Platinum demand forecast for 2023 up by 24%, supply by 3%

The platinum deficit forecast for 2023 shows that demand will grow by 24% and supply will go up by 3% due to severe constraints.  

The World Platinum Investment Council said in its fourth-quarter report that there was a change from a surplus of 776,000 tonnes in 2022 to the forecast deficit of 556,000 tonnes in 2023. This reflects total supply remaining close to the weak level in 2022, up only 3%, and strong demand growth of 24%. 

Total mining supply and refined mine production declined 11% year-on-year, and the former is forecasted to remain flat in 2023. The report said that refined mine production declined due to lower output from South Africa.  Russian production in the fourth quarter also declined by 10% due to logistical challenges impacting material flow between Russian and Finnish processing facilities.

The report said that industrial demand for platinum is expected to increase in 2023, up by 12% year-on-year to 2.505 million tonnes, which is 26,000 tonnes below the level in 2021, the strongest year on record. Platinum investment demand could improve significantly in 2023. The report said platinum bar and coin demand could jump by 100% this year, recording a three-year high.  

Trevor Raymond, CEO of the World Platinum Investment Council, said: “From a macro perspective, 2023 is expected to be a difficult year, with an uncertain economic environment, inflationary headwinds and a global energy crisis. "

Iran claims to have discovered 8.5 million-ton lithium deposit

The Iranian government claims it has discovered a massive deposit of lithium, potentially holding 8.5 million tons of the rare element. 

Mohammad Hadi Ahmadi, an official at Iran’s Ministry of Industry, Mines and Trade, announced the discovery on Iranian state television. He added that this was the first lithium deposit found in the mountainous Hamedan province in the west of Iran. 

If the 8.5 million ton estimate is accurate, this means Iran now holds the second-largest lithium reserve in the world. It will be the largest deposit outside of South America, second only to a 9.2 million-ton deposit in Chile. With global lithium reserves estimated at 89 million tons, Iran may now possess almost one tenth of the world’s lithium supply. 

Lithium prices have skyrocketed in recent years, thanks partly to increased demand for electric vehicle batteries containing the element. However, analysts from Goldman Sachs and Bank of America predict that lithium prices will drop in Q1 2023.

The discovery could potentially have significant geopolitical implications, with Russian state media outlet Sputnik declaring that Iran’s discovery “rendered western sanctions worthless” shortly after the announcement was made. Additionally, China could become a major purchaser of Iranian lithium as its battery industry requires increased amounts of the element.

Andromeda gets PEPR approval for South Australian kaolin project

Andromeda Metals has secured approval for the programme for environment protection and rehabilitation (PEPR) at the Great White Project (GWP) in South Australia. The approval has been issued by the South Australian Department for Energy and Mining. 

The PEPR marks the second and final stage of the state government’s regulatory process for the Great White kaolin project. It allows the firm to process up to 300,000 tonnes per annum (tpa) of ore at the project and produce up to 150,000tpa of halloysite-kaolin product. 

Andromeda said that the PEPR authorises the staged development of the GWP’s operations and production during the first 13 years of operational life of the Great White kaolin project, which is expected to have 28 years of life-of-mine. 

Located within the District Council of Streaky Bay, near the community of Poochera on the Eyre Peninsula, the GWP comprises several high-value deposits, which includes a naturally occurring blend of halloysite tubes and kaolinite plates. Andromeda will pay up to $3.7m in bonds and $665,000 into the Native Vegetation Fund prior to commencing any operations at the mine. 

Andromeda managing director James Marsh said: “We are very excited to have received approval of the PEPR as it brings Andromeda closer to becoming a globally significant producer of halloysite-kaolin products. 

“With this important regulatory milestone now achieved, Andromeda is poised to progress towards construction, as we advance funding discussions which will enable a final investment decision.”

China’s CATL offloads Pilbara Minerals stake for $405.3m

China-based battery maker CATL has signed a $405.3m (A$601m) deal to divest a 4.9% stake in Australian lithium miner Pilbara Minerals to an undisclosed firm, reported Reuters, citing a term sheet it reviewed. 

In 2019, CATL acquired the holding for $0.20 (A$0.30) per share amid the lithium market decline. The Chinese firm has now offloaded the stake at $2.77 (A$4.10) per share in a block trade. This sale involves 146 million shares and equates to $374.9 (A$555m) net for CATL from its original investment. 

Goldman Sachs and UBS served as bookrunners for the transaction. The disposal does not affect the battery maker’s access to lithium supply from Pilbara Minerals. In 2020, Pilbara Minerals signed a five-year lithium offtake agreement with battery chemicals maker Yibin Tianyi Lithium, which is a joint venture of CATL, Canmax, and Tianyuan Group. 

Recently, Pilbara Minerals and Korean major POSCO joint venture company POSCO Pilbara Lithium Solution secured a debt facility of $460m (A$680.8) with Korean government-owned banks to fund the development of the 43,000 tonnes per annum (tpa) Lithium Hydroxide Monohydrate chemical facility in South Korea. 

The debt facility, which comprises both a fixed and variable interest rate, has a seven-year term. The first 21,500tpa train at the chemical facility is planned to be commissioned in late CY2023. In January 2023, Reuters reported that Bolivia selected a consortium led by CATL to develop the country’s significant lithium reserves and unlock its potential as a supplier of lithium for batteries.

Tivan Resources to acquire Speewah project from King River

Mineral processing technology company Tivan Resources has signed a $13.7m (A$20m) deal to acquire the Speewah vanadium, titanium and iron project located 100km south of the port town of Wyndham, Kimberley, Western Australia, from King River Resources. 

Under a binding term sheet, Tivan will acquire all the issued capital of Speewah Mining, which owns the Speewah project. It will also acquire all mining tenements, mining information and all related intellectual property.

In exchange, Tivan will issue $6.87m (A$10m) of new Tivan shares. Tivan will also make a three-staged cash payment equivalent in value to the new shares issued, including an initial $1.7m (A$2.5m) payment upon completion of the transaction. 

The Speewah project is said to hold Australia’s largest reported vanadium in titanomagnetite resource. It is estimated to contain JORC-compliant measured, indicated and inferred resources of 4.7 billion tonnes at 0.30% V₂O₅, 14.7% Fe and 3.3% TiO₂. 

Covering an area of 226km², the project comprises seven tenements in Western Australia. Upon completion of the acquisition, Tivan will have two large-scale vanadium in titanomagnetite deposits in Australia. These include the Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory and Speewah. 

The transaction is subject to conditions, including an independent geological assessment of the resource estimate at the Speewah project.

Tivan executive chairperson Grant Wilson said: “Speewah is a game-changer for Tivan, for northern Australia and for the critical minerals sector globally."

Newcrest rejects $16.9bn Newmont offer

Australia’s biggest gold mining company Newcrest Mining has said that it has rejected a purchase offer of $16.9bn (A$24.6bn) from US-based miner Newmont. 

Newcrest’s production increased by more than 14.3% to 2.16 million ounces (moz) in 2022, owing to increased mining and milling rates, according to GlobalData. Meanwhile, output from Newmont fell by a marginal 0.6% year-on-year to 4.3moz in the first nine months of 2022. 

Newcrest interim CEO Sherry Duhe said in an interview with Bloomberg that the company “is worth a lot more” than the almost $17bn offered. “The company is not up for sale and this [bid] was unsolicited,” Duhe said, adding that Newcrest has “offered Newmont limited conversations to share a bit more about where we see value in the portfolio, and so obviously that’s with them now to see if they’d like to decide to engage”. 

Duhe also mentioned that the company’s copper production might rise to above 50% by the end of the decade due to the metal’s role in the energy transition. Copper mining is currently responsible for a quarter of the company’s revenue. 

Reuters has also reported that Newmont was open to increasing its bid due to concerns that the offer was too low following recent leadership changes at Newcrest. Sources have said that the US company is not worried about being outbid.

Two miners missing following collapse at Dugald River mine in Queensland

Two miners at MMG’s Dugald River underground mine went missing in February after ground gave way into an ore extraction hole. 

ABC News reports that the men were operating a utility vehicle that fell down a slope into a deep extraction hole. A drilling rig is said to have fallen into the hole first, with the person operating it escaping to safety. The ground then gave way beneath the two missing miners’ vehicle, causing them to fall 25m down the hole. 

Drones are currently being used to search for the men remotely. Both are contracted by mining services provider Barminco, which runs operations at the Dugald River site. Mine owner MMG told ABC that there is no major structural damage to the mine, which produces mostly zinc concentrate. 

The Queensland ambulance service arrived at the site at 2:30pm AEST, according to ABC. The Dugald mine is owned wholly by MMG and employs approximately 500 people, including local residents and contracted workers. 

Barminco’s parent company Perenti later added that the two missing miners had been found dead at the mine site. Rescuers confirmed that Trevor Davis, 36, and Dylan Langridge, 33, were fatally injured after falling approximately 15m into an extraction hole within a previously backfilled stope.