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The US Department of Energy (DoE) officially added copper to its list of critical raw materials earlier this week in an historic move that reflects the growing importance of energy transition technologies.
In its finalised Critical Materials Assessment for 2023, the US Government has for the first time included copper as a critical material, following the example set by the EU, Japan, India, China and Canada. The Critical Materials Assessment evaluates materials based on whether they “serve an essential function” in the production of energy transition technologies such as electric vehicles (EVs). It is also defined as any non-fuel mineral that has a high risk of supply chain disruption.
The critical materials list will inform eligibility for government subsidies under the Inflation Reduction Act (IRA). The final list includes aluminium, cobalt, copper, dysprosium, electrical steel, fluorine, gallium, iridium, lithium, magnesium, natural graphite, neodymium, nickel, platinum, praseodymium, terbium, silicon and silicon carbide.
https://www.mining-technology.com/news/us-government-adds-copper-to-critical-materials-list/
Agreed.
Ditto!
Agree with your perspective. I’m also adding to my long position.
Thanks for the update!
Thanks PG for the detailed legitimate responses to the CRUX hit piece.
I’ll be interested in reading Photonics_Guy’s knowledgeable opinion on the CRUX article.
Goldman’s ‘favorite’ commodity has been on a tear, and could have further to run
https://www.cnbc.com/2020/09/07/goldmans-favorite-commodity-has-been-on-a-tear-could-have-further-to-run.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail
The Trump administration is planning to block the proposed Pebble Mine in Alaska early next week, six people familiar with the plans told POLITICO, marking a surprise reversal that could be the death knell for the massive copper and gold project.
https://www.politico.com/news/2020/08/22/trump-set-to-block-alaska-pebble-mine-400206
Trump Team Weighs $1 Trillion for Infrastructure to Spur Economy
https://www.bloomberg.com/news/articles/2020-06-16/trump-team-weighs-1-trillion-for-infrastructure-to-spur-economy?sref=i3mD6rA5
One more statement I need to make that I believe is pertinent here:
Before Fort Knox was built, THEY, the so called “EXPERTS” said:
The mine will NEVER be financed. Nobody will never, ever invest in such a large project.
The mine is uneconomical. Gold mining costs are much cheaper in Australia.
Gold prices are too low to support such a mine and excess supply will depress the market.
Environmental regulations are too strict in the United States. There might be radiation in mining tailings.
I could easily add another half dozen reasons here ad nauseum. You get the idea.
You know what?
The mine was built.
Au = gold.
I became interested in mining investing via the Fort Knox gold mine in Alaska. The property was bought out by Amax gold in 1982 and merged with Kinross gold in 1998.
Mergers, acquisitions and JV’s are common in the mining industry.
And yes, I stand by my previous statement: This mine will be built.
Agreed.
This mine will be built.
Coup Threats Rattle Brazil as Virus Deaths Surge
As Brazil reels from its worst crisis in decades, President Bolsonaro and his allies are using the prospect of military intervention to protect his grip on power.
The threats are swirling around the president: Deaths from the virus in Brazil each day are now the highest in the world. Investors are fleeing the country. The president, his sons and his allies are under investigation. His election could even be overturned.
The crisis has grown so intense that some of the most powerful military figures in Brazil are warning of instability — sending shudders that they could take over and dismantle Latin America’s largest democracy.
https://www.nytimes.com/2020/06/10/world/americas/bolsonaro-coup-coronavirus-brazil.html
Niobium worldwide prices (Ferro-Niobium and Niobium Pentoxide) remain virtually stable in a most unstable environment.
https://www.niobiumprice.com/
Correct.
Bolsonaro is mercurial, tempestuous and unpredictable. Brazil controls approximately 85 percent of the world’s Niobium market and its use is expanding in industrial steels. China is very interested in securing and expanding a dedicated source of Niobium. An escalating trade war with the United States could expand to strategic areas outside of just steel and aluminum.
President Trump said on Monday that he would reinstate tariffs on steel and aluminum from Brazil and Argentina, accusing the two countries of artificially weakening their currencies and hurting American farmers.
Mr. Trump, in a message on Twitter, said the currency manipulation by Brazil and Argentina was hurting American farmers. “There, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.”
https://www.nytimes.com/2019/12/02/business/economy/trump-tariffs-brazil-argentina-metal.html?smid=nytcore-ios-share
Exactly.
My sincere condolences, GM.
Sorry for your loss.
RIP Family6.
Thank you Nebraskan and Boilermaker.
Agreed. This mine will be built. Period.
<<This doesn't even consider the political climate in the US that at this point appears to see domestic supply for these critical materials not just appealing, but necessary.>>
Couldn’t have said it better myself.
This mine will be built.
Agreed.
Worldwide strengthening of Nb prices alone could add approximately 350 million USD more to the NPV.
Ti prices are significantly increasing also positively effecting the NPV.
Spot on.
With strengthening worldwide Nb and Ti prices and superb Management, NioCorp is very undervalued.
Sc and it’s promising industrial applications future is icing on the cake.
This mine will be built.
Agreed!
Here’s my two cents:
Imagine if German steel manufactured with American Nb becomes exempt from American tariffs
and
Canadian aluminum manufactured with American Sc becomes exempt from American tariffs.
It can happen.
When it comes to specialty steel and aluminum, the Administration can grant any exemption it wants.
<< Completion of additional independent market reviews for Sc and Nb>>
<<Completion of legal and financial due diligence>>
I see it differently than most folks here.
I welcome the additional scrutiny in due diligence to obtain the best financing for the company and its shareholders.
I want the additional independent market reviews for Nb and it’s significantly strengthening worldwide price.
A ten USD higher price in Nb could mean at least $350 million more to the NPV.
This significantly changes the “financial due diligence” of the project.
The project becomes profitable on Nb and Ti production alone.
Sc becomes the icing on the cake.
The strengthening Niobium price is a BIG deal to NioCorp and future financing.
It has not been priced into the stock.
If true...a very big deal.
Right on, Putz.
Who said anything about tariffs applying to German or Canadian steel mixed with American Niobium or Canadian aluminum mixed with American Scandium?
The Administration can waiver anything they want to encourage domestic United States “critical mineral” production.
MS wasn’t blowing smoke when he said that Niocorp “is in the sweet spot of criticality”.
Canada, Brazil — but not China — will be hit hardest by Trump's steel tariffs
Canada and Brazil are likely to bear the brunt of any tariffs on steel, according to a 2017 report from the U.S. Department of Commerce.
Read more: https://www.cnbc.com/2018/03/01/canada-brazil--but-not-china--will-be-hit-hardest-by-trumps-steel-tariffs.html
There is no doubt in my mind that imposed steel and aluminum tariffs will only make United States produced Niobium, Scandium and Titanium even more valuable to domestic and EU based industry.
Thanks, Atletico.
This helps confirm what I’ve been saying all along about United States industrial and trade policy under the current Administration:
This mine is going to be built.
I believe Scandium will be listed as a critical raw material in the United States just as it was recently listed by the European Union (EU):
Third list of critical raw materials for the EU of 2017
The new list includes 9 more new materials than the 2014 list: baryte, bismuth, hafnium, helium, natural rubber, phosphorus, scandium, tantalum, vanadium. This brings the number up to 27 raw materials which are now considered critical by the Commission. 3 of these are entirely new to the list: bismuth, helium, phosphorus. The other 17 critical raw materials are included in the CRM table below. For the first time, individual assessment results are available for the 3 grouped metals: HREEs (heavy rare earth elements), LREEs (light rare earth elements), and PGMs (platinum group metals).
All raw materials, even when not classed as critical, are important for the EU economy.
2017 CRMs (27)
Antimony Fluorspar LREEs Phosphorus
Baryte Gallium Magnesium Scandium
Beryllium Germanium Natural graphite Silicon metal
Bismuth Hafnium Natural rubber Tantalum
Borate Helium Niobium Tungsten
Cobalt HREEs PGMs Vanadium
Coking coal Indium Phosphate rock
*HREEs=heavy rare earth elements, LREEs=light rare earth elements, PGMs=platinum group metals
http://ec.europa.eu/growth/sectors/raw-materials/specific-interest/critical_en
The case is closely watched by Canadian miners operating abroad because its outcome could increase litigation risk.
Canadian courts have agreed to hear lawsuits against Tahoe Resources by Guatemalans who say they were shot by the miner's security and against HudBay Minerals by Guatemalans who say they were gang raped and shot by security forces.
If Nevsun loses at trial, the Vancouver-based company could potentially be forced to pay compensation for "severe physical and mental pain and suffering."
https://www.reuters.com/article/us-eritrea-mining-nevsun-resources/nevsun-appeals-to-canada-supreme-court-in-eritreans-forced-labor-lawsuit-idUSKBN1FF2M5
Isn’t nice to be invested in a domestic United States mining company without fear of potentially extremely expensive damage claims based on breaches of international law?
Great post, Boilermaker.
Yes, they are politically astute.
Producing critical domestic rare earth industrial metals is a matter of National Security for the United States.
<<If the DoD’s strategic mineral reserve is your reason for investing in this company, Niobium is the element to watch, not scandium. >>
Disagree, only partially correct.
The EO has as much to do with securing and guaranteeing future exploration and domestic Scandium production in the United States as Niobium.
You and Inchworm are conveniently ignoring the political wrinkle of future United States domestic production. Australians don’t vote in American elections, Americans do.
Take the time and actually read the signed EO from the POTUS:
“An increase in private-sector domestic exploration, production, recycling, and reprocessing of critical minerals, and support for efforts to identify more commonly available technological alternatives to these minerals, will reduce our dependence on imports, preserve our leadership in technological innovation, support job creation, improve our national security and balance of trade, and enhance the technological superiority and readiness of our Armed Forces, which are among the Nation’s most significant consumers of critical minerals.”
And I stand by my opinion that until the Democratic Party regains control of the United States House of Representatives, the United States Senate (with a majority of 60 for cloture) and the Presidency, the effective corporate tax rate will remain 20 percent in the United States. Tain’t gonna happen for a long time, if ever! Existing tax policy (corporate rates) has been if effect now for over 30 years.
Since when does an Australian scandium producer provide jobs and tax revenue for the American people AND a strategic source of scandium for the United States defense/aerospace industry (the largest in the world)???
Ask the folks in Pennsylvania, Ohio, Michigan, Wisconsin and better yet, Nebraska how they feel about it.
Post of the year.
Like it or not, additional Scandium production is going to come online based in the United States from Elk Creek for United States manufacturers. Obviously, there are Foreign interests who would prefer not to see this.
There isn't a doubt in my mind with the political reality being what It is in the United States (the current Administration and Congress) that the Elk Creek mine is going to be built.
It's the smart move.