Critical Minerals: What’s On & What’s Next

 Recent Developments

• UK and Saudi Arabia to deepen collaboration on critical minerals: On January 11, UK Business Secretary Grant Shapps agreed with Saudi Arabia’s Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef to deepen their collaboration on critical minerals during the Future Minerals Forum in Riyadh. Specifically, Saudi Arabia will increase its investment in UK manufacturing and mining finance sectors while offering new business opportunities for UK mining firms in Saudi Arabia. The new relationship will be formalized in the coming months, with specific actions they can take to open new sources of critical mineral supply. Lastly, their partnership will build upon “rigorous transparency and environmental standards to minimize the risks to businesses and encourage investment.”

• • Before the Future Minerals Forum 2023, which took place between 11-12 January, more than 60 government mineral ministers and delegations and 21 international organizations attended the Ministerial Roundtable hosted by Saudi Arabia’s Ministry of Industry and Mineral Resources on January 10.
  • Additionally, Saudi Arabia launched a mining fund owned 51% by state miner Ma’aden and 49% by the country’s Public Investment Fund to invest up to $15 billion overseas. The organizations said the fund’s initial capital would be $50 million, and two shareholders would provide over $3 billion if needed. According to the press release, the company will initially focus on investing in “iron ore, copper, nickel, and lithium, as a non-operating partner taking minority equity positions in mining assets globally.”

• Biden administration releases national blueprint to decarbonize transportation: On January 10, the Department of Energy, Department of Transportation, the Environmental Protection Agency, and the Department of Housing and Urban Development released The U.S. National Blueprint For Transportation Decarbonization, outlining how the U.S. will “eliminate nearly all GHG emissions” from the transportation sector by 2050, which accounts for roughly 33% of all emissions in the U.S. The Blueprint calls for coordinated actions between all levels of government with non-profit organizations and private industries and outlines how immediate actions and long-term planning are needed to achieve the country’s 2030 emissions goals and net zero by 2050. These actions and planning focus on increasing convenience through land-use planning and community design, improving transportation efficiency, and transitioning to zero-emission vehicles and fuels. Detailed actions will be developed around “turning the tide” on emissions before 2030 through research and investment to support development, accelerating the deployment of clean solutions between 2030 and 2040, and completing the transition to net zero by 2050.
  • Notably, the Blueprint included a chart on how battery/electric, hydrogen, and sustainable liquid fuels are best positioned to support net zero by 2050, noting that a “successful transition will require various vehicle and fuel solutions and must consider full life-cycle emissions.” Specifically, battery/electric was identified as the greatest long-term opportunity to decarbonize light-duty vehicles and was identified as a long-term opportunity for medium- and short-haul heavy trucks, buses, off-road, rail, and pipelines. The Blueprint also identified how stationary battery use and grid support to manage EV charging are additional opportunities, while a national battery strategy, charging infrastructure, grid integration, and battery recycling are research and design priorities. Lastly, the Blueprint notes that batteries are expected to improve and become cheaper, “especially as domestic minerals processing and cell production capacity increases, enabling further competitiveness over the next decade.”

• South Korea and U.S. discuss enhanced critical mineral and energy cooperation: Trade, Industry and Energy Second Vice Minister Park Il-jun met with Jose Fernandez, U.S. Under Secretary for Economic Growth, Energy, and the Environment, on January 10, to discuss enhancing their cooperation on critical mineral and energy issues and supporting Korean companies’ exports and investment. Second Vice Minister Park Il-jun also voiced his optimism that the Minerals Security Partnership can help stabilize and diversify the critical minerals’ supply chain. Additionally, the Korean government noted it will “actively communicate with companies to find prospective critical minerals sourcing projects and stimulate public-private critical minerals investment to participate in the joint efforts to build a flexible, diversified and stable critical minerals supply chain.”
  • The two countries also agreed to hold future talks to discuss incentives for Korean companies operating in the U.S. under the Inflation Reduction Act and the CHIPS and Science Act.

• 2023 North American Leaders’ Summit discusses critical minerals and semiconductors: The 2023 North American Leaders’ Summit on January 9-10 brought together President Joe Biden of the U.S., President Andrés Manuel López Obrador of Mexico, and Prime Minister Justin Trudeau of Canada who discussed how to strengthen their partnerships and advances shared priorities. According to a Fact Sheet from the White House, the countries will deepen their economic cooperation, promote investment, and reinforce competitiveness, innovation, and resilience through various actions. Notably, this includes “expanding North American critical minerals resource mapping to collect details on resources and reserves. The Geological Surveys of each country will organize a trilateral workshop to share data and facilitate cooperation” and developing a plan for operating standards and installing EV charges along their borders.
  • Additionally, the countries will organize the “first-ever trilateral semiconductor forum with industry to adapt government policies and increase investment in semiconductor supply chains across North America. Participation will include senior industry representatives and cabinet level participation from the United States, Mexico, and Canada in early 2023.” They will also coordinate their semiconductor supply chain mapping efforts to better understand their unmet needs and identify investment opportunities, and convene industry and academic experts in semiconductors, among other key advanced manufacturing and logistics industries, for “design sessions” to develop a skilled North American workforce over the next five years.

• U.S. House elects Speaker of the House and introduces mining permitting reform: After 15 rounds of voting, the U.S. House of Representatives elected Rep. Kevin McCarthy (R-CA-20) on January 7 as the Speaker of the House, allowing the 118^th House to begin. Two days later, Rep. Pete Stauber (R-MN-08), incoming Chair of the Subcommittee on Energy and Mineral Resources, introduced the Permitting for Mining Needs (PERMIT-MN) Act to streamline permitting for mining projects. The bill could be passed by itself or as part of a larger House Republican-led permitting reform package, according to Rep. Stauber.
  • Specifically, the bill would set a maximum 12-month time period for environmental assessments and require environmental impact statements to take no more than two years. Additionally, the bill would prohibit lawsuits against permitting decisions 120 days after a decision has been made, would designate a lead federal agency to review applications and grant approvals, and allow individuals to “use, occupy, and conduct operations on public land, with or without the discovery of a valuable mineral deposit…”
  • The bill would also change the definition of what is not a “critical mineral” under 30 U.S. Code § 1606 – Mineral Security (a)(3(B)(i) from “fuel minerals” to “oil, oil shale, coal, or natural gas,” therefore making uranium a critical mineral. To this end, the bill requires the U.S. Geological Survey to publish an update to its 2022 list of critical minerals to consider uranium as an official critical mineral.

• China committed to booting domestic prospecting and strategic reserves in key mineral resources: China’s Minister of Natural Resources, Wang Guanghua, announced China will officially launch a new round of domestic prospecting focused on bulk minerals. Additionally, as the world’s largest consumer of metals, the country plans to increase strategic reserves to ensure supply security. These measures include offering incentives to encourage private capital to participate in the exploration and prospecting process. With the increased global commodity prices of iron ore, oil, and copper, due to Russia’s invasion of Ukraine, China’s energy supply chain has experienced additional risks. As a result, China is enhancing domestic mining to decrease reliance on international imports.
  • As part of his first official trip, China’s new Foreign Minister Qin Gang visited Ethiopia, Gabon, Angola, Benin, and Egypt the week of January 9. China is committed to maintaining and developing its relationship with African nations, as China has become a major trading partner and investor in African mining projects.

• Canadian official defends green economy transition plan: Canadian Natural Resource Minister, Jonathan Wilkinson, announced new legislation to transition workers from carbon-intensive industries to clean energy jobs, including mining and critical minerals processing, calling it “just transition” legislation. While details have not been released yet, the legislation has already received criticism from Alberta’s Premier Danielle Smith and Environment Minister Sonya Savage, who accused the government of jeopardizing the livelihood of their communities.
  • In an interview with CBC’s As It Happens, Minister Wilkinson responded by saying the plan is focused on working with Alberta to provide opportunities in the future, highlighting the extensive opportunities in critical mineral processing and development. Additionally, he highlighted previous consultations with the Alberta community and promised to include the community as the legislation progresses. Lastly, Minister Wilkinson emphasized the projected job growth in Canada from the energy transition, noting the vast amounts of critical minerals needed for the energy transition translating into jobs for Canadians.

• Brazil’s President issues decrees protecting Indigenous communities and land: Brazilian President Luiz Inácio Lula da Silva issued numerous decrees, effective January 2, changing previous measures implemented by the prior administration. These measures have been celebrated by Indigenous communities, as well as environmental activist groups. Additionally, the president reappointed Marina Silva to the Ministry of Environment and Climate change, which was largely ineffective in the previous administration, and established the Ministry of Indigenous Peoples. Among these decrees, President Lula issued Decree 11,369,  repealing Decree 10,966, which promoted artisanal mining on Indigenous lands and environmentally protected areas under the Program of Support for the Development of Artisanal and Small-Scale Mining.

 Looking Ahead

• Mexico Business Events is hosting Mexico Mining Forum 2023 in Mexico City, Mexico, on February 1-2: The event will provide in-depth information about the Mexican mining industry, government priorities, and sustainable mining management.
• Hyve are hosting Mining Indaba in Cape Town, South Africa, on February 6-9: The event joins investors, financiers, operators, suppliers, and mining & exploration companies for four days of unrivaled deal-making opportunities, industry-leading discussions, and business-changing connections.
• Australia’s Mining Monthly and Mining Magazine is hosting Future of Mining Sydney in Sydney, Australia, on February 20-21: This event will provide opportunities to learn from, challenge and debate with the region’s pioneering innovators to address new solutions and shape strategies that advance the mining industry’s operational goals.
• Beacon Events is hosting Mines and Money Miami in Miami, Florida, on February 23-24: The event will look at key global trends, collaboration strategies, and the pathway toward the energy transition.
• Expogroup is hosting Minexpo Africa 2023 in Dar-es-Salaam, Tanzania, on February 23-25: The event will showcase the region’s latest technology in the mining & processing of minerals, earthmoving, safety equipment, and much more.
• The Society for Mining, Metallurgy, and Exploration (SME) is hosting MINEXCHANGE 2023 SME Annual Conference & Expo in Denver, Colorado, on February 26-March 1: The event will focus on new safety strategies, exiting advances in AI, and important initiatives for a sustainable future.
• The Prospectors & Developers Association of Canada is hosting PDAC in Toronto, Canada, on March 5-8: This event will attract up to 30,000 attendees from over 130+ countries to participate in educational programming, networking events, and outstanding business opportunities in the mining industry.
• The Association of Equipment Manufactures is hosting CONEXPO-CON/AGG in Las Vegas, Nevada, on March 14-18: This event is North America’s largest construction trade show where 1,800 equipment manufacturers meet to learn, talk, compare, and see the technology and equipment that’s going to transform your business.
• The Swiss Mining Institute is hosting a conference in Zurich, Switzerland, on March 21-22: This invite-only event of selected asset managers, fund managers, and other professional investors from all over the world will provide top quality, independent perspectives from experts within the resources sector together with presentations from 80 selected mining companies.
• Solar Media is hosting Energy Storage USA 2023 in Austin, Texas, on March 28-29: This event will provide the perfect platform to connect key industry players across the entire value chain in a buzzing US market.

 In Case you Missed It

• Mining Journal: Governments must defend miners in the public eye, BHP boss says
• Reuters: Peru’s mining south, rocked by violence, braces for ‘endless battle’
• Bloomberg: The Great American EV Battery Revolution Might Finally Be Here
• Zawya: Saudi Arabia plans 4 to 6 geological survey auctions in 2023: report
• Bloomberg: India’s Foray Into the EV Battery Market Lacks Some Key Ingredients
• Eyewitness News: Stronger Mining Regulations Needed – Mineral Resources Portfolio Committee Chair
• World Economic Forum: Lithium: Here’s why Latin America is key to the global energy transition
• Reuters: China’s Tianqi-led venture bids for Australian lithium firm Essential
• The Jordan Times: 2025 mineral resources strategy aims for 11% GDP contribution for mining sector
• Midland Reporter-Telegram: Study finds potential in extracting lithium from produced water
• Reuters: South Korea’s SK On plans a new, lower cost EV battery by 2025
• Holland & Knight: Foreign Investment in the Critical Minerals Sector to Face Enhanced Scrutiny
• EY: Electric vehicles continue charge toward sales dominance – EY analysis
• NPR: The fate of America’s largest lithium mine is in a federal judge’s hands
• Bloomberg: Malaysia Plans to Extend EV Exemptions in Green Mobility Push
• The West Australian: Madeleine King: Understanding what lies beneath our feet will pay dividends

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