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

 Recent Developments

• Key developments from Investing in African Mining Indaba (5-8 February):
  • Saudi Arabia holds meetings with government officials and large corporations: Saudi Arabia’s Ministry of Industry and Mineral Resources attended the conference led by Deputy Minister of Energy, Industry and Mineral Resources, Khalid bin Saleh Al-Midaifer. During the conference, the delegation sought to highlight the kingdom’s mining opportunities and how its legislative and organizational framework makes it attractive to investors.
  • Sudan and South Sudan reactivate mining sector cooperation agreements: Sudan and South Sudan agreed to reactivate joint agreements and Memoranda of Understating on mining. Specifically, the countries will work to build geological cadres through training in Sudan, and find ways to develop technical laboratories and modernize operational equipment.
  • Namibia and Zimbabwe stress Africa will mine and refine its lithium: Building off Zimbabwe’s ban of raw lithium exports in December, Zimbabwe’s Minister of Mines and Mining Development told Reuters that “because of the ban, other investors have come in wanting to mop up lithium ores and develop them to concentrate stage.” Additionally, Namibia’s Minister of Energy and Energy said, “we are saying to ourselves, if you have got the minerals that everybody wants now, you need to make sure that at least you probably mine those minerals differently and not in the usual manner.” He continued that “we are going to insist that all lithium mined within the country has to be processed in the country.”
  • Mineral Security Partnership engages with African countries and issues ESG standards: During a conference with Angola, Botswana, the Democratic Republic of the Congo, South Africa, Tanzania, Uganda, and Zambia, the MSP announced it will support projects that: “Demonstrate responsible stewardship of the natural environment; Engage in consultative and participatory processes with regard to land access and acquisition; Commit to meaningful, ongoing consultation with communities; Ensure safe, fair, inclusive, and ethical conditions in the community and the workplace; Provide economic benefit for workers, and local communities; and Ensure transparent, ethical business operations.”
  • Italy joins Mineral Security Partnership: The U.S. Undersecretary of State for Economic Growth, Energy, and the Environment, Jose Fernandez, announced that Italy joined the partnership – now 12 countries and the EU.
  • Democratic Republic of the Congo seeks roles in green transition: President Felix Tshisekedi discussed that exploration for nickel and chrome will begin “in the next few days” in the county’s southern region and that it is looking for investment partners in cobalt, tantalum, tin, and lithium processing. He noted, “the goal is to discover new deposits that can be the subject of calls for bids, with a view to concluding mutually profitable public-private partnerships,” with “financiers, mining operators, equipment manufacturers, subcontractors, recyclers — everyone can find their part.”
  • S. Advisor says America is behind China on supply chain independence: Amos Hochstein, Special Presidential Coordinator for Global Infrastructure and Energy Security, told CNBC that the reliability of its supply chain “is a major concern for the U.S. and I think for the rest of the world. As we are going into a cleaner, greener, an entirely new energy system, we have to make sure we have a diversified supply chain,” stressing that the U.S. “can’t have a supply chain that is concentrated in any country, doesn’t matter which country that is.” When asked if the U.S. was behind in its building a diversified supply chain, he said, “Absolutely, we’re behind.” But, he added, “It doesn’t mean that we’re out.”

• South Korea and Mongolia agreed to boost rare earth cooperation: On February 15, South Korean Prime Minister Han Duck-soo and Mongolian Prime Minister Luvsannamsrai Oyun-Erdene agreed to increase cooperation in rare earth element production, infrastructure development, and climate change responses, specifically agreeing to jointly explore and develop rare metals in Mongolia.
  • Prime Minister Han explained, “we expect to actively discover and promote cooperative measures in areas such as climate change response and infrastructure development.” As part of the preliminary agreement signed after the meeting, South Korea and Mongolia will host an annual meeting regarding rare earth minerals, critical minerals, and metals.

• European Union to ban the sale of gas- and diesel-powered vehicles by 2035: On February 14, the European Parliament approved a law requiring carmakers achieve a 100% reduction in CO2 emissions from new cars sold by 2035, effectively banning the sale of new gas- and diesel-powered. Additionally, the law increases CO2 emission reductions for new cars sold in 2030 compared to 2021 levels from 37.5% to 55%. The European Council is expected to endorse the measure in March and hopes it will quicken the transition to electric vehicles. Notably, the law allows small carmakers that manufacture less than 10,000 vehicles a year to negotiate for more lenient targets until 2036.
  • Similarly, the California Air Resources Board (CARB) will vote in April to amend the Advanced Clean Trucks regulation, requiring all new medium- and heavy-duty trucks to be zero-emission by 2036 – four years sooner than the current rule. California already implemented a ban on all new gas-powered cars after 2035, and the CARB believes this amendment would better align with state goals.

• S. explores new critical minerals trade pact with Japan and the UK: The U.S. is looking at creating a “critical minerals buyers club” with its allies, including the G7 and the EU, to reduce reliance on China, according to an undisclosed U.S. official. Notably, this development adds Japan and the UK to countries the U.S. is looking to cooperate with on critical minerals. While the White House and Department of Treasury did not comment, it is possible the “critical minerals buyers club” could benefit from tax provisions in the Inflation Reduction Act, which incentives electric vehicles, among other technologies.

• S. Department of Energy announces $2 billion conditional loan to Redwood Materials: The U.S. Department of Energy’s Loan Program Office (LPO) offered Redwood Material a $2 billion conditional loan on February 9 under its Advanced Technology Vehicles Manufacturing Loan Program (ATVM) to develop anode and cathode components for batteries in Nevada and Kansas. The loan will support Redwood Materials’ phased construction, allowing an acceleration of construction, as well as an expansion of the first battery materials campus. Once operational, Redwood expects to employ 3,400 construction workers and approximately 1,600 full-time employees. Overall, Redwood’s facilities in Nevada and Kansas will produce 100 GWh annually of ultra-thin battery-grade copper foil and cathode-active materials, producing enough battery materials to domestically produce over one million electric vehicles a year.
  • Cathodes are comprised of lithium, nickel, and cobalt, while anode contains copper and graphite, which combined make up nearly 80% of the materials in lithium-ion batteries. It is forecasted that without increasing domestic production, U.S. battery manufacturers will offshore $150 billion in economic value for anode and cathode components overseas by 2030.

• India plans to auction offshore mining leases: On February 9, India’s Ministry of Mines announced a proposal seeking public comments on proposed amendments to the Offshore Areas Mineral (Development and Regulation) Act. The amendments would require leases to be granted only through competitive bidding auctions to private- and state-owned entities, grant composite licenses, abolish the requirement to renew production licenses and grants for at least a lease period of 50 years, and mandate that state-controlled entities retain a stake of at least 74% in joint ventures. Comments must be submitted by March 11.
  • Additionally, the Ministry announced a separate proposal on February 7 to amend the Minerals and Mines (Development and Regulation) Act, 1957, to grant exploration licenses for deep-see critical minerals mining to private-sector entities. According to the government, allowing the private sector to conduct exploration will “bring advanced technology and expertise in exploration for deep seated minerals which are difficult to locate and explore and other critical minerals which have not been explored adequately.” The public comment period is open until February 22.
  • The International Seabed Authority’s Secretary-General Michael Lodge noted that “India was one of the very first pioneer investors in deep sea mining, starting from the 1980s. In recent years, there has been enormous progress. Under the Deep Ocean Mission, India’s progress was phenomenal. India has the potential to become a global leader in deep sea mineral exploration and exploitation.”
  • Lastly, a study in the Frontiers in Marine Science journal found that commercial-scale deep sea mining would damage ocean ecosystems, as well as interfere with aquatic life communication, citing the potential frequency overlap between which cetaceans communicate and the sound generated by drilling and dredging. Notably, due to a lack of deep-sea mining, the research team did not have real-world data to analyze and thus used proxies to estimate sounds and frequencies.

• Canada’s Yukon government to update mining law with First Nations input: The Yukon government announced on February 8 it is working with First Nations and transboundary First Nation to redevelop its 125-year-old mining legislation, the Quartz Act and Placer Mining Act, which have been critiqued for their negative impacts by Peter Johnston, the territory’s grand chief. According to the government’s announcement, the new legislation aims “to improve the management of the Yukon’s mineral resources in a way that protects the environment, respects First Nations’ and Yukoners’ relationships with the land and supports a competitive and responsible mining industry.”
  • There will be an open house in Whitehorse on February 21, and the consultation period will remain open until May 9.

• S. Congress holds two hearings on critical minerals: The U.S. House Natural Resources Committee held two hearings last week to examine America’s critical mineral dependence on foreign adversaries and unleashing America’s energy and mineral potential. Both hearings discussed the importance of stakeholder engagement, improving the permitting process, and the need to develop America’s critical mineral supply chain.
  • On February 8, the House Natural Resources Full Committee held a hearing to examine “Unleashing America’s Energy and Mineral Potential.” The hearing included two panels, with the second focusing on critical minerals. Throughout the hearing, the witnesses and members discussed how the domestic production of energy and mineral resources is necessary for the economic and national security of the United States, the permitting process must be improved, the U.S. must prioritize developing its domestic mineral supply chain and work with friendly countries to develop a global and resilient supply chain, and how cooperation with tribes before and during the entire permitting process should be a high priority, among others.
  • On February 9, the House Natural Resources Subcommittee on Oversight and Investigations held a hearing to examine “Dependence on Foreign Adversaries: America’s Critical Minerals Crisis.” The witnesses and members focused on how the U.S. has a dangerous reliance on a select few foreign nations for minerals crucial to the energy transition and how this dependence negatively impacts America’s national, economic, and environmental security, posing significant risks. Additionally, they agreed the U.S. cannot permit and mine its way out of the critical minerals crisis. Instead, it should focus on developing a circular economy and collaborating with friendly nations. Otherwise, they discussed how the permitting process should be reformed while upholding bedrock environmental laws to provide greater certainty to companies wanting to invest and build a mine or recycling facility, for example. Lastly, they discussed how building America’s critical mineral supply chain will support its economy, enhance national security, and lead to a resurgence of related industries, ensuring all stakeholders, especially local communities and tribes, have a seat at the table during a project’s development is critical, and voiced concern the Biden administration is canceling domestic mining projects and working with countries that have lower health, labor, and environmental standards while promoting clean technologies.

 Looking Ahead

• 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.
• Northern Miner is hosting the Global Mining Symposium virtually on February 22: This event provides the opportunity for companies to define themselves as leading edge in the critical minerals industry.
• 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.
• BMO Capital Markets is hosting the 32^nd Global Metals, Mining, & Critical Minerals Conference in Hollywood, Florida, on February 26-March 1: This event will include discussions on China’s place in the mining ecosystem, the energy metals transition and adoption of electric vehicles, the strength of the precious metals environment, and ESG and its implications for metals and mining companies and investors.
• 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 the Prospectors & Developers Association of Canada (PDAC) convention 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.
• Ecommerce Gateway Pakistan is hosting Miners, Minerals, & Metals Asia in Karachi, Pakistan, on March 10-12: This event will serve as an ideal B2B platform for entrepreneurs, CEO’s, consultants, senior government officials, decision makers and trade delegations to congregate, brainstorm, showcase and forge meaningful business partnerships.
• 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 Financial Times is hosting Commodities Global Summit in London, United Kingdom, on March 20-22: Now in its 12th year, the Summit has established itself as an influential gathering of senior commodity executives, traders and financiers.
• 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.
• Mining Journal and Aspermont are hosting Mining Journal Select in London, United Kingdom, on March 27-28: This event brings together a selection of major miners and companies with rated development projects to present to an audience of over 400 institutional and retail investors.
• 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.
• Economic Impact is hosting the 8^th Annual Sustainability Week in London, United Kingdom, on March 29-31: This event aims to empower businesses to accelerate action on sustainability.

 In Case you Missed It

• E&E News: Manchin on EV deal: ‘Ford has serious questions to answer’
• Electrek: Tesla to double Supercharger network in the US as it opens it to non-Tesla EVs, White House says
• Reuters: Global demand for lithium batteries to leap five-fold by 2030- Li-Bridge
• E&E News: Alaska senators want 28M acres open to mining, energy
• Reuters: S. Senator Rubio seeks review of Ford technology deal with China’s CATL
• Bloomberg: Electric Vehicle Sales Top $1 Trillion in Wake-Up Call for Carmakers
• The Wall Street Journal: For Mining EV Metals, the Arctic Is Hot
• Financial Times: Vulcan increases lithium targets as demand grows from carmakers
• AP News: Toyota’s CEO-to-be outlines leadership team bullish on EVs
• Reuters: BYD to build $1.2 bln EV battery plant in central China – website
• POLITICO: Against ‘Buy American,’ Trudeau ministers make their case in D.C.
• The New York Times: Electric Vehicles Could Match Gasoline Cars on Price This Year
• The Wall Street Journal: Volvo in Advanced Talks on Possible Lithium Mining
• E&E News: Harris visit to Minn. highlights EVs’ mining complexities
• Reuters: Yellen touts battery investments, supports Europe’s plans for competing subsidies

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