Gen Mining Expects $200mn Loan for Marathon Copper Project

Generation Mining

Canada’s Generation Mining advances its copper-palladium project with major financial backing and construction-ready permits.

Gen Mining Expects $200mn Loan for Copper Project

Generation Mining expects a C$200mn ($145mn) loan for its Marathon copper-palladium project in northwest Ontario. The Canadian mining company confirmed a letter of support from a domestic financial institution, though the lender’s identity remains undisclosed. This development follows the receipt of the project’s final construction permit earlier this week, positioning the firm for a near-term project launch.

The Marathon project is projected to produce 532 million pounds of copper over a 13-year mine life. Gen Mining has already secured $200mn in construction financing through a deal with Wheaton Precious Metals. In addition, Glencore signed an offtake agreement in 2023 for 50% of the copper concentrate, reinforcing global interest in the asset.

Gen Mining shifted its strategic focus to the copper sector after selling its Davidson molybdenum-tungsten project in late 2023. With global demand for copper rising due to energy transition technologies, the Marathon project is viewed as a vital long-term supplier of critical minerals.

The Metalnomist Commentary

The Gen Mining Marathon project highlights renewed investment confidence in North American copper assets amid rising global demand. Strategic funding and offtake deals suggest a robust path toward project execution and long-term supply security.

Ecuador Increases Power Tariffs for Copper Mines Amid Energy Crisis

Ecuacorriente S.A

In a move to address Ecuador's ongoing energy crisis, the country’s electricity regulatory agency, Arconel, has raised power tariffs for large-scale industries, including the copper mining sector. This change, which took effect on October 30, has significant implications for major mines in the country, notably Mirador, operated by China's Ecsa-Ecuacorriente, and Fruta del Norte, operated by Canadian company Lundin. The revised tariffs will impact electricity consumption during peak hours, further exacerbating the financial pressure on mining operations already grappling with soaring costs.

Key Changes to Power Tariffs

The new electricity tariffs target industries that consume the most power, with particular emphasis on mining operations. The most notable increases are:

• Peak Hours (6-10 pm): Increased from 8.10¢/kWh to 9.86¢/kWh.
• Daytime (8 am-6 pm): Raised from 6.8¢/kWh to 8.5¢/kWh.
• Off-Peak (10 pm-8 am): Increased from 5.4¢/kWh to 7.5¢/kWh.

These price hikes will affect two major mines in Ecuador: the Mirador copper mine, which is one of the country’s largest, and the Fruta del Norte gold mine. The tariff increases are a direct response to the national energy shortage caused by a harsh drought, which has significantly reduced the output from Ecuador’s primary hydroelectric plants.

Impact of Ecuador's Energy Crisis on Mining

Ecuador is currently facing a severe energy crisis, exacerbated by a lack of rainfall, which has hindered the operation of hydroelectric plants. As a result, the country has had to rely heavily on thermoelectric power generation, leading to a 77% increase in thermoelectric fuel consumption in the third quarter of 2024 compared to the same period in 2023, according to Petroecuador, the state-owned oil and energy company.

Despite the increase in energy costs, the Ecuadorian mining chamber, which represents companies like Ecsa-Ecuacorriente and Lundin, has acknowledged that the tariff hike is necessary due to the energy crisis. The increased electricity tariffs are expected to affect the operational costs of these mines, making them less competitive in the global market.

Ecuador's Mining Exports and the Role of Copper

Ecuador's mining sector plays a crucial role in the country’s economy. In the first half of 2024, Ecuador exported $688.8 million in copper concentrate, accounting for 42% of the country's total income from metal exports, which amounted to $1.6 billion. Copper export revenues saw a 12% increase from the previous year, highlighting the growing importance of copper as a key driver of the national economy.

The rise in power tariffs, however, may put the profitability of copper mining operations under strain, particularly for Mirador, one of Ecuador’s largest copper producers. While the mining chamber has voiced support for the tariff increase, it remains to be seen how these changes will affect long-term investment and growth in Ecuador's mining sector.

Argentina Salta Lithium Boom Positions Province as Global Energy Transition Hub

Argentina Salta Lithium

Argentina Salta lithium boom accelerates as the northern province emerges as the cornerstone of the country's expanding mining industry following government approval of Rio Tinto's Rincon project under the RIGI incentive program. The Argentina Salta lithium boom reflects strategic positioning within global energy transition supply chains, with provincial mining secretary Romina Sassarini declaring Salta will become "a reference point for lithium in the country and worldwide" as multiple international producers establish operations in the resource-rich region.

RIGI Program Attracts International Lithium Investment

Argentina Salta lithium boom benefits from the national government's RIGI economic and legal incentive program that provides fiscal and legal stability for major mining investments. Rio Tinto's newly approved Rincon mine represents the fourth lithium project in Salta, requiring $2.7 billion investment to produce 60,000 tonnes annually by decade's end. China's Ganfeng, France's Eramine, and South Korea's Posco already operate lithium production facilities while applying for RIGI incentives for expanded production stages.

Meanwhile, Argentina's lithium output surged from 75,000 tonnes in 2024 to projected 131,000 tonnes in 2025 according to mining trade organization CAEM. This rapid production growth positions Argentina as a critical supplier for global battery markets while establishing Salta as the primary production hub. The province's strategic importance extends beyond lithium to include copper and gold reserves, including First Quantum Minerals' $3.5 billion Taca Taca copper-gold-molybdenum project awaiting final permits.

Infrastructure Development Addresses Production Bottlenecks

However, massive infrastructure investments are required to support expanding mining operations and projected production growth. Mining projects operating and planned in Salta require additional 575MW of electricity generation capacity, prompting provincial development of comprehensive electricity plans emphasizing solar power deployment. The renewable energy focus aligns with sustainable mining practices while addressing power supply constraints.

Therefore, transportation infrastructure development becomes equally critical as the province pursues multilateral bank financing for the 2,400-kilometer bi-oceanic highway connecting Brazil to Chile through Argentina and Paraguay. This continental corridor will enable efficient lithium and mineral exports to Pacific and Atlantic markets while reducing logistics costs. Sassarini emphasized that coordinated efforts between provincial, company, and national government stakeholders will resolve logistic bottlenecks limiting industry growth.

Argentina Salta

Strategic Positioning Supports Global Supply Chain Integration

Furthermore, Salta's emergence as a world-class lithium exporter addresses growing global demand for battery materials essential to electric vehicle production and energy storage systems. The province's integrated approach combining multiple international producers, infrastructure development, and regulatory stability creates competitive advantages for sustained industry growth. Mining sector transformation generates substantial economic impact through employment, tax revenue, and supply chain development.

As a result, the RIGI program eliminates financial bottlenecks while creating frameworks for long-term industry development across multiple mineral commodities. Salta's strategic positioning within the Lithium Triangle region enhances Argentina's competitiveness against Chilean and Bolivian producers while serving diverse global markets. The coordinated development approach demonstrates how provincial governments can catalyze mining industry growth through targeted policy support and infrastructure investment.

The Metalnomist Commentary

Argentina's Salta province exemplifies how strategic resource endowments combined with supportive policy frameworks can rapidly transform regional economies into global supply chain hubs, particularly important as lithium demand accelerates through energy transition requirements. The province's comprehensive approach addressing both production capacity and infrastructure bottlenecks demonstrates sophisticated understanding of mining industry development requirements, positioning Salta advantageously within the competitive global lithium market as established and emerging producers seek reliable supply sources.

54% of the World's Copper Mines Face 'Drought Shock'

Anglo American Copper Mining

More than half of the world’s copper mines are exposed to 'drought risk'. Other major metal raw materials such as iron ore, lithium, and cobalt are also facing potential supply disruptions due to abnormal weather conditions.

Metalnomist stated in a report published on the 24th, “Climate anomalies caused by global warming will adversely affect the supply and demand of international raw materials.” The center cited data from the global consulting firm PricewaterhouseCoopers (PwC), predicting that by 2050, 54% of the world's copper mines and 74% of lithium and cobalt mines will experience reduced production due to drought. Water is essential for crushing mineral ores, separating impurities, and cleaning equipment. McKinsey highlighted that “copper, gold, iron ore, and zinc are particularly vulnerable to drought, as 30-50% of these mines are located in areas with insufficient water resources.”

Chile, which produced over 30% of the world's copper in 2020, is already suffering from severe drought. Chilean state-owned mining company Codelco produced only 1,325,000 tons of copper last year, the lowest in 25 years, due to water shortages and other impacts.

15 Years of Water Shortage in the World’s Largest Copper Reserve: "If Mining Halts, Prices Could Quadruple"

Metalnomist warned on the 24th, “Mining items heavily dependent on production from specific countries are at risk of global supply disruptions due to abnormal weather conditions.”

According to Metalnomist, 47% of the world's copper reserves are concentrated in three countries : Chile, Peru, and the Congo. 74% of iron ore is concentrated in China, Australia, and Brazil, while 80.8% of bauxite is concentrated in Guinea, China, and Brazil. Copper demand has recently surged due to the AI boom, raising concerns that any supply disruption could significantly impact the industry. Global infrastructure asset manager Macquarie Group predicts that the annual copper demand could increase by 2 million tons by 2030 due to the surge in AI data centers. Copper is crucial for the construction of both data centers and power grids.

Northern Antofagasta, Chile's largest copper and lithium deposit, is a prime example of a region unable to increase production due to water shortages. Reuters recently reported that local mining company Antofagasta PLC has been struggling to secure water supply as reservoirs have dried up due to a 15-year-long drought. In the first quarter of this year, Antofagasta PLC’s copper production decreased by 11% compared to the same period last year.

Limited water resources are also causing conflicts with local communities. Antofagasta PLC and Australian mining company BHP were sued by Chile’s National Defense Commission (CDE) in 2022 for environmental pollution. The CDE claimed that mining companies extracted water volumes exceeding regulations, causing severe damage to the local ecosystem and indigenous communities.

Seawater desalination plants are being considered as a solution to these issues. However, the high investment costs and long construction periods limit their ability to solve water problems immediately.

Due to structural constraints on copper supply, it is predicted that copper prices could skyrocket in the coming years. Goldman Sachs projected that the average copper price next year would be $15,000 per ton. Pierre Andurand, founder of hedge fund Andurand Capital, analyzed that the global copper supply shortage could drive prices up to $40,000 per ton by 2028. Copper traded at a record high of $10,857 per ton on the London Metal Exchange (LME) on the 21st of last month, before falling to $9,563 on the 21st of this month.

The increasing demand for electricity for cooling due to heatwaves is also expected to raise the demand for fossil fuels such as coal and natural gas. Metalnomist noted, “Europe is in a situation where it is inevitable to expand thermal power generation to meet the increasing electricity demand in summer,” and added, “In Asian countries such as Thailand, India, and Bangladesh, the demand for natural gas for power generation has increased.”

Ecuador Copper Concentrate Exports Rise as Mirador Recovers From Power Crisis

Ecuador Copper mining

Ecuador copper concentrate exports rose strongly in 2025 as mining output recovered from the country’s severe 2024 energy crisis. The rebound shows how power reliability has become a direct supply-chain issue for copper producers, especially in hydro-dependent mining jurisdictions.

Ecuador exported about 670,740t of copper concentrate in 2025, up 28pc from 523,660t in 2024. Export revenue increased even faster, rising 48pc to about $1.73bn as average export prices climbed 16pc to $2,572/t. The recovery helped Ecuador copper concentrate exports regain momentum after blackouts severely disrupted mine operations a year earlier.

The country shipped its highest monthly volume in November, when copper concentrate exports reached almost 80,630t. That was far above the same month in 2024, when power shortages had sharply reduced industrial activity. However, the 2025 increase partly reflects the unusually weak comparison base created by Ecuador’s previous electricity crisis.

Mirador Remains Central to Ecuador’s Copper Export Growth

Mirador remains the dominant driver of Ecuador copper concentrate exports because it produces about 90pc of the country’s exported concentrate. The mine, operated by Ecsa-Ecuacorriente, was heavily affected in 2024 when the government disconnected large industrial users from the national grid to protect residential power supply.

The disruption exposed a structural risk in Ecuador’s mining model. The country faced 88 days of scheduled blackouts between September and December 2024 after a severe dry season reduced output from major hydroelectric plants. Large mines were forced to rely on limited thermoelectric capacity, which was not enough to fully cover operating requirements.

China remained by far the main destination for Ecuador’s copper concentrate in 2025, receiving around 96.5pc of exports. Peru received 3.5pc, while South Korea accounted for only 0.1pc. This concentration highlights Ecuador’s role as a China-facing copper concentrate supplier, but it also shows limited customer diversification.

Energy Security Becomes the Key Condition for Expansion

Ecuador’s 2026 copper export outlook will depend heavily on negotiations with Ecsa over development of the Mirador Norte deposit. The new pit could double Ecsa’s current copper production by 2028, making it one of the most important near-term growth levers for Ecuador’s mining sector.

The government is seeking additional power security before allowing expansion to proceed. Ecsa is being required to install 90MW of additional thermoelectric generation so Mirador Norte can operate without relying on the national grid during another energy crisis. The company currently has 40MW installed to meet its power needs.

This requirement reflects a broader shift in copper project development. Governments and investors are no longer looking only at ore bodies, grades, and processing capacity. They are also testing whether mines can withstand power stress, water risk, and infrastructure shocks. For Ecuador, solving that energy constraint will be essential if the country wants to become a more reliable copper supply source.

The Metalnomist Commentary

Ecuador’s copper rebound is less about new supply and more about restored operating continuity. The Mirador Norte decision will show whether the country can convert geological potential into dependable copper growth under tougher energy-security conditions.

Zijin Zinc Output Fell in 2025 as Lithium and Molybdenum Production Rose

Zijin Zinc

Zijin zinc output declined in 2025 as the Chinese diversified miner shifted part of its zinc production base from open-pit to underground mining. Zijin Mining produced 357,453t metal equivalent of zinc concentrate, down 12% from a year earlier.

The company’s lead concentrate output also fell by 7.5% to 41,065t metal equivalent. Zijin aims to produce 400,000t of zinc and lead concentrate in 2026, broadly in line with its combined 2025 output.

Zijin zinc output was mainly affected by the transition at the Bisha mine in Eritrea. The move to underground mining temporarily reduced production while new infrastructure was being built, with transition-related work continuing through 2025-26.

Bisha Transition Weighed on Zinc as Market Surplus Risk Increased

The Bisha mine remained the main reason behind Zijin’s lower zinc performance. The company expects zinc concentrate output from Bisha to recover by around 10% to 91,000t metal equivalent in 2026, compared with 83,000t in 2025.

Zijin remained China’s largest mined zinc producer and the world’s fourth-largest. The company also retained an advantage in developing and operating lower-grade zinc and lead ore bodies.

China produced around 3.35mn t of mined zinc in 2025, according to industry estimates. However, Zijin expects China’s zinc market to move into surplus in 2026 as rising concentrate supply and weak real estate demand outweigh support from the power generation sector.

The company expects zinc prices to trend lower in the second half of 2026. This outlook suggests that zinc producers may face tighter margins unless infrastructure, power-sector demand, or export flows provide stronger support.

Lithium and Molybdenum Became Key Growth Pillars

Zijin lithium production rose sharply as the company accelerated its battery materials strategy. The miner produced 5,800t of lithium carbonate equivalent in 2025 and plans to lift output to 30,000t LCE in 2026.

The company’s lithium portfolio has entered a faster ramp-up phase. The Laguocuo salt lake project in Tibet, the 3Q salt lake project in Argentina, and the Xiangyuan hard-rock lithium project have all entered production, while construction at the Manono lithium project continues.

Zijin also completed its acquisition to control Zangge Mining. Under its plan, the company expects LCE output to rise sharply to 270,000–320,000t by 2028, positioning it as a major future lithium supplier.

Molybdenum also strengthened. Zijin produced 11,500t in 2025, up 24% from a year earlier, as it moved toward becoming one of the world’s largest molybdenum producers. Its Shapinggou molybdenum project in Anhui received approval for a 10mn t/yr mining and beneficiation project in October 2025, supporting a target of 25,000–35,000t of mined molybdenum by 2028.

The Metalnomist Commentary

Zijin’s 2025 results show a portfolio in transition. Zinc is facing mine-cycle and market pressure, while lithium and molybdenum are becoming stronger growth engines tied to batteries, specialty steels, and energy transition demand.

Caterpillar 2026 Demand Outlook Turns Bullish on Backlog and Energy Demand

Caterpillar

Caterpillar 2026 demand outlook has turned notably bullish as order momentum strengthens across its business. The company ended 2025 with a $51bn order backlog, up 71pc from 2024. It also posted record fourth-quarter and full-year sales. As a result, Caterpillar 2026 demand outlook now points to stronger volume-led growth rather than price-led expansion.

The scale of the backlog matters because it gives Caterpillar clearer revenue visibility entering the new year. The company expects overall revenue growth to land near the top of its long-term 5-7pc target range. Record fourth-quarter sales of $19.1bn also came in above expectations. Therefore, Caterpillar 2026 demand outlook reflects real end-market strength, not only management optimism.

However, profitability still faces pressure despite the stronger top-line picture. Caterpillar said tariffs and internal investments will continue to weigh on margins. The company already faced a $1.7bn tariff-related headwind in 2025. Consequently, Caterpillar enters 2026 with stronger demand but not a fully clean earnings setup.

Caterpillar Order Backlog Supports a Broad-Based Equipment Growth Story

Caterpillar order backlog is now the clearest sign of improving demand across multiple sectors. A backlog of $51bn suggests customers are still committing capital despite cost pressure and policy uncertainty. That gives Caterpillar a stronger base for production planning. Meanwhile, it also supports confidence in fleet replacement and project execution.

The company’s 2025 performance also showed that higher volumes drove growth more than pricing. That detail is important because it points to underlying equipment demand rather than simple inflation pass-through. Full-year sales reached a record $67.6bn. As a result, Caterpillar order backlog now looks like a meaningful lead indicator for 2026 activity.

This momentum appears broad rather than narrow. Power and energy demand strengthened at year-end, especially through gas compression equipment. However, Caterpillar also sees stronger prospects in construction and mining. Therefore, the company’s growth outlook is tied to several end markets at once.

Mining Equipment Demand and Construction Equipment Demand Are Both Improving

Mining equipment demand is expected to benefit from continued strength in copper and gold. Caterpillar believes modest commodity price appreciation will encourage miners to replace aging fleets. That is especially important for large extraction and haulage equipment. Consequently, mining equipment demand could become a major support for 2026 performance.

Construction equipment demand also looks firmer across several regions. Caterpillar expects modest growth in North America, supported by infrastructure spending and new data center projects. The company also sees strength in the Middle East and Africa. Meanwhile, Europe and China are expected to improve from weaker conditions.

Energy demand adds a third growth pillar. Caterpillar said it is optimistic about all forms of energy generation heading into 2026. That suggests continued support for engines, compression systems, and power-related equipment. As a result, the company is positioned to benefit from industrial demand well beyond traditional construction cycles.

The Metalnomist Commentary

Caterpillar’s outlook matters because it often acts as a real-world indicator of industrial confidence. The company is seeing demand across mining, construction, and energy at the same time. If that backlog converts smoothly, Caterpillar may become one of the clearest signals that heavy industry is entering 2026 with stronger momentum than many expected.

Rio Tinto Hydropower Investment of $1.2 Billion Secures Low-Carbon Aluminum Future

Rio tinto Aluminium

Rio Tinto hydropower investment reaches $1.2 billion for modernizing the Isle-Maligne hydroelectric power plant in Quebec, Canada. The massive Rio Tinto hydropower upgrade represents the mining giant's largest investment in hydroelectric assets since the 1950s, targeting sustainable aluminum production at its Saguenay–Lac-Saint-Jean operations through 2032.

Comprehensive Modernization Enhances Production Capacity

Rio Tinto hydropower modernization encompasses extensive infrastructure improvements across multiple facility components. The project will replace electrical and mechanical equipment throughout the Isle-Maligne plant while constructing facility extensions and new mechanical workshops. Additionally, engineers will improve water intake systems and hydraulic passages to optimize power generation efficiency.

Meanwhile, the upgrade includes critical spillway modifications enabling year-round operations during Canadian winter conditions. These enhancements ensure continuous power supply for aluminum smelting operations regardless of seasonal weather challenges. The comprehensive scope demonstrates Rio Tinto's commitment to long-term operational reliability in Quebec's challenging climate.

Strategic Investment Supports Integrated Aluminum Operations

However, the Isle-Maligne facility serves as a cornerstone for Rio Tinto's extensive Quebec aluminum infrastructure. The Saguenay–Lac-Saint-Jean operations include one alumina refinery, five wholly owned aluminum smelters, and six hydropower plants. These integrated facilities account for nearly half of Rio Tinto's global aluminum output, making reliable power generation essential.

Therefore, the modernization project directly impacts Rio Tinto's competitive position in North American aluminum markets. Sebastien Ross, Rio Tinto Aluminium's managing director for Atlantic operations, emphasized that the investment ensures long-term competitiveness for Canadian and American customers. The low-carbon aluminum production capability provides significant marketing advantages in environmentally conscious markets.

Decades-Long Commitment to Sustainable Metal Production

Furthermore, the $1.2 billion investment timeline extends through 2032, demonstrating Rio Tinto's long-term commitment to Quebec operations. The hydroelectric power source enables low-carbon aluminum production, aligning with global sustainability trends and regulatory requirements. This positioning strengthens Rio Tinto's market differentiation in premium aluminum segments.

As a result, the modernization project reinforces Quebec's role as a strategic aluminum production hub for North American markets. The combination of abundant hydroelectric resources, existing infrastructure, and skilled workforce creates competitive advantages that justify substantial capital investment in facility upgrades.

The Metalnomist Commentary

Rio Tinto's $1.2 billion hydropower investment exemplifies how integrated mining companies leverage renewable energy assets to maintain competitive advantages in commodity markets. The project's scale and timeline demonstrate the capital intensity required to modernize aging industrial infrastructure while positioning aluminum operations for decades of low-carbon production in increasingly sustainability-focused markets.

Mirador copper mine contract extension set for 1H 2026 as Ecuador targets higher output

ECSA

The Mirador copper mine contract extension will be signed in the first half of 2026, according to Ecuador’s mining vice-minister. The deal will extend Ecuador’s agreement with China’s Ecsa-Ecuacorriente to develop the Mirador Norte deposit. As a result, the Mirador copper mine contract extension could unlock a major production step-change at the country’s only large-scale copper mine.

The negotiation has dragged on since 2023 despite expectations for an earlier completion. However, Ecuador’s 2024 power crisis slowed talks and forced new conditions around self-supplied electricity. Therefore, the Mirador copper mine contract extension now hinges on power security as much as geology.

Power constraints reshape Ecuador copper mine operations

Power reliability now dictates operational stability at Mirador. Ecuador faced scheduled blackouts for 88 days in 2024, with outages lasting between four and 14 hours. Meanwhile, harsh drought conditions and a thermoelectric shortfall tightened supply and increased grid risk.

Mirador disconnected from the grid from September to December during the crisis. The mine relied on its own thermoelectric generation, but it could not cover full demand. Consequently, Ecuador required Ecsa to install dedicated power capacity to reduce system exposure.

Mirador Norte deposit expansion targets 140,000 t/d processing

Ecsa has installed 40MW of thermoelectric power and is installing another 40MW to cover current needs. The mine still needs an additional 90MW to operate Mirador Norte at scale. Therefore, the operator plans to source that power from private suppliers developing nearby small hydroelectric plants.

Mirador Norte would lift throughput to 140,000 tonnes per day by 2027–2028, up from 70,000 tonnes per day today. This expansion would materially increase concentrate output and export volumes. Meanwhile, Ecuador’s copper strategy depends on proving it can scale mining without repeating grid disruptions.

The Metalnomist Commentary

This contract extension highlights how electricity now acts as a de-risking requirement for copper expansions. However, reliance on new private hydro supply adds schedule and counterparty risk. Therefore, Mirador’s next growth phase will test Ecuador’s ability to align mining growth with firm power delivery.

Idemitsu to Build Lithium Sulphide Plant in Chiba to Support Toyota’s All-Solid-State Battery Rollout

Idemitsu, Lithium Sulphide Plant

$142 Million Facility to Produce Key ASSB Material for 3GWh Annually, Backed by Japanese Government Subsidies

Idemitsu Advances Battery Strategy with New Lithium Sulphide Facility

Japanese energy firm Idemitsu Kosan has announced plans to construct a large-scale lithium sulphide production plant in Chiba, with completion targeted for June 2027. The project is part of Idemitsu’s broader strategy to establish an integrated supply chain for all-solid-state battery (ASSB) production—a technology expected to define the next generation of electric vehicle (EV) batteries.

The plant will produce lithium sulphide at volumes equivalent to powering 3GWh of ASSB output annually, reinforcing Japan’s position in the global battery supply chain. The ¥21.3 billion ($142 million) investment will be partially supported by ¥7.1 billion in government subsidies, according to Idemitsu.

ASSB Seen as Next-Generation EV Battery Solution

ASSBs offer significant advantages over traditional lithium-ion (Li-ion) batteries, including faster charging, higher energy density, better thermal stability, and reduced use of critical metals like nickel and cobalt. These benefits make them highly attractive for next-generation EV platforms.

In October 2023, Idemitsu and Toyota announced a partnership to commercialize ASSB for EVs by 2027–2028. Under this plan, Idemitsu will supply solid electrolytes, derived from its lithium sulphide, while Toyota integrates them into EV battery systems. Toyota’s goal is to produce vehicles capable of driving up to 1,200 km on a single charge—more than twice the range of its current EVs.

Integrated Upstream-Downstream Supply Secures Japan’s Battery Future

Idemitsu will manufacture lithium sulphide by processing lithium hydroxide sourced from its Australian mining assets with sulphur by-products from its oil refining operations. This vertically integrated model reflects Japan’s push to reduce battery supply chain dependencies on China while leveraging domestic expertise in refining and manufacturing.

As Japan’s second-largest oil refiner, Idemitsu is uniquely positioned to transform its fossil fuel legacy into a clean tech future. The company also plans to produce several thousand tonnes of solid electrolyte materials to support full-scale ASSB deployment across Toyota’s production lines.

Rio Tinto Kennecott wind VPPA secures 78.5MW for Utah copper decarbonization

Kennecott

The Rio Tinto Kennecott wind VPPA expands renewable sourcing for copper production. Rio Tinto signed a 15-year renewable energy supply agreement with TerraGen for its Kennecott copper mine. The Rio Tinto Kennecott wind VPPA covers 78.5MW of renewable power. Therefore, Kennecott copper mine decarbonization moves closer to execution.

TerraGen will deliver supply from the Monte Cristo I wind farm. The project totals 238.5MW in Hidalgo County and began commercial operations this week. Meanwhile, miners are shifting to long-term renewable contracts to manage carbon exposure. As a result, VPPAs are becoming a mainstream tool for metals producers.

TerraGen wind output supports a 15-year renewable energy supply agreement

The VPPA ties Kennecott’s load to wind generation attributes. Rio Tinto will source 78.5MW from the Monte Cristo I asset. However, a VPPA settles financially and does not physically deliver electrons to Utah. Therefore, the contract still supports emissions accounting through renewable attributes.

This structure can hedge power pricing and reduce reported emissions intensity. It can also align with customer demands for low-carbon copper. Meanwhile, copper buyers are tightening Scope 3 expectations across supply chains. As a result, renewable contracts can improve offtake competitiveness.

Kennecott adds solar capacity alongside wind procurement

Kennecott is building a broader clean energy portfolio. Rio Tinto installed a 5MW solar plant in 2023. It is also finishing a 25MW solar plant. Therefore, the Rio Tinto Kennecott wind VPPA complements on-site generation.

Kennecott operates integrated downstream infrastructure beyond the mine. The site includes a concentrator, smelter, refinery, and logistics assets. Meanwhile, these assets drive large, steady electricity demand. As a result, renewable contracting can support decarbonization across the full copper value chain.

The Metalnomist Commentary

Integrated copper sites win when they decarbonize smelting and refining, not only mining. Meanwhile, VPPAs offer speed, but they do not fix local grid constraints. Therefore, Rio Tinto should pair contracts with operational efficiency and on-site flexibility.

Tantalum Prices Surge as AI Capacitor Demand Meets Tight African Supply

Ta (Tantalum)

Tantalum prices have surged across concentrates, metal, and scrap as capacitor demand rises and supply disruption tightens the upstream market. The rally reflects a rare collision between stronger electronics consumption, AI data centre investment, and instability in central African raw material flows.

The price rise began before the latest disruption. However, the February landslide at the Rubaya mine in rebel-held eastern Democratic Republic of Congo intensified the market shock. Tantalum concentrate prices jumped sharply, and the pressure quickly moved into tantalum metal and scrap markets in Europe and the United States.

The supply impact has been especially important because much of the material linked to eastern DRC moves through Rwanda before entering international trade. Any disruption around Rubaya therefore affects more than one mining district. It also exposes how dependent the tantalum supply chain remains on politically fragile and difficult-to-monitor sources.

AI Data Centres Lift Tantalum Capacitor Demand

AI data centres have become a major new demand driver for tantalum capacitors. These components help regulate electricity flow on circuit boards and remain critical in high-performance electronics. As AI servers expand, demand for tantalum and tantalum-polymer capacitors is rising alongside advanced chips, power systems, and server hardware.

This demand is not theoretical. Boards used for Nvidia H100 cards can contain multiple tantalum and tantalum-polymer capacitors, making AI infrastructure a direct consumption channel for tantalum products. As Alphabet, Microsoft, Meta, and Amazon raise capital spending for AI infrastructure, smelters and traders expect stronger orders for next-generation capacitor materials.

The capacitor industry is already responding to cost pressure and higher demand. Manufacturers raised prices across several product ranges in 2025, including tantalum-polymer capacitors and multilayer ceramic capacitors. Higher tantalum powder costs contributed to the increases, but AI-related consumption has become an equally important factor.

Tight Supply Pushes Tantalum Metal and Scrap Higher

Tantalum prices are rising because the market faces pressure at both ends of the value chain. Upstream concentrate availability has tightened, while downstream buyers in capacitors and alloys continue to compete for material. This has lifted prices for concentrates, refined metal, and scrap at the same time.

The alloy sector has added another layer of demand stability. Even as capacitor demand accelerates, industrial users of tantalum metal continue to require reliable supply for high-performance applications. As a result, scrap has become more valuable because it offers an alternative source of tantalum units when mined supply becomes uncertain.

The current rally also echoes earlier technology investment cycles. The Dotcom boom drove strong demand for tantalum capacitors and pushed tantalite prices to historic highs. Today, AI infrastructure may be creating a similar demand shock, but with a more complex supply chain and tighter scrutiny around conflict-linked minerals.

The Metalnomist Commentary

Tantalum is becoming a hidden beneficiary of the AI infrastructure boom. The market risk is that capacitor demand can scale faster than responsible mining, refining, and recycling channels can respond.

BHP renewable power for copper projects accelerates South Australia’s low-carbon shift

BHP

BHP renewable power for copper projects is moving from strategy to execution in South Australia. The new deals with Neoen link Olympic Dam, Carrapateena and Prominent Hill to dedicated wind and battery assets, reshaping their long-term emissions profile. As a result, BHP renewable power for copper projects is becoming central to the group’s decarbonisation roadmap and its compliance with Australia’s safeguard mechanism.

Wind, storage and safeguard compliance for Olympic Dam

BHP will source 100MW of renewable electricity from Neoen’s 300MW Goyder North wind farm and 200MW Goyder battery. This follows an earlier contract for 70MW from Goyder South, which has supplied Olympic Dam since July. Together, these agreements should cover about 70pc of BHP’s copper-related electricity demand in South Australia by 2030.

Olympic Dam falls under Australia’s safeguard mechanism, where on-site generation counts towards covered scope 1 emissions. In 2023-24, Olympic Dam produced 244,321t of CO₂e, staying just below its 246,875t baseline. Therefore, BHP renewable power for copper projects is not just an ESG narrative but a direct tool for avoiding the surrender of additional ACCUs or safeguard credits.

Meanwhile, BHP still surrendered 47,000 ACCUs across 16 other facilities, including iron ore, coal and nickel operations. This highlights how decarbonisation progress remains uneven across the portfolio. However, the South Australian power strategy shows how dedicated renewable contracts can reduce both compliance risk and long-term power-price exposure.

Copper decarbonisation, diesel displacement and long-term risk

BHP is targeting a 30pc cut in operational greenhouse gas emissions by 2029-30 versus 2019-20 levels. The group has already reduced operational emissions to 8.7mn t CO₂e, a 36pc decline from that baseline. In this context, BHP renewable power for copper projects provides a tangible bridge between climate commitments and actual asset-level performance.

The company ultimately aims for net-zero operational emissions by 2050, mainly by displacing diesel in its mining fleets. Progress here has lagged because of technical delays in low-emission vehicle deployment. However, locking in large-scale renewable power for copper operations buys valuable time while mobile-equipment solutions mature.

For customers and policymakers, BHP renewable power for copper projects offers a clearer line of sight to lower-carbon copper supply. This matters as OEMs, grid operators and EV supply chains increasingly differentiate between standard and low-emission copper units. It also strengthens South Australia’s positioning as a hub for renewable-powered mining and processing.

The Metalnomist Commentary

BHP’s structured shift into contracted wind and storage underscores how decarbonisation is becoming a core competitiveness issue for copper miners. For metals buyers, the next phase will involve translating these renewable power deals into quantifiable, auditable carbon advantages at the cathode, rod and cable level.

Iluka Cataby rutile pause underscores weak pigment demand

Iluka

The Iluka Cataby rutile pause highlights how weak pigment demand is reshaping global heavy mineral supply. Iluka Resources will halt mining at Cataby and pause its nearby synthetic rutile kiln in Western Australia. The Iluka Cataby rutile pause begins on 1 December and responds directly to subdued titanium dioxide pigment demand. As a result, Iluka prioritises flexibility and can restart operations quickly if rutile demand improves.

Iluka Cataby rutile pause shifts production toward zircon and new projects

The Iluka Cataby rutile pause redirects attention to the group’s other Australian mineral sands assets. Iluka will suspend the 225,000 t per year SR2 kiln for six months from December. It will also halt Cataby mining for one year while maintaining restart readiness at both sites. Meanwhile, Iluka keeps its 350,000 t per year Jacinth Ambrosia zircon mine running in South Australia. The company also continues commissioning at Balranald, a next generation project due online in late 2025.

Weak pigment market pressures rutile and zircon producers

Weak pigment demand lies at the core of the Iluka Cataby rutile pause and similar industry cutbacks. High interest rates, macroeconomic uncertainty and geopolitics weigh on construction and coatings activity worldwide. Iluka notes particularly soft demand linked to real estate weakness, which curbs titanium dioxide pigment consumption. As a result, producers adjust output to protect margins rather than chase volumes in an oversupplied market.

Other heavy mineral producers face similar pressure as rutile and zircon prices struggle to hold recent gains. Some Chinese zirconium titanium operations suspended output in mid July as pricing and demand turned less attractive. US titanium dioxide producer Troxon also closed a 90,000 t per year pigment plant in March. Therefore, the Iluka Cataby rutile pause fits a broader trend of rationalising pigment related mineral capacity.

The Metalnomist Commentary

Iluka’s decision shows how even tier one mineral sands assets must flex output when downstream demand underperforms. If pigment markets stabilise and construction recovers, current curtailments could tighten rutile availability faster than expected. Market participants should watch Balranald’s ramp up and any restart signals from Cataby for early cycle indicators.

Vicuña Copper Project Financing Moves Lundin Closer to Top-Tier Copper Growth

Vicuña Copper Project

Vicuña copper project financing is now a defining step in Lundin Mining’s long-term growth strategy. The company secured commitments of up to $4.5bn to advance the Argentina-Chile copper-gold-silver project. That is a major increase from the earlier $1.75bn package. As a result, Vicuña copper project financing gives Lundin a much stronger platform for future expansion.

This matters because the Lundin Vicuña project is one of the world’s largest undeveloped copper districts. Lundin says the project could produce more than 500,000 metric tonnes a year once fully operational. That level of output would materially change the company’s global position. Therefore, Vicuña copper project financing is not only a funding story. It is a scale story.

Lundin Vicuña Project Gains a More Flexible Capital Structure

Lundin Vicuña project now has a financing structure built for phased development. Total commitments under the amended facility reach $4.5bn. Lundin can initially draw $2.25bn, with the facility expanding as key conditions are met. As a result, the capital package gives the company more flexibility as the project advances.

The structure also supports staged execution. The facility can rise to $3.5bn after certain milestones and then to the full $4.5bn after Stage 1 is sanctioned. Its maturity will also extend to 2031. Therefore, Vicuña copper project financing is designed to match the project’s development timeline rather than force a single upfront funding leap.

This approach matters in large copper projects. Capital intensity is high, timelines are long, and execution risk remains significant. A facility that expands with project progress gives lenders and developers a more disciplined framework. Meanwhile, it shows confidence that Vicuña can move from development into a sanctioned growth asset.

Vicuña Copper Output Could Redefine Lundin’s Position

Vicuña copper output is the real strategic prize behind this financing. Lundin wants to become a top-10 copper producer as Vicuña reaches full production. A project targeting more than 500,000 t/yr would give that ambition real credibility. Consequently, the Lundin Vicuña project could become one of the company’s most important long-term assets.

The partnership with BHP also strengthens that outlook. Lundin is advancing the project with one of the world’s largest mining groups. That adds technical weight, project experience, and broader strategic importance. As a result, Vicuña copper project financing is reinforced by a partnership structure that the market is likely to take seriously.

The broader copper context makes the story even more important. Large new copper projects are increasingly valuable as future supply growth looks harder to secure. A district with scale, financing support, and a major operating partner stands out. Therefore, Vicuña copper output could matter well beyond Lundin’s own portfolio.

The Metalnomist Commentary

This financing matters because it turns Vicuña into a more credible growth engine, not just a large undeveloped resource. The biggest takeaway is scale with structure. Lundin now has a stronger path toward building one of the copper sector’s most important next-generation projects.

Taniobis Expands Tantalum and Niobium Chloride Production in Germany

Taniobis

Germany-based Tantalum and Niobium powder producer Taniobis, a subsidiary of JX Nippon Mining & Metals, has announced plans to expand its production and testing capabilities. The company aims to meet the rising global demand for Tantalum and Niobium-based products, essential components in the semiconductor industry, by investing in its facilities in Goslar and Laufenburg.

Focus on Tantalum and Niobium Chlorides

Taniobis is constructing a new testing and production plant at its Goslar facility to enhance its flexibility in addressing increasing market needs. The company sees significant growth opportunities in Niobium and Tantalum chlorides, which are vital precursors in the production of microprocessors and memory chips.

Additionally, Taniobis plans to optimize its Laufenburg chloride plant, which produces various grades of Tantalum and Niobium chloride, along with tungsten and molybdenum-based products. This optimization will position the company to deliver advanced materials for next-generation semiconductor technologies.

“We recognize significant growth potential in atomic layer deposition and chemical vapor deposition for the next generation of semiconductors,” said Kazuhiko Iida, Taniobis Group chairman.

Demand Driven by AI, 5G, and Automotive Technologies

The surge in demand for Tantalum and Niobium chlorides is fueled by the rapid integration of technologies like artificial intelligence (AI), 5G telecommunications, and Internet of Things (IoT) applications. These industries require energy-efficient and high-performing semiconductors.

The automotive sector also heavily relies on these advanced materials for systems like advanced driver assistance (ADAS) and autonomous driving technologies.

While Taniobis has not disclosed a timeline for these expansions, the company’s investments underscore its commitment to meeting the growing needs of semiconductor and automotive manufacturers worldwide.

Codelco Copper Output Stabilises as Middle East Crisis Raises Cost Risk

Codelco

Codelco copper output stabilised in 2025, but rising energy, diesel, reagent and logistics costs linked to the Middle East crisis could complicate the company’s recovery path. Chile’s state-owned copper producer reported a 0.5% increase in copper output to 1.33mn t, while total attributable production reached 1.44mn t.

The modest improvement showed that Codelco copper output has started to recover after several years of operational pressure. However, the company still faced mixed performance across major divisions, including lower output at El Teniente, Chuquicamata and Gabriela Mistral.

Codelco copper output is expected to rise only slightly in 2026 to 1.331mn–1.357mn t. That guidance highlights the limited pace of supply growth at one of the world’s most important copper producers, even as demand from grids, electrification and industrial investment remains structurally strong.

Fuel and Sulphuric Acid Costs Threaten Copper Margins

The Middle East crisis is creating a new cost risk for copper producers. If disruption around the Strait of Hormuz persists, higher diesel prices, tighter logistics and rising input costs could feed directly into mining cost structures.

Diesel is a key cost driver for haulage, power generation, processing and mine-site operations. Market participants estimate that copper mining costs can rise by 5–10% for every $50/bl increase in oil prices, making fuel volatility a direct margin threat.

Sulphur supply is another concern because it is used to produce sulphuric acid for copper leaching. This risk is especially acute for hydrometallurgical producers in the African Copperbelt, but higher global acid costs could still affect broader copper market sentiment.

Codelco’s own cost base was already rising before the latest geopolitical shock. Direct cash costs increased 4.8% to $2.09/lb in 2025, while total costs rose 14% to $3.73/lb because of higher operating activity, exchange-rate effects and inflation.

Stable Output Masks Deeper Structural Pressure

Codelco described 2025 as a year of stabilisation and productive transition. Ministro Hales lifted output by 25% to 153,000t, while Radomiro Tomic increased production by 9.2% to 295,000t.

However, several core assets remained under pressure. El Teniente output fell 13% to 310,000t, Chuquicamata declined 8% to 265,800t, and Gabriela Mistral dropped 20% to 82,000t.

The company also reported record capital expenditure of $5.07bn in 2025, showing the rising investment required to sustain production. Deeper deposits, lower ore grades and more complex operations are making copper supply more capital-intensive.

This reinforces the longer-term copper supply challenge. Even with stabilising production, Codelco’s guidance points to only incremental growth, while cost inflation could delay marginal projects and pressure higher-cost operations if the conflict continues.

The Metalnomist Commentary

Codelco’s results show that copper supply risk is shifting from simple output loss to cost inflation and capital intensity. The market may still focus on tonnes, but diesel, sulphuric acid and project execution costs will increasingly decide how much copper supply can grow profitably.

Implats to Record $1 Billion Write-Down Due to Declining Metal Prices

Impala Platinum (Implats), a South African mining firm specializing in platinum group metals (PGMs), announced a substantial write-down of $1.08 billion in its metal assets. This write-down, equivalent to 19.8 billion rand, is attributed to declining metal prices, particularly rhodium and palladium, during its financial year ending June 30.

Rhodium prices fell 61% year-over-year to $4,441 per troy ounce, while palladium dropped 39% to $1,090 per troy ounce. Despite a 21% increase in 6E PGM production, largely due to the addition of Impala Bakofeng, Implats' revenues were hit hard by the price slump. Although sales volumes rose by 16%, the lower prices led to a 34% drop in sales revenue per 6E ounce.

The company also faced challenges with power generation disruptions in Zimbabwe, further impacting its operations. In response to the persistent low prices, Implats announced potential job cuts of up to 3,900 positions, representing 9% of its workforce.

Kenmare Moma Titanium Minerals Mine Cuts Workforce as Mineral Sands Market Weakens

Kenmare Resources

Kenmare Moma Titanium Minerals Mine is facing a sharper restructuring phase as Kenmare Resources moves to cut 15% of the workforce at its Moma complex in Mozambique. The decision reflects weaker mineral sands market conditions, lower projected revenues, and pressure from operational setbacks during 2025.

The company also suspended its 2025 final dividend and booked a $301.1 million impairment charge. Kenmare linked the impairment to an uncertain pricing outlook and updated assumptions around the renewal terms of Moma’s mining licence with Mozambique’s government.

Kenmare Moma Titanium Minerals Mine produces heavy mineral concentrates including ilmenite, zircon, and rutile. These materials supply titanium dioxide pigment, ceramics, welding, and titanium feedstock markets, making Moma an important asset in the global mineral sands chain.

WCP A Commissioning Issues Hit Production and Cash Flow

Kenmare’s 2025 results were heavily affected by the Wet Concentrator Plant A upgrade at Moma. The project drove capital spending higher, while commissioning problems reduced production volumes and limited sales.

The group’s net debt rose six-fold to $159 million at the end of 2025. The increase reflected major investment in the WCP A upgrade at a time when weaker output and lower shipments reduced cash generation.

Earnings before interest, taxes, depreciation, and amortisation fell 63% on the year to $58 million. The decline shows how quickly operational disruption can affect earnings when market conditions are already weak.

Market oversupply also weighed on ilmenite and zircon prices despite steady underlying demand. This left Kenmare exposed to both lower sales volumes and weaker pricing across key mineral sands products.

Licence Renewal and 2026 Recovery Shape Moma Outlook

The renewal of the Moma Implementation Agreement remains a major strategic issue. The agreement, which covers Kenmare’s mineral processing and export activities with Mozambique’s government, expired in 2024.

Kenmare applied to restart the agreement in 2022, and negotiations are still ongoing. The company said talks in mid-February made constructive progress, but final terms remain important for long-term valuation and investor confidence.

There are signs of operational recovery in early 2026. By the end of the first quarter, WCP A was regularly operating at its nameplate ore feed processing capacity of 3,500 t/hr, although some production issues continued.

Shipments are tracking in line with the run-rate needed to meet 2026 guidance. Kenmare has also drawn down finished stockpiles to manage capital, suggesting the company is prioritising liquidity while it stabilises production at Kenmare Moma Titanium Minerals Mine.

The Metalnomist Commentary

Kenmare’s workforce cut shows that mineral sands producers are under pressure from both price weakness and project execution risk. Moma’s recovery will depend on stable WCP A performance, stronger titanium feedstock pricing, and a clearer licence framework in Mozambique.

Australia Critical Mineral Reserve Sales Target Strategic Partners Amid Trade Disruptions

Australia Critical Mineral

Australia critical mineral reserve sales emerged as a cornerstone strategy following resources minister Madeline King's announcement of the A$1.2 billion ($770 million) reserve plan targeting strategic partners including the US, EU, Japan, and South Korea. The Australia critical mineral reserve sales initiative aims to generate government revenue while enabling the country to handle trade and market disruptions, particularly in response to recent Chinese export controls on rare earths, tungsten, graphite, germanium, and gallium affecting global supply chains.

Strategic Partnership Framework Addresses Geopolitical Supply Risks

Australia critical mineral reserve sales will focus on offtake agreements with trusted allies while maintaining flexibility for temporary stockpiling based on strategic and commercial considerations. The reserve design responds directly to Chinese mineral and intellectual property export controls that have disrupted global critical materials supply chains. King's announcement emphasized the program's role in managing trade disruptions while strengthening partnerships with democratic nations seeking supply chain diversification.

Meanwhile, the reserve will support domestic mining projects including rare earths and tungsten operations currently producing in Australia. Victory Metals recently produced mixed rare earth carbonates containing 38 grams per tonne of gallium in March, demonstrating domestic production capabilities for restricted materials. The government's approach combines strategic stockpiling with commercial offtake arrangements to maximize both security and revenue objectives.

Advanced Projects Position for Government Offtake Partnerships

However, Australia's critical mineral project pipeline presents substantial opportunities for reserve partnerships with six rare earth and four graphite projects in advanced feasibility stages as of October 2024. These projects await financial close decisions and may benefit significantly from Australian government offtake agreements providing revenue certainty. The Office of the Chief Economist data indicates substantial near-term production potential across multiple critical mineral categories.

Therefore, the joint public-private sector taskforce will design specific guidance around offtake pricing and operational frameworks before the 2026 program launch. This collaborative approach ensures commercial viability while achieving strategic objectives for supply chain resilience. The taskforce structure enables industry input on practical implementation challenges while maintaining government oversight of strategic priorities.

Policy Response Demonstrates Proactive Supply Chain Management

Furthermore, the Labor party's reserve pledge on April 4th directly responded to US President Trump's "Liberation Day" tariff announcement, demonstrating rapid policy adaptation to changing global trade dynamics. Australia has consistently supported critical mineral developers since 2022 through mineral tax credits, loans, and grants totaling substantial government investment. The reserve represents the latest evolution in comprehensive critical minerals policy development.

As a result, Australia positions itself as a reliable alternative supplier for critical materials essential to clean energy, defense, and technology applications. The revenue-generating model ensures program sustainability while strengthening strategic partnerships with democratic allies. This approach creates competitive advantages for Australian producers while addressing global supply chain vulnerabilities exposed by geopolitical tensions.

The Metalnomist Commentary

Australia's critical mineral reserve initiative represents sophisticated strategic thinking that combines commercial revenue generation with geopolitical supply chain management, positioning the country as a trusted alternative to Chinese-dominated critical materials markets. The program's emphasis on partnerships with democratic allies while supporting domestic project development demonstrates how resource-rich nations can leverage mineral endowments for both economic and strategic advantage in an increasingly fragmented global trade environment.