Recent price jumps for aluminum have continued throughout August, but yesterday saw aluminum climb to its highest level in more than a decade. The recent coup in Guinea has investors shaken and wondering about supply chain issues if instability disrupts miners in the country.
There are multiple levels of concern for miners and investors, namely for material supplies. The head of Guinea’s junta did make a statement urging mining companies to continue operating a usual. This was meant to send a signal of assurance in a time of great certainty, as the country would like to see all miners continue to keep operations running as normal.
However, the unique circumstances at play mean that nerves may be on edge for some time yet. Futures held their gains even after the statement from the head of the junta, signaling that words may not be enough to keep things calm.
Guinea is going through severe upheaval currently, as a military unit seized power of the country on Sunday. The unit quickly suspended the country’s constitution, throwing out many of the laws that govern the African nation.
Colonel Mamady Doumbouya is now urging thr army to support him even while the potential for unrest rises. There is always the chance that disruptions to the mining industry could become the new norm, hence the heightened aluminum price. However, there has been no sign that shipments or mines have been affected so far.
Guinea is one of the world’s biggest suppliers of bauxite, which is the feedstock needed to make aluminum. Guinea accounts for half of China’s imports, which led to some secondary effects for industry leaders in China. Aluminum Corp. of China shares, also known as Chalco, jumped as much as 10%.
Aluminum is a pivotal metal for the global economy and makes up a large part of consumer goods and more. Car parts, drink cans, and home appliances all require aluminum for their manufacture.
Aluminum prices have been skyrocketing so far this year, climbing approximately 38% in London even before the coup. Much of the price growth has been attributed to higher consumer demand and economic activity picking up after months or more than a year of COVID-19 induced lockdowns around the world.
Prices have also been pushed higher as smelters in China struggle to maintain output during a seasonal power crunch, and the government in Beijing continues to look for ways to curb the country’s significant carbon emissions.
Production cuts in China’s Guangxi province, in particular, are being watched closely by analysts and traders for any sign of a quarterly shift in production numbers and output. With Beijing bearing down on the industry as emissions become a focal point for political policy, the industry is waiting for direction.
China’s aluminum industry produces approximately 60% of the world’s total output. This has led to some smelters pledging to ensure their supply as concerns around output have mounted. At the same time, Beijing is stepping in.
The government is also planning to release metal from the state reserves to help ease some of the supply tightness. The problems have grown in 2021, as China continues to be increasingly reliant on imports for its aluminum. This has had the not-insignificant effect of draining global supplies for aluminum, even though it is normally an abundant and easy to produce metal.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
The post Aluminum Price Charges Higher on Supply Fears After Guinea Coup appeared first on MiningFeeds.
Mining battery metals from the sea floor – could it soon be a low-impact reality?
Low-impact sea mining could become a reality for one ambitious company with the arrival of a 228m ship in Rotterdam … Read More
The post Mining battery…
Low-impact sea floor mining could finally become a reality for one ambitious company with the arrival of a 228-metre ship in Rotterdam earlier this week, heralding a critical milestone in its plans to become a producer of battery metals sourced from the deep ocean.
Named the Hidden Gem, the vessel is the key to The Metal Company’s (NASDAQ:TMC) vision of developing the world’s largest source of battery metals from the ocean floor with commercial production plans targeted for 2024.
TMC’s strategic partner, Allseas, will be converting a former deep-sea drilling vessel into a subsea mining vessel, retrofitting the ship with equipment to gather polymetallic nodules on the seafloor within contract areas held by TMC in the Pacific Ocean’s Clarion Clipperton Zone (CCZ).
These potato-sized polymetallic nodules contain high grades of critical minerals such as nickel, manganese, copper and cobalt, which are integral to the manufacturing of electric vehicle batteries and other renewable energy technologies.
Enough to power 250 million EVs
Back in April 2020, TMC acquired its third seabed contract area to explore for polymetallic nodules from Tonga Offshore Mining Limited (TOML), which opened it up to a further 74,713km square block of exploration rights.
The third contract area comprises an inferred resource of 756 wet tonnes of polymetallic nodules, meaning its expanded footprint now contains enough nickel, copper, cobalt and manganese to build more than 250 million electric vehicle batteries.
Speaking to the TOML acquisition, TMC’s chairman and CEO Gerard Barron said the project will enable The Metal Company to bring more critical minerals to market to break through the bottleneck and shift away from fossil fuels.
“Our research shows that ocean polymetallic nodules can provide society with these metals at a fraction of the environmental and social impacts associated with land-based extraction.”
Environmental concerns about sea floor mining
The environmental concerns which surround mining of the ocean’s floors are well documented, with several jurisdictions and regulatory bodies imposing bans and strict regulations on subsea mining due to the lack of understanding around the environmental impacts and growing fears about the irreversible effects these practices may have on the fragile ecosystems that we know very little about.
Many scientists believe that far more resources have been spent researching ways to mine the ocean floor rather than studying the impact this type of mining might have on the underwater environment.
TMC, however, believes that the Hidden Gem subsea vessel, which will deploy a 4.5km riser to collect the nodules off the seafloor without drilling, blasting or digging, can avoid much of the environmental disturbance associated with traditional sea floor mining methods.
Planning to mine the oceanic crust’s wealth of mineral resources is a well-trodden path that’s seen many companies fail to deliver on their promises of production due to regulatory and financial hurdles.
Nautilius had plans to turn its Solwara 1 project into the world’s first underwater copper-gold mining operation but wound up delisting from the TSX and going bankrupt in 2019.
The Canadian company had developed three undersea robots to mine hydrothermal vents on the ocean floor before funding issues became a problem midway through construction.
On the road to meeting deep-sea battery metals goal
There are examples of successful mining ventures in the ocean such as in Indonesia’s tin industry, diamond extraction in Namibia, and gold mining off Alaska’s coast, however these ventures are often heavily scrutinised by environmental lobby groups and constantly face the risk of being shut down due to increasing global environmental awareness and a trend towards greener policies from the governments who licence them.
While there is still plenty of obstacles and work to be done, TMC, with the help of Allseas and their new vessel, which is expected to be the first ship classified as a sub-sea mining vessel under American Bureau of Shipping, are much closer than many of their peers to realising the goal of supplying the market with battery metals from the seafloor.
The post Mining battery metals from the sea floor – could it soon be a low-impact reality? appeared first on Stockhead.tsx nasdaq gold cobalt manganese nickel copper diamond
Mining Experts Have Their Eye on Golden Arrow Resources
Source: Streetwise Reports 09/22/2021
The Critical Investor and Gerardo Del Real look forward to the first set of drill results from this…
Source: Streetwise Reports 09/22/2021The Critical Investor and Gerardo Del Real look forward to the first set of drill results from this Canadian explorer's Rosales project in the prolific Atacama mining district.
Golden Arrow Resources Corp. (GRG:TSX.V; GARWF:OTCQB; G6A:FSE), a junior mining company with properties in Chile, Argentina, and Paraguay, has already attracted attention in the industry. It is on the verge of starting to drill at its Rosales copper project in Chile.
The TEM soundings suggest a "strata-bound or mantos-style copper deposit model, which is further supported by the mineralization, alteration, and host rocks identified to date at Rosales," Golden Arrow Vice President of Exploration and Development wrote in a recent news release.
"Results are expected back from the lab in October."
"This type of high-grade copper deposit is common in Chile, with well-known examples including the El Soldado and Mantos Blanco mines."Plans call for 3,000 meters (3,000m) of phased reverse circulation drilling at Rosales, testing the anomalous targets identified via a surface transient electromagnetic (TEM) survey, TEM soundings, and a ground-based magnetic survey.
At least two industry experts have discussed the reports on Golden Arrow. The Critical Investor, an online mining platform whose editor is a mining stock investor and newsletter writer, is eager to see the results of Golden Arrow's drill campaign, writing, "It is very interesting to see Golden Arrow Resources drilling the big conductor at Rosales now which starts at 500m depth. . .I'm looking forward [to seeing] if this deep, large conductor could indicate actual mineralization."
"The recent hole by Filo Mining speaks to the incredible geologic potential in the region."
Also, The Critical Investor summarized the timeline of the first phase of drilling. "After talking to Vice President of Exploration Brian McEwen, the company appears to have planned to drill one of the first holes into this conductor around the first week of September, to a depth of 700m. Drilling the first phase of 1,500m will take about one to two weeks, assaying another three to four weeks, and results are expected back from the lab in October," it wrote.
Gerardo Del Real, co-owner of Digest Publishing, which offers investment research and ideas, wrote the following about Golden Arrow, a member of the Grosso Group, and its exploration success and potential upside in Argentina:
"The Grosso Group pioneered mining in Argentina. The recent hole by Filo Mining speaks to the incredible geologic potential in the region."
Del Real explains, "It bodes well when the group looking to make a discovery or discoveries of significance has done it before. In this case not only has this group done it, they opened the door for others to unlock the vast potential Argentina has for significant deposits."
Golden Arrow has approximately 116 million shares issued and outstanding and 148 million fully diluted. In a recent press release, the company announced that it has received approval from the TSX to purchase up to 10,132,012 of its common shares, which is equal to 10% of the public float as of Aug. 10, 2021.
The bid to purchase the shares commenced on Sept. 1, 2021 and will end within a year (or at Golden Arrow's discretion).
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Golden Arrow Resources Corp. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Arrow Resources Corp., a company mentioned in this article.
( Companies Mentioned: GRG:TSX.V; GARWF:OTCQB; G6A:FSE, )tsx otcqb tsxv copper
What’s To Blame?
(Don Boudreaux) TweetHere’s a letter to the Wall Street Journal: Editor: Daniel Yergin and Matteo Fini blame today’s serious shortage of computer chips…
Here’s a letter to the Wall Street Journal:
Daniel Yergin and Matteo Fini blame today’s serious shortage of computer chips on pandemic lockdowns and on a drought in Taiwan, a fire at a Japanese semiconductor factory, and a winter storm in Texas. (“For Auto Makers, the Chip Famine Will Persist,” Sept. 23).
Alas, only one of these four events is to blame: lockdowns.
Factory fires, droughts, and winter storms – along with hurricanes, earthquakes, floods, tsunamis, tornados, and dust storms – happen every year, yet they never cause global supply disruptions of the sort that have become commonplace since Spring 2020. The only events of the past 18 months that are out of the ordinary are lockdowns; these, therefore, are the only genuine cause of today’s supply disruptions.
Blaming inadequate production on weather events (and on other routine mishaps such as factory fires) is akin to the Soviet-era practice of blaming the perpetual shortages of consumer goods in the U.S.S.R. on an uncooperative mother nature rather than on the iron fist of the state that obstructed voluntary commerce.
Donald J. Boudreaux
Professor of Economics
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030
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