Perpetua Resources’ Post

Kriittisten mineraalien vertailu Kiina - EU- USA: The Critical Minerals to China, EU, and U.S. National Security. #kriittisetmateriaalit #criticalminerals https://lnkd.in/gYTXMvVN

A new USIP report emphasizes the importance of the United States government being engaged in the African critical minerals sector if it is to diminish its dependence on China and fortify its national security and foreign policy interests. https://lnkd.in/e5VEP9KX

China has a 'near monopoly' on many critical minerals. JPMorgan says it could be the 'next battleground' with the U.S. https://lnkd.in/g4u695Ny

Rare-earth mineral restrictions are a very real option the U.S. should be actively preparing for, say Gregory Wischer, a non-resident fellow at the Payne Institute for Public Policy at the Colorado School of Mines, and Lyle Trytten, a 30-year veteran of the #mining and #metals #processing industry. In the past year, "#China has imposed #export controls on #gallium, #germanium and #graphite—all critical minerals necessary in important downstream goods like #semiconductors," with further controls or even bans "a real possibility." In this article, the authors point out six reasons why China's threat is no bluff and actions the U.S. government should be taking now. https://lnkd.in/gwi6Nw8g #rareearths #exportcontrols #manufacturing #IndustryWeek

In IndustryWeek, Lyle Trytten and I argue that China’s threat to ban critical minerals exports is not a bluff, and such bans could create mineral shortages in the United States. https://lnkd.in/eVVcgatk Point 1: China has previously implemented export restrictions and bans as evidenced by export controls on gallium, germanium, and graphite over the past year and an export ban on rare earth exports to Japan in 2010. Point 2: China could benefit from imposing mineral export bans. Export bans on select minerals would demonstrate that China can retaliate against US efforts to curb technology exports to China—and possibly deter the US from further restrictions, enabling China to stock up on US technology. Point 3: Chinese mineral producers could likely find alternative customers to the United States. China is often the largest consumer of its own critical minerals. In fact, China’s demand for many critical minerals is so high that it relies on imports to meet large portions of its consumption. Point 4: China dominates the production of many critical minerals. China in 2022 was the leading producer for 30 of the 50 minerals on the US critical minerals list, and it had a majority share in global production for many of these minerals. Point 5: The United States and its partner countries likely cannot quickly produce enough minerals to fully replace imports from China. Many mineral producers have already committed large portions of their production to customers for several years, and expanding production capacity takes years. Point 6: The United States would struggle to incentivize enough mineral production in resource-rich regions outside China like Africa. The US government could financially support mineral projects there, but money may not convince firms to build projects given investment risks like royalty disputes. To mitigate the risks of potential Chinese export bans in the short term, the US government should increase its mineral stockpiling and offer low-cost financing to US companies to secure long-term offtake mineral agreements with trusted producers in the US and partner countries. To mitigate the risks of potential Chinese export bans in the long term, the US government should increase funding for mineral exploration and mine development. DOD’s DPA Title III can support mineral exploration, and DOE’s Title 17 Clean Energy Financing Program can support mine development.

Very smart take on China's clear strategy and intent to build up controlling stake in certain critical minerals like nickel and gallium and then leverage that control for its geopolitical and security goals. As Gregory Wischer and Lyle Trytten so ably point out, China is showing its cards here -- the question is will we take the hint and prepare accordingly?

South Korea is set to lead the Minerals Security Partnership (MSP) for one year starting Monday after receiving unanimous support from the member states. The MSP is a U.S.-initiated, multilateral association launched in 2022 to strengthen supply chains of critical minerals, comprising 14 states and the European Union as members. The United States, the current head of MSP, welcomed South Korea’s initiative in taking over as the MSP chair, praising the Asian country’s efforts and leadership in the field of critical minerals. #rawmaterials #criticalminerals #supplychains #korea #minerals

The United States Department of Defense and Export-Import Bank of the United States have already initiated a whole-of-government strategy to establish a domestic source of antimony at Perpetua Resources' Stibnite Gold project in Idaho. #Antimony #CriticalMineral #SupplyChains

Ensuring the provenance of supply chain materials has become increasingly important in recent years. Countries are now questioning the use of mined minerals in supply chains and whether they are financing insurgencies #supplychain #transparency #accountability https://lnkd.in/dGD_QFgK

In this US/West-China rivalry over the supply chains of critical minerals, a country like Morocco is pulling ahead even though it is not a producing country.  Its advantages? free-trade agreements with the USA and the EU, geographical proximity to Europe, political and economic stability, and a solid industrial base.  China's strategy? Quite simply, to take advantage of the "friends-shoring" of the Inflation Reduction Act.  China's unexpected allies are found among Western private companies and US-allied countries that still want to do business with Chinese companies. Mind you some of these companies are coming from US Minerals Security Partnership members. Read more on this commentary I wrote for the CSIS Africa Program Center for Strategic and International Studies (CSIS) https://lnkd.in/gDVS9Cdb #criticalminerals #uschina #ChinaAfrica.