Behre Dolbear will be attending 121 Mining Investment in Cape Town, 3-4 February 2025.
Behre Dolbear will be attending Mining Indaba in Cape Town, 3-6 February 2025.
HEADLINES
Trump tariffs on Canadian exports spark mining industry backlash
JPMorgan plans $4 billion gold delivery in US amid tariff fears
Gemfields halts emerald sales over Zambia export tax
Abu Dhabi wealth fund ADQ, Orion team up to invest $1.2bn in metals, mining
Badawi Participates in Top Ministerial Panel Held During African Mining Indaba
The real impact of Trump's executive orders on mining – John Feneck
Trump tariffs on Canadian exports spark mining industry backlash
The Mining Association of Canada (MAC) has condemned the decision by US President Donald Trump to impose tariffs on all Canadian products bound for the US, warning of severe economic and security consequences.
“Canada has long been a dependable partner, providing certainty to US manufacturing and defence industries by serving as a major supplier of minerals and metals,” MAC president and CEO Pierre Gratton said in a statement.
“The imposition of tariffs on Canadian minerals and metals runs counter to American national security and economic interests.”
Gratton’s statement follows Trump’s announcement over the weekend of 25% tariffs on Canadian and Mexican imports and 10% on goods from China. The US would also impose a 10% tariff on all energy imports from Canada.
In 2022, more than half of Canada’s mineral exports – valued at more than $80-billion – were shipped to the US. MAC argues that tariffs will disrupt the flow of these resources, strain critical mineral supply chains, and increase costs for US businesses reliant on Canadian materials.
The decision marks a sharp turn in US-Canada trade relations, which saw significant cooperation in recent years. The two nations established the Joint Action Plan on Critical Minerals Collaboration in 2020 under the Trump administration, aiming to bolster North America’s supply of essential minerals.
Gratton urged the US government to reconsider its approach, emphasising that Canada remained willing to strengthen its critical mineral partnership with its southern neighbour. Instead of tariffs, Canada and the US should be focusing on deepening collaboration, he stated.
The Canadian mining sector is expected to explore alternative markets and suppliers, which MAC warns could have long-term repercussions for US industries. “US tariffs will lead Canada's mining sector to pursue new and deepen existing alternative markets, as well as alternative sources of inputs necessary for the continued operation of mining facilities. This will hurt US businesses,” MAC stated.
JPMorgan plans $4 billion gold delivery in US amid tariff fears
JPMorgan Chase & Co. will deliver gold bullion valued at more than $4 billion against futures contracts in New York in February, at a time when surging prices and the threat of import tariffs are fueling a worldwide dash to ship metal to the US.
The bank, which is by far the world’s biggest bullion dealer, was one of several institutions to declare plans on Thursday to deliver bullion against contracts traded on CME Group’s Comex that will expire in February. The delivery notices — which total 30 million troy ounces of gold — were the second largest ever in bourse data going back to 1994.
Fears of imminent tariffs on imports following the election of US President Donald Trump have caused prices for gold futures on Comex to surge over spot prices in London. Spot prices shot to record highs this week, but the additional premium on Comex has created a lucrative arbitrage opportunity for the handful of banks that can quickly fly bullion between key trading hubs.
Gemfields halts emerald sales over Zambia export tax
Coloured precious stones miner Gemfields (LON: GEM) (JSE: GML) has paused the sale of emeralds from its Kagem mine in Zambia, but hopes the government will soon reverse a 15% export tariff reintroduced earlier this month.
Emeralds from the Kagem mine in Zambia
Zambia, the world’s second largest emerald producer after Colombia, first implemented the 15% export duty in early 2019. It was later scrapped on January 1, 2020, following industry pressure.
Before the recent reintroduction, Gemfields had already suspended production at Kagem, citing market saturation caused by an influx of heavily discounted emeralds.
“Kagem anticipates that the duty may be revoked and allow a commercial-quality emerald auction to go ahead in Q1 2025”, the company said.
If the tariff remains in place, Gemfields’ 75%-owned local subsidiary, Kagem Mining, will face an effective revenue tax of 21%, which includes the existing 6% mineral royalty tax. This would force the company to lay off employees, chief executive Sean Gilbertson said earlier this month
Abu Dhabi wealth fund ADQ, Orion team up to invest $1.2bn in metals, mining
Abu Dhabi sovereign wealth fund ADQ has teamed up with Orion Resource Partners to form a joint venture that will invest in metals and mining, ADQ said on Thursday, as the wealth fund expands its critical minerals portfolio.
Under the 50/50 JV, which will be based in the UAE’s capital, ADQ and global investment firm Orion will initially invest $1.2 billion over four years in mining companies in emerging markets in Africa, Asia and Latin America, the fund said in a statement.
The partners will invest through different asset classes, including equity, senior debt and production-linked instruments, such as royalties.
Established in 2018, ADQ has a broad portfolio of domestic assets, including energy, healthcare, as well as transport and logistics such as Abu Dhabi state carrier Etihad Airways.
The fund had $225 billion in assets under management at the end of June and has been investing in sectors that could help oil-rich Abu Dhabi speed up economic diversification plans aimed at cutting reliance on oil revenues.
“Downstream sectors such as manufacturing and clean energy are expected to directly benefit from the sourcing of critical raw materials” through the JV, ADQ said.
Badawi Participates in Top Ministerial Panel Held During African Mining Indaba
Minister of Petroleum and Mineral Resources Karim Badawi participated as a speaker in the main ministerial session held during African Mining Indaba under the theme “Forging a United African Mining Front: Collaboration for Sustainable Development” in Cape Town between the period 3-6 February 2025.
The ministerial session was attended by Gwede Mantashe, Minister of Mineral Resources and Petroleum, Republic of South Africa; Kizito Pakabomba Kapinga Mulume, Minister of Mines, Democratic Republic of Congo; and Paul Kabuswe, Minister of Mines and Mineral Development, Republic of Zambia. The session was moderated by Marit Kitao, Director of the African Mineral Development Centre.
During his speech, Badawi reviewed the Egyptian efforts to develop the mining sector and the related main pillars for work strategy, pointing out that the mining sector in Egypt is witnessing the beginning of the fruits of modernization and seeks to continue building on what has been achieved.
In this context, Badawi touched on the promising opportunities and huge potential of the mining sector in Egypt, which are supported by the new Egyptian government program that aims to attract more investments and enhance the attractiveness of the mining sector within the framework of Egypt Vision 2030, with the aim of placing Egypt on the global mining investment map.
He stressed the interest of the Egyptian mining sector in building sustainable partnerships with various partners concerned with the mining industry, noting in this regard the recent announcement of the completion of the newly amended Mineral Exploitation Agreement Model, which reflects the efforts to improve the investment climate and establishes a strong framework to achieve mutual benefit for all parties, in line with the strategy of comprehensive modernization of the mining sector in Egypt.
The Egyptian Minister also explained that work is underway to develop a strategy for added value and mining industries, and another one for addressing the environmental and social impacts of the mining sector.
The real impact of Trump's executive orders on mining – John Feneck
(Kitco News) - President Donald Trump's return to the White House has ignited a wave of optimism in the U.S. mining sector, with his administration's focus on domestic energy and critical mineral production, according to John Feneck, founder and CEO of the Feneck Commodities Report, who sees “a lot more coming from his office."
John Feneck, founder and CEO of the Feneck Commodities Report, noted in a recent interview with Kitco Mining that Trump is "right in line with what we expected,” and to prepare for additional moves, particularly regarding U.S. projects and "U.S. domination."
Feneck highlighted the significance of the new administration's stance, stating that "we're in a protectionist kind of environment right now." This shift is expected to benefit companies focused on producing defense minerals like antimony and tungsten, where China currently dominates production.
Feneck pointed out that China produces "80 to 90 percent" of these minerals, while the U.S. lags far behind with "zero to 5 percent" production in 2024. He anticipates a surge in funding from the Department of Defense and the Department of Energy to address this imbalance.
Gold market's complexities
Despite gold prices trading near $2,800 per ounce, Feneck observed a disconnect between gold prices and gold stocks. "You're looking at gold [at] all-time highs, yet gold stocks are really struggling," Feneck said. He believes that a price point of "$3,000 plus gold" may be needed to "ignite the sector."
Feneck's preferred large-cap gold stock is Agnico Eagle Mines, citing its strong performance and momentum. He also mentioned smaller companies like First Nordic Metals and Mandalay Resources as potential opportunities for investors. "Mandalay... you could see that stock really fly because if you pull up a 10-year chart, over $3.40, there's really no overhead resistance for a while," said Feneck.
