Zelenskiy says US minerals deal must include military guarantees
Ukraine's earth riches are rare and difficult to reach
Anglo American and Codelco strike $5B copper deal
Ivanhoe nets $193M profit but floods, quick expansion cloud outlook
Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal
Saudi Arabia shortlists 30 firms for 22 quarry licenses in Eastern Province, Tabuk
Zelenskiy says US minerals deal must include military guarantees
Ukrainian President Volodymyr Zelenskiy said the US dropped its demand for Kyiv to commit to paying $500 billion as part of talks to give Washington a cut of the country’s mineral wealth.
But Zelenskiy insisted at a news conference on Sunday that US military support must be part of any deal, in a sign of how far both countries are from reaching an agreement.
US President Donald Trump and his deputies have pressured Zelenskiy to accept the deal on tapping revenues from Ukraine’s mineral wealth and other assets. The plan was first presented by Treasury Secretary Scott Bessent in Kyiv on Feb. 12.
Ukraine’s leader rejected it, saying the proposal didn’t offer the robust security guarantees Ukraine seeks against Moscow’s aggression.
The White House sees the minerals deal as an integral part of its plan to broker a ceasefire in the three-year war after the US held direct talks with Russia in Saudi Arabia last week. That meeting raised fears that Ukraine would be shut out of negotiations over its own future.
The deal must be “win-win” for Ukraine and the US, Zelenskiy said on Sunday.
Trump has said he wants the equivalent of $500 billion to compensate the US for its previous support to Kyiv. Bloomberg News reported on Saturday that Ukraine sees the actual assistance provided by the US since the start of Russia’s full-scale invasion in 2022 as closer to $90 billion.
Zelenskiy said he rejected the US argument that American companies doing business in Ukraine would itself serve as a form of security guarantee.
Bessent discussed the contours of the potential agreement on Fox News’s Sunday Morning Futures, saying the US can help propel Ukraine onto a “great growth trajectory.”
Ukraine's earth riches are rare and difficult to reach
Paris (AFP) – Ukraine's soils hold some five percent of the world's mineral resources, which is what US President Donald Trump is anxious to secure, but not all of them are yet exploited -- or maybe even exploitable, according to experts.
Ukraine ranks 40th among mineral-producing countries, all categories combined (including coal), according to the 2024 edition of World Mining Data. It was the world's 10th largest producer of iron in 2022.
Geologists, including at France's Bureau of Geological and Mining Research (BRGM), found more than 100 resources, including iron, manganese and uranium, in a study of Ukraine published in 2023.
Critical minerals
Minerals can be described as critical or strategic by countries for their economy or their energy production. The United States designates about 50 and the European Union more than 30.
The European Commission said "Ukraine is a significant global supplier of titanium and is a potential source of over 20 critical raw materials."
It is a notable producer of manganese (the world's eighth largest producer, according to World Mining Data), titanium (11th) and graphite (14th), which is essential for electric batteries.
Ukraine has also said it "possesses one of the largest lithium deposits in Europe". However, the government added that the soft metal it is not yet extracted.
Rare earths not yet exploited
Rare earth elements (REE) are a very specific classification of 17 metals within the much wider category of critical minerals.
Ukraine is not known for its reserves of rare earths, which are essential for screens, drones, wind turbines, and electric motors. Trump has particularly declared he wants rare earths and demanded an accord on getting minerals in return for US aid for Ukraine to fight its war with Russia.
The Andina and Los Bronces copper mines sit in Chile’s Andes Mountains, near Santiago
Anglo American (LON: AAL) and Chile’s state-owned Codelco have signed an agreement to jointly develop their neighbouring Los Bronces and Andina operations, a move that will see the partners produce 2.7 million tonnes of additional copper over 21 years from 2030.
The joint mine plan is projected to generate a net present value pre-tax boost of at least $5 billion, which will be shared equally between the two companies. Despite the collaboration, both Anglo American and Codelco will retain full ownership rights over their respective assets, including mining concessions, plants, and ancillary operations, and will continue to extract resources separately.
Andina, one of Codelco’s smaller divisions, encompasses the Rio Blanco and Sur Sur mines, producing 164,500 tonnes of copper in 2023. Los Bronces, a key operation for Anglo American, reported an output of 215,000 tonnes that same year. Codelco already owns a 20% stake in Anglo American Sur, the local unit operating the Los Bronces and El Soldado mines, as well as the Chagres smelter.
Anglo American has been restructuring to focus on copper and iron ore, a strategic shift that came after fending off a $49 billion takeover bid from BHP (ASX: BHP) last year.
“Copper is at the forefront of our growth ambitions and we already have a clear pathway to more than 1 million tons of annual copper production by the early 2030s, a 30% increase,” chief executive officer Duncan Wanblad said in a statement on Thursday.
Ivanhoe nets $193M profit but floods, quick expansion cloud outlook
Construction of Africa’s largest and greenest smelter project at Kamoa-Kakula is now complete.
Ivanhoe Mines’ (TSX: IVN) update on 2024 shows solid performance booking a $193 million profit, but an analyst says it’s marred by operational setbacks and an overly ambitious growth plan.
The company’s flagship Kamoa-Kakula copper complex in the Democratic Republic of Congo set record output of 437,061 tonnes of copper in concentrate and $3.11 billion in revenue. Adjusted earnings before interest, tax, depreciation and amortization rose to $625 million from $604 million in 2023, the company said on Thursday.
The performance contrasts with Canaccord Genuity mining analyst Dalton Baretto recalling how a Jan. 2 fire knocked out backup power and delayed Ivanhoe’s forecast for this year. Baretto also critiqued the company’s $1.2 billion plan to expand the Platreef project in South Africa to output of 450,000 to 550,000 oz. of three platinum group metals and gold by late 2027.
“We note that these were more aggressive on timelines, capex and particularly costs,” Baretto said on a note on Friday. “We have adjusted our estimates.” The bank’s target share price slid to C$24 from C$27.50.
Ivanhoe shares fell 11% to close on Friday at C$14.97 apiece as wider markets dropped. The company is trading close to the bottom of its 12-month range at C$13.84, having achieved C$21.32 in the period. It has a market capitalization of C$20.3 billion.
Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal
RIYADH: Saudi Arabia’s mining sector is poised for a major boost with nearly SR29 billion ($7.7 billion) in investments being directed toward the city of Wa’ad Al-Shamal.
Prince Faisal bin Abdulaziz, governor of the Northern Borders region, inaugurated a series of industrial, developmental, and hospitality projects aimed at solidifying the city’s role as a major hub for the Kingdom’s mining industry.
A major highlight of the announcement was the launch of Ma’aden’s Phosphate 3 project, backed by the Shareek program and an investment of SR28 billion.
This initiative is set to increase Saudi Arabia’s phosphate production capacity to 9 million tonnes annually, building upon the existing Phosphate 1 and Phosphate 2 projects, each producing 3 million tonnes. This expansion is expected to bolster the country’s industrial supply chain, generate new investment opportunities, and create employment within the sector.
The governor emphasized that these projects align with Saudi Vision 2030, which aims to expand the mining sector’s contribution to the national economy.
He highlighted that Wa’ad Al-Shamal has transformed into a model for integrated industrial cities, combining major industries, logistics services, and modern residential communities, which enhance its appeal to both local and international investors.
The event was attended by Minister of Industry and Mineral Resources Bandar Alkhorayef, Deputy Minister for Mining Affairs Khalid Al-Mudaifer, and other key officials from both the public and private sectors.
Additionally, the Saudi Authority for Industrial Cities and Technology Zones launched several new industrial, logistical, and service projects, with investments exceeding SR550 million. These projects include infrastructure development in the industrial zone, which spans 4.3 million sq. meters. As part of this initiative, 32 ready-built units have been established, consisting of 20 pre-built factories and 12 support units covering a combined area of 45,000 sq. meters.
Further key developments include a 132 kilovolt, 200 megavolt-amperes power substation, overhead transmission lines, and a 7-km bridge connecting the industrial zone to the international highway. These projects aim to improve logistics and energy reliability, creating an attractive environment for investments, particularly in the phosphate industry.
In addition, the governor inaugurated the expansion of Ma’aden’s residential city in Wa’ad Al-Shamal, adding 96 new residential units. This brings the total number of housing units to 579, supporting industrial and mining sector employees and their families.
Saudi Arabia shortlists 30 firms for 22 quarry licenses in Eastern Province, Tabuk
JEDDAH: Saudi Arabia has shortlisted 30 companies for 22 mining licenses to extract sand and gravel in the Eastern Province and Tabuk, advancing its mining sector expansion and economic diversification.
The Ministry of Industry and Mineral Resources said the permits cover Northwest Salwa Western Complex, Al-Masna Crushers Complex, and South Wadi Amq Complex.
The process, which received 49 applications, marks another step in Saudi Arabia’s push to develop mining as a third pillar of its industrial base, alongside oil and petrochemicals, with efforts ongoing to tap into the Kingdom’s estimated $2.5 trillion of mineral wealth.
In the Eastern Province, three companies — Saleh Abdul Aziz Al Rashid and Sons Co., Sana Al Sharqiya Contracting Co., and Asas Al Muasim Contracting Co. — have been prequalified for sand extraction at Northwest Salwa Western Complex.
For gravel mining at Al-Masna Crushers Complex, northeast of Hafar Al-Batin, the contenders include Saleh Abdul Aziz Al Rashid and Sons Co., Sana Al Sharqiya Contracting Co., and Al-Yamamah Co. for Commercial Works and Contracting.
Meanwhile, 24 companies will compete for gravel extraction rights at South Wadi Amq Complex in Tabuk, including Tabuk Modern Contracting Co., Mega Co., and Suleiman bin Saleh Al Muhailib Mining Co.
