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2024
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Trump's Nightmare: The Critical Resource Biden Couldn't Secure
The metal is not gold, silver, or uranium. It’s not the lithium used for EV batteries. It’s not the copper that is essential for electrification. It’s not even the rare earth elements that are crucial for everything from smartphones to wind turbines. This metal has a global annual production of less than 100,000 tons – a small fraction of the lead, copper, and iron produced every year. But it is a vital component in everything from armor-piercing bullets, nuclear weapons, explosive missiles to fire retardants in electronics and military uniforms. Most importantly, there are no viable alternatives at the moment. The metal we’re talking about is antimony, and its scarcity has Western governments rattled. But first, let’s zoom in on antimony demand, and prices, and why they are going through the roof right now. The Global Antimony Supply Squeeze The current crisis stems from China’s dominance in both global antimony production and refining. China, Russia, and Tajikistan control 85% of the world’s antimony supply. Antimony is not easy to extract and it’s often a by-product in the extraction of other metals like gold, silver, or copper. And China, which also currently controls 65% of global antimony refining capacity, has just imposed troubling new restrictions on its export. Because China controls most of the world’s antimony, when they cut supply Western military supply chains are directly impacted. According to a recent article published by the Center for Strategic and International Studies (CSIS) in Washington, D.C., the U.S. only has 20 days’ worth of antimony inventory. Germany has just 2 days’ worth of munitions supply. And geopolitical tensions in Ukraine, the Middle East, Afghanistan, and other places continue to aggravate the demand for antimony. So, antimony demand from defense is at record highs right now, and it’s only going to increase exponentially in the years to come. Washington's $1.8 Billion Antimony Push All these factors have together pushed antimony prices past $38,000 per ton – a 300% price increase in just the last 24 months. And this might just be the start! Understandably, political support for securing critical mineral supply chains across the globe is intensifying. Major economies like the U.S., Canada, the U.K., Japan, Australia, the European Union, and South Korea have all classified antimony as a “critical mineral.” And the U.S. government is keen on backing domestic antimony projects to reduce dependence on Chinese imports. As a part of that initiative, Perpetua Resources Corp., a mining company focused on developing gold-antimony deposits in the Stibnite district of Idaho, is securing a $1.8B loan from U.S. Export-Import Bank, along with an additional $60M from the Department of Defense. As a result, Perpetua’s stock has shot up over 400% since March this year. But this rapid surge is just one example of the antimony sector's explosive potential. Now, Military Metals Corp (CSE:MILI; OTCQB:MILIF), an under-the-radar company with premium assets in friendly NATO territory is positioning itself for even bigger success... Then there’s the Tienesgrund property, also in Slovakia, which covers 13.38 km² and encompasses 40-50 historical mining tunnels dating back to 1840. Historical Soviet-era work estimated 162t with an average grade of 7.7% antimony here, and the company expects to establish a resource within 12 months. Their West Gore property in Nova Scotia, which was one of Canada's largest antimony producers during World War I still holds significant unmined material. Historical ore extracts showed as high as 46% antimony content. Lastly, their Bear Creek property in Slovakia is a historical high-grade tin resource. The company got this project as a part of their Slovakia deal, but they’re thinking of divesting this to get money for their antimony projects. Key Factors Driving Military Metals Corp.’s Story At this critical point in the antimony market, Military Metals Corp. stands out for five key reasons...
To sum up, as global demand for antimony continues to rise and geopolitical tensions persist, securing stable supplies outside of China’s control remains a key challenge for Western nations. 8 bonus stocks to keep an eye on: Freeport-McMoRan Inc. (NYSE: FCX) Freeport-McMoRan Inc. based in Phoenix, Arizona, is one of the world's leading mining companies, with significant reserves of copper, gold, and molybdenum. The company's sizeable asset base includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, and significant mining operations in the Americas. With copper being a critical material in renewable energy and electric vehicle technologies, Freeport-McMoRan stands to benefit from the global push towards greener economies. Freeport-McMoRan is also actively involved in community engagement and environmental stewardship. The company has implemented various initiatives aimed at reducing its environmental footprint and promoting sustainable mining practices. These efforts include water management, biodiversity conservation, and emission reduction strategies. By focusing on responsible mining, Freeport-McMoRan is not only ensuring compliance with environmental standards but is also contributing to the broader goal of sustainable development in the regions it operates. Cleveland-Cliffs Inc. (NYSE:CLF) is a critical player in the U.S. defense industry, serving as North America's largest flat-rolled steel producer and a key supplier of iron ore pellets. The company provides essential materials used in the construction of military vehicles, ships, aircraft, and infrastructure, as well as in the manufacturing of critical components for weapons systems. This domestic production capability is vital for ensuring the stability and self-reliance of the U.S. defense industrial base. By sourcing steel domestically from companies like Cleveland-Cliffs, the U.S. reduces its dependence on foreign suppliers and mitigates potential supply chain vulnerabilities that could arise during times of conflict or geopolitical instability. Reliable access to high-quality steel from Cleveland-Cliffs ensures the uninterrupted production of essential defense equipment and strengthens the readiness of the U.S. military. Cleveland-Cliffs demonstrates a commitment to sustainable practices, including responsible mining and the utilization of renewable energy sources. This aligns with the increasing emphasis on environmental stewardship within the defense sector. By minimizing its environmental impact and promoting responsible resource management, Cleveland-Cliffs contributes to a more sustainable and resilient defense industrial base for the future. Southern Copper Corporation (NYSE: SCCO) is a leading integrated copper producer with extensive operations in Mexico and Peru. The company plays a significant role in supplying copper, a critical metal for the defense industry, utilized in the production of ammunition, electrical wiring, and electronic components for a wide array of military applications. Southern Copper's substantial production capacity and commitment to operational efficiency position it as a reliable partner in meeting the copper needs of the U.S. defense industry. A consistent and dependable supply of copper is essential for maintaining the production of critical defense equipment and ensuring the operational readiness of the U.S. military. Southern Copper's ability to meet this demand reinforces the stability and resilience of the defense supply chain. Beyond its operational capabilities, Southern Copper is dedicated to sustainable mining practices and community development. The company actively works to minimize its environmental footprint and engage with local communities, fostering responsible sourcing of this vital material. This commitment to ethical and sustainable practices enhances the integrity of the defense supply chain and contributes to responsible resource management. Cameco Corp (NYSE: CCJ) is a leading global provider of uranium fuel, a critical component for nuclear power generation and defense applications. With major operations in Canada and the United States, Cameco plays a vital role in ensuring a secure and reliable supply of uranium to support both civilian and defense needs. Cameco's uranium mining and processing activities are essential for maintaining the U.S. nuclear deterrent. The company's production contributes to the reliable operation of nuclear-powered aircraft carriers and submarines, vital components of U.S. national security and its ability to project power globally. A stable supply of uranium fuel is crucial for sustaining these capabilities and ensuring strategic readiness. Cameco adheres to stringent safety and environmental standards in its operations. This commitment to responsible mining practices minimizes environmental impact and contributes to the sustainable management of nuclear materials. By prioritizing safety and environmental stewardship, Cameco supports the long-term viability of the nuclear industry and its role in providing clean energy and national security. Teck Resources Limited (NYSE:TECK) is a prominent player in the global mining industry, headquartered in Vancouver, Canada. With a diversified portfolio of operations across Canada, the United States, Chile, and Peru, Teck is a leading producer of essential metals, including zinc and copper, as well as commodities such as coal, lead, and silver. The company's extensive mining and processing facilities contribute significantly to the global supply of these critical materials. Teck holds a strong position in the zinc market, ranking as the world's second-largest producer with an annual production capacity exceeding 800,000 tonnes. The company's zinc finds widespread application in various industries, including the production of galvanized steel, batteries, and chemicals. This production plays a vital role in supporting key sectors and driving economic growth. Moreover, Teck's operations are strategically significant in the context of the burgeoning demand for battery metals. Zinc is a crucial component in various battery types, including those used in electric vehicles. As such, Teck's zinc production is integral to meeting the growing needs of the electric vehicle market and other sectors reliant on battery technologies. This positions the company as a key contributor to the transition towards cleaner energy solutions and a more sustainable future. Rio Tinto (NYSE: RIO) is a leading global mining and metals company with a strong reputation for operational excellence and sustainable development. The UK-Australian multinational operates in approximately 35 countries, boasting a diverse portfolio of world-class assets across key commodities, including aluminum, copper, diamonds, coal, iron ore, and uranium. This diversified portfolio, coupled with strong market fundamentals, particularly in copper and iron ore, positions Rio Tinto as an attractive prospect for investors. Beyond its extensive mining operations, Rio Tinto is at the forefront of implementing innovative technologies and sustainable mining practices. The company actively invests in renewable energy and prioritizes the rehabilitation of mining sites, demonstrating a clear commitment to reducing its environmental impact. These efforts align with a growing global emphasis on responsible resource management and underscore Rio Tinto's dedication to environmental stewardship. Rio Tinto's proactive approach to corporate responsibility and sustainability is not merely an add-on, but an integral element of its business strategy. By embedding sustainable practices throughout its operations, the company aims to create long-term value for its stakeholders while minimizing its environmental footprint. This commitment sets a benchmark for the mining industry, demonstrating that operational efficiency and environmental responsibility can go hand-in-hand. BHP Group’s (NYSE:BHP) is a leading global resources company with a diverse portfolio of mining assets. The company's operations span several continents, including substantial iron ore mines in Australia's Pilbara region, which contribute significantly to global iron ore production. BHP also maintains copper, coal, and nickel operations in Australia, along with significant energy assets. In the Americas, BHP operates copper and iron ore mines in Chile, Peru, and Colombia, and coal operations in the United States. This global presence and diversified commodity portfolio enable BHP to meet the needs of a wide range of customers worldwide and contribute to the global supply of essential resources. BHP Group is deeply committed to responsible and sustainable operations. The company recognizes the crucial role it plays in environmental protection and has implemented numerous initiatives to minimize its environmental footprint. This includes ambitious targets to reduce greenhouse gas emissions and investments in technologies to improve water usage efficiency. BHP also prioritizes engagement with local communities to mitigate the social and environmental impacts of its operations. Its commitment to sustainability has earned recognition from various organizations, including the Dow Jones Sustainability Index, where BHP has consistently ranked as a global leader. BHP Group's focus on sustainability aligns with the increasing demand for ethically sourced and environmentally responsible products. By prioritizing sustainability, BHP positions itself as a leader in the mining industry, demonstrating its commitment to generating long-term value for its stakeholders. This dedication to sustainability serves as a key differentiator and provides a competitive advantage in an industry increasingly focused on environmental and social responsibility. Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with headquarters in Charlotte, North Carolina. The company operates across three main segments: Lithium, Bromine Specialties, and Catalysts. Albemarle holds the distinction of being the world's largest lithium producer, supplying a critical component for electric vehicle batteries. In addition to lithium, the company produces a range of specialty chemicals, including bromine, catalysts, and pharmaceuticals. Founded in 1887 as the Albemarle Paper Manufacturing Company, Albemarle originally focused on paper and pulp production. However, the company strategically diversified into other chemical sectors in the 1960s. A significant milestone occurred in 1994 when Albemarle merged with Ethyl Corporation, a specialty chemicals producer, leading to the formation of the present-day Albemarle Corporation. In recent years, Albemarle has capitalized on the growing demand for lithium-ion batteries, driven by the rise of electric vehicles and other battery-dependent technologies. The company has made substantial investments to expand its lithium production capacity. This includes a planned $500 million investment in a new lithium hydroxide plant in North Carolina, expected to be operational in 2025. Albemarle continues to explore opportunities to further expand its lithium business, including potential acquisitions, solidifying its position in this strategically important market. By. Michael Kern
Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com
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As U.S. President Biden nears the end of his term, there’s one little-known metal whose scarcity is keeping him up at night even today. And analysts warn that President-elect Donald Trump is likely to inherit this headache too. 