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HEADLINES
Trump administration mulls stake in Greenland rare earth miner
Mali army holds back 70 Allied Gold trucks as militants block fuel imports
Anglo American takes Peabody to arbitration over failed $3.8B deal
Discovery Green, Glencore sign 20-year renewables deal to power coal mines
London no longer a hub for big mining finance
Selling De Beers presents Anglo with some tricky politics
Trump administration mulls stake in Greenland rare earth miner
The US government is said to be interested in buying a stake in Critical Metals (NASDAQ: CRML), part of the Trump administration’s broader strategy to expand its control over the world’s supply of critical minerals, Reuters reported on Friday.
The deal, if finalized, would give Washington a direct interest in the Tanbreez project in southern Greenland, one of the largest rare earth deposits in the world. The Reuters report comes a day after Critical Metals more than doubled its interest in the project from 42% to 92.5%, effectively giving it near-control.
Tanbreez project orebody
The reported government interest follows a series of high-profile transactions Washington made to acquire stakes in companies with projects or mines that could become key suppliers of critical minerals to the US market.
Last month, it bought a 5% stake in Lithium Americas (NYSE: LAC), whose flagship project in Nevada is slated to become the largest source of battery-grade lithium in the Western Hemisphere. Two months earlier, the US Department of Defence (now Department of War) purchased a $400 million or roughly 15% stake in MP Materials (NASDAQ: MP), the nation’s only rare earths producer.
In Critical Metals’ case, it is one of “hundreds of companies” with critical minerals projects that have approached the government for investment, a Trump official said when requested for commentary by Reuters.
One other source told Reuters that discussions have gone as long as six weeks involving the conversion of the company’s $50 million government grant, which it applied for in June, into stocks. This proposal, if accepted, would give Washington an approximate 8% stake in Critical Metals and its Tanbreeze rare earth project in southern Greenland.
Mali army holds back 70 Allied Gold trucks as militants block fuel imports
Mali’s military has prevented about 70 fuel trucks from travelling to Allied Gold’s Sadiola mine after al Qaeda-linked militants imposed a blockade on fuel imports to the landlocked country, two people familiar with the matter said.
Fuel supplies are dwindling at the remote gold mine, located some 650 km (400 miles) from the capital Bamako, they said.
Mali’s military government, which took power after coups in 2020 and 2021, is facing growing pressure from militant groups who analysts say are trying to encircle cities and towns in the Sahel region.
“We are telling all traders who import diesel and gasoline into Mali, whether from Ivory Coast, Guinea, Senegal, or Mauritania, to stop doing so until further notice,” a Jama’at Nusrat al-Islam wal-Muslimin (JNIM) militant spokesperson said in a video announcing the blockade in early September.
“Why? Because these bandits in power are persecuting people, closing their gas stations, and cutting off fuel to villagers under the pretext that they are supplying jihadists.”
In recent weeks, armed forces have kept many of the fuel tankers destined for Sadiola in the town of Diboli on the border with Senegal, while several others are being held in the town of Kayes, about 75 km north of Sadiola, until soldiers can escort the trucks to the site, both sources said.
Anglo American takes Peabody to arbitration over failed $3.8B deal
Anglo American (LON: AAL) has launched arbitration proceedings against Peabody Energy (NYSE: BTU) after the US coal producer pulled out of a $3.8 billion agreement to acquire its Australian steelmaking coal assets.
Moranbah North coal mine.
The deal collapsed in August when Peabody invoked a “material adverse change” clause following a fire at Anglo’s Moranbah North mine in Queensland. The underground blaze, triggered by high gas levels, forced operations to halt in April and gave Peabody grounds to withdraw under the contract.
Anglo had planned to sell the Bowen Basin mines, located in the world’s top steelmaking coal region, as part of a broader strategy to divest non-core assets following last year’s failed takeover attempt by BHP (ASX: BHP).
Peabody said in a regulatory filing Friday that it remains confident the mine fire qualified as a material adverse change, justifying the deal’s termination. The company also revealed Anglo has so far refunded $29 million of a $75 million deposit and demanded repayment of the remainder “without further delay.”
Analysts have warned arbitration could drag on until late 2026 and force Anglo, the world’s third-largest seaborne exporter of steelmaking coal, to restart the sales process in a weaker price environment.
For Peabody, the acquisition would have expanded its footprint in metallurgical coal, critical to steelmaking. Still, analysts had questioned the $3.8 billion price tag, which nearly doubled the market value of the St. Louis-based miner at the time.
Shares of Peabody jumped nearly 10% Friday to $32.20, giving the company a $3.93 billion market capitalization. Anglo’s stock rose 1.44% to 2,804p in London, valuing the miner at £33.24 billion ($45 billion).
Discovery Green, Glencore sign 20-year renewables deal to power coal mines
JOHANNESBURG (miningweekly.com) – To support South Africa’s transition to clean energy, Discovery Green, the renewable energy business of Discovery Limited, and Glencore Operations South Africa, part of the global diversified natural resources group, have signed a 20-year renewable energy supply agreement that will replace the majority of the electricity consumption at four of Glencore’s major mining operations with renewable energy.
Starting in 2027, Discovery Green will supply renewable energy to the Goedgevonden, Tweefontein, and iMpunzi mine complexes near eMalahleni, in the Nkangala District. The electricity consumption across these operations is estimated to exceed 290 gigawatt-hours (GWh) a year.
This long-term agreement is expected to substantially reduce the operation’s direct carbon emissions, while providing Glencore with stable, predictable electricity costs.
“We’re excited to support Glencore, a major player in South Africa’s economy, on their journey towards renewable energy,”
“This deal is one of the largest renewable energy trading agreements in the country and the first solution we’ve co-designed with an offtaker to dynamically adjust supply as their strategy and operations evolve.
“It’s a new model for the mining sector that can be replicated across other industries – offering cost savings, long-term price certainty and a clear path towards a low-carbon future,” Nepgen added.
Glencore’s commitment to sustainability is central to this partnership. This agreement supports Glencore’s broader Climate Action Transition Plan, which includes expanding its renewable energy portfolio.
“This partnership with Discovery Green is a key part of our strategy to decarbonise our South African operations while maintaining energy security,” Glencore Coal South Africa CEO Murray Houston explained. “It reflects our commitment to responsible mining, long-term sustainability, and supporting South Africa’s energy transition.”
DELIVERING CLEAN POWER AT SCALE
Glencore joins a growing list of leading businesses that have partnered with Discovery Green to transition to renewable energy, including Sasol, Impala Platinum (Implats), Fortress REIT and Southern Sun.
Under the agreement, energy will be generated from Discovery Green’s growing base of contracted large-scale wind and solar farms and delivered to Glencore’s mining operations through the national grid.
“South Africa has some of the best renewable energy resources in the world, and this agreement shows how we can harness them to deliver clean, reliable power at scale. Our focus is on building the infrastructure and partnerships needed to unlock this potential and support the country’s transition to a more sustainable energy future,” Nepgen pointed out.
LONDON’S centuries-old dominance as the world’s premier destination for mining finance is drawing to a close as investors increasingly favour Australia and Canada for backing resource ventures, said the UK’s Daily Telegraph.
“The days of mining being financed from London are over,” one veteran broker told the newspaper. “This is the market that built Rio Tinto, Anglo American and Consolidated Goldfields. But all that has passed.”
The numbers tell a sobering story. Britain hosted 134 mining companies with primary listings worth over $300bn in 2015, falling to 109 firms valued at $233bn by June this year. BHP’s departure in early 2022 dealt a significant blow.
Meanwhile, Australian listings climbed from 662 to 712, with market capitalisation surging from $233bn to $385bn. Toronto’s market value jumped from $132bn to $439bn despite fewer listings.
Capital raising has declined even more dramatically. Just 37 mining companies floated in London over the past decade compared to over 300 in Australia and 76 in Canada. Australian miners conducted nearly 4,900 follow-on raisings totalling $53bn versus London’s 886 raising merely $14bn.
Industry executives cited insufficient risk appetite and heightened environmental, social and governance concerns amongst British and European investors. “Mining got a bad rap, and continues to get a bad rap,” one said.
Australia benefits from mining comprising up to a quarter of the stock exchange, forcing even large pension funds to participate. Retail investors also readily back speculative ventures.
“Your mum-and-dad punters are happy to chuck in 10 grand on a chance you’re going to get some good intersects,” said a Perth-based miner.
However, not everyone shares this pessimism. Dan Coatsworth, head of markets at AJ Bell, insisted appetite remains, particularly for larger stocks, citing Greek miner Metlen’s summer listing in the FTSE 100. “The company was essentially saying it sees an attractive pool of investors, who understand the industry,” he said.
Selling De Beers presents Anglo with some tricky politics
THE sale of De Beers was always going to be the hardest part of Anglo American’s restructuring, first announced in May 2024, not least owing to the severe downturn in the sector over the past three years.
While there are some faint signs of recovery in the diamond market, analysts are not positive especially with regards to Anglo. “With headwinds from across the board, we see the market expectations for any material value realisation for diamond business at the very bottom,” said Citi in August.
De Beers lost $189m in the six months ended June. Second quarter diamond production fell 30% raising the possibility full year production would be below restated guidance of 20 to 23 million carats, the bank added.
Given this performance, it would be difficult for Anglo to realise the full value of its investment in De Beers, consisting of an 85% controlling stake estimated at $2.5bn. What’s made the sale process yet more difficult is Botswana’s interest in buying control. Duma Boko, Botswana president, wants a deal done this month.
“There will now be an intense period of engagement to make sure separation doesn’t just work for Anglo American, but also works for the future of the government of Botswana,” said Al Cook, CEO of De Beers in February.
Prior to Botswana making its broader commercial interests known, Anglo shortlisted potential bids from the private sector. According to reports, two of the frontrunners are led by former De Beers CEOs in Gareth Penny and Bruce Cleaver. Without naming either, Anglo CEO Duncan Wanblad welcomed bids from “people understanding the quality of the asset, despite where we find ourselves in the current market”.
