Alpayana Raises Takeover Bid for Sierra Metals Amid Improved Earnings

Alpayana

Peruvian Miner Pursues Full Acquisition of Canadian Base Metals Producer

Alpayana has increased its takeover bid for Sierra Metals, offering C$1.15 per share in an all-cash proposal to acquire 100% of the company. The Focus Keyphrase "Alpayana takeover bid" highlights growing consolidation moves in the Americas' base metals sector.

The latest bid follows the expiration of a previous C$1.11 offer on May 12, which Sierra deemed unfeasible due to unrealistic conditions. While Sierra has not endorsed or rejected the new offer, it cautioned shareholders that a change in control could strain liquidity, especially if loan obligations are triggered before the deal closes.

The acquisition would give Alpayana access to Sierra’s operating mines in Peru and Mexico, which produce copper, zinc, lead, and silver—assets increasingly valuable amid tightening global supply of critical base metals.

Sierra Posts Profit as Metal Prices Support Recovery

Sierra Metals posted a Q1 2025 net profit of $10.3 million, reversing a loss of $783,000 in the same period last year. The improvement was driven by higher revenue across copper, zinc, and lead operations, even as mining costs saw a marginal increase.

This financial turnaround may strengthen Sierra’s position in negotiating better terms or considering alternative strategic options. Investors are watching closely as Alpayana’s renewed bid coincides with Sierra’s improving fundamentals.

However, any acquisition deal could complicate Sierra’s financial structure, especially with potential early loan repayments tied to change-of-control clauses.

M&A Momentum Grows in Latin America’s Mining Sector

Alpayana’s renewed interest in Sierra Metals reflects growing M&A momentum across Latin American mining, particularly among mid-tier producers seeking scale, asset diversification, and operating synergies.

Sierra’s footprint in Peru and Mexico is seen as strategically valuable, offering exposure to multiple high-demand metals amid supply disruptions and global reindustrialization trends. Alpayana’s move could also signal rising confidence in commodity prices and future cash flow visibility.

The Metalnomist Commentary

The raised Alpayana takeover bid underscores a shifting dynamic in base metals, where mid-tier consolidation is gaining pace. Sierra’s recent earnings rebound complicates the acquisition calculus, highlighting how operational performance can influence deal-making leverage and shareholder sentiment.

Aurelia Metals Gains Approval to Triple Copper and Zinc Ore Processing in NSW

Aurelia Metals

Regulatory change enables increased throughput from Federation to Peak, positioning Aurelia Metals for base metal growth

New Permit to Expand Ore Haulage Capacity

Australian metals producer Aurelia Metals has received approval to triple ore processing capacity at its New South Wales operations. Authorities granted consent for the company to move up to 600,000 tonnes per year of ore from its Federation mine to the Peak processing center. This change removes a key bottleneck that had limited haulage to only 200,000 tonnes per year since mid-2024.

The Peak facility extracts zinc, copper, lead, and gold from mixed metal ores. The expanded permit supports Aurelia's ongoing ramp-up at Federation, enabling fuller utilization of its processing infrastructure.

Production Ramps Up Amid Mixed Industry Trends

Between October and December 2024, Aurelia processed 16,500 tonnes of Federation ore, yielding 55 tonnes of copper, 626 tonnes of lead, 1,263 tonnes of zinc, and 502 ounces of gold. The company now plans to increase throughput in 2025, bucking a broader trend of production slowdowns among Australian miners.

While Aurelia expands, other producers are retreating. IGO paused its Forrestania nickel project in late 2024 and announced the Nova mine closure by 2027. Globally, Glencore reduced copper output by 6% in 2024, citing declines in Chile and Peru, and unplanned disruptions in the DRC.

Market Context and Copper Price Volatility

Despite market headwinds, Aurelia’s move aligns with long-term optimism for base metals. The LME copper price has shown wide fluctuations, ranging between $8,620/t and $10,857/t over the past year. As of 27 March 2025, LME copper stood at $9,787/t, reflecting ongoing supply uncertainties and demand outlook tied to green energy investments.

The Metalnomist Commentary

Amid a global pullback in copper and nickel production, Aurelia’s expansion in New South Wales sends a signal of long-term resilience. Strategic processing upgrades—like the Federation-Peak scale-up—could prove vital as volatility defines the next phase of the metals cycle.

Yildirim Group Announces Major Restructuring, Launches CoreX Metals & Mining

Yildirim Group

New Beginnings for a Metals Giant

Turkey’s Yildirim Group, a significant player in the ferro-alloy industry, has embarked on a significant restructuring by splitting into two independent entities. The move follows the departure of Robert Yuksel Yildirim, who will now head CoreX Metals & Mining, a newly formed company under CoreX Holding BV, based in Amsterdam. This new company, solely owned by Yildirim, aims to intensify focus on the global metals and mining market, reflecting a strategic shift to expand and enhance its core business operations.

Implications for Existing Operations

As part of the restructuring, Eti Krom, a well-known ferro-chrome producer, will no longer be associated with CoreX Metals & Mining. However, other key assets including Vargon Alloys in Sweden, Tikhvin Ferroalloy in Russia, AlbChrome in Albania, Voskhod Chrome in Kazakhstan, American Chrome & Chemicals in the US, and Polymetcore Trading in Switzerland will fall under CoreX Metals & Mining’s umbrella. Polymetcore Trading is set to retain exclusive marketing rights for the products of these companies, ensuring continuity in sales and distribution channels.

Future Directions and Global Aspirations

This organizational change underscores Yildirim Group's commitment to leveraging its expertise and resources to make a more pronounced impact on the global stage. By concentrating on their core competencies in metals and mining, CoreX Metals & Mining is poised to achieve substantial growth and enhance its competitive edge in the international market.

China Expands Export Controls on Critical Minerals Amid Trade Tensions

China Critical Minerals

New Restrictions on Tungsten, Indium, and Other Critical Metals

China has intensified its trade strategies by imposing new export controls on additional critical minerals. This move is seen as a countermeasure against higher tariffs recently imposed by the United States. The newly restricted materials include various metals and compounds of tungsten, indium, tellurium, bismuth, and molybdenum. The export restrictions came into effect on February 4, as announced by China’s Ministry of Commerce.

Impact on Global Supply Chains

This expansion of export controls follows the introduction of similar measures in 2023-24, which included key materials such as gallium, germanium, graphite, and antimony. With the recent addition, the scope now covers more crucial metals used in various industries globally. According to industry estimates, China holds a dominant share of the global supply for metals like tungsten and bismuth. For instance, it is the world’s largest producer and exporter of tungsten, controlling nearly 80% of the global market. Similarly, China is responsible for 70-80% of the world's bismuth supply, which further underscores its influential role in the global supply chain.

The new export controls will allow China greater flexibility in deciding which countries can receive these critical minerals. Market participants have indicated that the export restrictions could drive up global prices, especially for tungsten and bismuth, due to China's near-monopoly on these materials. This is likely to cause disruptions for industries that rely heavily on these metals, from electronics to energy production.

Global Repercussions and Market Shifts

The broader implications of these controls may be felt across various sectors. As China continues to tighten its grip on critical mineral exports, consumers outside of China will face challenges in securing alternative sources of supply. However, some experts suggest that this move might spur increased investments in local production capabilities in non-China markets, as countries seek to reduce their dependence on Chinese supplies.

In the short term, global markets will likely experience higher prices for the affected minerals, particularly as exporters must follow a stringent verification process before shipping these critical materials. The procedural delays and uncertainty about permitted shipments will add to the volatility of the market.

Conclusion: Strategic Maneuver in Global Trade

China's latest export controls reflect a growing trend of resource nationalism, where nations leverage their dominance in critical industries to secure economic and political advantages. These measures come amidst heightened trade tensions, particularly with the United States, and are designed to protect China’s national security and economic interests. As the global demand for these minerals continues to rise, China’s role in the critical metals supply chain remains pivotal, making it essential for businesses worldwide to monitor these developments closely.

Shidai Ruixiang Launches LMFP Battery Material Plant in Gansu

Baiyin Nonferrous Group

China’s Shidai Ruixiang has launched a new LMFP battery material plant with a production capacity of 20,000 tonnes per year. Located in Baiyin city, Gansu province, this marks the first phase of what will become the world’s largest LMFP facility. Once complete, the site will scale to 100,000 t/yr in lithium ferro-manganese phosphate production for next-generation EV battery applications.

The LMFP battery material plant is operated by Shidai Ruixiang, a joint venture between Gansu Elephent Energy and Baiyin Nonferrous Group, a major Chinese state-owned metals producer. The full project will be developed in three phases, although details for the next stages remain undisclosed. This launch reinforces China’s dominant position in advanced battery cathode material (CAM) supply chains.

China Expands LMFP Footprint in Global EV Market

LMFP materials offer higher energy density and longer driving range than traditional LFP cathodes, while keeping manufacturing costs low. However, they have shorter life cycles and reduced charge-discharge capacity, making them more suitable for mid-range EVs or power tools. Despite this, China’s battery sector is accelerating investment in LMFP research and production.

Other major CAM players such as Hunan Yuneng and Ningbo Ronbay are also expanding LMFP production. Ronbay announced a dual LMFP and sodium-ion CAM plant in Xiantao, Hubei, while Yuneng is constructing a dedicated LMFP facility. These efforts position LMFP as a potential mainstream solution for future battery platforms balancing cost, safety, and range.

Strategic Role of State-Backed Metals Companies in CAM Expansion

The Shidai Ruixiang LMFP battery material plant highlights growing integration between state-backed metals enterprises and energy storage innovation. Baiyin Nonferrous brings decades of expertise in copper and zinc processing—critical metals for battery infrastructure—into the cathode materials space. The partnership reflects China's strategy to leverage existing industrial assets for clean tech scalability.

As battery chemistries diversify in response to cost and performance demands, China’s control over both upstream raw materials and downstream manufacturing provides a distinct competitive edge in the global energy transition economy.

The Metalnomist Commentary

The LMFP battery material plant in Gansu represents a strategic shift toward diversified CAM solutions for scalable EV deployment. As Chinese producers push LMFP into the mainstream, global automakers and battery buyers will need to weigh performance trade-offs against cost and availability.

ATI Sells Precision Rolled Strip Operations to Ulbrich to Refocus on Core Markets

ATI

ATI, a leading specialty alloys producer, has divested its precision rolled strip operations to Ulbrich Stainless Steels and Special Metals, a specialty metals manufacturer. This strategic move aligns with ATI's focus on its core markets in aerospace and defense, enabling the company to prioritize titanium, nickel, and alloyed products in its Specialty Rolled Products segment.

Details of the Divestment

ATI announced the sale of its facilities in New Bedford, Massachusetts, and Remscheid, Germany, to Connecticut-based Ulbrich. The New Bedford facility specializes in producing titanium strip, precision rolled strip, and cold-rolled stainless steel. Meanwhile, the Remscheid service center stocks high-temperature metals, including stainless steels, nickel-based alloys, and titanium.

While the financial terms of the deal remain undisclosed, the transaction is a pivotal part of ATI's streamlining efforts to cater to high-value industries such as aerospace and defense.

Strategic Shift Toward High-Performance Metals

This divestment underscores ATI's commitment to strengthening its portfolio in aerospace and defense by concentrating on advanced materials. By offloading precision rolled strip operations, ATI aims to enhance efficiency and focus on producing high-performance metals tailored to demanding applications.

Ulbrich, known for its expertise in precision metals, is expected to leverage the acquired facilities to expand its market reach and capabilities, particularly in stainless steel and high-temperature alloys.

This strategic realignment by ATI highlights an industry trend where companies streamline operations to bolster their standing in high-growth markets.

GEM Expands Critical Mineral Recycling to Strengthen China’s Supply Chain Independence

GEM

High-Purity Germanium and Tungsten Recycling to Double by 2027

Chinese battery materials producer GEM is expanding its critical mineral recycling capacity to support China’s supply chain independence. In its 2024 annual report, GEM announced significant investments in germanium recycling and high-purity refining, driven by Beijing’s resource localization strategy. The company aims to rapidly scale its recycling of gallium, indium, and scandium, all of which are subject to China’s recent export restrictions.

Strategic Metals and Battery Materials Drive Growth

GEM will also broaden recycling operations for minor metals such as molybdenum, tantalum, and niobium. These materials are essential for defense and electronics manufacturing. The company currently recycles over 20 metals from waste batteries, electronics, vehicles, and plastics across its eight Chinese plants and international sites in South Korea, South Africa, and Indonesia.

Doubling Output of Tungsten and Platinum Group Metals

To support industrial demand, GEM plans to double its output of tungsten powder and electronic metals to 20 tonnes by 2027. Tungsten’s high conductivity and melting point make it ideal for semiconductors and photovoltaic thin-film cells. In addition, GEM will build a demonstration plant for platinum, palladium, and rhodium refining, targeting similar output growth by 2027.

Core Battery Material Output Set for 46% Growth in 2025

The company expects a strong rise in core product output—nickel, ternary precursors, cobalt, cathode materials, and recycled batteries—with a projected 46% increase in 2025. From 2025 to 2027, the annual growth rate is forecast to moderate to 36%, still reflecting robust demand for EV and energy storage materials.

The Metalnomist Commentary

GEM’s expansion underscores China’s push for mineral sovereignty in a geopolitically constrained environment. By scaling critical mineral recycling, GEM reduces import dependence while reinforcing its leadership in the global circular economy for strategic metals.

IGO to Sell Forrestania Project While Retaining Nickel and Lithium Rights

IGO

IGO restructures Forrestania project with Medallion Metals acquisition deal

Australian critical minerals producer IGO plans to sell its Forrestania project to Medallion Metals while retaining key resource rights. The deal, expected to finalize by late 2025, gives Medallion 100% ownership of the Forrestania site. However, IGO will continue holding exclusive nickel and lithium rights for future exploration and mining at the location.

Medallion secures gold and copper rights with added royalty commitment

Medallion Metals announced the agreement today, confirming it will manage copper and gold operations at Forrestania. The company will pay IGO a 1.5% royalty on gold production and assume full site rehabilitation obligations. The non-binding deal, first negotiated in August 2024, is expected to become binding by this August. Forrestania’s gold and copper assets provide strong upside potential for Medallion’s growing metals portfolio.

IGO transitions amid low nickel prices and depleted ore reserves

IGO ceased nickel production at Forrestania in September 2024 due to falling nickel prices and ore depletion. The company shipped its last nickel concentrate in the December quarter, closing with a total of 7,571 tonnes produced for FY 2023–2024. Despite the sale, IGO’s decision to retain nickel and lithium rights at the Forrestania project underscores its long-term focus on strategic battery metals.

The Metalnomist Commentary

IGO’s decision to divest Forrestania’s base-metal operations while keeping nickel and lithium rights reflects a targeted pivot toward future-facing battery minerals. Medallion’s takeover aligns with rising interest in copper and gold amid global energy transitions and investor demand for diversified metals exposure.

Shyam Metalics Wagon Plant in West Bengal Targets 4,800 Annual Production Capacity

Shyam Metalics

Shyam Metalics wagon plant development advances with a state-of-the-art manufacturing facility planned for Kharagpur, West Bengal. The Indian metals producer's Shyam Metalics wagon plant will achieve 4,800 wagons annual production capacity through its step-down subsidiary Ramsarup Industries, representing a significant expansion into railway infrastructure manufacturing that aligns with government self-reliance initiatives.

Phased Development Strategy Ensures Operational Efficiency

Shyam Metalics wagon plant construction follows a strategic two-phase development approach targeting March 2026 operations commencement. Phase one establishes 2,400 wagons annual capacity, equivalent to approximately 8 wagons daily production throughput. Phase two doubles output to the full 4,800 wagons annually, providing scalable growth aligned with market demand evolution.

Meanwhile, the facility will manufacture diverse wagon types including flat, open, box, covered, tank, and specialized configurations. Company director Sheetij Agarwal emphasized the adoption of "Uni-Flow" manufacturing layout conforming to international standards for optimal production efficiency. This comprehensive product portfolio positions Shyam Metalics to serve varied railway transportation requirements across industrial sectors.

Strategic Alignment with National Infrastructure Initiatives

However, the wagon manufacturing venture represents more than industrial diversification for Shyam Metalics. The project forms a cornerstone of the company's defined five-year capital expenditure plan while directly supporting government "Make in India" and "Atmanirbhar Bharat" self-reliance initiatives. This alignment demonstrates Shyam Metalics' commitment to domestic infrastructure development and reduced import dependence.

Therefore, the West Bengal location provides strategic advantages including proximity to steel production centers and established transportation networks. Kharagpur's industrial infrastructure supports efficient raw material sourcing while facilitating finished product distribution across India's extensive railway network. The location choice reflects careful consideration of supply chain optimization and market access requirements.

Market Positioning in Growing Railway Sector

Furthermore, India's railway modernization efforts create substantial demand for advanced wagon technologies and increased freight capacity. The government's infrastructure investment priorities include railway expansion and rolling stock upgrades to support economic growth objectives. Shyam Metalics' entry into wagon manufacturing positions the company to capture these expanding market opportunities.

As a result, the facility reflects broader trends toward integrated metals companies expanding into value-added manufacturing segments. Shyam Metalics leverages its metallurgical expertise while diversifying revenue streams beyond traditional steel production. This vertical integration strategy enhances profitability while reducing dependence on commodity price volatility in base metals markets.

The Metalnomist Commentary

Shyam Metalics' wagon plant investment exemplifies how Indian metals companies strategically expand into infrastructure manufacturing to support national self-reliance objectives while diversifying beyond volatile commodity markets. The phased development approach and comprehensive product portfolio demonstrate sophisticated planning that positions the company advantageously within India's rapidly modernizing railway transportation sector.

Sumitomo Metal Mining to Build Japan’s First Nickel Matte Plant

Sumitomo Metal Mining

Sumitomo Metal Mining (SMM), Japan’s leading metals producer, has announced plans to construct a 24,000 t/yr nickel matte plant in Miyazaki prefecture. The facility, to be built at SMM’s subsidiary Hyuga Smelting, marks a significant step in Japan's efforts to secure a domestic supply of critical battery materials. Construction is set to begin in 2025, with commercial operations expected between April 2027 and March 2028.

Nickel Matte: A Critical Link in Battery Material Supply

Nickel matte, a key intermediate product derived from ferronickel, is crucial for producing electrolytic nickel and battery-grade nickel sulphate, both essential for the growing lithium-ion battery sector.

Until now, SMM has relied on imports from its overseas subsidiaries for nickel matte. The new facility will enable the company to source this material domestically from Hyuga Smelting, reducing supply chain risks and enhancing Japan's resource independence.

The project has also garnered strong government support. On December 13, the Ministry of Economy, Trade and Industry (Meti) certified the initiative under its strategic plan to ensure a stable supply of critical metals for battery production. Meti will subsidize the project with ¥13.2 billion ($85 million), covering nearly half of SMM’s total investment of ¥28 billion.

SMM’s Vision for Nickel Production

The nickel matte plant aligns with SMM’s broader strategy to boost its production capacity for nickel products, including electrolytic nickel and nickel sulphate. The company aims to achieve a total annual output of 150,000 t of nickel products by 2030, further solidifying its role in the global battery materials supply chain.

Strategic Implications

As global demand for electric vehicles (EVs) surges, securing domestic production of key battery materials has become critical for nations worldwide. By building its first nickel matte facility, SMM is positioning Japan as a competitive player in the high-stakes race for battery-grade metals. This move also underscores the increasing importance of nickel in achieving sustainable energy goals and advancing EV technology.

CAML Expands with Acquisition of Antler Copper Project via New World Deal

Central Asia Metals(CAML)

UK-Based Producer Enters US Market with Strategic Arizona Asset

Central Asia Metals (CAML) has acquired New World Resources for $119 million, marking a major expansion into the United States. The deal includes the Antler copper project in Arizona, which has been designated by U.S. officials as part of a critical minerals expedited permitting initiative. This strategic acquisition strengthens CAML’s copper portfolio and aligns with growing demand for domestically sourced critical minerals.

Antler Project Positioned for Fast-Tracked Development

The Antler copper project is expected to complete all permitting by Q1 2026 and start production in 2027. Once operational, the mine will deliver 16,400 tonnes of copper, 34,500 tonnes of zinc, and 3,600 tonnes of lead annually. CAML’s decision to acquire New World is largely driven by Antler’s inclusion in the U.S. critical minerals initiative, which accelerates the approval timeline for high-priority mining projects that support energy transition and national security objectives.

New World Resources

CAML Strengthens Global Base Metals Portfolio

CAML currently operates copper production in Kazakhstan, and zinc and lead operations in North Macedonia. In 2024, the company reported output of 13,439 tonnes of copper, 18,572 tonnes of zinc, and 26,617 tonnes of lead. With the Antler project, CAML enhances its geographic diversification and increases its exposure to U.S. base metals demand, while securing a project poised for regulatory and market tailwinds.

The Metalnomist Commentary

CAML’s acquisition of New World marks a pivotal step into the North American critical minerals arena. The Antler project offers both scale and regulatory momentum, positioning CAML to benefit from U.S. policy support and long-term metals demand.

Abaxx to Launch Lithium Futures Backed by Albemarle in 2025

Abaxx

Physically Deliverable Lithium Carbonate Contracts to Trade in Singapore, Rotterdam, and Baltimore

Albemarle Named Sole Approved Brand and Producer

Abaxx Technology, a Singapore-based financial software and market infrastructure company, will launch three regional physically deliverable lithium carbonate futures contracts in March 2025. Albemarle, a global leader in lithium production, will serve as the only approved brand and producer for these contracts.

Global Lithium Futures to Enhance Price Discovery and Transparency

Each contract is USD-denominated and operates on a Delivered at Place (DAP) basis. The contracts represent one metric tonne of lithium carbonate and allow for physical delivery at major international ports: Singapore, Rotterdam, and Baltimore. This setup will improve price transparency and facilitate efficient global lithium trade, especially as demand for battery metals continues to surge.

Albemarle US is listed as the approved producer, and Albemarle La Negra as the approved brand across all contracts. Trading will commence on March 7, 2025, giving market participants a new tool to manage lithium price risk amid fast-changing supply and demand dynamics.

Abaxx Expands Battery Metals Offering on Its Commodity Exchange

Abaxx Technology operates the Abaxx Commodity Exchange and Clearinghouse, which already offers a range of contracts in energy, environmental, and battery metals markets. With the addition of physically deliverable lithium futures, Abaxx is positioned to become a key platform for battery supply chain participants seeking robust hedging solutions.

Enduring Reliance Amid Sanctions: Europe’s Russian Titanium Dilemma

VSMPO Titanium

Introduction: A Supply Chain Unbroken in Wartime

Despite sweeping economic sanctions imposed by the West following Russia’s invasion of Ukraine in February 2022, one supply chain has proved remarkably resilient: Russian titanium sponge. Europe’s quandary over this advanced material—indispensable to aerospace, defense, and medical-device manufacturing—has only deepened.

Russia’s Command of Titanium

Russia ranks among the world’s largest titanium producers. VSMPO-AVISMA, the country’s flagship producer, accounts for 90% of Russia’s titanium output and exports to some 50 countries. The company is estimated to control up to 30% of the global titanium market and nearly half of aerospace-grade supply.

Russia’s dominance rests on abundant raw-material reserves and comparatively low energy costs. Because titanium smelting is energy-intensive, commercial viability depends on cheap power and gas—conditions Russia has historically met.

Airbus A380

Trade that Continues Despite Sanctions

On 7 March 2022, Boeing announced it would halt purchases of Russian titanium used in aircraft manufacturing. Rolls-Royce and Boeing subsequently suspended procurement from VSMPO-AVISMA indefinitely.

Europe, however, charted a different course. Airbus urged the European Union to keep Russian titanium outside future sanctions packages. As Airbus chief executive Guillaume Faury argued, titanium represents a small share of Russia’s total exports, so sanctions would inflict little pain on Moscow while dealing a heavy blow to Europe’s aerospace industry.

Today, Airbus still sources roughly half of its titanium from VSMPO-AVISMA. Boeing, by contrast, once relied on Russia for about one-third of its titanium but has since stopped buying Russian material.

The Limits—and Exceptions—of EU Sanctions

Notably, while the EU has restricted imports of Russian steel and coal, titanium has not been sanctioned. The metal remains a strategic material used in fuselages, turbine blades, satellites, and other critical systems.

Dependence on Russian metals endures in other segments as well. From March to June 2022, combined EU-US imports of Russian aluminum and nickel rose to $1.98 billion—more than 70% above the prior-year period.

Washington and Brussels have generally refrained from designating industrial metals as sanction targets. Europe continues to import large volumes of Russian natural gas, and Russia supplies about 40% of global palladium—vital for semiconductors—implicating everything from automobiles to smartphones.

CBAM

CBAM: A New Variable

The EU’s Carbon Border Adjustment Mechanism (CBAM), introduced in October 2023, adds another layer of complexity. CBAM initially covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and certain downstream products in steel and aluminum. After a transition phase through 2025, full implementation begins in 2026, imposing carbon costs on imports equivalent to those borne by EU producers.

While fertilizers, cement, hydrogen, and non-exported electricity may see limited near-term impact, aluminum stands out as a key target sector. Most exports to the EU beyond steel and aluminum are not yet covered, though the European Commission has signaled possible expansion to high-leakage categories such as organic chemicals and plastics.

Russia is structurally disadvantaged under CBAM. Steel production in Russia, Ukraine, and Türkiye tends to be more carbon-intensive, implying higher embedded-carbon costs at the border.

Ambiguities in Sanctions and Industry’s Dilemma

The United States placed VSMPO-AVISMA on its “military end-user” list, restricting access to advanced technologies, but stopped short of a direct ban on titanium sales—an acknowledgment of global industry’s reliance on the material.

Indeed, during the early stages of the war, VSMPO-AVISMA avoided sweeping US and European sanctions. Although Washington temporarily listed the company in December 2020, the measure was later rescinded.

Recent moves, however, suggest a tightening environment. In April 2024, a joint US-UK action prompted the CME and LME to prohibit trade in newly produced Russian aluminum, copper, and nickel dated after 13 April—an effort widely read as constraining Russia’s influence in metals markets.

Ukraine Titanium Mine

Ukraine: A Viable Alternative?

Against this backdrop, Ukraine has emerged as a potential alternative. Until 2020, the country supplied 90% of Russia’s ilmenite—the feedstock for titanium sponge. With that supply chain severed by war, Ukrainian resources could help challenge Russia’s dominance.

US companies have begun talks with Kyiv on a joint venture anchored by the Zaporizhzhia Titanium-Magnesium Plant (ZTMP). Such partnerships could forge a new titanium hub in Eastern Europe, strengthening Ukraine’s economic footing for decades.

The risks are significant. Ongoing conflict and occupation threaten both Donbas deposits and the ZTMP facilities, which remain exposed to shelling and sabotage.

Aviation’s Growth—and Its Dilemma

The aerospace-titanium market was valued at roughly $100 million in 2022 and is projected to grow at a CAGR exceeding 5% from 2023 to 2032—reflecting the rebound in air travel and a pipeline of commercial aircraft programs.

Despite supply-chain turbulence from war, energy constraints, and labor shortages, passenger traffic continues to recover, lifting titanium demand. In October 2022, Airbus announced plans to deliver more than one aircraft per week to India, persisting with expansion despite engine-supply challenges and domestic carrier capacity constraints—developments that further complicate titanium sourcing.

The Reality of Diversification

Boeing reportedly began diversifying away from Russian titanium after the 2014 annexation of Crimea. Airbus, by contrast, remains heavily reliant on Russian supply.

Globally, China produced around 100,000 t of titanium in 2013—twice the combined output of Russia and Japan at the time—making it the world’s largest producer. Japan ranked third, with Osaka Titanium Technologies standing as the world’s second-largest producer of titanium sponge.

The Metalnomist Commentary: An Unfinished Dilemma

Europe’s struggle over Russian titanium sponge epitomizes the knotty realities of modern supply chains. Between economic sanctions and security imperatives, between industrial competitiveness and moral principle, Europe has yet to find a definitive answer.

With CBAM’s full force arriving in 2026, higher carbon-cost pass-throughs on Russian metals seem likely, intensifying pressure to rewire supply. Yet, as Airbus’s position illustrates, displacing Russian titanium in the short term remains daunting.

The gap between industrial necessity and political sanction endures—witness VSMPO-AVISMA’s August 2025 statement that it stands ready to resume cooperation with Boeing. For now, Europe must navigate this dilemma with prudence: balancing sanction principles, industrial realities, and emergent environmental rules—while accelerating the use of recycled titanium wherever feasible.

Peru Mining Exports Rise in First Quarter 2025

Peru Mining

Strong Growth in Gold, Copper, and Other Metals

Peru’s mining exports increased significantly in the first quarter of 2025, reflecting strong global demand for metals. According to the energy and mines ministry (Minem), gold exports surged 52.4pc, while tin rose 46.5pc, zinc gained 33.8pc, silver expanded 31.2pc, and copper climbed 21.8pc. These metals remain essential for construction, electronics, and renewable energy technologies, supporting their robust global demand.

The value of exported mining products reached $13.7bn during the period, up 27.3pc from last year. Metallic mineral exports represented $13.5bn of the total, a 28.2pc year-on-year increase. Mining exports now account for 66pc of Peru’s overall export value, underscoring the sector’s dominance in the national economy.

Copper Production and Investment Outlook

Copper production in Peru is projected to reach 2.8mn t in 2025, up from 2.7mn t last year. The country’s copper exports primarily go to Italy, China, the US, and Brazil, highlighting its central role in global supply chains. Mining investment surpassed $1.4bn between January and April 2025, representing a 7.3pc increase, with a planned $4.8bn in investment for the full year.

Peru remains the world’s second-largest producer of zinc and molybdenum, the third-largest producer of copper and silver, and the fourth in tin and lead, according to Minem. These rankings confirm the country’s critical role in global mining markets and its growing importance as a reliable supplier for energy transition industries.

The Metalnomist Commentary

Peru’s robust mining export growth reinforces its role as a cornerstone of global metals supply chains. The combination of higher production and increased foreign demand positions Peru strongly, but reliance on global commodity cycles remains a key risk for sustained growth.

Andrada Tantalum Concentrate Output Doubles in 2024/25

Andrada Tantalum

Andrada Mining's tantalum concentrate production rose by 100% year-on-year, marking a major boost in Namibia’s critical mineral output.

Tantalum Production Surges on Reprocessing Gains

Namibia-based Andrada Mining doubled its tantalum concentrate output to 50.6 tonnes in its fiscal year ending 2024/25. Contained tantalum reached 5.4 tonnes, with recovery improving to 4.5% through the reprocessing of previously produced concentrate. The sharp increase signals Andrada’s maturing capacity in extracting strategic metals from its Uis mine operations.

Meanwhile, Andrada’s 12-month supply deal with AfriMet ended, and the company is now evaluating new long-term offtake agreements.

Lithium and Tin Projects Expand Global Reach

Andrada’s tin concentrate production increased modestly by 2.2% year-on-year, totaling 1,507 tonnes. In parallel, its pilot lithium facility produced 128 tonnes of petalite, expanding its footprint in battery-grade minerals. In February, the company shipped its first lithium bulk sample to Japan, marking progress in global qualification efforts.

Also in February, Andrada received clearance from the Namibian Competition Commission for a strategic lithium partnership with SQM. This deal enables joint development of the Ridge Asset, which contains lithium-rich pegmatites also bearing tin and tantalum.

The Metalnomist Commentary

Andrada’s evolution from a tin miner to a multi-mineral critical metals producer reflects Namibia’s rising role in global mineral diversification. Its push into lithium and tantalum, backed by partners like SQM, positions it well in the global clean energy supply chain.

Banchao Magnesium Builds New Magnesium Plant in Xinjiang’s Hami City

Magnesium

Expansion Targets 2026 Launch Amid Growing Regional Output

Xinjiang Banchao Magnesium has started building a new magnesium plant in Hami, a key resource hub in northwest China’s Xinjiang province. Construction began on 1 March and is scheduled for completion by the end of 2025, with production expected in 2026.

The facility is designed to produce 20,000 tonnes/year of magnesium metal and 30,000 tonnes/year of magnesium alloy. The project reflects rising demand for lightweight metals used in automotive, aerospace, and green energy applications.

Banchao Magnesium is a subsidiary of Xinjiang Banchao, active in coal and non-ferrous metals mining as well as solar and wind power generation.

Xinjiang’s Magnesium Output Rises Sharply in 2024

The new Hami plant adds to Banchao’s five existing facilities, which already produce 20,000 t/yr of magnesium metal, 1.2 million t/yr of carbon products, and 600,000 t/yr of coke.

According to the China Nonferrous Metals Industry Association (CNMA), China’s magnesium metal output reached 953,100 tonnes in 2024, marking a 16% year-on-year increase.

Xinjiang province alone produced 86,300 tonnes, up 26% year-on-year, thanks to its rich dolomite and coal reserves—essential inputs for magnesium smelting. Most of the region’s magnesium facilities are concentrated in Hami due to resource accessibility and industrial infrastructure.

Xinjiang Jinsheng Also Expands Magnesium Capacity

Another local producer, Xinjiang Jinsheng, is constructing phase two of its Hami plant, adding 35,000 t/yr of capacity. Construction started in April 2024, with production scheduled for 2026.

Jinsheng’s first-phase plant, operational since 2011, reached full utilization in 2024, producing 20,000 tonnes/year. This continued regional investment reinforces Xinjiang’s strategic position in China's magnesium supply chain.

As global industries seek lightweight, sustainable metals, Xinjiang’s magnesium sector is poised for further growth.

Lundin Mining Achieves Record Copper and Zinc Output in 2024, Plans Zinc Exit in 2025

Lundin Mining

Lundin Mining, a Canada-based base metals producer, announced record-breaking copper and zinc production in 2024. Despite these achievements, the company plans to cease zinc production in 2025 following the sale of key assets.

Lundin’s Copper and Zinc Production Hits New Highs

Lundin Mining boosted copper production by 17.2% year-over-year, reaching an all-time high of 369,067 metric tons (t) in 2024. The surge was largely driven by an increased stake in the Caserones mine in Chile, where Lundin expanded its ownership from 51% to 70%, adding approximately 24,000 t/yr of copper.

The company also reported record zinc production, climbing 3.5% to 191,704t. However, rehabilitation and development work at the Neves-Corvo mine in Portugal affected sequencing, leading Lundin to revise its 2024 zinc production guidance downward.

In contrast, nickel output plummeted by 54.4%, dropping to 7,486t from the Eagle East mine in the U.S..

Lundin to Exit Zinc Production and Focus on Copper

Lundin is set to exit the zinc market in 2025 with the sale of its Neves-Corvo and Zinkgruvan mines to Boliden, a leading Swedish metals company. The deal is expected to close by mid-2025, marking Lundin's full withdrawal from zinc operations.

Moving forward, Lundin’s 2025 copper production guidance is set between 303,000-330,000t, excluding contributions from Neves-Corvo and Zinkgruvan. Nickel output is projected at 8,000-11,000t, with production at Eagle East gradually tapering over the next three years.

The company plans to invest $40 million in in-mine and near-mine exploration this year, reinforcing its long-term copper growth strategy.

Conclusion

Lundin Mining’s record-breaking copper and zinc output underscores its operational strength. However, its strategic pivot away from zinc highlights a renewed focus on copper. With major investments in exploration and the Caserones mine expansion, Lundin aims to solidify its position in the global copper market.

Triple Flag Acquires Royalty on Tres Quebradas (3Q) Lithium Brine Project

Triple Flag

Canadian royalty firm Triple Flag Precious Metals has secured a 0.5% revenue royalty on the Tres Quebradas (3Q) lithium project in Catamarca, Argentina, for $28 million. This acquisition highlights the growing importance of securing lithium resources, driven by the surge in global demand for battery-grade materials.

The royalty agreement grants Triple Flag a share of the total revenue generated from the sale of lithium salts produced at the 3Q site. The seller, Lithium Royalty Corp, retains a 0.9% royalty on the project, maintaining its stake in the promising venture.

3Q Lithium Project Overview

The 3Q lithium project is fully owned and operated by Zijin Mining, a major Chinese precious metals producer. Currently under construction, the project is expected to begin operations in the second half of 2025, with an initial production capacity of 20,000 metric tonnes (t) per year of battery-grade lithium carbonate.

Zijin Mining acquired the 3Q project from Neo Lithium in 2022 for $770 million and has since expressed plans to expand its capacity to between 40,000-60,000 t/yr to meet rising global demand. The 3Q project employs a conventional brine extraction process involving evaporation and precipitation, with its process plant located in Fiambalá, Argentina. The project is fully permitted, positioning it as a reliable source of high-purity lithium carbonate for the EV and renewable energy industries.

Strategic Significance

The acquisition by Triple Flag underscores the increasing focus on royalty investments in critical minerals such as lithium, which are essential for electric vehicle (EV) batteries and renewable energy storage. This deal also highlights Argentina's growing prominence as a key player in the global lithium supply chain, alongside other major lithium-producing nations.

China's Rising Titanium Sponge Export and the Future of Aerospace Supply Chains

China's Titanium Sponge

A Surplus That Could Fill a Global Gap

With certified titanium sponge supplies projected to hit a deficit in the next four years, China’s output capabilities become increasingly relevant. While traditional producers like Japan, Saudi Arabia, and Kazakhstan near full capacity, major aerospace companies such as Airbus and Safran are considering alternatives to mitigate supply risks. China produced 218,000 tons of titanium sponge in 2023, marking the ninth consecutive year of production growth, largely due to domestic oversupply, according to the China Nonferrous Metals Industry Association.

However, introducing Chinese sponge to critical applications is no simple task. Certification timelines for standard quality (SQ) and premium quality (PQ) sponge can extend from three to over five years. The long lead time is essential for parts such as disks and blades in commercial aero engines, where safety standards demand rigorous checks for oxygen and nitrogen contamination. “China’s significant production capabilities are promising, but certification processes and qualification timelines are a major barrier,” said Marty Pike, vice president of global commercial strategy at U.S. metals producer ATI, at a recent titanium industry event in Texas.

Geopolitical Concerns and Legislative Guardrails

While Airbus has signaled openness to exploring Chinese titanium sponge, the decision ultimately lies with engine manufacturers. Other industry leaders, however, cite concerns over potential sanctions that may result from China’s involvement, given rising Asia-Pacific tensions. Any U.S. or EU industries reliant on Chinese titanium sponge could face supply chain vulnerabilities if diplomatic relations falter.

U.S. imports of Chinese titanium sponge are rising despite tariffs, driven by cost pressures. The average price for Chinese imports to the U.S. is notably lower than that from Japan, even after duties, offering an attractive price point. A recent bill, the Securing America’s Titanium Act, seeks to balance this by waiving the standard 15% tariff on titanium sponge but maintaining a 25% tariff on Chinese imports. The proposed legislation also aims to monitor foreign influence over the U.S. supply chain, underscoring the careful stance lawmakers are taking toward titanium imports.

EU and Future Outlook

Europe's titanium sponge import dynamics are less transparent due to limited reporting and autonomous tariff suspensions. Unlike the U.S., EU markets face no duty on imports, making it an attractive market for Chinese exporters. While the aerospace sector remains cautious, other industries such as medical and industrial may more readily accept Chinese sponge as they seek cost-effective solutions.

As the titanium market evolves, balancing supply demands, certification processes, and geopolitical risks will shape the future of titanium sponge in aerospace, with China poised as a powerful, if complex, player in the unfolding narrative.

Chinese Firms Intensify Investments in Cu-Co Mining in the Democratic Republic of Congo

In a strategic maneuver to secure a steady supply of crucial resources, Chinese enterprises are significantly amplifying their investments in the copper-cobalt reserves of the Democratic Republic of Congo (DRC). This initiative addresses China's limited cobalt resources and the enduringly strong copper market.

Leading the charge are prominent entities such as diversified metals producer CMOC, China Railways Resources, China Nonferrous Metal Mining, Norin Mining, Excellent Mining, and Huayou Cobalt. According to data compiled by Metalnomist, the DRC produced approximately 167,000 metric tons of cobalt feedstock in 2023, with Chinese mining companies contributing around 59% of this total output. Presently, Chinese investments account for over 62% of the DRC’s total cobalt reserves, a remarkable increase from roughly 25% in 2016. This proportion is anticipated to expand further following Norin Mining's acquisition of Dubai-based Chemaf Resources (CRL).

China’s dependency on imported cobalt, which constitutes nearly 99% of its primary feedstock, has propelled these extensive investments. The DRC remains the foremost supplier of cobalt feedstock to China, accounting for 84% of China's total imports in 2023, trailed by Indonesia (10%), Papua New Guinea (1.6%), and New Caledonia (1.5%).

This domestic resource shortfall has driven Chinese mining firms to intensify their investments in the DRC’s copper and cobalt assets over recent years. CMOC, a global titan in mining cobalt, copper, tungsten, molybdenum, and niobium with operations spanning China, the DRC, Australia, and Brazil, acquired a 56% stake in the Tenke Fungurume copper-cobalt mine (TFM) from US-based Freeport-McMoRan in 2016, later increasing its stake to 80% in 2017. Additionally, CMOC finalized its acquisition of the Kisanfu copper-cobalt mine (KFM) in December 2020.

With copper prices maintaining an upward trajectory since early this year, achieving new heights on the Shanghai Futures Exchange (SHFE) and London Metals Exchange (LME) in mid-May, mining firms have been further incentivized to augment their investments in the DRC’s copper-cobalt mines.

Norin Mining's acquisition of CRL, which controls two copper-cobalt mines in the DRC, underscores this trend. Norin Mining Kingco, a wholly-owned subsidiary of Norin Mining, has entered into a share purchase agreement with CRL’s parent company Chemaf to acquire all of Chemaf's shares in CRL. The financial details of the transaction remain undisclosed, yet CRL anticipates completing the deal in the fourth quarter of 2024.

Nevertheless, the state mining company Gecamines has expressed opposition to the sale of Chemaf Resources, potentially delaying the acquisition process. A source familiar with the matter noted, "The acquisition is expected to be delayed for a while because of Gecamines' opposition, but it will probably be resolved later without significantly impacting the acquisition."

Chemaf SA is progressing with the expansion of the Etoile mine (Etoile phase 2) to process mixed and sulphide ore, alongside developing a new Mutoshi mine. Both projects, in advanced stages of development, have the potential to collectively produce over 75,000 metric tons of copper and 20,000 metric tons of cobalt hydroxide annually. These new ventures are expected to commence production in 2025, post-acquisition.