Philippine Resources Journal’s Post

The Australian government has a current focus on 28 critical minerals and 3 strategic metals highlighting its commitment to securing a robust supply chain for essential materials critical to renewable energy technologies, electronics, and defense industries. One of the strengths of this approach is its proactive stance in diversifying supply sources, thus reducing dependency on single countries, such as China, which currently dominates the supply of many critical minerals. In addition to creating a more resilient and flexible supply chain, this initiative supports the transition to a low-carbon economy, such as lithium for batteries and rare earth elements for wind turbines and electric vehicles. However, there are notable challenges and criticisms associated with this strategy. 1. Environmental concerns arise from the mining and processing of these minerals, which can lead to significant ecological degradation and pollution if not managed responsibly. There is also the potential for social and cultural impacts on local communities, particularly Indigenous groups, whose lands may be affected by mining activities. 2. Moreover, the focus on critical minerals might overshadow the importance of recycling and developing alternative materials for a sustainable and circular economy. Many critical metals end up in alloys and are not easily separated during recycling without huge use of energy. 3. Many metals on the critical mineral list have small or tiny global markets. For example Scandium with total production of only 23 tonnes in 2022. They are on the list primarily because of their use in aerospace and military alloys. 4. If Australia wants to develop downstream processing and manufacture only the larger markets will be big enough to predict or influence price cyclicity (e.g. Iluka and TiO2 and zircon) and attract investors. So, while Australia's emphasis on critical minerals and strategic metals is a forward-thinking move to secure its economic and technological future, it must be balanced with strong environmental and ethical considerations, plus plain old mineral supply chain economics to ensure sustainable development. Exploring alternative materials, technological solutions and substitution alternative should also be prioritised to complement this strategy. For example the greater availability of niobium as a steel strengthener has displaced some vanadium demand.

High-level guests at the panel discussion on industry standards for sustainable raw materials at the MiningForum Berlin discussed state-of-the-art and criteria for standardisation for sustainable global raw material supply chains. Maria Nyberg of European Commission DG GROW outlined the Critical Raw Materials Act and its sustainablity provisions. Dario Liguti, UNECE Director of the Sustainable Energy Division, illustrated ongoing harmonizing global efforts by the UNFC and UNRMS frameworks for sustainable raw materials. Cäcilie Le Gallic of OECD contributed with due diligence expectations as per the OECD Minerals Guidance with focus on alignment practice. Julia Listringhaus from DIN Deutsches Institut für Normung e. V. explained how formalized ISO standards provide quality-assured global standardisation including the sought-after multi-stakeholder involvement. Peter Goerke-Mallet from Technische Hochschule Georg Agricola explained how standards can help to make the global mining industry more sustainable, and how ISO standards are suitable formats for standardisation of globally operating raw material supply chains. Dr. Michael Haschke, Chairman of the newly approved standard project ISO - International Organization for Standardization PC 348 Sustainable Raw Materials elaborated on the status quo of global standard landscape for sustainable raw materials, and explained how the new ISO PC 348 standard will meet standardisation criteria, close existing gaps in supply chain standardisation, and contribute to consolidation of the existing standard landscape.

The UK government has said it is targeting friendly, “like-minded nations” as part of its efforts to protect the country’s access to critical minerals. In a response to a report on the vulnerabilities of the country’s supply chain, it also said it would support critical mineral recycling efforts, provide more data on the UK’s supply chain to help boost resilience and support the development of domestic skills. The Department for Business and Trade (DBT) launched its critical imports strategy in January with the aim of boosting “supply chain resilience for critical goods” entering the country. That report also set out the government’s long-term vision on supply chain protection. The Task & Finish Group on Critical Mineral Resilience for UK Industry, an expert group set up to assess the UK’s dependence on critical minerals, issued a report on 19 December, outlining the vulnerabilities in the UK supply chain. The report identified several areas where the UK supply chain was threatened, highlighting that several key sectors – such as automotive, renewable energy and electronic – were likely to be hit hard by the absence of critical minerals and their recommendations included the UK shift its sourcing critical mineral away from countries like China in order to limit the UK’s exposure to “geopolitically fraught supply chains.” In its response, the government said that it would include critical minerals in its trade strategy, targeting countries that produce critical minerals and have also have both a “like-minded approach” to the supply chain and a “a stated desire to work collaboratively with the UK”. The response also said that it would take into account priorities like human rights, sustainability and transparency when engaging with other nations. The government also committed to building a circular economy for critical minerals. Recycling is relatively new in many critical mineral industries yet recycling rare earth metals can require as much as 88% less energy than producing the same materials using traditional mining methods. Strategies, such as reducing the use of cobalt, adopting “thrifting practices” for platinum, and efforts to decrease the reliance on iridium in certain chemical processes were cited as examples of this.

The EU's Critical Raw Materials Act (CRMA) sets ambitious targets to reduce dependence on non-EU sources, but with 90% of critical raw materials currently imported, how realistic are these goals? Traceability plays a key role in ensuring the minerals driving the energy transition, like lithium and rare earth elements, are sourced responsibly. Ethical mining practices, fair labour conditions, and environmentally sound extraction are vital to not only meet these targets but also to secure a sustainable supply chain that doesn’t compromise human rights or ecosystems. Meeting the demand for locally sourced and processed minerals will require transparency, investment in infrastructure, and innovative solutions. With only six years left, now is the time to prioritise responsible sourcing to achieve both environmental and social goals. (I can't help but notice Chile's role in contributing towards an ethical supply chain for the energy transition mining) #SustainableMining #CriticalRawMaterials #EnergyTransition #Traceability #EthicalSourcing #ESG

Great leap towards the world's most sustainable mining industry ✔ By means of a new strategic industrial partnership (MoU), Norway and the EU aim to ensure sustainable European value chains for critical raw materials ♻ -The European Union’s efforts to ensure sustainable and robust value chains for raw materials within the European market is incredibly important also for Norway – and for us at the Geological Survey of Norway (NGU) in particular. Norway is rich in critical raw materials and has a substantial potential for increased mineral production. Thus, this new industrial partnership is a great leap forward both for Norway and the EU, says Head of Department at NGU, Henrik Schiellerup ✅ https://lnkd.in/dWSEEHG7 Norwegian Ministry of Trade, Industry and Fisheries European Commission #criticalrawmaterials #sustainablemining #batteries

Reuters Get’s It: Responsibly produced minerals cost more….not a LOT more, but more. This week, two of the best commodities observers in the media deliver a one-two punch from Reuters this week: Commodities reporter Ernest Scheyder led the by-line on a deeply reported piece on differential pricing for responsibly sourced minerals: Insight: Western miners push for higher metals prices to ward off Chinese rivals. Reuters followed with a column by commodities commentator Andy Home pulling all the dots together on the barriers and potential pathway to premium pricing for responsible pricing: https://lnkd.in/gNxrwiqa Both Ernie’s reporting and Andy’s column show that the idea that minerals produced at higher standards should warrant a premium is gaining traction. Ernie’s reporting shows that is already happening in some sectors and with some customers who want their supply chain to match their ESG commitments. There really is no free lunch. Producing minerals in the US, Canada, Australia, or EU means they are produced at the highest standards for labor rights, environmental protection and indigenous participation. That costs more to produce. “Fair trade coffee” costs more than Folgers. It’s not that hard of a concept. EV makers and battery makers are realizing that both their regulators (US and EU especially) and end user customers want to make sure the EV they are purchasing is actually better for the planet. Finding out later that the battery in their car was made from Sino-Indonesian “blood nickel” or Xinjiang lithium produced by slave labor is not going to go over well with young “values consumers.” Likewise, the US, Canada and EU don’t want to see Western companies who are benefiting from extraordinary subsidies for EVs are furthering China’s dominance of materials like nickel. The key to the market being able to properly value materials produced at high standards is for producers to validate the factors of differentiation: embedded Co2, provenance, etc. That’s where tracing solutions like Talon Metals Corp. partner Circulor’s tracking and tracing solution. Tracing is vital to the market being able to find a price for a qualitative difference in production. For OEMs, mine to recycling tracing is a key tool to prevent the reputational risk that an US or EU subsidies audit later finds you have “blood nickel” in your battery. For a slightly higher cost, you can sleep well at night by sourcing from high standard jurisdictions and avoiding mineral laundering schemes. #wecandothis

GERMANIUM DEAL: Umicore and STL Sign Historic Partnership to Secure Critical Mineral Supply Chains In a boost for critical mineral supply chains, the United States and its Minerals Security Partnership (MSP) partners applaud a significant deal between Congolese and Belgian companies. The deal, struck between STL (a subsidiary of La Générale des Carrières et des Mines, or Gecamines S.A.) and Umicore, centers on germanium offtake and processing. Germanium is a vital component in semiconductors, solar cells, and optical cables. Through this collaboration, the MSP, led by the United States, demonstrates its commitment to securing and diversifying these supply chains. The agreement has multiple benefits for all involved. Firstly, it brings economic gains to local communities and source countries, with the Democratic Republic of the Congo (DRC) foremost among them. Secondly, it supports sustainable recycling and the development of a circular economy, reducing environmental impacts. Thirdly, it enhances the DRC's position as a key player in critical mineral processing, fostering the development of new technical skills and expertise within the country. This deal is a milestone in the MSP's efforts to increase the global supply of germanium. With the support of all 15 MSP partners, it will ultimately strengthen supply chains serving the United States, Europe, and Japan. The MSP's success in facilitating this collaboration between MSP partners and the private sector underscores its effectiveness in securing and diversifying critical mineral supply chains, which are essential for economic growth and technological advancement. To learn more about the agreement and the MSP's work, readers can visit the provided link, including the U.S. State Department's website and social media platforms of Under Secretary Fernandez. This news underscores the progress being made in ensuring stable and sustainable access to critical minerals, which are the building blocks of modern technology and key to economic growth and development. For more information on the MSP, go to [https://lnkd.in/gTJQwMYS] https://lnkd.in/dFyBev6q

Really good points in the attached. What I would add is that the critical raw material chain makes little sense, and is redundant, unless cell production is located in Europe too. Would also be true for the USA Both already have some world leading, long term producers of lithium, cobalt, nickel, manganese and anode material. However it makes no economic sense for these firms to expand until cell production ramps up. My view is that to construct and successfully operate these cell facilities will require an increased openness to work with Asian suppliers to set these facilities up in the West. As seen with the Ford and GM JVs in the US. Firms in China, Japan and South Korea have not only the funding and skill set - but also, crucially, the operational experience that the EU and US are lacking and require.

🔔 🚧 Turning Waste into Wealth: China's Path to Sustainable Mining! Did you know that China currently has a staggering 20 billion tons of tailings, covering an area equivalent to 38.3 million basketball courts? These figures are not just statistics; they represent both a challenge and an opportunity. Tailings, the residual materials left after extracting valuable minerals from ore, are more than just waste. They contain significant amounts of useful minerals and components. Yet, over 80% of the ore mined turns into tailings, posing serious environmental and safety risks. From 2015 to 2020, China saw an annual increase of 1.7 billion tons of tailings. Despite efforts, the utilization rate in China is still below 30%, leaving valuable resources untapped. In February 2024, the State Council set ambitious goals to increase annual solid waste utilization to 4 billion tons by 2025, aiming for a 60% utilization rate and leading the world in waste recycling by 2030. Shanghai Milestone Technology is leading this transformation: On April 28, JISCO signed an agreement with our company to process nearly 100 million tons of tailings, advancing green transformation. JISCO's 1.65 million-ton annual production line has significantly reduced tailings since 2018. In 2024, Hainan Mining will launch a 2-million-ton annual project using our HMPT technology, setting a global benchmark for tailings-free processing. At Shanghai Milestone Technology, we are committed to these groundbreaking initiatives. We invite more partners to join us in the journey towards a "zero tailings" future. Let's turn this challenge into a beacon of sustainable progress! #Sustainable #TailingsUtilization #GreenTech #ironore #Innovation #china        

🛠️ TETHYS: Trans-Eurasian Gateway Supports #ESG Practices with #PremiumFinancing in #ResponsibleMining 🌍 📌 Implementing #responsiblemining and #ESG (Environmental, Social, and Governance) standards in the #miningsector is critically important. However, applying these standards often results in higher costs. At Tethys, we believe that the most effective solution to ensure companies fully embrace and implement #ESG standards is not through #premium #metalpricing but by providing #premiumfinancing opportunities. 🔵 Current Situation and Challenges: Mining companies adhering to #ESG standards incur higher #operationalcosts due to strict labor rights, environmental protection, and local community involvement standards. These costs create a disadvantage, especially when competing with countries like China that dominate global markets through low-cost production capacities. 🟢 Costs and Benefits of ESG Standards: Producing minerals in the US, Canada, Australia, or the EU involves complying with high standards for labor rights, environmental protection, and local participation. While these standards increase production costs, similar to "fair trade coffee," these costs can be offset by higher prices. 🟣 #PremiumFinancing Strategies and Recommendations: To enhance the #competitiveness of ESG-compliant mining companies, financing strategies offered by international financial institutions are crucial. Here are our recommended strategies: 1. Favorable Financing Conditions: Provide low-interest rates and long-term loans. 2. Investment Incentives:Offer tax reductions, grants, and subsidies. 3. Support for Mergers and Acquisitions: Facilitate strategic partnerships and access to global markets. 🟥 Conclusion: Enhancing the competitiveness of ESG-compliant mining companies should not be limited to #financialsupport. Promoting #internationalcollaborations and #policies can accelerate the adoption of #sustainable #miningpractices. This approach supports both #environmental and #economic #sustainability and can improve the balance of the global mining sector. At Tethys, we support improving financing options for ESG-compliant projects. This will increase the global competitiveness of companies, contributing to a sustainable future. 🌱💼 #Mining #ESG #Sustainability #TethysGateway #Financing #Environment #Investment #Strategy #PremiumFinancing