Latest news with #CriticalMineralsStrategy
AU Financial Review
3 days ago
- Business
- AU Financial Review
Critical minerals shift from extraction to processing
With 25.3 million tonnes of contained graphite, it is expected to support a mine life of at least 70 years – meaning it could one day power not just electric vehicles, but the robot workers and storage networks of Australia's long-term clean energy future. 'Graphinex's Esmeralda Project is a clear example of Australia moving up the value chain,' says managing director Art Malone. 'Our demonstration facility in Townsville produces material that exceeds battery anode specifications, and we are scaling toward full commercial production.' That kind of capability matters because graphite is not just another mineral. It makes up more than 90 per cent of the anode in lithium-ion batteries. As electric vehicle and storage demand grows, graphite has emerged as a strategic chokepoint – and China controls more than 98 per cent of its global refining capacity. 'Natural graphite is now officially classified as a critical mineral in all jurisdictions like the US, EU, Japan, and Australia,' Malone says. 'Yet over 98 per cent of anode material is currently processed in China. That creates a vulnerability in global supply chains and a massive opportunity for Australia to step in with secure, ESG-compliant alternatives.' Geopolitical reality According to Benchmark Mineral Intelligence's Enabling North American Graphite Growth report, China's dominance of graphite refining represents a fundamental strategic risk. In 2023, China supplied 72 per cent of the world's graphite and 92 per cent of the high-purity anode material used in lithium-ion batteries. By 2028, Benchmark projects China will still supply 65 per cent of global graphite and 86 per cent of anode material. The report notes that 'barring concerted action,' China will continue to control the market. That dominance extends across both natural graphite – mined and refined and synthetic graphite, manufactured from petroleum feedstocks. The report frames this not just as a trade or investment problem but a national security issue. 'Lithium-ion batteries are a critical component of many emerging advanced technologies, including many with national security applications,' it says. In that context, securing reliable, non-China graphite supply is not optional, it's strategic. Australia's industrial policy is catching up to this geopolitical reality. With the federal Critical Minerals Strategy, Queensland's Critical Minerals Fund, and agencies like NAIF and the Office of the Co-ordinator General behind early-stage projects, the conditions for downstream investment have improved. 'Policy support has improved and needs to move fast and coordinated,' Malone says. 'This is something the Queensland government does well.' The Townsville demonstration facility is a product of that convergence – a project that has secured institutional backing from Japan's Idemitsu and Indonesia's Baramulti, along with funding from government sources. The site produces qualification-scale batches of active anode material (AAM) for testing by tier-one battery manufacturers. 'We're seeing strong strategic interest from downstream battery and auto manufacturers, particularly in the US, South Korea, Japan, and Europe,' Malone says. 'Governments are now offering financial incentives and trade policy support for non-China supply chains. Our engagement with US, Japan and Australian government agencies reinforces the geopolitical importance of what we're building.' High purity graphite Demonstration facilities are often seen as proof-of-concept. But in this case, the technical data is already drawing attention. Independent testing shows the material has a discharge capacity of 381.4 mAh/g, compared to an industry standard of around 355, and purity levels of 99.99 per cent – placing it in the premium performance category. The firm has already completed its pre-feasibility study and has now commenced a bankable feasibility study, along with permitting and financing discussions. Construction of its full-scale facility is expected to begin within 18 months. 'Financing will combine private capital, strategic investors, and government backed debt,' Malone says. 'Strong interest is already being shown by our global partners.' The economic potential extends well beyond graphite. Australia's broader ambition is to become a trusted hub for critical mineral processing across the battery value chain – spanning not just graphite, but lithium, nickel, and rare earths. 'Australia has a once-in-a-generation opportunity to be more than a quarry,' Malone says. 'We can become a trusted midstream hub for critical battery materials.' In that vision, projects like the Townsville facility are a test case – not just for commercial success, but for whether Australia can turn strategic ambition into industrial capability. More than digging and shipping Queensland Minister for Natural Resources and Mines Dale Last says the plant means that the nation is well positioned to not only meet the strong global demand for critical minerals but also add value to the supply chain through additional processing. 'Queensland's mineral deposits are world-class, and we're proud to be a mining state. We want to see projects that go further than the 'dig it and ship it' approach,' says Last. He says the state government is investing in midstream capabilities to support critical mineral extraction and processing for our key critical mineral commodities including graphite, vanadium, and other materials. 'We've made it our mission to connect international investors with Queensland innovation, backed by the work of the resources cabinet committee to streamline approvals and get more projects off the ground,' says Last. 'We're pulling every lever to accelerate new developments, reduce approval timeframes and give industry the confidence to plan and invest. Graphinex's battery anode production facility in Townsville and planned Esmeralda mine is proof that the government's strategy is working, delivering real opportunities for regional Queensland and positioning the state as a global leader in battery materials, he says. If the race to electrification is also a race for industrial capability, then the work underway in northern Queensland may prove decisive. Not because it's flashy, but because it quietly answers the question: can Australia do more than dig? And this time, it's looking like the answer is yes for Graphinex.
Daily Maverick
07-07-2025
- Business
- Daily Maverick
New mine triggers ‘white gold' prospecting stampede on the KZN South Coast
The rapid development of a new lithium mine near the seaside resort of Umzumbe has triggered concerns about the impacts of a more widespread scramble for white gold (lithium) and other mineral commodities along the KwaZulu-Natal South Coast. Investigations by Daily Maverick show that mineral prospectors are planning dozens of exploratory digs and surveys over extensive areas of commercial and traditional farming land in this region as part of a determined search for a lucrative mineral that is critical to the global renewable energy and communication industries. One group alone (SA Lithium/Afli Exploration) has targeted more than 40,000ha of farmland for further exploration, including a large block of land stretching from Hibberdene to Port Shepstone, with some smaller parcels near the town of Umzinto. Other groups have lodged further prospecting bids for lithium (and other minerals) over a similarly large area of land elsewhere on the South Coast. What could this mean for communities? While lithium mining is currently confined to one relatively small (1,200ha) area of land next to the Umzumbe River, the scale and speed of the South Coast prospecting spree has raised fears about the adequacy of the public consultation and approval processes – and the risk of significant social and environmental impacts if other commercially viable mineral resources are found in this region. Several residents fear that a new mining scramble could divide communities in a region with high unemployment rates, disrupt agriculture and lead to the expulsion of people from their homes and farming land if more lithium, coal and other minerals are discovered. Already, dozens of rural families in the immediate vicinity of the new Highbury lithium mine at Umzumbe have seen their lives disrupted due to their close proximity to this open-cast mine, regular blasting operations and the increased volume of heavy trucks rumbling past their homes and schools. SA Lithium director Ian Harebottle denies that any residents will be compelled to leave, but acknowledges that several families closest to the mine are required to evacuate their homes at times during blasting operations. The current South Coast scramble for this soft white rock and potentially rich pickings in the Umzumbe area can be traced back three decades to the publication of a 1994 journal report by geologist Bob Thomas. He reported the presence of 'significant' quantities of lithium-bearing rock on several farms, including The Corner. At the time, global demand for lithium was relatively low. Since then, however, the demand for lithium has skyrocketed due to its use in the manufacture of rechargeable lithium-ion batteries for electric vehicles and is also widely used in notebook computers, mobile phones, digital cameras, military communications and other fields. In May this year, the Cabinet approved a new Critical Minerals Strategy for South Africa and a revised mining Bill, which aim to 'maximise the country's potential in the global market of critical minerals', including lithium. Significantly, the Bill proposes to 'streamline' environmental and water use approval procedures to 'reduce bureaucratic inefficiencies and improve turnaround times for mining rights, permits, and regulatory approvals'. Who are the prospectors on the South Coast? SA Lithium began blasting for lithium on the 1,200ha site near Umzumbe during 2023. Through its associated companies (Afli Exploration), it has signalled further ambitions to prospect for more lithium on a block of land covering almost 35,000ha, inland of the coastal towns of Hibberdene and Port Shepstone. During 2023, it also applied for prospecting rights on 5,600ha of land in the vicinity of Vernon Crookes Nature Reserve and Umzinto, though progress with these applications remains unclear. The Companies and Intellectual Property Commission (CIPC) lists Ian Timothy Harebottle (a former CEO of Gemfields and Kropz fertiliser feeds company) and Brian Colin Talbot as directors of SA Lithium. Talbot, a South African-born lithium expert, began his mining career at Goldfields and Impala Platinum before moving to senior positions in Zimbabwe, Australia and Brazil's 'lithium triangle'. More recently, he established the lithium consultancy group R-Tek International, and last year, he was appointed COO of the Atlas Lithium Corporation, which is headquartered in Boca Raton, Florida. Afli Exploration Holdings' two directors are listed as Harebottle and Gary Lew Locketz , a Cape Town accounting consultant. The CIPC lists Harebottle as the director of six associated companies (Afli Exploration 1, 2, 3, 4, 5, 6). In addition to his role at SA Lithium and Afli Exploration, Harebottle is also chief development officer of the lithium exploration and development entity Aligro, of which Aligro Africa forms a part. CIPC records indicate that Aligro Africa's directors include a former Department of Mineral Resources director-general. Elsewhere on the South Coast, several other groups have applied for exploration or mining rights. However, it is important to note that none of these companies has started actual mining. And, despite the vast scale of these prospecting applications, any future mining operations would probably cover a much smaller geographic footprint if commercially viable deposits of lithium and other minerals are discovered. The other exploration companies include Khonoba Resources and Kebe Resources, which have applied for prospecting rights covering more than 48,000ha on the South Coast. Background information documents compiled by their environmental consultants suggest that Khonoba is targeting graphite and 'coal resources', while Kebe is targeting lithium ore and 10 other minerals, including gold and bauxite. Little is known about these two companies. Luyolo Somane is listed as the sole director of Khonoba and Kebe, which were both registered early last year under a Johannesburg business address. Sastrogen (Pty) Ltd has applied to prospect in a 2,300ha block of land west of Mtwalume for lithium and at least 20 other mineral resources. CIPC data suggests that the Bethal (Mpumalanga) company was registered in mid-2023 with two directors, Ntokozo Joy Nkabinde and Joy Muziwandla Conco. A further lithium prospecting application comes from Black Rock Africa, whose sole director is listed as Zenande Njongo (aged 30). His directorship was registered only in March 2025, with a business address in Ballyclare Drive in Sandton. A Department of Mineral Resources document lists his prospecting ambitions for lithium (along with feldspar, tantalum/niobium and tin) covering several farms west of Mtwalume. Finally, there is a further 6,000ha application near Umzumbe from the Middleburg-based Nyatsi Mining Resources, which overlaps with other prospecting applications by Afli Exploration. Though lithium is not listed officially on Nyatsi's extensive prospecting wish list of more than 50 minerals, a report by the company's environmental consultants nevertheless makes numerous references to the potential occurrence of lithium in the targeted exploration zone. CIPC records indicate that this company is in the process of deregistration. While new discoveries in South Africa are expected to boost economic opportunities in mining and allied industries, the climate justice and human rights group Global Witness has raised several concerns about the recent surge in lithium exploration in southern and Central Africa and other parts of the world. DM
The Star
22-05-2025
- Business
- The Star
South Africa's mining sector hails new critical minerals strategy as key to investment, growth
JOHANNESBURG, May 22 (Xinhua) -- South Africa's mining industry has welcomed the government's newly launched Critical Minerals Strategy and the Cabinet's approval of the Mineral Resources Development Bill (MRDB), calling them major steps toward boosting investment, enhancing local value addition, and strengthening regional industrialization. South African Minister of Mineral and Petroleum Resources Gwede Mantashe announced the approval of the two policy documents on Tuesday, noting that they are critical for ensuring policy certainty and unlocking South Africa's potential in the global minerals market. "The approval of these two policy documents marks a major milestone in our concerted efforts that are aimed at ensuring policy and regulatory certainty, as well as maximizing the country's potential in the global market for minerals," Mantashe said. He noted that while the term "critical minerals" is widely used internationally, definitions vary based on each country's strategic priorities -- including economic growth, technological development, supply chain security, and geopolitical interests. For South Africa, the strategy prioritizes minerals such as platinum, manganese, iron ore, coal, and chrome ore, which are identified for their potential to drive economic and industrial development. At the heart of the new strategy is a push to "foster" regional cooperation, promote local beneficiation, build resilient value chains, and attract investment in exploration and research. Mantashe emphasized that the aim is not just national growth but broader regional industrialization through a more strategic and localized approach to mineral resources. The strategy has been positively received by the mining industry. The Minerals Council South Africa, the sector's main representative body, confirmed that it was consulted during the drafting process and welcomed the government's inclusive approach. Independent analyst and businessman Sandile Swana described the policy shift as a "game changer" for the mining sector. "These new strategies and policies that have been issued by Gwede Mantashe and the Cabinet do change the game," he told Xinhua in a phone interview on Thursday. Swana highlighted the significance of this shift for both economic and geopolitical security, particularly in an era of increasing global trade tensions. "We've seen with the international trade wars that are in progress at the moment that during times of sensitivity, critical minerals are weaponized," he said. "That means that even in considering your security, you need to know what strategic minerals come out of your country, even your region." "I think South Africa wants to lead the Southern African Development Community (SADC) region into knowing how to manage the strategic minerals. It means that when these strategic minerals are sold, they are more likely in the future to be sold in a value-added form," he added. The new MRDB, expected to be published for public comment soon, is seen as an essential complement to the Critical Minerals Strategy, aimed at streamlining regulatory frameworks and encouraging sustainable development in the sector.
Daily Maverick
20-05-2025
- Business
- Daily Maverick
Loaded for Bear: A junior miner is listing on the JSE, an event that is as rare as it is revealing
South Africa's share of global exploration expenditure has fallen down a deep shaft to less than 1.0% from about 5.0% two decades ago. Climbing out of this hole will be a huge task, but it needs to be done if South Africa wants to have a vibrant mining sector down the road. On Wednesday 21 May 2025, Shuka Minerals Plc, a junior mining exploration company, will launch a secondary listing on the JSE's AltX board. Already listed on the London Stock Exchange's AIM, Shuka — a R50-million company — is not going to add material weight to the JSE's market cap. But the listing is both rare and revealing and therefore of more than passing interest as it coincides this week with the unveiling of South Africa's Critical Minerals Strategy and Mineral Resources Development Bill 2025. The listing is rare because almost five months into the year, Shuka is the first company listing on the JSE in 2025, according to consultancy AmaranthCX, which has a database going back to 1994. And there have already been seven announced delistings in 2025, with two more in the pipeline. AmaranthCX director Paul Miller told me that this was a reflection of a worrying trend on the bourse, which only had three new company listings for all of 2023. Last year, there were 12 company delistings and 11 listings — so the JSE ended 2024 with one less company listing and is on track this year for an even worse showing. This speaks to the wider woes of the JSE and the state of South Africa's capital markets. 'These ongoing net delistings, but more importantly the absence of primary capital raising on the market, speak to the inability of the market operators to persuade their regulators and the policymakers that this is a crisis. It desperately needs a policy intervention, but all it seems to get from the National Treasury is indifference,' Miller told me. Rarity Shuka's JSE debut is also a rarity because there are so few junior mining/exploration companies listed on the bourse — a frankly shocking state of affairs given South Africa's fabulous resource endowment. The Toronto Stock Exchange and the Australian Stock Exchange both have hundreds of junior miners listed. Both countries, of course, are major players on the global mining stage. South Africa should also have hundreds but alas, an arid junior listings desert surrounds a glittering oasis of mineral wealth. The JSE has a grand total of five junior miners, and Shuka will make it six. 'Junior mining and exploration is one side of a coin, and the other is capital market development. If you are not thinking hard about capital market development then you will not have junior mining,' Miller told me. This is also rooted in the many own goals scored over the years by the industry's regulator, the Department of Mineral and Petroleum Resources (DMPR, formerly the DMRE). Exploration is the foundation of any mining sector. It can take years or decades to build a new mine from scratch, and the resource will remain untapped if it is not discovered and uncovered by exploration, a risky business mostly carried out by junior miners. But mineral exploration in South Africa has long had too many hurdles to clear to get off the ground effectively. I have banged on for years about the needless delays in processing applications for mining and prospecting rights and the deplorable lack of a transparent mining cadastre, an online portal which should speed things up in a transparent way. There is finally light at the end of this long tunnel and Mineral and Petroleum Resources Minister Gwede Mantashe has promised that a proper mining cadastre will be up and running by the second half of this year. That should help South Africa eventually reclaim its rightful place as a focus for mining exploration and the capital this sector can attract. Mantashe on Tuesday unveiled South Africa's Critical Minerals and Metals Strategy as well as the Mineral Resources Development Bill 2025, which were recently approved by the Cabinet. 'The approval of these two policy documents marks a major milestone in our concerted efforts that are aimed at ensuring policy and regulatory certainty, as well as maximising the country's potential in the global market for minerals,' Mantashe said in a statement. Policy certainty may be the laudable aim here, but this constant shifting of the goalposts can have the opposite effect. Still, some shifting can be helpful. 'The bill proposes streamlining administrative processes to ensure proper alignment with National Environmental Management Act (Nema) and the National Water Act (NWA), and thereby reduce bureaucratic inefficiencies and improve turnaround times for mining rights, permits, and regulatory approvals,' Mantashe said. Safeguards That will be welcome provided the measures do not dilute safeguards to such an extent that critical ecosystems and waterways are threatened. Mantashe also said that the Critical Minerals Strategy — which casts a very wide net and basically includes almost every mineral of importance — '… emphasises that South Africa must prioritise exploration to sustain its mining sector and for the success of this strategy'. South Africa's share of global exploration expenditure has fallen down a deep shaft to less than 1.0% from about 5.0% two decades ago. Climbing out of this hole will be a huge task but it needs to be done if South Africa wants to have a vibrant mining sector down the road. It remains to be seen if the new strategy and bill — the latter which is now open for public comments — will help or hinder this journey. Next week the Junior Indaba will take place in Johannesburg where such issues will be explored. So a hat tip to Shuka and good luck. New company listings on the JSE and junior miners on the bourse are both critically endangered species. But they are not extinct yet. DM
Yahoo
20-04-2025
- Business
- Yahoo
Australia's Race to Develop a Critical Minerals Sector
Australia has been developing its critical mineral sector in recent years, aiming to become a major producer and processor of the high-demand minerals and metals needed to support a global green transition. In addition to launching a national strategy and providing billions in funding for the sector, the government recently established a tax incentives law for critical minerals that is expected to attract greater investment in the sector. The demand for critical minerals is expected to increase dramatically over the coming decades as countries worldwide use them to power a global green transition. Common uses for critical minerals include the manufacturing of batteries, electronics, microchips, and solar photovoltaics. Australia is home to some of the largest recoverable critical mineral deposits on earth, including high-quality cobalt, lithium, manganese, rare earth elements, tungsten, and vanadium. In December 2023, the Australian government launched the Critical Minerals Strategy 2023–2030, which provides a framework to develop critical minerals production, processing, and supply chains in Australia. It is expected to support job creation and boost economic growth. It encourages collaboration across communities, industry, investors, the research and innovation sector, states and territories, and international partners. The strategy focuses on six key areas: developing strategically important projects, attracting investment and building international partnerships, First Nations engagement and benefit sharing, promoting Australia as a world leader in ESG performance, unlocking investment in enabling infrastructure and services and growing a skilled workforce. In 2021, the government established the Critical Minerals Facility, with $1.3 billion in funding to address the funding gap in the country's critical minerals sector. It has since added a further $1.3 billion to the scheme. The facility provides financing for projects that align with the government's Critical Minerals Strategy. In February, the Australian parliament passed laws that provide production tax breaks for critical minerals and renewable hydrogen to support national energy transition plans and help decrease reliance on China for its supply. The law offers $4.4 billion in tax incentives of 10 percent for the processing and refining costs for 31 critical minerals from 2028 to 2040 for up to 10 years per project. The Resources Minister Madeleine King stated, 'By processing more of these minerals here in Australia, we will create jobs and diversify global supply chains.' Australia currently has a Labour government, led by Prime Minister Anthony Albanese. However, the opposition Liberal-National Coalition is vying for power in the May general election, and it has a very different stance on energy. The Coalition told the gas industry in April that it planned to give gas the same status as a critical minerals if it came into power, which would provide the industry with access to $3.6 billion in export finance. Susan McDonald, a Queensland senator, stated that the party will ensure that natural gas 'remains a critical part of the Australian economy for decades'. She added, 'I can announce today that to boost investment, a Coalition government will elevate gas to the same status as a critical mineral… This will ensure gas projects are able to apply for funding from the $4 billion (US $3.6 billion) critical minerals facility.' McDonald went on to say, 'This will ensure gas projects, so critical to our national and international security, are able to access specialised teams within the department of resources to support their projects.' In March, the opposition leader Peter Dutton promised to create an east coast gas reservation scheme, aimed at reducing energy prices. By contrast, Albanese aims to continue supporting a transition away from oil, gas, and coal if re-elected, particularly in the wake of the recent Trump tariffs. He plans to increase critical mineral mining and processing activities to boost Australia's trade appeal with the U.S., as the North American giant attempts to reduce dependency on China for its critical minerals and green energy components. The PM is expected to unveil plans on how he will accelerate the expansion of the industry in the coming weeks. U.S. President Donald Trump recently announced sweeping tariffs on imports from countries worldwide, with 25 percent on steel and aluminium and 10 percent on most Australian goods, except for pharmaceuticals and some critical minerals. Trump has been back and forth on his tariffs, introducing them and then later pausing them for extended periods. World leaders have responded to the threat of tariffs by diversifying their trade partners and attempting to ensure the future of their trade security in a range of ways. For Albanese, this means making Australia a critical minerals hub. Australia's Labour government has supported the development of the country's critical minerals industry, with significant sectoral growth expected over the coming decades. However, this expansion could depend heavily on whether Albanese wins the May election or if the Liberal–National Coalition takes power, putting more of an emphasis on natural gas development. By Felicity Bradstock for More Top Reads From this article on
