Mineraalistrategia’s Post

I love to see more capital coming into the space to support critical minerals projects. Germany's newly announced fund is particularly interesting, given it will "consist of equity capital to make acquisitions of minority stakes" in projects globally to diversify the supply chain away from Chinese control. I'll be watching with great interest how these investments are structured, where they land in the value chain, which commodities are prioritized, which stage of project is of interest, and the relative size of the minority stakes. An innovative approach to be sure - one that is very capital markets forward, which I of course love and think fits the specific needs of the mining community. Brava, Germany - happy to have another country putting their money where their mouth is on the need to secure critical minerals. #criticalminerals #germany #investment #government https://lnkd.in/g6Xr7EWa

The establishment of Germany's fund that aims to acquire minority stakes in projects globally, including in African mining, to diversify the supply chain away from Chinese control is an interesting development.But does Germany and other European countries including Canada and USA have learned from what China has done? China's strategy of strongly favoring African mine developers positions it for dominance in the global resources war. Through significant investments, infrastructure development, technological collaboration, and trade agreements, China has created an environment conducive for African mine developers to thrive. This approach not only secures China's own access to vital resources but also contributes to the economic growth and development of African nations. As the resources war continues, China's strategy will likely play a pivotal role in shaping the dynamics of the global resources sector for years to come.

Kriittisten mineraalien markkinoille kaivataan uudenlaisia rahoitusmekanismeja: "Attracting finance into critical minerals projects is one of the key challenges standing in the way of diversifying existing supply chains, which are typically dominated by China, particularly in the midstream (processing and refining) and downstream (component and end-product manufacture) sectors. Like-minded nations are attempting to incentivise supply chain diversification to protect their domestic manufacturing sectors from unfair practices, via both policies aimed at onshoring and tariffs to minimise the impact of dumping heavily subsidised goods on the global market. Financing critical minerals is challenging as criticality does not make a market, but instead highlights a market failure.. ...In response to the ongoing global challenges, the US-led Minerals Security Partnership has recently announced the formation of the Finance Network. The network aims to strengthen cooperation and promote information exchange and co-financing among participating institutions to advance diverse, secure, and sustainable supply chains for critical minerals. Participating institutions represent like-minded nations including Australia, Canada, Estonia, Finland, France, Germany, Italy, Japan, Norway, South Korea, Sweden, the United Kingdom, United States. Both the European Bank for Reconstruction and Development and the Africa Finance Corporation are also part of the network. It is unclear whether the Finance Network will pool funds and mutually select critical minerals projects. The network does however need the international finance sector’s buy-in. #kriittisetmateriaalit #rahoitus #MSPFinanceNetwork https://lnkd.in/emzP25u7

The German government earmarked about €1 billion ($1.1 billion) for raw materials investments as it seeks to reduce dependency on producers such as China for critical minerals, according to people familiar with the plan. A selection process will be established to determine which projects — including in extraction, processing and recycling materials — are eligible, the people said, speaking on condition of anonymity. Financing, via Germany’s state-owned KfW development bank, will consist of equity capital to make acquisitions of minority stakes. Projects in Germany and abroad will “contribute to the security of supply of critical raw materials,” an Economy Ministry spokeswoman said. The ministry didn’t give details on how the state fund would be structured. Pandemic-triggered supply-chain disruptions across the globe and Russia’s invasion of Ukraine exposed the vulnerability of Europe’s reliance on energy and raw materials for high-tech and green projects. Chancellor Olaf Scholz’s government pledged to ratchet up efforts to access to critical materials over the longer term. Raw materials including cobalt, copper, lithium, silicon and rare earth metals are needed to make microchips, wind turbines and batteries for electric vehicles. As Germany’s parliament approves Scholz’s 2024 budget on Friday, the billion-euro fund is to be set up for four years. Investments will be coordinated with Italian and French initiatives in the raw materials sector, the people said. Policymakers will focus on mineral projects defined as critical in the European Union’s Critical Raw Materials Act. Veronika Grimm, a member of Scholz’s panel of independent economic advisers, said the aim of diversifying raw-material supplies must be a “top priority” for the EU as a whole. “The raw-material fund can be an element, but it won’t be a enough,” Grimm told Bloomberg. KfW declined to comment on the plans. The lender is expected to make a statement about its role managing the project at its annual news conference next week on Feb 7. The EU agreed on measures in November under the Critical Raw Materials Act to boost domestic mining and reduce dependency on any one country. While Germany still has to set up a structure to organize its investments into raw materials, Japan could provide a model. Since 2004, the state-owned Japan Organization for Metals and Energy Security has invested in the storage of raw materials, explored reserves, provided loans or guarantees for commodity companies and bought their shares directly. #mining #materials #commodities #lithium #copper #nickel #cobalt #ironore #manganese #miningdotcom #web #germany #invests #1bn #counter #china #rawmaterials #refinery #processingplant #billionaire #investments #Africa

International cooperation is crucial for securing critical mineral supply chains because it enables countries to establish common frameworks of standards, ensuring sustainable mining practices and economic growth. Such partnerships, like the recent MoU between the United States and Norway, highlight the importance of multinational collaboration in establishing market-oriented trade and shared values for the global supply of critical minerals.

Japani nostaa valtion omistusten ylärajaa kuparikaivoshankkeissa 75% prosenttiin, kertoo Nikkei Asia (tilaajille): "The Japanese government will increase the limit on the stake is allowed to hold in copper mines, Nikkei has learned, in a bid to encourage investment in global copper projects by the private sector and ensure stable supplies of the key resource. Japan’s interest in copper mines are mainly in South America and Australia." #kriittisetmateriaalit #kupari #investoinnit #japani https://lnkd.in/dH-GdUsa

Australia's investment of A$566 million ($373 million) over the next decade to map out critical mineral deposits is a welcome step. This initiative not only supports high-tech manufacturing and the green-energy transition but also promotes resource exploration and private investment. By reducing reliance on specific suppliers, such as China, it contributes significantly to global technological and environmental advancements. This effort aligns with the growing need for sustainable practices and diversified supply chains, making it a crucial move for Australia's economic and environmental future. #CriticalMinerals #ResourceExploration #GreenEnergyTransition #HighTechManufacturing #SustainableDevelopment #PrivateInvestment #AustraliaMining #GlobalEconomy #EnvironmentalAdvancements #SupplyChainDiversification #EconomicGrowth #GeoscienceAustralia #CleanEnergy #CarbonCapture #RenewableResources #InnovationInMining #TechIndustry #BatteryMinerals #LithiumSupply #RareEarths #GlobalPartnerships #FutureOfMining #ClimateAction #EnergyTransition #Australia #India

The race for critical raw materials needed for the energy, mobility, and digital transition is in full swing. With the recently passed #CRMA, the EU aims to diversify its critical raw materials supply away from China and towards like-minded partners. Canada, as a resource-rich country and long-time ally of the EU, is deemed a "perfect match." Three years after the inception of the EU-Canada strategic partnership on raw materials, our #ResearchNetwork member Inga Carry examines the balance sheet of EU-Canadian cooperation in raw material supply chains, analyzes some of the challenges associated with the policy of #friendshoring, and offers four recommendations to make the EU-Canada raw materials partnership truly a "perfect match." Read the full publication here: https://lnkd.in/eZEsSi4J #criticalrawmaterials #Canada #mining #sustainability

EBRD ja Euroopan unioni tarjoavat pääomasijoituksia kriittisten ja strategisten raaka-aineiden malminetsintään, tavoitteena on tehdä sijoituksia 5-10 junioriyhtiöön: "The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched a joint facility to provide equity investments for the exploration of critical and strategic raw materials, aiming to mobilise up to €100 million in investments. ...The facility will be used to fund responsible exploration activities, delivered to high climate, governance, environmental and social impact standards. The EBRD’s rigorous Paris Agreement alignment and Environmental and Social Policy screening will be applied to all projects. The facility is part of the EBRD’s recently approved Junior Mining Framework worth €150 million for equity and quasi-equity investments in early-stage mining companies. ...As mining exploration activities do not yet generate revenue, the most suitable support instrument is equity. The EBRD expects to invest in 5-10 junior mining companies (small and medium-sized enterprises, medium-sized enterprises or small mid-caps) that undertake critical raw material exploration in eligible countries." #kriittisetmateriaalit #kriittisetmineraalit #julkinenrahoitus #malminetsintä #EBRD #EuroopanUnioni https://lnkd.in/gx5rJy4g

🌟 French Economy Minister Bruno Le Maire has set a crucial end-of-month deadline for New Caledonia to support a state bailout deal for the territory’s #nickel industry, firmly ruling out any alterations to the proposed agreement. 💼 The French government has been in intense negotiations to rescue New Caledonia’s struggling nickel sector, with a comprehensive deal aimed at sustaining industry support. 🗳️ Despite concerns raised by New Caledonia President Louis Mapou regarding the deal's adequacy, it's set for a crucial vote in the territory’s congress on March 28. 💰 Under the proposed agreement, the French state would provide substantial energy price subsidies, alongside local authorities, totaling up to 200 million euros annually, with investments earmarked for electricity production benefiting local nickel plants. 🌍 With local producers grappling with stiff competition from Indonesia, the state aid is poised to slash production costs, paving the way for profitability, as emphasized by Le Maire. 🔋 Additionally, nickel firms are committed to boosting supplies to Europe, aligning with the region's quest to secure vital minerals for electric vehicle batteries. ⚒️ New Caledonia hosts three key nickel processors – Koniambo Nickel SAS, Prony Resources New Caledonia Resources, and Société Le Nickel - SLN - ERAMET – all teetering on the brink of collapse due to various challenges including high costs and political tensions linked to Indonesian competition. 🤝 Notably, mining giant Eramet, the majority shareholder of SLN, has struck a pivotal agreement with Paris to alleviate SLN-related debt from its balance sheet, marking a significant step toward industry stabilization. 📈 Despite France's offer of loans to stave off collapse, Eramet has refrained from injecting more funds into SLN, while KNS co-owner Glencore has suspended output at the KNS processing plant in pursuit of a buyer for its stake. MINING.com Reuters Gus Trompiz Leigh Thomas Alison Williams