https://www.nytimes.com/2021/12/30/world/asia/tesla-batteries-nickel-new-caledonia.html The Prony Resources nickel mine processing plant in Goro, New Caledonia. Can a Tiny Territory in the South Pacific Power Tesla’s Ambitions? Nickel is vital to electric car batteries, but extracting it is dirty and destructive. A plant with a turbulent history in New Caledonia is about to become an experiment in doing it better. By Hannah Beech Photographs by Adam Dean GORO, New Caledonia — From the reef-fringed coast of New Caledonia, the Coral Sea stretches into the South Pacific. Slender native pines, listing like whimsical Christmas trees, punctuate the shoreline. The landscape, one of the most biodiverse on the planet, is astonishingly beautiful until the crest of a hill where a different vista unfolds: a gouged red earth pierced by belching smokestacks and giant trucks rumbling across the lunar-like terrain. This is Goro, the largest nickel mine on a tiny French territory suspended between Australia and Fiji that may hold up to a quarter of the world’s nickel reserves. It also poses a critical test for Tesla, the world’s largest electric vehicle maker, which wants to take control of its supply chain and ensure that the minerals used for its car batteries are mined in an environmentally and socially responsible fashion. Tesla’s strategy, the largest effort by a Western electric vehicle maker to directly source minerals, could serve as a model for a green industry confronting an uncomfortable paradox. While consumers are attracted to electric vehicles for their clean reputation, the process of harvesting essential ingredients like nickel is dirty, destructive and often politically fraught. Because of its nickel industry, New Caledonia is one of the world’s largest carbon emitters per capita. And mining, which began soon after New Caledonia was colonized in 1853, is intimately linked to the exploitation of its Indigenous Kanak people. The legacy of more than a century of stolen land and crushed traditions has left Goro’s nickel output at the mercy of frequent labor strikes and political protests. If done right, the approach by Tesla, which has the capacity to churn out close to a million cars a year, could lead the way in setting global standards for the electric vehicle revolution, in yet another convention-defying move by the company’s enigmatic founder, Elon Musk. It also provides Western car companies a path to begin sidestepping China, which currently dominates the production of electric vehicle batteries. If done wrong, Goro will serve as a cautionary tale of how difficult it is to achieve true sustainability. “Going green” or “acting local” are nice bumper stickers for a Tesla. Meeting these ideals, however, will require not just cash and innovation but also savvy about one of the most remote places on earth, a scattering of French-ruled islands hovering on the cusp of independence. Some of the world’s biggest nickel miners have tried to profit at Goro — and failed. “We’re this tiny little thing in a complicated jurisdiction,” said Antonin Beurrier, the chief executive of Prony Resources, the consortium that took ownership of the Goro nickel facility this year. “And we have to reinvent the business.” A mine truck driver at the beginning of his shift. Nickel is increasingly in demand for its use in batteries for electric vehicles, and New Caledonia may hold up to a quarter of the world’s reserves. Transporting nickel ore across a landscape ravaged by mining. Electric vehicles have a green reputation, but extracting the materials needed to build them is a dirty process. Enormous vehicles at the nickel mine. New Caledonia is one of the world’s largest carbon emitters per capita because of its nickel industry. The Prony mine, with the help of its new customer Tesla, is hoping to change that. Reinventing business is practically Mr. Musk’s mantra, whether pursuing automated driving or space travel. Tesla has positioned itself as the ideal, perhaps only, force that can transform this loss-making mine plagued by political and environmental crises. Mr. Musk has insisted, unlike any other major United States automaker, on buying a large share of the major metals he needs for car batteries directly from mines around the world — a strategy to ensure that he has all that he needs as vehicle production increases and a global competition for these materials intensifies. A Tesla manager who used to work at the Goro facility helped shepherd his plan, with the company securing a deal in October to directly purchase up to one-third of Goro’s nickel over the next five years. The vision of what Goro could become is enticing. Carbon emissions would plummet, with renewable energies powering the nickel processing facility. Toxic liquid waste, known as tailings, would be packaged as a neat, dry residue. Local communities would be partners in deciding how best to profit from natural resources on tribal land. Pacific Ocean In a sustainability report, Tesla said all the right things. By working directly with a mine, rather than buying nickel from a middleman, the company could “address sustainability issues such as biodiversity impact, energy consumption, human rights and tailings management.” “Tesla works directly with mineral producers and refiners that are aligned with our mission and are committed to supplying sustainably and responsibly sourced materials,” the report said. Tesla still depends on metals from mines in other countries dogged by allegations of environmental and human-rights abuses. And as the world shifts from fossil fuels to renewable energies, the race to lock up access to these minerals has left companies scrambling. Earlier this year, Mr. Musk wrote on Twitter that his company’s “biggest concern” for expanding battery production was ensuring an adequate nickel supply. (Nickel is used to cram more energy into batteries.) Following Mr. Musk’s lead, Tesla employees rarely speak to the media and have said little about the New Caledonia deal. For automakers that need minerals and materials sourced from all over the world, any scrutiny of their supply chain, even of new efforts to clean things up, could be unwelcome. Car companies, for instance, have been criticized for the use of cobalt mined in unsafe conditions, sometimes by children, in the Democratic Republic of Congo. If any place can pull off the feat of green nickel, it is New Caledonia. Because of its status as a French overseas territory, New Caledonia, with a population of 270,000 people, is bound by rigorous European environmental and labor standards. Its own government — led by a coalition representing Indigenous Kanaks, generations of European settlers and newer French arrivals, as well as Asians and Pacific islanders who came to work the mines — is also eager to protect local rights. The Goro tribal area. The landscape of New Caledonia, a series of remote islands in the South Pacific, is stunningly beautiful away from the nickel mining. New Caledonia’s president, Louis Mapou, standing, talked to guests after giving a speech in Nouméa, New Caledonia’s capital, in November. He took power after the Goro conflict and is the territory’s first Kanak president. A playground in a poor neighbourhood in Nouméa. The wealth gap in New Caledonia is significant, with the Indigenous Kanaks often at the bottom. Other major nickel producers, like Indonesia and the Philippines, have loose regulations and even looser oversight. They can produce nickel far more cheaply than New Caledonia can. To compete against these low-cost rivals, New Caledonia is now positioning itself as a supplier of top-grade nickel for rechargeable batteries rather than the cheaper product used for stainless steel. “New Caledonia, in its way of exploiting its ore, is perceived as a country which contributes to the fight against global warming,” the territory’s president, Louis Mapou, said in an interview. “We have very high production costs in New Caledonia, it is true, but we respect human rights, respect the rights of local people and respect the environment.” Even with guardrails in place, natural resource extraction remains a sensitive issue in New Caledonia. Nickel prices are up by about 25 percent this year, reflecting the mineral’s importance in the campaign to move away from fossil fuels. But so far, that has not led to greater profits for miners. Climate Fwd A new administration, an ongoing climate emergency — and a ton of news. Our newsletter will help you stay on top of it. Goro’s previous owner, the Brazilian mining giant Vale, was desperate to rid itself of the mine.Tensions over who would buy the nickel processing plant led to protests that forced Goro to shut for months, the kind of supply chain disruption that could be disastrous for Tesla. The conflict also triggered the fall of New Caledonia’s government earlier this year. “In the history of nickel in New Caledonia, a battle exists between the multinational and the local populations, and there is also the colonial history,” said Mr. Mapou, who took power after the Goro conflict and is the territory’s first Kanak president. “With Tesla, with the new ownership, we have a compromise now that makes it possible to open the Goro plant, but it remains fragile.” Battle lines The coastal road to Goro, meandering past a bay studded with colorful coral, is littered with charred cars. The dozens of burned vehicles are detritus from the monthslong struggle that idled the mine and led to the collapse of New Caledonia’s government in February. And they are a visceral reminder of the tense politics that could stymie Tesla’s efforts to secure a steady supply of nickel. André Vama was one of hundreds of Kanaks who barricaded the road with burning tires and vehicles this year, strangling the mine’s operations. “From the start, we have been against this mine,” said Mr. Vama, who is a leader of a local environmental alliance. “This is our national patrimony, our assets, and the Kanaks, who are victims of history, are not in control of what should be ours.” Traces of the recent conflict are still visible on the way to the Prony mine, in the form of charred vehicles. Hundreds of Kanaks barricaded the road with burning tires and cars. André Vama, 63, was one of those protesting. “From the start, we have been against this mine,” he said. Local opposition stems from both political concerns and environmental fears. Photos of previous mine dispute protest encampments line Mr. Vama’s wall. Local opposition to the mine draws both from political concerns and environmental fears.Goro’s processing plant, which depends on pumping acid at high pressure, began operations in 2010, after years of wrangling over land rights with local Kanaks. Within five years, the facility suffered five chemical spills. The biggest leak, in 2014, led to 100,000 liters of waste gushing into a creek. Thousands of fish died, according to environmental groups. New Caledonians were even more spooked when another mine run by Vale was the site of one of the deadliest disasters in recent history. In 2019, a tailings dam at a Vale iron ore mine in Brazil burst and inundated a workers’ canteen and neighborhood homes, killing 270 people. The Vale management in New Caledonia, most of whom now work for Prony Resources, said that the Goro waste dam was differently designed. But the optics were alarming. “Clearly, we had work to do to show that safety and sustainability are our top priorities,” said Denis Loustalet, the chief sustainability officer for Prony Resources. “Even one small accident is too much.” Goro has repeatedly been a flash point in New Caledonia’s decades-long struggle for independence. In 2014, after the spill, Kanaks set fire to Goro’s facilities, which were linked in local minds to a colonial authority. The mine suspended production for more than a month. Vale estimated the damage at $30 million. The most recent protest began late last year during a fraught political season when New Caledonians were voting in an independence referendum. When the “no” vote narrowly prevailed, Kanaks took to the streets. Vale had already announced that it wanted out of New Caledonia and was negotiating to transfer ownership to, among others, Trafigura, a scandal-tainted international commodity trader. Largely excluded from the original Goro negotiations, the Kanak community demanded more control this time. With provocative rumors about Vale’s intentions spreading, Kanak workers and villagers stormed the Goro complex, again setting facilities on fire. An overview of the mine site. Goro’s earth is rich in nickel and cobalt, key ingredients in the lithium-ion batteries most commonly used for electric vehicles, but extracting them takes a lot of energy. Workers repairing a motor at the nickel processing plant. The dirty coal that powers the processing plant will be replaced by a large collection of solar panels, Prony executives say. The nickel processing plant. Mining, which began soon after Europeans arrived in New Caledonia, is intimately linked to the exploitation of its Indigenous Kanak people. Police officers were injured. The destruction, blockade and subsequent mine closure again cost the mine complex tens of millions of dollars. One of the instigators of the violence, according to the authorities, was a tribal chief who is the elder brother of President Mapou. Months of negotiation led to a compromise in March: 51 percent of Goro’s new ownership consortium, Prony Resources, is controlled by the provincial government, mine workers and local members of the community. Trafigura has 19 percent, rather than the 25 percent it was first slated to take. The Tesla deal, announced half a year later, was greeted with jubilation by Kanak political leaders, who say that it will force Goro to adhere to high standards. The Tesla executive who brokered the deal is Sarah Maryssael, the automaker’s group manager for the responsible sourcing of battery metals. An Australian engineer, she previously worked at Goro and knew how to navigate New Caledonia’s political complexities, according to the Prony chief executive, Mr. Beurrier, and local politicians. “If we didn’t have the conflict, with the Kanaks standing up, we would not be where we are today,” said Roch Wamytan, the president of New Caledonia’s Congress. “Now we can sleep tranquilly, because we know the whole world is watching to make sure that we take green nickel seriously.” “The Tesla deal made that happen,” he added. A place in the Pacific A brief lesson in hydrometallurgy: Goro’s earth is rich in nickel and cobalt, key ingredients in the lithium-ion batteries most commonly used for electric vehicles. To extract the useful minerals takes a lot of energy. That means a lot of hazardous emissions. First, giant excavators, loaders and trucks running on fossil fuels scoop up the earth and trundle it away. Then the soil slurry is fed into a coal-fired facility that uses high-pressure blasts of sulfuric acid at high temperature to extract nickel and cobalt. Prony Resources is promising to halve its carbon emissions by 2030 and become carbon neutral 10 years after that. Waste from the plant, which is currently held in a tailings dam as a toxic sludge, will be filtered and transformed into a less corrosive dry waste, using a new system with $420 million in investment. A view of wet tailings, toxic sludge waste from the mining process, at the nickel mine in Goro. The dirty coal that powers the processing plant will be replaced by a large collection of solar panels, say Prony executives. Rare native plants will flourish in their shade. Tesla’s vow to help transform Goro will no doubt play well with the carmaker’s environmentally conscious consumers. In July, Tesla also signed a nickel supply deal with BHP Billiton in Australia. The agreement came with promises to use blockchain technology to trace the mineral supply chain. Still, Goro and the other mines will not be able to provide Tesla with all the nickel it needs to go green. Some of Tesla’s cars run on batteries made with nickel processed by giants like Sumitomo Metal Mining. The Japanese firm has sourced much of its nickel from places like the Philippines, Indonesia and Madagascar, where allegations of environmental and labor breaches are rife. (Sumitomo did not respond to requests for comment.) And in part because nickel mining is so energy intensive, manufacturing electric vehicles emits nearly twice as much carbon dioxide as does producing cars run on fossil fuels, according to Trafigura. There’s another stumbling block in efforts to streamline the battery-making process. Most of the nickel destined for electric vehicle batteries, Goro’s included, goes to one place: China. After more than a decade of state encouragement, China dominates battery making. For now, no Western carmaker — not Tesla, Ford or Volkswagen — can charge all its electric cars without Beijing. Europe controls less than 5 percent of the process, according to Trafigura. The United States is barely a player. Tesla has plans to produce batteries in Texas and Germany and General Motors in Ohio, which would help avoid an overreliance on China. By securing nickel in places like New Caledonia or Australia, then sending the mineral directly to its own battery-making facilities, Tesla would be able to reduce its shipping carbon footprint. Taking a sample of processed nickel before the bag is sealed and shipped. Loading sacks of processed nickel into containers at the Goro plant. Marie-Michèle Robert-Agourere, a lab worker, testing samples at the nickel mine. “The boys don’t like it because it requires a lot of finesse and precision,” she said of her work. The China factor also plays into Pacific geopolitics. New Caledonia is the only part of Melanesia, an arc of islands in the South Pacific, that is not heavily under Beijing’s economic and political sway. In each of three failed independence referendums, the most recent this month, French loyalists argued that breaking free would mean New Caledonia trading one colonial master for a de facto one in China. To keep Goro afloat, the French government has signed off on about $200 million in loans and will most likely allocate roughly the same amount in next year’s budget. “The push into green nickel isn’t just for global competitive advantage,” said Christopher Gygès, New Caledonia’s minister for economy, foreign trade and energy. “We also want to show that we are Europeans with the right labor and environmental standards.” Mr. Gygès, who campaigned against New Caledonian independence, added: “We are not China, we are not Indonesia, we are not the Philippines. We are France in the Pacific.” The colonial burden Marie-Michèle Robert-Agourere, a laboratory technician for Goro, is a poster child for the social benefits of the mine. She grew up in a nearby village. The lab is staffed by eight women and two men, the kind of ratio that might please a socially conscious Tesla buyer. “The boys don’t like it because it requires a lot of finesse and precision,” Ms. Robert-Agourere said of her work analyzing sediment. As Prony Resources sees it, the mine is helping employ Kanaks who might otherwise struggle to find jobs. About 40 percent of Kanak youth are unemployed, Kanak political leaders say. Even though Kanaks can attend universities in France, few Indigenous people have advanced degrees. A wealthy neighborhood in Nouméa. Tagging a calf on a farm in La Foa. The great grandfather of the farm’s owner settled in New Caledonia in 1890 when he left Brittany to work at the French penal colony that was then on the territory. Many of the original French settlers, known as Caldoche, raise cattle in New Caledonia. An outdoor gym on a coastal promenade in an affluent neighbourhood in Nouméa. Sharp disparities in wealth in New Caledonia are chiefly along racial lines. The racial stratification is apparent at Goro. Mr. Beurrier, the head of Prony Resources, is white and grew up in France. Most of the mine’s top managers are white. The drivers and laborers are mainly Kanak. For centuries, nickel has been at the heart of politics in New Caledonia, and Tesla will have to contend with this freighted history. In 1774, James Cook, the British explorer, sailed past Prony Bay, which fronts the Goro mine. By the mid-19th century, New Caledonia served as a penal colony for the French, and surveyors discovered nickel in the soil. French settlers soon robbed the Kanaks of their tribal lands and forced them onto reservations. Mining concessions were handed to white settlers. The French brought in mine workers from Asia and other Pacific islands, shifting the ethnic balance. In less than 75 years, the population of Kanaks dwindled by roughly half, as a result of disease, conflict and the harsh reality of life under an abusive colonial power. After armed conflict in New Caledonia claimed dozens of lives in the 1980s, Paris promised change. Kanaks were given significant stakes in the nickel industry. But it wasn’t until this year that Goro’s processing plant came under majority local ownership. A subsidized housing project in Nouméa. About 40 percent of Kanak youth are unemployed, Kanak political leaders say. Families living in slum housing in Nouméa unpacking food boxes, including packages of products close to their expiration date donated by supermarkets. Jacques Atti, left, in dark gray T-shirt, with relatives shortly before his wedding in Goro. He and his bride, Sabrina Manique, both worked at the mine before the recent protest. She returned after it re-opened; he declined to do so. Given Goro’s environmental and political legacy, it appears likely that tensions will return to the mine. Nickel is too entwined in the territory’s racial and colonial history. Goro still depends on an inherently dangerous process to produce nickel, that conjoining of acid and slurry at great heat and pressure. Tesla noted in its sustainability report that the metal producers it is partners with are committing to an industry benchmark called the Initiative for Responsible Mining Assurance, which covers everything from waste management to Indigenous people’s rights. IRMA, as it is known, is tougher than any national mining law. Mr. Beurrier, however, said in late November that he had never heard of it. Tesla might also step back from Goro one day, if it comes up with a way to use other metals in its batteries, reducing its reliance on nickel and leaving Goro without a dominant buyer that demands better practices. “It doesn’t need to be nickel or cobalt,” Drew Baglino, a Tesla senior vice president, said in an earnings call in October. “There’s always another option.” Goro’s enduring divisions simmered at a joyful occasion last month, the wedding of Sabrina Manique and Jacques Atti. Both had worked at Goro, but during the recent conflict, Mr. Atti helped with the blockade. When the mine opened again, he declined to return to a place that he equated with Kanak oppression. Ms. Manique is back at Goro driving a truck. “She is free to do what she wants, and I will do what I want,” Mr. Atti said, on his wedding day. The wedding guests were a mix of those who worked at Goro and those who campaigned against it. But even those who depend on the mine for their livelihoods seemed skeptical that their tribal land could be torn up without consequences. “Green nickel is not green for us,” said Gilbert Atti, the groom’s brother. “Tell that to Tesla, that big American company.” Mine truck drivers head to their trucks at the beginning of a shift. Eric Lipton contributed reporting.
https://www.mining.com/featured-art...-add-90bn-to-top-50-biggest-mining-companies/ Bullish investors add $90bn to top 50 biggest mining companies MINING.com Editor | January 11, 2022 | Antamina mine, Peru. Image from Glencore. The MINING.COM Top 50* most valuable mining companies pared much of the losses suffered in the third quarter, adding a combined $86.3 billion in market capitalization over the final three months of 2021, as investors in the sector position for what should be another strong year for the industry. After peaking mid-year, the total value of the top 50 ended 2021 at just under $1.4 trillion, up around $100 billion since the start of the year and double the market capitalization during March/April 2020 at the height of the pandemic. Iron will The Big 3 – BHP, Rio Tinto and Vale – dragged down the index last year, losing a combined $56 billion over the year as the pullback in iron ore prices and a cooling copper market in the latter part of 2021 hammered valuations at the top. BHP peaked at a valuation of just shy of $200 billion last year, and for a time was worth more than the oil major Royal Dutch Shell, making it the most valuable stock in the UK. It is an indication of the belief investors have in the effect on mining of the green energy transition or GET™. That BHP gave up nearly $50 billion subsequently (Rio Tinto lost $43 billion since its peak) despite burnishing its battery metals credential with its pursuit of nickel assets is also an indication that iron ore remains the bread and butter of the industry. Iron ore’s waning fortunes also saw Kumba Iron Ore of South Africa emerge as the worst performer for the year, with a 30% plunge in the stock. The world’s no. 4 producer Fortescue Metals Group gave up almost $13 billion of its market worth over the course of the year and dropped six spots on the ranking as its Fortescue Future Industries arm gets off to a slow start. With the iron ore market in retreat, Brazil’s CSN Mineração, one of the biggest mining IPOs since Glencore in 2011 when it debuted in Q1, fell out of the top 50, but thanks to an 87% surge last year, Cleveland-Cliffs looks secure in the top 50 for now after spending years in the wilderness. Lithium lift Lithium prices have extended their year-long rally as electric car demand motors along and the three producers in the top 50 now have collective value of over $66 billion. Tianqi Lithium briefly fell out of the ranking at the end of 2019 as its market value fell below $5 billion, but the Shenzhen-listed producer has now pierced the top 20, surpassing SQM in the process, with a value of some $25 billion. The world’s number one producer, Albemarle, is up 59% since the start of the year making its investors a cool $10 billion richer. The Charlotte-North Carolina company in September announced it’s buying a Chinese lithium processor in efforts to expand downstream. Lithium is becoming a crowded market. While Rio Tinto’s Jadar project is off to a rocky start in Serbia, the Anglo-Australian giant’s lithium business would probably start showing up in valuations in coming years as would Sibanye’s move into the battery metal with an acquisition in Nevada. Top lithium chemicals manufacturer Ganfeng (excluded here because mining is a minor part of its business) is desperate for upstream investment and copper giant Codelco is bringing forward work on its lithium project, but other concessions in Chile may become scarcer or cease altogether. Also look out for Pilbara Minerals to join the top 50 in the not too distant future, as the stock continues to set record highs and the company’s Pilgangoora operations ramp up to supply booming demand for spodumene from Chinese converters. At today’s valuation, Pilbara Minerals would occupy position number 54. Coal crown With no exposure to iron ore other than trading, Glencore bucked the trend, and investors in the Swiss commodities giant ended the year a collective $25 billion richer. Glencore has not abandoned coal mining, like its peers and and its coal, gas and oil trading arm is benefiting from sky high prices for energy. Evidence of the volatility of commodities markets is the performance of coal miners, especially in China, in 2021. Although some air escaped the sector towards the end of the year not long ago, coal miners (and coal divisions at diversifieds) looked set to disappear from the ranking altogether. The value of the three remaining coal companies (the ranking excludes power utilities such as Shenhua Energy that operate their own mines) surged and Coal India finally arrested its decline. Four years ago the world’s largest coal miner made it to no 4. Uranium upside Thanks to a rally in the nuclear fuel a decade in the making since the Fukushima disaster, uranium stocks rejoin the top 50 ranking for the first time in many years. The value of Kazakhstan’s Kazatomprom, which has expanded its exchange listings well beyond Almaty, more than doubled this year, and turmoil in the country responsible for some 40% of global uranium output has, so far, not affected the state-controlled company’s fortunes. Top rival Cameco was just pipped by AngloGold Ashanti and does not appear in the end-year top 50 although relative share price performance since the close on December 31 would have the Saskatoon-based company firmly back in the ranking on hopes it can capitalize on a revived uranium market and Kazakh troubles. As with any ranking, criteria for inclusion are contentious issues. 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, which owns the world’s largest gold mine, Eurochem, a major potash firm, Singapore-based trader Trafigura, 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 another central consideration. Do streaming and royalty companies that receive metals from mining operations without shareholding qualify or are they just specialized financing vehicles? We included Franco Nevada, Royal Gold, and Wheaton Precious Metals. Vertically integrated concerns like Alcoa and energy companies such as Shenhua Energy where power, ports and railways make up a large portion of revenues pose a problem as do diversified companies such as Anglo American with separately listed majority-owned subsidiaries. We’ve included Angloplat in the ranking as well as Kumba Iron Ore. 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.
‘Critical shortage’: Miners face talent crunch as metals demand fires up By Nick Toscano January 17, 2022 https://www.smh.com.au/business/com...s-metals-demand-fires-up-20220116-p59oj7.html Mining companies are struggling to find workers to fill specialist roles from engineers to train drivers as COVID-19 travel restrictions between states and a collapse in skilled migration exacerbate the industry’s labour squeeze. While mining job numbers have swelled by almost 22,000 in the past 12 months, a shortage of specialist workers has forced companies to lower production targets and now threatens to complicate the sector’s expansion just as the clean-energy revolution drives greater demand for a range of Australian metals. Labour shortages in WA have caused project delays and forced some big miners to downgrade production targets.Credit:Glenn Hunt In Western Australia, the world’s biggest iron ore and lithium-mining region, ongoing coronavirus-related border restrictions have reduced mobility of fly-in, fly-out staff between states. At the same time, miners are having to compete harder for skilled workers amid a government-backed construction boom on the east coast. Top Australian miner BHP does not expect the problems to ease this year as continued investment in resources and construction collide with ongoing labour mobility restrictions. “Like many, we are seeing constraints in labour availability and supply chain disruption across our Australian operations,” BHP head of Australian mining Edgar Basto said. “We expect labour market tightness and competition for skills to increase in 2022.” Rio Tinto, the nation’s second-largest miner, last year cited “modest delays” in commissioning new greenfield mines and mine-expansion projects due to WA’s tight labour market as the reason for trimming its full-year target for shipments of iron ore. BHP told investors temporary rail labour shortages in WA had contributed to a 5 per cent drop in iron ore output in the September quarter, while lithium miner Pilbara Minerals was also facing project delays due to a labour shortage. While skilled migrants make up just 0.6 per cent of the industry’s workforce, the Minerals Council of Australia warns the international border closure is denying miners access to expertise, deepening the skills shortage for various engineering occupations. “There is a critical shortage in some occupations including mining engineers,” Ms Constable said. “It is positive to see various engineering occupations added to Australia’s priority skilled migration list.” By mid-2023, WA’s mining and resources sector might need up to 40,000 more workers, according to modelling commissioned by the Chamber of Minerals and Energy WA. “We expect labour market tightness and competition for skills to increase in 2022.” BHP head of Australian mining Edgar Basto The talent crunch could threaten Australian miners’ ability to meet significant future growth expected across the sector as rising urbanisation and the clean-energy revolution fuel enormous demand for raw materials. Car makers globally are ramping up plans to build millions of electric vehicles in coming years, requiring vast quantities of ingredients such as copper and lithium mined in Australia. Demand for steel, made using iron ore, is also set to rise with the roll-out of green infrastructure including wind turbines. Ms Constable said the most in-demand jobs across the sector were mining engineers, heavy-duty diesel fitters, electricians, geologists, electrical engineers and metallurgists. “The commodities the Australian mining industry produces are essential for modern life and new technologies, and there is tremendous long-term career opportunities in the sector,” she said. BHP said it was investing in a training academy to create 2500 new job-ready apprentices and trainees over the next five years, primarily in regional areas. Mr Basto said both industry and government had a role to play in putting Australia in the best position to bounce back from COVID-19 “stronger, more resilient and ready to grasp new opportunities”. Across the wider Australian economy, senior business leaders have cited workforce shortages as by far their biggest and most immediate worry as the battered labour market re-emerges from COVID-19 lockdowns. In a new KPMG survey compiling the views of more than 400 CEOs, executives and directors, nearly two-thirds of respondents have nominated finding and retaining talent as their overwhelming concern heading into 2022 and fear the problems may persist for another three to five years. Border closures over the past two years have been a strong factor in minimising the spread of the COVID-19 pandemic in Australia, but have left businesses across the economy “urgently requiring additional people resources”. “It is clear that as Australia starts to emerge fully from the lockdowns of the last two years, having enough skilled talent to meet customer needs is the key challenge concerning all businesses,” KPMG Australia chairman Alison Kitchen said. “And they don’t see this changing in the next few years.”
https://stockhead.com.au/resources/...ar-until-2040-to-meet-colossal-silver-demand/ South32 predicts at least two Canningtons needed each year until 2040 to meet colossal silver demand Mining $19 billion ASX200 miner South32 and leading intelligence provider CRU estimate massive silver demand growth between now and 2040 thanks to its increasing use in solar panels. At the same time a lack of new silver mines coming online is expected to result in a material shortage of the precious metal. South32 in a presentation this week put the expected silver supply-demand gap under the microscope to show just how much of the precious metal will be needed by 2040 to help the world meet its emissions reductions targets. Silver is the preferred metal for use in solar panels due to its superior electrical conductivity, with South32 and CRU modelling suggesting a 14x increase on solar capacity if the world is to restrict global warming to 1.5 degrees Celsius. The mining heavyweight’s base case scenario shows a 55% increase in primary demand out to 2040, with demand expected to climb a further 25% to roughly 1.4 billion ounces to achieve 1.5 degrees Celsius. Source: South32 analysis and CRU But to meet the additional demand of 30 million ounces each year until 2040, South32 says this requires more than two new Cannington mines to be built each year. South32’s Cannington mine in northwest Queensland is one of the world’s largest and lowest cost producers of silver. However, there are very few high-silver polymetallic mines identified globally meaning the market is headed for a material silver deficit. At the same time, constrained mine volumes in China are expected to induce higher imports of high silver-lead concentrates to meet domestic demand, South32 says. All of this will culminate in the ‘perfect storm’ set to benefit the silver players already advanced down the path to production just like junior ASX-listed emerging producer Silver Mines’ (ASX:SVL). Managing director Anthony McClure told Stockhead that while the energy markets are going through a revolution and in the first instance driven by governments, the private sector is moving more rapidly and taking the lead. “The solar cell market is an excellent example of that,” he said. “Silver plays a key role in photovoltaic cell technologies. “Similarly, the electric vehicle (EV) market is on a growth trajectory. There is more silver in an EV than a regular combustion engine vehicle. The primary reason that silver is playing a key role in electronics in these key sectors is that it is by far the best electrical conductor of all the metals.” McClure says Silver Mines is extremely well placed in this strong global silver market outlook given its Bowdens project in NSW is the largest silver mine development in Australia for decades. It is also extremely high-grade, with current drilling consistently returning between 300 and 500 grams per tonne (g/t) silver, but substantially higher grades have also being reported on several occasions. Silver Mines is currently working towards a maiden underground resource at Bowdens to establish the mine as both and open pit and underground operation. The company is in the final stages of development approval for a 2-million-tonne-per-annum open pit operation that would have an initial mine life of 16.5 years producing about 66 million ounces of silver, 130,000 tonnes of zinc and 95,000 tonnes of lead. Silver Mines is also concurrently advancing a scoping study on a potential underground development, with the study on track for completion by mid-year.
On the ASX, lithium has been going gangbusters, but that's not reflected elsewhere. Displaying here 50MA & 250MA.
Some of the biggest moves today were in uranium stocks. Looks like a good spot to snaffle up a bargain right here.
Chile vote marks first step in long path to seizing mines Bloomberg News | February 1, 2022 https://www.mining.com/web/chile-vote-marks-first-step-in-long-path-to-seizing-mines/ The Hand of the Desert (La Mano del Desierto) by Chilean sculptor Mario Irarrázabal – Image from archives A proposal that opens the door to nationalizing some of the biggest copper and lithium mines in the world was approved in first instance by a committee as part of the drafting of a new constitution in Chile. Tuesday’s 13-to-6 vote by members of an environmental committee is the first of several hurdles that the controversial proposal would need to clear before becoming a reality. It would require support from two thirds of the full assembly to become part of the draft charter that will be put to a referendum later this year. The risk of that scenario playing out appears low in a nation known for its clear, stable and investor-friendly rules. But if it is implemented, the measure would disrupt Chile’s economy, metal markets and the global transition to clean energy. Shares in some companies with mines in Chile, including Albemarle Corp. and Anglo American Plc, pared gains after the vote, while the peso dropped. Chile has the biggest reserves of copper and lithium, both of which are crucial as the world tries to wean itself off fossil fuels. There are a total of almost $70 billion in possible mining projects this decade, much of which would be upended by nationalization. The hundreds of billions of dollars needed to compensate private mining companies would imperil efforts to step up social spending and reduce inequalities, goals that sparked the constitutional process in the first place. If full compensation wasn’t delivered, Chile would find itself in international tribunals. The motion being considered would seize privately run mineral operations and end concessions on the grounds that strategic resources should serve the interest of all Chileans and therefore be incorporated into the “full and exclusive domain of the state,” according to a document on the constitutional assembly’s website. Deliberations on a charter to replace the one that dates back to the dictatorship of Augusto Pinochet have begun in earnest. Last week, the same committee gave initial approval for a proposal to annul operations that infringe on indigenous land. Other proposals include setting time limits on concessions, with the industry pushing hard to retain the indefinite model, arguing it is critical for long-term planning that underpins investments. “The constitutional process is the biggest change for Chilean mining in the last 40 years,” Juan Carlos Guajardo, who heads consulting firm Plusmining, wrote in a text message. “I’m afraid it involves serious risks because there’s a lot of reformist spirit and little willingness to listen to the technical arguments of the mining business.” (By James Attwood and Valentina Fuentes)
It appears Copper (black) is about to breakout, while Lithium (Pink) is maybe ready to bottom out. My money would be on copper bets atm.
I just piled into a bunch of Copper miners this morning took profits on half of them in the afternoon. Also day trading some Gold miners.