Britmindo Group’s Post

Is copper the new plastic? That's what the experts are saying. And Generation Mining's copper-palladium mine in Ontario will be there to take advantage of it. #copper #palladium An Interesting read : https://rb.gy/g9x5zf

Rio Tinto’s Garfield Smelter in Utah, Freeport-McMoRan’s Miami Refinery in Arizona, and Glencore’s Horne Smelter in Rouyn-Noranda, Quebec are currently the only three active Copper refineries/smelters in North America. In comparison, China dwarfed North America in this category - smelting and refining as much as ten million tons of copper in 2022, according to the U.S. Geological Survey (USGS). In 2022, the U.S. and Canada combined to produce a little over 1.8 million tons of copper, meaning much of the copper produced in North America has to be sold to countries like Chile or China before it can be used for manufacturing purposes. Canada included copper in their critical minerals list in 2021 and last summer the U.S. Department of Energy (DOE) added copper to their critical materials list. As we look to increase domestic copper production through high quality projects in Canada and the U.S. like Twin Metals Minnesota LLC proposed copper-nickel-cobalt mine, NewRange Copper Nickel’s NorthMet project, and Resolution Copper’s proposed copper mine, there also needs to be an intense focus on increasing U.S. refining capacities of copper by bringing new operations online. To learn more, please visit the USGS’s website via the link below: https://lnkd.in/gj5qUJ44

Great insight Simon Quick It may be a slow pull in prices but we can see it reflected in futures all heading towards steeper contango. With energy prices gaining momentum (with exception of natgas - irrelevant to mining) supply of concentrate mining will get tighter as well.

Talon Metals Corp. (TSX:TLO, OTC:TLOFF) and its Tamarack project in Minnesota is ideally suited to capitalize on increasing demand in the US for locally sourced, high-grade nickel, according to analysts at Stifel. The analysts have resumed coverage on the stock with a ‘Buy’ rating and a C$0.50 price target. With Talon’s current share price of C$0.14, this implies a return of about 250%. The analysts wrote in a note to clients that they see an opportunity in the mid to long-term outlook for nickel amid higher elective vehicle demand, tax incentives favoring domestic supply, and with nickel added to several critical minerals lists. “The risk to this thesis is Indonesia’s supply flooding the market, however, we highlight the Tamarack project’s location, high grades, and attractive margins providing the ability to withstand variations in the nickel price,” they wrote. More at #Proactive #ProactiveInvestors http://ow.ly/h53v105nuTc #TSX #OTC #TLO #TLOFF

Both copper and zinc smelting treatment charges continue to fall as competition for mined ores increases. A good backdrop for base metal prices. "Yesterday, Bloomberg reported that "Korea Zinc has agreed to a 40% drop in zinc smelting fees in an annual deal with Canada’s Teck Resources, marking a sign of increased competition for mined ores". The accord is among others that Teck has signed to supply smelters with zinc concentrates from its Red Dog mine in Alaska, with processing fees known as treatment charges set at $165/ton of ore. That’s down from $274/ton in 2023, and is the lowest level since 2021. Teck’s deals, which serve as a benchmark for the rest of the industry, reflect a tightening supply of mined ores known as concentrates, and increased competition for feedstock among smelters."

Anglo American set up an interesting opportunity as it officially put coking coal mines such as Moranbah North and Grosvenor in Queensland on sale, arguably prompted by BHP’s bid for the mining group. BHP’s size in the coking coal market would mean absorbing Anglo’s mines would likely prompt concerns from steel markets, and BHP has expressed limited investment interest in expanding beyond its remaining BMA mines due to higher royalty structures in Queensland. Anglo wants to focus on high grade iron ore feed for pelletising, sintering along with lump, and exit coking coal where it competes in Australia with Glencore Coronado Global Resources Inc. Stanmore Resources Limited and Peabody Energy among others. High grade iron ore neatly fits in with Anglo’s positioning in copper as a transitional metal, driving decarbonisation. From a commodity pricing benchmarking perspective, premium mid vol HCC products have seen market influence as spot trade focussed more on Australia and North America to India and Southeast Asia. PLV HCC see trades more often to East Asia and to the Atlantic while less steel demand growth and surging Mongolia trade reduced spot activity in these traditional steel markets as well as China. Stronger spot trade for a range of premium and second tier coals in emerging Asia markets have contributed more data and spreads taken into consideration for published PLV index values. Prior to industry take up of Platts spot indices in pricing coking coal over the past 10-15 years, the global market revolved around referencing annual steel mill pricing agreed for Australia’s Peak Downs, with neighbouring PLV Saraji a far lesser benchmark. Now, spot trade in premium mid vol HCCs contribute to more trade and data points in determining the spot value of high CSR, low impurity Premium HCC. Anglo’s key PMV brands and their future ownership may see strong interest from end-user steel and merchant coke buyers, steel industry groups and national regulators, other producers, with market pricing power a key consideration. Glencore’s Teck coal deal was finalised by Nippon Steel Corporation and POSCO gaining a stronger equity footing in Canadian coking coals after earlier voicing concerns.

Glencore’s Mutanda Mine Faces Cobalt Output Decline as Ore Grade Shrinks Glencore faces a challenge at its Mutanda mine in Congo as depleting cobalt ore grades prompt an expected annual reduction of up to 15% in the production of this critical battery metal, as revealed by three informed sources. The primary issue at Mutanda revolves around diminishing oxide ore reserves at the surface. To counter this, Glencore would need to allocate resources toward retrieving and... Read more on the link below https://lnkd.in/g56M82kX

Whitehaven Coal’s decision to sell 30 per cent of its Blackwater coal mine underscores the long-term value and strategic importance of its metallurgical coal. Whitehaven Coal #metallurgicalcoal #jointventure #bindingagreement #miningmagazine #miningmagazineaustralia

Australia-listed miner South32 said Feb. 29 that it will sell its Illawarra metallurgical coal business in Australia for up to $1.65 billion, a move it said will allow to reshape its portfolio and focus on commodities critical in the transition to a low-carbon future. The Illawarra met coal business will be sold to an entity held by Golden Energy and Resources and M Resources. Both these companies have exposure to met coal businesses, but they are not traditional miners like South32. Read our S&P Global Commodity Insights article to learn more: https://ow.ly/5NIT50QLaog

It will be interesting to see how this develops as this will be critical for the economic survival of low and medium grade iron ore producers. Without a clear pathway to low carbon steel production, demand for lower grade ores will reduce significantly over the coming decades as mills transition to higher grade feeds to reduce carbon input into steel production. https://lnkd.in/gUQ3N6Fq