CEO.

(By Nichola Groom, Ernest Scheyder and Timothy Gardner; Editing by Leslie Adler)

Eramet used available liquidity for the $699 million purchase of Tsingshan’s 49.9% stake, it said.

The Centenario project, due to start production in the coming weeks, was attractive despite a drop in lithium prices and full ownership would let Eramet decide how to pursue a planned second production facility, Chair and CEO Christel Bories told reporters on a call.

Eramet shares rose 6% in early trade, recovering some of their steep losses since last week when the group’s production target cuts pushed the shares to three-year lows.

Metals group Tsingshan built the initial processing plant at Eramet’s lithium mine, with a target to reach annual capacity of 24,000 metric tons by mid-2025.

Tsingshan remains Eramet’s partner in Indonesia where they operate a nickel mine.

In a separate third-quarter sales statement, Eramet also announced the suspension of a project to develop recycling of electric vehicle batteries in France, citing slow development of the market in Europe.

The group cut its capital investment target for this year, with cost control measures including the suspension of its mine production in Gabon announced last week in response to a downturn in the manganese market.

The reduced spending partly reflected a delay at the second plant in Argentina, with a decision expected next year and construction potentially starting in 2026, chief financial officer Nicolas Carre told an analyst call. Construction had been expected to begin next year.

Bories said the manganese market, hit by an influx of low-grade ore from South African and reduced demand from Chinese steel makers, was expected to return to normal conditions during the fourth quarter.

The group did not update its projection for full-year adjusted earnings before interest, tax, debt and amortization (EBITDA), with Carre telling reporters metal price forecasts have been too volatile.

Eramet reiterated its expectation for higher EBITDA in the second half compared with the first half, with Carre adding it expected to achieve full-year net profit.

(By Gus Trompiz and Benoit Van Overstraeten; Editing by Mark Potter and Barbara Lewis)

“The Australian Securities and Investments Commission is aware of the situation, is monitoring developments and will be making initial inquiries,” a spokesperson for the watchdog said in an emailed statement, without giving further details.

The Australian Financial Review reported ASIC’s probe on Wednesday. The watchdog will look at whether the miner’s directors breached their duties, and require the company to hand over a report commissioned by the board to investigate the allegations, the newspaper said, without citing sources.

Ellison, who is managing director of Mineral Resources and still a major shareholder, said the payments pre-dated the company’s 2006 listing, and came from overseas entities he and his business partners operated that sold mining equipment and parts. He did not declare the income from the supply contracts.

The mining magnate described his actions in a statement on Monday as “a poor decision and a serious lapse of judgment.” He had subsequently “voluntarily” disclosed the matters to the Australian Taxation Office in full, with all outstanding tax, penalties and interest repaid.

Shares in Mineral Resources, which has operations including iron ore and lithium production, have dropped more than 20% so far this week following an initial report by the AFR over the weekend. That’s wiped almost A$2 billion ($1.33 billion) from the company’s market value since Monday.

The company’s board said earlier this week it retained confidence in Ellison, and would update the market once it had completed internal inquiries.

Earlier this year, Ellison — a larger-than-life figure even by the standards of Australian business — made headlines after stating he wanted to prevent employees at the company’s office from leaving the building to buy coffee.

(By Sybilla Gross)

Volt has been operating its proprietary direct lithium extraction (DLE) system in the field since September 17, when the company achieved its first lithium production.

According to the company, samples of lithium carbonate have been created and verified via third-party testing for review by potential offtake partners.

Volt said it will continue to produce lithium chloride concentrate, as well as technical-grade and battery-grade lithium carbonate, in the field for the remainder of 2024.

“Successfully producing battery-grade lithium carbonate from the Permian is another significant milestone that Volt has achieved this year,” CEO Alex Wylie said in a statement, adding that “Volt Lithium is on track to become one of North America’s first commercial producers of lithium from oilfield brine.”

Volt’s DLE approach involves a two-stage process. The first stage focuses on removing contaminants from the brine before extraction. In the second stage, the breakthrough in their technology came with the development of specialized ion exchange beads, the company said.

“Unlike traditional beads, our innovative creation boasts a size of five microns and an impressive 800 times the surface area of other industry-standard beads, enhancing extraction efficiency,” Wylie told The Northern Miner in 2023.

This advancement, he said, allowed the team to consistently extract lithium from brines during various testing stages, including successful pilot projects.

The company aims to ramp up commercial production to 100,000 barrels per day of brine during the second half of 2025.

Volt’s shares were up 6% in Toronto on Wednesday morning, bringing the company’s market capitalization to approximately C$63 million ($45.5 million).

Yet prices for all three EV battery inputs have fallen to such bombed-out levels that producers are curtailing output and deferring new projects.

This is partly a problem of oversupply. Explosive price rallies in 2021 and 2022 resulted in too much new production capacity being brought online too quickly.

But it is also a problem of demand.

The transition away from the internal combustion engine has by no means ground to a halt. Global new energy vehicle sales were up by 20% year-on-year in January-August, according to consultancy Rho Motion.

Rather, the mix of vehicles being sold and the evolution of battery chemistry have dramatically changed the metals demand dynamic.

The rise of the hybrids

Pure battery electric vehicle (BEV) sales have underperformed expectations due to buyers’ concerns about limited driving range and charging infrastructure.

By contrast, hybrid and plug-in hybrid cars, which have both a battery and internal combustion engine, have soared in popularity.

The increase in global sales of BEVs slowed to 10% year-on-year in the first eight months of 2024, while plug-in hybrid (PHEV) sales jumped 46%, according to Rho Motion.

This trend has been led by China, the world’s largest EV market. The key driver is the emergence of the extended range electric vehicle (EREV), a type of PHEV that uses the gasoline engine solely to charge the battery, giving the vehicle an extended driving range of more than 1,000 kilometres (621 miles).

EREVs now account for 31% of all plug-in hybrid sales in China, according to research house Adamas Intelligence, which expects them to enjoy similar success in both Europe and the United States.

Major automakers are embracing hybrids in all forms as a relatively low-cost transition technology between gasoline and pure electric vehicles.

Hybrids don’t need the same battery power as a BEV. Adamas calculates that battery pack capacity in a PHEV is a third of that in a BEV, which means a similar-sized reduction in the amount of lithium, nickel and cobalt used per vehicle.

Other metals, however, stand to benefit from the rise of the hybrids. Platinum and palladium, which are used to clean auto exhausts, have been granted an unexpected new lease of life.

Changing chemistry

While the new energy vehicle mix is changing, so too is battery chemistry.

Lithium-iron-phosphate batteries (LFP) have become the rising stars of the battery industry, accounting for around 40% of battery demand in 2023, more than double the share recorded in 2020, according to the International Energy Agency (IEA).

As with the new extended range hybrids, the LFP revolution is being led by China, where two-thirds of EV sales used this technology in 2023, the IEA estimates.

Chinese battery makers have turned what was once regarded as a low-power technology suitable only for short city commutes into a product that can compete with nickel-manganese-cobalt battery chemistries.

China’s CATL unveiled a new break-through LFP battery at the Beijing auto show in April. The Shenxing Plus boasts a driving range of 1,000 kilometres on a single charge, effectively eliminating range anxiety.

The only critical metal input for an LFP battery is lithium. It doesn’t require either nickel or cobalt, which makes an LFP battery both cheaper and more environmentally friendly than other chemistries.

The market has taken note. Demand forecasts for nickel and cobalt use in batteries have been steadily downgraded over the last year to factor in China’s pivot towards LFP technology.

Going global

European and US automakers have until now stuck with high-nickel chemistries in their EV batteries but that may be starting to change.

Both Ford Motor and General Motors have shown interest in using CATL’s LFP technology.

Moreover, while China has been the only mass-producer of LFP batteries since the 2010s, the core patents that enabled this dominance expired in 2022.

This has sparked interest outside China.

For example, the IEA has noted a surge of LFP investment in Morocco, which is home to the world’s largest phosphate reserves. Importantly, it also holds free-trade agreements with both the European Union and the United States.

A twisting road

Li Auto’s L6 family sports utility vehicle is an example of how hybrid and LFP technologies have come together to upset preconceived notions about the EV market.

Boasting what the company calls “the latest generation of lithium-iron-phosphate battery”, the vehicle has a range of 212 kilometres in pure battery mode and a range of 1,390 kilometres in mixed battery-engine mode.

The Li6 can accelerate from zero to 100 kilometres an hour in 5.4 seconds, which lays to rest any fear that LFP batteries can’t deliver the same performance as nickel-rich batteries.

Such products are good news for the broader energy transition, offering consumers a cheap, reliable alternative route to an all-electric future.

But they challenge the idea that the global auto market will jump straight from the internal combustion engine to a pure battery vehicle.

They also defy expectations that all EV batteries need nickel and cobalt to enhance power and performance.

What’s more, the battery revolution has only just begun. Battery makers are investing heavily in research and development with the goal of developing ever cheaper, more powerful batteries.

Even lithium is at risk of substitution from sodium-ion batteries as CATL and other Chinese companies such as BYD expand capacity for the new technology.

Sodium-ion batteries could cost up to 20% less than incumbent technologies and can be used for both stationary storage and compact urban EVs, according to the IEA.

They use no lithium but, depending on chemistry, need both nickel and manganese, which foreshadows the potential for more metallic twists in the unpredictable electric vehicle revolution.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Louise Heavens)

The European Union, rushing to develop a 9 million euro joint purchasing mechanism for critical minerals and energy, is choosing between eight bidders vying to develop a platform, documents showed and sources with direct knowledge told Reuters.

The bloc’s rationale for pooling together buying orders is that it would hand participants more leverage to achieve more favourable deals and prices for critical minerals essential for the green transition that trade in thin and opaque markets often dominated by China.

The EU aims to sign a contract by the end of the year and start developing sections of the platform for individual products early next year, an EU source who declined to be named told Reuters.

The winner of the tender would be paid about 9 million euros to set up and hand over a platform to the EU, documents seen by Reuters showed.

The eight bidders include major consulting groups Deloitte and PricewaterhouseCoopers (PwC), both of which declined to comment.

Germany’s Metalshub and Enmacc submitted a joint bid, telling Reuters they propose to use their existing trading platforms for metals and energy for the EU project.

EU Commission spokesperson Johanna Bernsel said an online consultation with 66 responses showed industry backing for the initiative.

“Overall, the survey revealed wide support for setting up a demand aggregation and matchmaking platform for strategic raw materials.”

EU officials are hurrying to develop the initiative, a key element in the EU’s Critical Raw Materials Act (CRMA), on a mandate of Commission President Ursula von der Leyen, another source said.

“The imperative comes from the very top. Von der Leyen … wants people to move quickly,” said the source, who also declined to be named as they were not authorized to speak publicly.

The CRMA, which came into force in May, aims to boost domestic production and processing of critical minerals, whilst weaning off dependence on China.

Supply chain in place

Some possible users, however, say they already have supply chains in place for key inputs such as lithium and cobalt for electric vehicle batteries.

“Larger companies that have already established their supply chains for critical raw materials, such as battery raw materials, are unlikely to use this platform,” said Karol Bednarek, raw materials consultant with the German auto industry association VDA.

The platform may be useful, however, for sourcing materials certified as sustainable or niche materials such as germanium and gallium, he added.

The EU initiative is positive, but also has potential pitfalls, said the Spanish Association of Automotive Suppliers.

“Automotive suppliers typically source processed raw materials of very specific grades that require certification, which makes bundling demand more challenging,” Carolina López, head of sustainability for the group, told Reuters.

CEO Vincent Yang of Taiwanese battery maker ProLogium Technology Co said its cathode material suppliers have already signed procurement agreements with mineral producers.

ProLogium, in which Mercedes-Benz is an investor, plans to launch a 5.2 billion euro gigafactory in France in 2027 to produce its next-generation EV batteries.

Any platform must protect data regarding the specifics of what each buyer is requesting, which could expose trade secrets, Yang and other industry sources said.

Minerals and energy?

The EU has targeted critical minerals – vital for the energy transition for EVs and wind turbines – as a key sector to strengthen as the bloc seeks to achieve net zero carbon emissions by 2050.

But combining 17 critical minerals plus natural gas and hydrogen in the same platform would not work because the markets are very different, several industry sources said.

The new system is being patterned after an existing platform for joint buying of gas, AggregateEU, which was launched during the energy crisis in 2022.

The EU says it has been a success, but a report by the European Court of Auditors questioned the effectiveness of the platform.

(By Eric Onstad; Editing by Veronica Brown and David Evans)

Mineral Resources Ltd. has begun an investigation into undeclared payments made to companies owned by its tycoon founder, Chris Ellison, sending its shares down as much as 14%.

Ellison, who is managing director of Mineral Resources and still a major shareholder, said the payments pre-dated the company’s 2006 listing, and came from overseas entities he and his business partners operated, and which sold mining equipment and parts. He did not declare the income from the supply contracts.

“Regrettably, revenue generated by the overseas entities that we were beneficiaries of was not disclosed to the Australian Taxation Office at that time,” Ellison said in a statement on Monday. “This was a poor decision and a serious lapse of judgment.”

According to a report in the Australian Financial Review over the weekend, Ellison struck a deal with the Australian Taxation Office to pay up the outstanding amount. In exchange, authorities did not disclose the figure owed and he will avoid a police or regulatory investigation.

The Australian Taxation Office declined to immediately comment.

Mineral Resources said it retained confidence in Ellison, and would update the market once it had completed internal inquiries.

“Ellison self-reported to the Australian Taxation Office, repaid amounts owed and disclosed these matters to the board,” it said in a statement. “While this does not diminish what happened, Mr. Ellison profoundly regrets his errors of judgment.”

At 2:32 p.m. in Sydney, the stock was trading down 12% to A$40.38, giving the company a market value of about A$8 billion ($5.4 billion).

”While we understand that these concerns raise questions over corporate governance, we think the share price move today is overdone,” Kaan Peker, an analyst at RBC Capital Markets, said in a note, adding the key detail was that no sales had taken place after the company’s listing.

“The added scrutiny and rigor, the current concerns placed on corporate governance, ultimately, should be positive for the organization.”

Earlier this year, Ellison — a larger-than-life figure even by the standards of Australian business — made headlines after stating he wanted to prevent employees at the company’s office from leaving the building to buy coffee.

(By Paul-Alain Hunt)

“I had suggested that critical mineral MoU (memorandum of understanding) to be converted to a critical mineral partnership and become a starting point to become an FTA (Free Trade Agreement),” Piyush Goyal told reporters at a press briefing in New Delhi.

Earlier this month, India and US signed an initial pact to cooperate on strengthening supply chains in the two countries for lithium, cobalt and other critical minerals used in electric vehicles and clean energy applications.

The MoU fell far short of a full critical minerals trade deal that would allow India to benefit from the $7,500 US electric vehicle tax credit.

Minerals-focused trade deals are one way that the US President Joe Biden’s administration hopes to open up access for trusted allies to a $7,500 per vehicle EV tax credit introduced in last year’s climate-focused Inflation Reduction Act.

(By Shivangi Acharya; Editing by Jason Neely)

The council of Loznica, population around 20,000 about 100 km west of Belgrade, is deciding whether to amend its official plan to allow the 250-hectare development. The hard-rock lithium project has sparked massive protests while see-sawing between official support and rejection for years.

Slated to start in 2028, it would produce 58,000 tonnes a year of battery-grade lithium carbonate, about 17% of European demand and enough for one million electric vehicles. The mine might last 40 years. Rio, the world’s second largest miner by stock market value, and the government faced mass rallies again this week, swollen by an unlikely combination of causes.

“Rio Tinto is the hottest issue in the country right now,” Vuk Vuksanovic, an associate at the London School of Economics’ Ideas foreign policy think tank, said by email on Friday.

“The anti-lithium protests and environmentalism are the only things that at least temporarily unite left and right in Serbia. The left perceives it as a resistance against the arbitrary and illiberal governance of the incumbent coalition. The right perceives it as a struggle against Western dominance.”

Court ruling

Loznica council hasn’t set date for its vote, but local Balkan Insights media said on X it’s due this month. In August, Serbia’s Constitutional Court sided with Rio in overturning a 2022 government decision to block the project. Pundits note Serbian President Aleksandar Vučić might have cancelled the project’s permit in January 2022 in a ploy to win re-election that April.

But analysts view Vučić as pro-mining. He said in June he would revive the project, then signed a partnership with the European Union (it’s not a member) in July to supply critical minerals. His administration defeated an opposition-led motion on Oct. 10 to ban lithium exploration.

Vučić’s critics say he’s tightened control over media and rewarded supporters with government jobs. Whether he would allow a local council-level vote to derail the Jadar Valley project remains to be seen. But miners have at times benefited from authoritarian governments’ willingness to push through projects.

And Rio is no stranger to difficult ventures. It’s advancing the Simandou high-grade iron ore deposit in Guinea where it’s helping build a 600-km rail line and port. It’s considered Africa’s largest mining and related infrastructure project. In Arizona, the company is facing opposition to its Resolution copper project from the Apache Stronghold coalition of tribes.

Big M&A

Rio has little experience in lithium, with most of its production in iron ore, aluminum and copper. However, this month it announced the $6.7 billion acquisition of Arcadium Lithium (ASX: LTM; NYSE: ALTM) to become the third-largest lithium miner. It has also been developing the Rincon lithium brine project in Argentina. It expects first lithium from a pilot plant, and a feasibility study and final investment decision on the wider project this quarter.

At Jadar, Rio plans to apply in December for a permit allowing geotechnical work while prepping an environmental impact assessment that could take two years to complete. In third-quarter production results this week, Rio repeated comments about the project:

“We continue to believe that the Jadar project has the potential to be a world-class lithium-borates asset that could act as a catalyst for the development of other industries and thousands of jobs for current and future generations in Serbia.”

Last month, Rio CEO Jakob Stausholm flew to Serbia to participate in public information meetings that were broadcast on television. He was combatting what the company and Serbia’s mining and energy ministry have called disinformation campaigns. Media have reported the spread of online conspiracy theories like the project will trigger sulphuric acid rain, pollute drinking water or even secretly mine uranium.

Even so, Stausholm said locals have pertinent concerns about air quality and soil contamination that he and the company are working to allay. Rio seeks “to encourage an open, fact-based dialogue” in legally mandated public consultations, it said this week.

Environmental opposition

The project, which began after Rio geologists discovered the hard rock deposit in 2004, has fostered strong opposition throughout its history, said Teresa Kramarz, assistant professor at the University of Toronto’s School of the Environment. Some studies after exploration showed elevated boron, arsenic, and lithium in nearby rivers, she said.

“These protests and environmental costs highlight the need for wider conversations about trade-offs,” Teresa Kramarz, assistant professor at the University of Toronto’s School of the Environment, said by email.

“The idea that there’s only one way to decarbonize, and people will inevitably accept transfers of risk from one population to another or trade one type of risk for another is not going to work – particularly for those who experience disproportionate disadvantages and inequitable outcomes.”

Some analysts cited by The Wall St. Journal say the current opposition since the project’s revival is remarkable for its intensity. The US State Department has said the disinformation resembles Russian campaigns, like those to discourage shale-gas drilling to maintain Russian energy dominance in Europe. Others said it’s an attempt to dissuade Belgrade’s drift to the West and potential EU membership.

Cynical left

Vuksanovic disagreed, while still noting the impact on the West.

“The Russians are not behind it, but they take pleasure in the fact that the nationalist element of this protest is getting stronger,” he told The Northern Miner.

“Moreover, even the left, civic, pro-EU segments of Serbian society are getting increasingly cynical that the West and Europe are willing to engage the incumbent government and tolerate its domestic transgressions for the sake of lithium exploitation, weakening the EU and the US’s prestige in the country even further.”

Mikhail Korostikov, a visiting fellow at the Belgrade Centre for Security Policy, said vast numbers of Serbians oppose the project because they don’t believe the government is capable of enforcing environmental regulations. Even if they could, the rules aren’t strong enough, Korostikov said in a report last month for the centre.

He suggested importing EU environmental structure to oversee the project and trying to create as many jobs linked to the mine as possible in areas of procurement and mineral processing. Defeating the opposition requires making the project’s benefits more significant than any environmental consequences, he said.

“This will require serious courage and strategic vision on the part of all those involved in the political process, but it is essential,” Korostikov said. “There may not be another opportunity like this to integrate into the new economy and gain a bargaining leverage with the EU in the coming decades.”

Explorers and developers often overstate the certainty of mineral resource classifications based on inadequate data, Desharnais said at an event in Vancouver on Wednesday. The practice has in some instances led to unexpected analyst downgrades, soaring costs and debt, and the derailment of promising assets.

“That classification debt, unfortunately, needs to get paid,” he told about 430 conference participants from 21 countries at CIM’s first Mineral Resources & Mineral Reserves conference. “The CEO may be walking around with a 3-million-oz. resource estimate, but they haven’t earned that classification with sufficient drilling. When the debt comes due, it’s often through painful reclassifications and revisions.”

Decade of missteps

Several recent projects have demonstrated the high cost of classification debt.

Rubicon Resources’ catastrophic 91% downgrade in resource estimates in 2015 stands as one of the most glaring examples. After it began initial production at the F2 gold deposit on its Phoenix property in Ontario’s Red Lake district, the company found the deposit to be uneconomic, shuttering the operation. It had not completed a feasibility study for the high-grade project.

The size of the downgrade blindsided investors and stakeholders, and the company had to undergo a painful restructuring to survive. Rebranded as Battle North Gold, Evolution Mining (ASX: EVN) bought it and its renamed Bateman project in 2021 for $343 million.

In 2018, Pretium Resources promoted the Brucejack gold project in northwestern British Columbia’s Golden Triangle, now owned by Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM), as a high-grade gold deposit. Yet, the asset disappointed when gold production grades fell far below expectations.

The nuggety nature of the gold, with Brucejack’s steeply dipping quartz veins and erratic grade distribution, made it difficult to consistently meet production targets, forcing the company to push tonnage through the mill to compensate for lower-than-expected grades.

Aurora (2018), Rainy River (2019), and Gold Bar (2020) show how resource overestimation hurt Guyana Goldfields, New Gold (TSX: NGD; NYSE: NGD) and McEwen Mining (TSX: MUX; NYSE: MUX). They had to downgrade estimates mid-operation. This triggered mine plan revisions, soaring costs, production delays, and financial strain.

Grade versus geometric risk

Desharnais identifies two types of risk that contribute to resource misclassification: grade risk and geometric risk.

Grade risk reflects patchiness in ore quality, while geometric risk involves uncertainty about the size and shape of mineralized domains within the deposit.

Conditional simulations help assess grade risk, Desharnais said, but tools to quantify geometric risk are lacking.

Companies often overestimate deposit geometry without tighter drilling, leading to costly misjudgments.

“Sparse drilling gives us a simpler picture than reality,” he explained, adding that only closely spaced drilling can reveal the true complexity of orebodies.

Best practices

Mathieu Doucette, a senior geologist at ArcelorMittal (NYSE: MT), talked about the difficulty of classifying resources at Canada’s largest iron mine, the Mont-Wright iron ore mine in Quebec, producing continuously since 1974. Outdated data can affect current resource estimates. He illustrated how mixing in fresh drill holes helps manage geological risk as part of a dynamic model essential to avoid misclassification.

“The first thing [a QP] will do is akin to lighting a torch,” he said. “But everything on the edges is dark, and you can’t really see it. Drill holes are our ability to try and get some information, but sparse data hides the full picture.”

David Machuca-Mory, a principal consultant at SRK Consulting, said fixed models are risky. Deposits can be more unpredictable than they seem. Adaptive methods help ensure estimates reflect reality, reducing the chance of costly surprises.

“Even with dense drilling, some areas remain highly uncertain,” Machuca-Mory said. “Confidence intervals are large, and relying solely on drill spacing doesn’t always guarantee accurate classification.”

Cognitive biases

Desharnais said that misclassification is not just a technical problem; human psychology plays a significant role.

Anchoring bias makes companies stick with initial estimates despite new data. Authority bias pressures geologists and consultants to confirm favourable results to please management or investors.

“The consulting firm wants the next contract,” Desharnais said. “The CEO has family and friends invested and needs good news. These biases create a system where classification debt builds up across projects, only to be paid through painful revisions later.”

Owning up

Desharnais argued for more conservative resource models and said benchmarking against operating mines would help set realistic expectations. He suggested that technical reports include histograms that show the distance between drill holes and classified resources, he added.

“It forces the QP or CP to look at what they’ve done and ask: Does this make sense?” he said. “Transparent reporting would help prevent overly aggressive classifications, ensuring companies earn their resource classifications with sufficient data.”

Such measures may slow development, but they could also reduce the prevalence of misclassified resources in the industry. Desharnais urged geologists to scrutinize each block of material above the cut-off grade.

“Over-promising today only delays the inevitable correction tomorrow,” he said.

Cornish Lithium has opened the UK’s first low-emission lithium hydroxide demonstration plant as part of its Trelavour hard rock project in Cornwall, England.

The project aims to produce 10,000 tonnes of battery-grade lithium hydroxide per year by 2027.

When combined with its geothermal lithium projects, the company plans to produce a total of 25,000 tonnes per year of lithium carbonate equivalent (LCE) by 2030.

This would enable Cornish to supply around 25% of the lithium needed in the UK. Currently, Britain imports 100% of its lithium.

“Our demonstration processing plant allows us to test and confirm the viability of extracting lithium from hard rock in Cornwall before scaling up to full-size production,” Cornish Lithium said in a statement.

The facility processes lithium-enriched granite, mined from a repurposed China clay pit, to produce battery-grade lithium hydroxide using low-carbon processing technology — all on a single site.

Cornish estimates that the facility will contribute at least £800 million ($1 billion) in gross value added to the local economy and create over 300 jobs for the community.

The US automaker on Wednesday said it would form a joint venture with Lithium Americas to develop the Thacker Pass lithium mine, North America’s largest source of the battery metal.

The move increases GM’s investment in the project by an additional $325 million to $950 million after an initial investment announced last year. It also gives the automaker a partial ownership stake in the mine and doubles its access to production to at least 20 years.

While the Thacker Pass JV should supply GM with a “significant” amount of its lithium, the company is open to other critical minerals deals on the continent, Jeff Morrison, GM’s senior vice president of global purchasing and supply chain, said in an interview on Thursday.

A majority of GM’s deals are for minerals supply, not necessarily JVs, and the automaker likely would continue that approach, he added.

“We don’t want to become a mining company,” Morrison said. “Our main goal is to build out a North American based, Western-allied, reliant supply chain. To do that, we have to pick partners and assets and figure out what they need to do to industrialize and be successful.”

GM also has agreements to buy cobalt from Glencore, an investment in nickel and cobalt miner Queensland Pacific Metals, and a lithium supply deal with Arcadium Lithium, among others.

The automaker in 2021 invested in Controlled Thermal Resources Hell’s Kitchen geothermal brine project in California, although that project has experienced delays.

Morrison said GM is “still working with them and still staying close with them.”

(By Ernest Scheyder; Editing by Bill Berkrot)

Read More: General Motors digs into mining business to lead race for EV metals

Atlas, which has developed a waste-free technology to process low-grade nickel for use in electric vehicle batteries, last year raised $27 million for its technology and said it aims to launch production at sites in Canada or the US by 2027 at commercial scale.

Atlas’ technology uses hydrochloric acid and caustic soda to leach the ore but, unlike some other methods, does not need high pressure or high temperatures and does not result in waste products or other emissions while increasing the amount of ore available for batteries by 50%, the company said.

Until now, saprolite ores, which account for approximately one-third of the world’s nickel resources, could not be processed into battery grade applications economically, which is what the Atlas process is targeting.

6K Energy said its UniMelt production system is able to deliver multiple IRA compliant Li-ion materials, including nickel manganese cobalt (NMC) and lithium ferrophosphate (LFP) battery cathode active materials (CAM), with strong specification performance meeting or exceeding industry requirements.

The company added that its LFP CAM is achieving over 160mh/gm capacity with exceptional efficiency, trending to 6,000-plus cycles while maintaining 80% capacity, while its single-crystal NMC811 is demonstrating performance trending to 3,000-plus cycles to 80% state of health.

According to 6K Energy, it delivers both NMC and LFP at a significantly lower cost than Chinese suppliers – backed by lower energy consumption and as much as 65% lower carbon footprint.

As outlined in the MOU, Atlas will continue to focus on the North American production by deploying its low-carbon process to produce mixed hydroxide precipitate (MHP) from its established access to nickel laterite sources. 6K Energy will focus on converting nickel salts to CAM with its propriety microwave-generated plasma in a closed-loop production process.

The joint work will provide the lowest carbon footprint impact in conjunction with a market leading solution for EVs and the automotive industry as a whole, the companies said.

The protest comes after the ruling coalition led by the Serbian Progressive Party, which holds an overwhelming majority, rejected an opposition draft law stipulating a ban on mining and exploration for lithium and borates.

Protesters waved Serbian flags and banners reading “You Shall Not Dig” and “Back Away From Jadar”, while loudspeakers blared patriotic songs and folk music.

They demanded an end to the project and announced one-hour blockades of two regional roads on Saturday.

“We are preparing warning road blockades in several locations across the country this weekend,” Zlatko Kokanovic, a protest leader, told Reuters.

“We will see how we proceed from there.”

Lithium, regarded as a critical material by the EU and the US, is used in batteries for electric vehicles and mobile devices.

In 2022, the Serbian government revoked licenses for Rio Tinto’s $2.4 billion Jadar lithium project near Loznica following mass protests by environmental groups.

If implemented, Rio Tinto’s Jadar project could meet 90% of Europe’s current lithium needs, positioning the company as one of the world’s leading lithium producers.

The environmentalists and a majority of opposition parties argue that the mine could pollute land and water in the area, impacting farming, a major source of income for many in the region.

“There’s no retreat or surrender. They will not ravage nature and our lives,” said Branka Petrovic, 47, an activist from Belgrade.

Serbian officials argue that the mine will boost the country’s economy. In June, Serbia’s President Aleksandar Vucic said mining could start as early as 2028.

In July, Rio Tinto said the project would adhere to stringent environmental requirements, including legal and permitting procedures, as well as public consultations before implementation.

(By Aleksandar Vasovic)

Under the deal that the developer calls the largest ever by a US original equipment manufacturer in a lithium project, GM is to acquire a 38% stake in Thacker Pass for $625 million in cash and letters of credit.

The JV deal replaces the $330 million in second tranche equity investment from GM announced in January 2023, and is in addition to the $2.3 billion loan from the US Department of Energy (DOE). The deal also includes $430 million of direct funding to the JV to build the project’s first stage, expected to cost $2.9 billion.

“Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass,” Jonathan Evans, Lithium Americas president and CEO said in a release. “We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.”

The JV deal is among some in the lithium space to be moving forward while low prices of the battery metal have seen many others face delays. Battery-grade lithium hydroxide prices have dropped to $9,800 per tonne on Wednesday from $22,275 a year ago and around $85,000 a tonne in late 2022, according to The Wall St. Journal.

Shares in Lithium Americas traded for C$4.45 apiece on Wednesday morning in Toronto, valuing the company at C$975.9 million. Its shares traded in a 52-week range of C$2.87 to C$12.71.

Manager with 62% stake

For its 62% ownership of Thacker Pass, Lithium Americas will contribute $387 million to the JV and act as manager of the project. Of the total, $211 million is to be paid when the JV closes and the rest when a final investment decision is made.

GM is to extend its existing offtake agreement with Lithium Americas for up to 100% of production volumes from Thacker Pass’ first stage to 20 years to support the expected maturity of the DOE loan. After the JV closes, GM will also make another 20-year offtake deal for up to 38% of stage two production volumes, retaining its right of first offer on the remaining stage two volumes.

Before Lithium Americas takes its first draw of the $2.3 billion loan, expected in the middle of next year, it must fund about $195 million towards reserve accounts linked to the loan, such as for construction contingency, ramp up and sustaining capital.

Design 40% done

Meanwhile, at Thacker Pass, located in Humboldt County, the company has completed about 40% of the project’s engineering design, and site preparation for major earthworks is complete. Excavation of the process plant area is about half-finished and preparations for concrete placement are underway.

The project hosts the largest known measured and indicated lithium resource in North America, with 385 million measured and indicated tonnes grading 2,917 parts per million (ppm) lithium, equivalent to 6 million tonnes of lithium carbonate. Another 147 million inferred tonnes grading 2,932 ppm lithium could provide another 2.3 million tonnes of lithium carbonate equivalent (LCE).

The mine could potentially produce enough lithium to power 1 million EVs annually, the company says.

Amnesty International points out that human rights risks in supply chains include potentially leaving communities exposed to exploitation, health risks and environmental harm caused by the rapid expansion of mines required for the metals used in batteries.

In the new report, Recharge for Rights: Ranking the Human Rights Due Diligence Reporting of Leading Electric Vehicle Makers, Amnesty International uses criteria based on international standards to comprehensively assess human rights due diligence policies and self-reported practices of 13 major EV manufacturers, issuing each one with a scorecard.

The companies were assessed against criteria based on internationally recognized frameworks, including the UN Guiding Principles on Business and Human Rights (UNGPs), the OECD Guidelines for Multinational Enterprises, and the OECD Due Diligence Guidance for Responsible Business Conduct.

Mixed scores across the board

Amnesty’s scorecard, which is marked out of 90, assesses companies’ performance on criteria including commitment to human rights policies, risk identification process, supply chain mapping and reporting, and remediation.

The scorecard breaks down whether these car brands are meeting their human rights responsibilities and highlights which of them are failing to show that they are addressing human rights concerns.

Companies assessed are headquartered in China (BYD, Geely Auto), France (Renault), Germany (BMW, Mercedes-Benz, VW Group), Japan (Mitsubishi, Nissan), Netherlands (Stellantis), South Korea (Hyundai) and the United States (Ford, General Motors, Tesla).

None of the companies scored higher than 51 on Amnesty International’s human rights due diligence assessment, it said.

Mercedes-Benz ranked the highest (51) Tesla came in second (49) and Stellantis third (42) . BYD scored the lowest, (11), followed by Mitsubishi (13) and Hyundai (21).

Lacking transparency

In terms of supply chain mapping disclosures, BYD, Geely Auto, Hyundai, General Motors and Mitsubishi Motors scored the lowest, failing to provide detailed information about their supply chains, Amnesty International said.

The report revealed BYD does not disclose smelter, refiner, or mine site names. Geely Auto provided only general supplier locations without specifying mineral extraction sites.

Hyundai and Mitsubishi Motors demonstrated a similar lack of transparency, Amnesty International said, with no evidence of comprehensive supply chain mapping or mine site identification for cobalt, copper, lithium and nickel, making it difficult for stakeholders to verify how these operations affect nearby communities.

As global demand for battery minerals soars, the report calls for car makers to identify and mitigate human rights risks and as well as risks of abuse of Indigenous Peoples’ rights in countries where minerals are extracted such as the Democratic Republic of Congo and Philippines.

“The huge rise in demand for the metals needed to make electric vehicle batteries is putting immense pressures on mining-affected communities,” Amnesty International’s Secretary General, Agnès Callamard, said in a media statement.

“The human rights abuses tied to the extraction of energy transition minerals are alarming and pervasive and the industry’s response is sorely lacking. Communities are suffering from forced evictions, health issues caused by pollution and difficulties accessing water,” Callamard said.

“As demand for electric vehicles increases, manufacturers must ensure people’s human rights are respected.”

Read the full report here.

At the end of the third quarter of 2024, the MINING.COM TOP 50* ranking of the world’s most valuable miners had a combined market capitalization of $1.51 trillion, up just under $76 billion from end-June, largely on the back of gold and royalty stocks.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022.  

Ranks, value of gold stocks swell

The value of precious metals and royalty companies climbed by a combined $42 billion, or 16% during the quarter and gold counters dominate the best performing ranks. 

Were it not for the limited tradability of stock in Russia’s Polyus, which lost some ground over the last three months despite gold’s stellar performance, bullion’s effect on the Top 50 would have been even more pronounced. 

Canada’s Alamos Gold joins the top 50 for the first time with a more than 31% jump in value, lifting it six places to number 48 with a valuation of $8.2 billion at the end of the quarter while the second quarter’s newcomer Pan American Silver (following its absorption of Yamana Gold) hangs on at no 50.

Alamos Gold last month raised its production guidance by over 20% for 2025-2026 with the inclusion of the Magino mine and its integration with its Island Gold operation in Ontario. The Toronto- based miner has long term ambitions to grow its production base to 900,000 ounces per year.

Uzbekistan is readying an IPO for Navoi Mining and Metallurgy Combinat – the world’s fourth largest gold mining company and significant uranium producer in 2025. NMMC debuted a $1 billion bond offering last week, marking the first global debt market issuance from a gold mining company since June 2023.

Navoi should easily join the ranks of gold producers in the top 50 thanks to ownership of the world’s largest gold mine, Muruntau, and annual production of 2.9 million ounces at grades and per ounce extraction costs the envy of the sector.  

The Muruntau open pit mine southwest of the Kyzylkum desert, originally developed during the Soviet era as a source of uranium, has estimated reserves of around 130 million ounces of gold. 

Goldilocks copper

Copper specialists, and those with fat gold credits, have gained a combined 36% year to date as the copper price continues to flirt with the $10,000 a tonne level, but momentum slowed dramatically during Q3 with the group contributing only $7.2 billion in added market worth during the quarter. 

Amman Mineral’s fierce rally also came to an abrupt halt during the quarter with the counter losing 18% over the three months and coming close to falling out of the top 10.

Investors who bought Amman, owner of the world’s third largest mine worldwide in terms of copper equivalent, at the IPO price in Jakarta a year ago, are still enjoying 400% gains since then, however. 

Southern Copper’s position as the world’s third most valuable mining stock seems entrenched after a double digit percentage gain in Q3 compared to a much more sedate performance by Freeport-McMoRan, which now has to gain a full $20 billion in market cap to haul in its Mexico City-based rival.

Light on lithium 

Rio Tinto’s vote of confidence in the long term future of the lithium sector (and its own ability to make M&A work) dominated the news at the start of the December-quarter but it’s worth noting that Arcadium’s more than 90% surge since the all-cash offer was first announced is not enough for the stock to enter the rankings.

Three lithium counters exited the rankings this year, Australia’s Pilbara Minerals and Mineral Resources and China’s Tianqi Lithium as the deep slump in prices for the battery metal continues to take its toll.  

Last quarter’s no 50, Ganfeng Lithium jumps six places after being swept up in the stimulus-induced rally on Chinese stock markets at the end of the quarter, while Tianqi’s performance so far in October should see it reenter the Top 50 in due course. 

Ganfeng was barely holding on at position 50 at end-June and with gold price momentum continuing and two gold mining companies waiting in the winds – Yintai and Alamos – only three lithium counters in the top 50 may be a reality for some time to come. 

After peaking in the second quarter of 2022 with a combined value of nearly $120 billion, the remaining lithium stocks’ market value has now shrunk to $34 billion.  

Iron ore ground down

Despite a modest improvement during the quarter, the mining industry’s traditional big 5 – BHP, Rio Tinto, Glencore, Vale and Anglo American – remain in the red for 2024, losing $24 billion since the start of the year. 

The big 5 diversifieds now make up 29% of the total index, down from a height of 38% at the end of 2022.  

Iron ore’s less than rosy outlook – the late boost China’s recent stimulus package notwithstanding – saw Fortescue once again feature on the biggest losers list and Cleveland Cliffs exit the ranking with the US iron ore miner’s 37% decline this year exacerbated by its inability to capitalize on the blocking of the Nippon-US Steel tie up. 

Iron ore’s representation in the top 50 have diminished in the last couple of years – Brazil’s CSN Mineração dropped out during Q1 this year while Anglo-controlled and separately-listed Kumba Iron Ore has lost touch with the top tier after a 40% fall year to date.

Click on image for full size table.

NOTES:

Source: MINING.COM, stock exchange data, company reports. Share data from primary-listed exchange at close Oct 4, 2024 close of trading converted to US$ where applicable. Percentage change based on US$ market cap difference, not share price change in local currency.  

As with any ranking, criteria for inclusion are contentious. We decided to exclude unlisted and state-owned enterprises at the outset due to a lack of information. That, of course, excludes giants like Chile’s Codelco, Uzbekistan’s Navoi Mining (the gold and uranium giant may list later this year), Eurochem, a major potash firm, and a number of entities in China and developing countries around the world.

Another central criterion was the depth of involvement in the industry before an enterprise can rightfully be called a mining company.

For instance, should smelter companies or commodity traders that own minority stakes in mining assets be included, especially if these investments have no operational component or warrant a seat on the board?

This is a common structure in Asia and excluding these types of companies removed well-known names like Japan’s Marubeni and Mitsui, Korea Zinc and Chile’s Copec. 

Levels of operational or strategic involvement and size of shareholding were other central considerations. Do streaming and royalty companies that receive metals from mining operations without shareholding qualify or are they just specialised financing vehicles? We included Franco Nevada, Royal Gold and Wheaton Precious Metals on the basis of their deep involvement in the industry.

Vertically integrated concerns like Alcoa and energy companies such as Shenhua Energy or Bayan Resources where power, ports and railways make up a large portion of revenues pose a problem. The revenue mix also tends to change alongside volatile coal prices. Same goes for battery makers like China’s CATL which is increasingly moving upstream, but where mining will continue to represent a small portion of its valuation.  

Another consideration is diversified companies such as Anglo American with separately listed majority-owned subsidiaries. We’ve included Angloplat in the ranking but excluded Kumba Iron Ore in which Anglo has a 70% stake to avoid double counting. Similarly we excluded Hindustan Zinc which is listed separately but majority owned by Vedanta.

Many steelmakers own and often operate iron ore and other metal mines, but in the interest of balance and diversity we excluded the steel industry, and with that many companies that have substantial mining assets including giants like ArcelorMittal, Magnitogorsk, Ternium, Baosteel and many others.

Head office refers to operational headquarters wherever applicable, for example BHP and Rio Tinto are shown as Melbourne, Australia, but Antofagasta is the exception that proves the rule. We consider the company’s HQ to be in London, where it has been listed since the late 1800s.

Please let us know of any errors, omissions, deletions or additions to the ranking or suggest a different methodology.

Now — after billions in charges, cost cuts, plus several chief executives and multiple false starts — the miner has returned to the M&A fray, announcing the agreed $6.7 billion acquisition of Arcadium Lithium Ltd. this week.

Modest by comparison with past splurges, the all-cash deal is a significant and long-awaited expansion of Rio’s bet on lithium, a metal other diversified miners have stayed away from, worried about geological abundance among other factors.

It also marks a clear step back toward acquisitive growth.

“The development of the Arcadium acquisition was years in the making,” said Kaan Peker, analyst with RBC Capital Markets LLC. “Eventually, as we’ve seen over the course of the last couple of months, it was driven by a cyclical bottoming of the lithium price.”

The mining sector across the board is only just beginning to shift its focus to expansion and deals. For years after the last frenzy soured, shareholders demanded only better returns. But while rival BHP Group tested the waters since 2022, with the move for OZ Minerals Ltd. — and eventually bid unsuccessfully for Anglo American Plc, earlier this year — Rio has held back.

People familiar with the matter have long pointed to cumbersome internal structures and a conservative approach from chief executive officer Jakob Stausholm, who was chief financial officer until the 2020 ousting of his predecessor provided an unexpected opening at the top. Public comments pointed away from deals.

But it’s also true that the miner struggled with an issue that has dogged other large peers like BHP. When profit comes overwhelmingly from vast iron ore mines, it is hard to find additions that are lucrative — and sizeable — enough to move the needle. Copper is expensive and hard to find. Energy-transition friendly metals like lithium, used in batteries, tend to be smaller scale, with plenty of value in the processing and not just extraction.

Even with China’s sputtering economy, the profit margin for Rio’s Pilbara iron ore operations was 67% in the first half of 2024.

Battery bet

Rio has significant additional copper and iron production due from Oyu Tolgoi in Mongolia and Simandou in Guinea, respectively. Still, its answer to the question of where new, greener growth will come from has been lithium.

The path has not been smooth. Efforts to invest in new materials through private equity-inspired unit Rio Ventures, starting in 2017, went virtually nowhere and attempts to buy into lithium heavyweight SQM around that time were also thwarted. Projects too have stumbled, with Jadar in Serbia, Stausholm’s early bet, turning for a time into a local cause celebre.

“There were some people in Rio that were very disappointed they didn’t buy the stake in SQM. If you look back at Rio in those days they weren’t really ready,” said George Cheveley, portfolio manager at Ninety One UK Ltd.

“Since Jakob became CEO, he has been fixing internal problems and projects that were stuck. Operationally, we’ve seen them hit their targets. Now to be moving into lithium and getting back to M&A is the obvious next step. You can see him rebuilding the company back to where it was.”

Rio completed its $825 million purchase of the Rincon project in Argentina in 2022, but it was the collapse of lithium prices since the end of that year that opened up more avenues for M&A, with many new suppliers struggling to stay afloat.

The second-largest miner has seized the opportunity, and investors are cautiously welcoming a move that brings future production — Arcadium is projected to be the world’s third-largest producer by 2030 — but also technological nous, particularly in direct lithium extraction, or DLE, which could turbocharge output.

“We are happy Rio’s CEO Jakob Stausholm showed discipline and waited for the right time; makes a lot of sense and Arcadium is a nice add-on,” said Matthew Haupt, a portfolio manager at Wilson Asset Management Ltd. in Sydney, who holds both Rio and Arcadium.

Others echoed the sentiment — even with a premium to the undisturbed price of 90%, hefty despite the halving of Arcadium shares this year.

“You could almost say it’s akin to what BHP did last year when they bought OZ Minerals. Go out there, do a deal that is a small percentage of your market cap, execute it and prove that you can buy well,” said Barrenjoey analyst Glyn Lawcock. “The question now is whether there’s more to come down the pipe after this.”

Still, Rio has work to do when it comes to convincing all its investors that it’s ready to get back to spending.

“If they indulge in large scale M&A, it’ll be a negative thing,” said Prasad Patkar at Platypus Asset Management. “I’m a little bit more comfortable with this transaction than I would’ve been with anything larger. Or any top-of-the-market stuff.”

A Rio spokesman pointed to Stausholm’s comments this week committing to remain disciplined in capital allocation, but declined to comment further.

(By Paul-Alain Hunt)