Zambia selects UAE’s IHC unit as new partner in Mopani Copper Mines
First Quantum asks government for clarity on future of Cobre Panama’s workers
Saudi Arabia studies graphite, rare earths trading platform - minister
Northern Border region accounts for 25% of Saudi Arabia’s mineral wealth
Gold price hits new all-time high
Cobalt Blue partners with Japan’s Iwatani for refinery project
US gives $50 million boost to critical minerals investor TechMet
Zambia selects UAE’s IHC unit as new partner in Mopani Copper Mines
Zambia has selected United Arab Emirates’ International Resources Holdings (IRH) as the new strategic equity partner in Mopani Copper Mines, the miner’s owner ZCCM-IH said late on Thursday.
IRH, which is linked to Abu Dhabi’s most valuable listed company, International Holdings Company (IHC), will invest funds into Mopani to help with short-term working capital and finance the completion of the mine development to unlock Mopani’s long-term potential as well as restructure the copper miner’s balance sheet, ZCCM said.
Mopani is currently owned by ZCCM, the Zambian government’s investment arm.
The new investor is also expected to “reset” Mopani’s existing relationship with Glencore, ZCCM said.
Mines Minister Paul Kabuswe told journalists in Lusaka on Friday that details on IRH’s investment and level of equity participation in Mopani would be provided when the negotiations are completed.
Zambia has been searching for a new investor for Mopani since it took control of the assets from Glencore in 2021 after agreeing to pay the Swiss commodities giant $1.5 billion in a deal funded by debt.
As part of the deal, Glencore retained off take rights for copper from Mopani.
First Quantum asks government for clarity on future of Cobre Panama’s workers
Following the publication, in the December 2 Official Gazette, of a Supreme Court ruling regarding the unconstitutionality of First Quantum Minerals’ (TSX: FM) contract for its Cobre Panamá copper mine in the Central American country, the miner issued a communiqué informing employees that it is uncertain how many people will be able to continue working at the operation.
“Until the government sets up a clear roadmap, we cannot determine how many of our collaborators will continue working at the company in care and maintenance tasks (non-operational), a key factor to avoid future environmental disasters,” the release states.
First Quantum also asked the Ministry of Labour and Job Development (MITRADEL) to quickly issue a directive to tend to the uncertainty that workers and their families are experiencing due to the lack of information regarding what will happen to their jobs.
The miner pointed out that this is particularly the case of 7,000 workers whose jobs were suspended by MITRADEL due to the blockades performed by protesters on small boats at the Punta Rincón port. These actions prevented the arrival of supplies such as coal to the mine and forced an operational stoppage.
Saudi Arabia studies graphite, rare earths trading platform - minister
LONDON - Saudi Arabia is exploring the potential launch of a new commodity trading platform for battery materials, including graphite and rare earths, its vice minister of industry and mineral resources said.
Riyadh's efforts to build an economy that is not dependent on oil include a shift towards mining the country's untapped mineral resources - worth about $1.33-trillion - including copper, lithium, phosphate and gold, but also investing in overseas assets.
"To be a minerals hub you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some," Khalid bin Saleh Al-Mudaifer told Reuters in an interview.
The Kingdom has been studying setting up the trading platform for the past three months and it does not expect a decision to be made before the next six, Al-Mudaifer said.
Northern Border region accounts for 25% of Saudi Arabia’s mineral wealth
ARAR — Vice Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer has confirmed that the Northern Border region contains 25% of Saudi Arabia’s mineral wealth, with a total value of SR1.2 trillion.
Eng. Al-Mudaifer made the remarks while participating in the Northern Border Investment Forum 2023 in Arar. He pointed out that the competitive advantage of the region is great with the presence of phosphate.
Saudi Arabia has invested more than SR120 billion in infrastructure to support and make projects successful, he said.
He also added that the Kingdom is working on studying the feasibility of the Phosphate 4 and Phosphate 5 projects, with a value of approximately SR80 billion.
Eng. Al-Mudaifer said that the factories in the Northern Border region will be the basis for building a modern industry with components and investments that will exceed SR220 billion before the end of 2035.
Gold jumped to a new all-time high on Friday after three straight weeks of gains on bets that US interest rates could soon be cut — and safe haven buying amid turmoil in the Middle East and elsewhere.
Gold futures trading in New York shot up 1.6% on Friday closing at $2,089.70 per ounce, surpassing the previous high set on August 6, 2020. Earlier on Friday, the precious metal hit an intra-day high of $2,095.70.
“Gold has had a Santa Claus rally and I expect that to continue until the end of this year. As we see inflation attenuate, it speeds up (the) timeline for policymakers to lower rates, which is good for gold,” said Everett Millman, chief market analyst at Gainesville Coins, in an interview with Reuters.
“Gold will pull back if there is a hawkish push back. But, it is certainly within the realm of possibility that gold re-tests record highs,” he added.
Chicago Fed President Austan Goolsbee said earlier that he believes US inflation is “on track” to reaching the Fed’s 2% target, meaning further rate hikes would no longer be required.
Data on Thursday showed US consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than 2-1/2 years.
Cobalt Blue partners with Japan’s Iwatani for refinery project
Australia’s Cobalt Blue said on Friday it will partner with Japanese oil and gas refiner Iwatani Corporation in a bid to develop a cobalt-nickel refinery project in Western Australia.
The proposed refinery, which is located near Perth, Western Australia, will see a large-scale demonstration plant for test work of third-party material to support technical studies.
Cobalt Blue said it started a large-scale raw materials testing program for the project and aims to trial up to 5-tonne samples from third-party suppliers.
Iwatani Corp is an oil and gas refining and marketing company that specializes in the production and trading of commodities.
The project will be based on Doral Fused Materials site, which is owned by Iwatani’s Australian subsidiary.
US gives $50 million boost to critical minerals investor TechMet
A US government agency has given investment firm TechMet Ltd. an additional $50 million to support the company’s focus on critical minerals.
The backing from the US International Development Finance Corporation brings its total investment to $105 million, and implies a valuation for TechMet of more than $1 billion, the Dublin-based company said Friday in a statement. The US agency made an initial investment of $25 million in the closely held firm in 2020.
The US has made securing critical minerals supply a priority to reduce dependence on China, which dominates the value chain for many key metals, including those needed for the energy transition.
Producers of metals like lithium and nickel have grappled with tumbling prices this year as a wave of new supply hits the market, making it difficult to invest in new mines to meet the expected surge in demand for use in electric vehicles in the coming years.
“A lot of great projects are in increasingly weak and underfunded hands, and we need these projects to be built in order to meet the accelerating demand growth,” TechMet chief executive officer Brian Menell in an interview.
TechMet invests in assets that produce, process and recycle critical minerals that are key to the electric-vehicle industry and the energy transition. The firm, which is backed by commodities trader Mercuria Energy Group, is in talks with shareholders and new investors, including sovereign funds and family offices, to close a $300 million fundraising round in the next few months, according to Menell.
